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REVERSING RUNAWAY INEQUALITY WORKBOOK

Jan 24, 2018

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Page 1: REVERSING RUNAWAY INEQUALITY WORKBOOK

REVERSING

Page 2: REVERSING RUNAWAY INEQUALITY WORKBOOK

Les Leopold, Executive Director at Labor Institute Charlie Albanetti, Communications Director at Citizen Action of NY Margarita Hernandez, Deputy Director - Political/Legislative at CWA District 1 NY Kris Raab, Research Analyst at CWA revised 8/17/2016

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TABLE OF CONTENTS INTRODUCTION   1  

TASK  .................................................................................................................................................  1  

ACTIVITY  1:  SOCIAL  MOVEMENTS,  SOCIAL  CHANGE   3  TASK  1:  TIMELINE  OF  SOCIAL  MOVEMENTS  ....................................................................................  3  

Timeline  of  (Some)  Important  American  Social  Movements  .......................................................  4  Unions  in  the  Public  and  Private  Sectors  ......................................................................................  5  

TASK  2:  WHAT  A  MOVEMENT  LOOKS  LIKE  ......................................................................................  6  New  Deal  Era  Victories  (1930’s)  ...................................................................................................  7  Civil  Rights  and  Great  Society  Era  (1960’s)  ..................................................................................  9  

ACTIVITY  2:  THE  POWELL  MEMO   13  TASK:  LEARNING  FROM  THE  POWELL  MEMO  ................................................................................  13  

The  Powell  Memo  ......................................................................................................................  14  Powell’s  Strategy:  Transform  Ideas  ...........................................................................................  15  Powell’s  Strategy:  Cultivate  Political  Power  ..............................................................................  16  

ACTIVITY  3:  INTRODUCTION  TO  THE  CEO-­‐TO-­‐WORKER  WAGE  GAP  AND  THE  WEALTH  GAP   19  TASK  1:  MEASURE  THE  WAGE  GAP  ................................................................................................  19  TASK  2:  AMERICANS  UNDERESTIMATE  THE  WAGE  GAP.  IS  THIS  AN  ORGANIZING  OPPORTUNITY?  .......................................................................................................................................................  20  

Top  100  CEOs  vs.  Average  Workers  ...........................................................................................  21  The  Wage  Gap  Has  Skyrocketed  ................................................................................................  22  Wage  Gap  Is  Much  Bigger  Than  We  Think  ................................................................................  23  What  Americans  Think  the  Pay  Gap  Should  Be  .........................................................................  24  

TASK  3A:  INCOME  VS.  WEALTH  .....................................................................................................  25  TASK  3B:  THE  WEALTH  GAP  BY  RACIAL  AND  ETHNIC  GROUP  ........................................................  26  

Differences  in  Home  Ownership  ................................................................................................  27  Differences  in  Wealth  by  Group  .................................................................................................  28  Effects  of  Education  on  Wealth  .................................................................................................  29  Rising  Wealth  Gap  by  Group  ......................................................................................................  30  Differences  in  Poverty  by  Group  ................................................................................................  31  

ACTIVITY  4:  THE  PRODUCTIVITY  AND  WAGE  GAP   33  TASK  1:  WHY  DID  WORKERS’  WAGES  AND  PRODUCTIVITY  SPLIT  APART?  ....................................  33  TASK  2:  UNDERSTANDING  FINANCIALIZATION  ..............................................................................  35  FINANCIAL  STRIP-­‐MINING  VIDEO,  SEGMENT  #1  ............................................................................  36  TASK  3:  CEO  STOCK  INCENTIVES  ....................................................................................................  43  FINANCIAL  STRIP-­‐MINING  VIDEO  SEGMENT  #2  .............................................................................  44  

 

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ACTIVITY  5:  HOW  DOES  FINANCIAL  STRIP-­‐MINING  AFFECT  US?   49  TASK  1:  HOW  DOES  FINANCIAL  STRIP-­‐MINING  AFFECT  YOU  PERSONALLY?  .................................  49  TASK  2:  HOW  DOES  FINANCIAL  STRIP-­‐MINING  AFFECT  OUR  WORKPLACES  &  COMMUNITIES?  ...  50  

U.S.  CEO-­‐to-­‐Worker  Wage  Gap  Dwarfs  Rest  of  the  World  ........................................................  51  Median  Wealth  in  the  U.S.  Is  Low  ..............................................................................................  52  U.S.  Has  2nd  Highest  Rate  of  Children  Living  in  Poverty  .............................................................  53  Half  of  Americans  Stay  in  the  Same  Economic  Class  as  Their  Parents  .......................................  54  Climate  Change  Hits  Hardest  for  the  Most  Vulnerable  ..............................................................  55  Highly  Consolidated  Assets  Make  Some  Banks  “Too  Big  to  Fail”  ...............................................  56  Student  Loan  Debt  .....................................................................................................................  57  Gender  Wage  Gap  .....................................................................................................................  58  

TASK  3:  FINANCIAL  STRIP-­‐MINING  VIDEO  SEGMENT  #3  ................................................................  59  

ACTIVITY  6:  INSTITUTIONAL  RACISM  HELPS  THE  1%  STAY  IN  POWER   63  TASK  1:  WHAT  IS  RACE?  .................................................................................................................  63  

The  Creation  of  Race  ..................................................................................................................  64  An  Example  of  “Race  Science”  Run  Wild  ....................................................................................  65  

TASK  2:  INSTITUTIONAL  RACISM  IN  U.S.  HISTORY  .........................................................................  67  Slaves,  Servants,  Laborers  Rebel  in  1675  ...................................................................................  68  Woodrow  Wilson  Re-­‐Segregates  the  Federal  Government  ........................................................  69  Railroad  Companies  &  Chinese  Laborers  ...................................................................................  70  Mexican  Migrants  Used  as  Disposable  Labor  by  U.S  Corporate  Agriculture  ..............................  71  

TASK  3:  LEGACIES  OF  INSTITUTIONAL  RACISM  ..............................................................................  72  TASK  4:  INSTITUTIONAL  RACISM  IN  THE  21ST  CENTURY  .................................................................  73  

Segregated  Housing  Reinforces  Inequity  ...................................................................................  74  Voter  Suppression  ......................................................................................................................  75  6  Million  People  Disenfranchised  ...............................................................................................  76  Disproportionate  Drug  Sentencing  ............................................................................................  77  Disparate  Effects  on  Health  .......................................................................................................  78  Schools  Are  as  Segregated  Now  as  in  1968  ...............................................................................  79  

ACTIVITY  7:  TAKING  ON  WALL  STREET  TO  REVERSE  RUNAWAY  INEQUALITY   81  TASK  ...............................................................................................................................................  81  

ACTIVITY  8:  TIME  FOR  ACTION!   83  

ACTIVITY  9:  NEXT  STEPS   85  TASK  1  ............................................................................................................................................  85  TASK  2  ............................................................................................................................................  85  TASK  3  ............................................................................................................................................  86  

APPENDIX:  TIMELINE  OF  (SOME)  IMPORTANT  AMERICAN  SOCIAL  MOVEMENTS   89  

 

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Introduction  

1

INTRODUCTION Task  

In your small groups, please read over the statement below and answer the question which follows it. Select one member of your group to take notes and report back to the larger group.

“Look, I earn a good living and have great benefits, especially when compared to non-union workers. I intend to keep them until I retire and I expect you to fight to preserve them. That’s what it means to be a union leader, isn’t it?

I don’t care what else you do but I expect you to preserve what we have. If you need to side with the company against environmentalists or other groups, so be it. If you need to take on regulations to help the company, so be it. Why are we even working with these other groups? It’s not our issues. We should be focusing on our contract.

My dues money allows you to get out of work to be an ‘activist’. So you better be active on my behalf.”

 How  would  you  respond  to  this  member?

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Activity  1  

3

ACTIVITY 1: SOCIAL MOVEMENTS, SOCIAL CHANGE Purpose    To gain a broader understanding of the impact of social movements in American history and how social change on a large scale is really possible.

Task  1:  Timeline  of  social  movements  

In your small groups, please make a list of all the social movements you can think of in American history. Just list whatever comes to mind—this isn’t a history test and there’s no need to look for more on the internet.

Write each movement (with a marker) on a sticky note your trainer will give you and place it on the timeline at the front of the room.

Social  movements  in  American  history:  

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

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Activity  1    

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Timeline  of  (Some)  Important  American  Social  Movements  While there have been important social movements throughout American history, this timeline highlights two eras in which there were many simultaneous movements that shared a common analysis: the 1930’s and the 1960’s-70s.

 

 

 

 

 

 

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Activity  1  

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Unions  in  the  Public  and  Private  Sectors  Percentage of Private Sector Workers in Unions 1930-2014

Percentage of Public Sector Workers in Unions 1930-2014

36.7% 35.7%

1930  

1933  

1939  

1945  

1953  

1962  

1970  

1974  

1978  

1982  

1986  

1990  

1994  

1998  

2002  

2006  

2010  

2014  

13.3%

35.7%

6.6%

1930  

1933  

1939  

1945  

1953  

1962  

1970  

1974  

1978  

1982  

1986  

1990  

1994  

1998  

2002  

2006  

2010  

2014  

▪ Private  sector  unionization  reached  its  peak  coming  out  of  the  radical  movements  of  the  1930’s.    

▪ As  the  level  of  overall  disruptive  political  activity  declined,  so  did  union  organizing.  

▪ Most  government  employees  were  prohibited  from  collective  bargaining  until  the  1960’s.    

▪ Public  sector  organizing  was  part  of  the  agitation  by  students,  workers,  consumers  in  the  1960’s  &  1970’s.  

▪ Unionization  has  remained  high  because  the  local,  state,  and  federal  governments  have,  for  the  most  part,  respected  workers’  rights.    

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Activity  1    

6  

Task  2:  What  a  movement  looks  like  

Social justice movements in the 1930’s and 1960’s gave rise to some of our biggest progressive victories, like the 8-hour day and the Voting Rights Act. Mass uprisings and disruptive and confrontational tactics brought profound change.

Movements happen when individuals get outside their issue silos and when organizations look beyond their day-to-day work.

Movements happen when regular people “rise up in anger and hope, defy the rules that ordinarily govern their lives, and, by doing so, disrupt the workings of the institutions in which they are enmeshed.” (Francis Fox Piven, Poor People’s Movements)

In your small group, please review pages 7-10 and answer the question below.

What  commonalities  do  you  see  between  the  tactics  of  the  1930’s  and  those  of  the  1960’s?  

Movements happen when regular people rise up and defy the rules that ordinarily govern their lives.

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Activity  1  

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New  Deal  Era  Victories  (1930’s)    

Victories  ▪ National Labor Relations Act (gave workers the right to organize our own

unions and act collectively)

▪ Social Security

▪ Unemployment insurance

▪ Child labor abolished

▪ 40-hour workweek

▪ Minimum wage

▪ Regulation of industries

▪ G.I. Bill

Campaigns  

The Bonus Army (May-July 1932) More than 20,000 unemployed WWI veterans and their families occupied Washington, D.C., demanding bonuses they had been promised for their service. The bonus had been delayed until 1945 and when the Great Depression hit many

veterans were desperate for relief.

After the Senate rejected a bill to pay the bonus, the local police attempted but failed to evict the veterans. President Hoover then ordered the U.S. army in, led by General MacArthur. The army burned down the camps, killing and injuring veterans and their families.

Four years later, WWI veterans were paid their wartime bonuses. The G.I. Bill to assist future veterans passed in 1944.

Great Rent Strike of the Bronx (1932) The Great Depression hit all workers, including middle-class tenants in the Bronx. Many of these tenants, mostly Eastern European Jews, couldn’t pay their rents. Activists from the Unemployed Council, a communist-led group, organized massive strikes at the three largest apartment buildings in Bronx Park East. The majority of the tenants agreed to withhold their rent and began picketing their

The Bonus Army built encampments with streets, a library, barber shops, and a post office.

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Activity  1    

8  

building to demand 15% rent reduction, repairs, an end to evictions, and recognition of the tenants committee as an official bargaining agent. With partial success, rent strikes spread across New York City.

Flint Sit-Down Strike (Dec. 1936-Feb. 1937) To force General Motors to bargain, UAW members occupied GM plants for 44 days. The strike began at 2 “mother plants” on which ¾ of production depended. Strikers barricaded entrances by welding unfinished Buick bodies in front of the doors.

Family members ran a huge strike kitchen and organized mass pickets to protect the strikers inside. The strike ended when workers were able to occupy another crucial plant by tricking GM into leaving it unguarded.

At least two years of preparation preceded the strike. Active chapters of various left-wing parties organized a League for Industrial Democracy which held regular meetings and lectures where workers could discuss their conditions and learn about politics and labor history.

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Activity  1  

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Civil  Rights  and  Great  Society  Era  (1960’s)    Victories  

▪ Civil Rights Act of 1964

▪ Voting Rights Act of 1965

▪ Medicare

▪ Medicaid

▪ Food Stamps

▪ Head Start

▪ Equal Pay Act

▪ Age Discrimination in Employment Act

Campaigns  

Free Speech Movement (1964-70) The Free Speech Movement (FSM) was a college campus phenomenon inspired first by the struggle for civil rights and later by opposition to the Vietnam War. The FSM began in 1964, when students at the University of California, Berkeley protested a ban on political activities by campus groups. They held huge rallies, occupied campus buildings, picketed, held teach-ins, and committed civil disobedience. Students also demanded their right to free speech and academic freedom. The FSM sparked an unprecedented wave of student activism and involvement.

Fighting Eviction (1968) Hundreds of Black homeowners were being evicted from their homes on the south side of Chicago after being defrauded by “contract sellers.” Following a successful mass payment strike organized by the Contract Buyers League (CBL) in response to steep payments on overvalued homes, many contract sellers agreed to convert “contract sells” to mortgages. But

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Activity  1    

10  

other brokers weren’t willing to compromise. Shortly after the strike started the brokers started to file eviction notices against the homeowners.

Right before Christmas 1968, one of the CBL activists found her belongings in her yard. Community activists took action, moving everything back and occupying the home. It was the first of hundreds anti-eviction actions. Hundreds of community activists ensured other families facing eviction could stay in their homes by preventing the sheriff’s department from entering and removing belongings. After several months, the mayor stepped in to negotiate a stop to the evictions while a court ruling was pending. Eventually, the homeowners won and set the stage for major housing reform in the 1970’s.

Destruction of Draft Cards (1968) Father Philip Berrigan, a Catholic priest, and three friends destroyed Selective Service records at the Baltimore Customs House to protest the Vietnam War. In another action, the “Catonsville Nine” set fire to hundreds of files related to potential draftees in Catonsville, MD. The Catonsville raid inspired others in to do the same in other cities. Other activists burned draft cards in public, including activists from Catholic Peace Fellowship.

Civil Rights Sit-Ins In 1960, four black college students staged a sit in at a “whites only” lunch counter in Greensboro, North Carolina. The students stayed until closing time, returning for the next five days, joined by hundreds of protesters, including students from other colleges and high school students. Many carpooled to and from the store to take sit-in shifts.

Sit-ins spread across the south. By August 1961, more than 70,000 people had participated in sit-ins. “Sit-ins at ‘whites only’ lunch counters inspired subsequent kneel-ins at segregated churches, sleep-ins at segregated motel lobbies, swim-ins at segregated pools, wade-ins at segregated beaches, read-ins at segregated libraries, play-ins at segregated parks and watch-ins at segregated movies.” (sitinmovement.org)

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Activity  1  

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SUMMARY 1. American history is loaded with examples of powerful social movements

that have achieved change.

2. These movements used defiant, often confrontational, tactics, including sit-ins, rent strikes, and occupations, which help advance victories for ordinary people.

3. The 1930’s and 1960’s-70s are two periods when there were many social movements operating at the same time, creating an enormous amount of turmoil and social change.

Key  takeaway: Today  we  have  multiple  movements  and  the  stirrings  of  social  disruption.  However,  our  organizations  and  our  issues  are  in  silos  and  we  won’t  be  powerful  again  until  we  break  out  of  them.  

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Activity  2  

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ACTIVITY 2: THE POWELL MEMO Purpose    To understand what powerful movements with a common analysis look like from the other side.

Task:  Learning  from  the  Powell  Memo  

In Activity 1, we looked at periods in our history when multiple movements operated at the same time and were able to achieve significant progressive victories. They were successful in large part because they shared a common analysis of corporate power and government responsibility, and they raised hell!

In the late 1960’s and early 1970’s, the politically powerful and the corporate elite in the U.S. were under attack. The economic system seemed to be threatened from all sides—student protests, civil rights rebellions, millions of workers on strike, growing consumer advocacy, environmentalism, etc. The attacks all were aimed at fighting corporate power, not just making gains on single issues.

In your groups, please review pages 14-16 and answer the questions below. They are designed to give us a better understanding of what it takes to build a powerful mass movement.

Please choose a different member of your group to take notes and report back.

1. What  problem  did  Lewis  Powell  see?  

 

 

 

 

2. What  solutions  did  Powell  propose?  

         

3. What  are  the  lessons  for  us  from  the  Powell  memo?    

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Activity  2    

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The  Powell  Memo  In 1971, Lewis Powell, a corporate lawyer (who later was appointed to the Supreme Court by President Nixon) wrote a manifesto to business leaders and the U.S. Chamber of Commerce to save American capitalism from destruction. This document became famous as “the Powell memo.”

The Problem The Powell memo was a call to arms for corporations. The “American economic system is under broad attack” like never before, it said. “We are not dealing with sporadic or isolated attacks from a relatively few extremists …. Rather, the assault on the enterprise system is broadly based and consistently pursued. It is gaining momentum and converts.”

▪ Violence against Wall Street. In the span of less than 2 years, branches of Bank of America were attacked 22 times with explosives and 17 times with fire bombs or by arsonists.

▪ Youth opinion. A poll of college students reported that almost half favored public ownership of basic industries.

▪ Ralph Nader, “the single most effective antagonist of American business” and “an idol of millions of Americans” was exposing dirty corporate secrets and helping thousands to become public interest organizers.

The Depth of the Threat Powell believed the survival of the entire free enterprise system was in doubt:

▪ “The overriding first need is for businessmen to recognize that the ultimate issue may be survival—survival of what we call the free enterprise system, and all that this means for the strength and prosperity of America and the freedom of our people.”

Corporate lawyer and future Supreme Court Justice Lewis Powell

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Activity  2  

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Powell’s  Strategy:  Transform  Ideas  Powell wasn’t interested in changing laws or regulations. The very ideas that the public had about business and the American economic system had to be reclaimed:

“Members of the intellectual community are waging ideological warfare against the enterprise system and the values of western society.”

The threat wasn’t confined to intellectuals:

“The most disquieting voices joining the chorus of criticism come from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals, the arts and sciences, and from politicians.”

He offered a sophisticated, long-term strategy to use these same institutions to counter the assault that included:

▪ Create think tanks of “eminent scholars, writers and speakers, who will do the thinking, the analysis, the writing and the speaking.”

▪ Publish a steady flow of articles for popular magazines and professional journals.

▪ Evaluate economics, political science, and sociology textbooks for college and high school and keep them “under constant surveillance.”

▪ Do the same for TV, radio, and the press.

In many ways, Fox News, with its claim to a “fair and balanced” approach to counter the “liberal” media, is the ultimate fulfillment of Powell’s strategy.

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Activity  2    

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Powell’s  Strategy:  Cultivate  Political  Power  

Go on the Attack and Punish Politicians Powell believed that labor and other “self-interest” groups were wielding the kind of political power that business must also exert, “without embarrassment and without the reluctance which has been so characteristic of American business.”

Instead,

“There should be no hesitation to attack the Naders, the Marcuses [a radical scholar] and others who openly seek destruction of the system. There should not be the slightest hesitation to press vigorously in all political arenas for support of the enterprise system. Nor should there be reluctance to penalize politically those who oppose it.”

Corporations Should Be in the Ideology Business “The day is long past when the chief executive officer of a major corporation discharges his responsibility by maintaining a satisfactory growth of profits ….. If our system is to survive, top management must be equally concerned with protecting and preserving the system itself.”

Corporations should appoint a high-level executive whose responsibility is “to counter—on the broadest front—the attack on the enterprise system.”

Corporations Must Get Out of Their Silos Powell stressed that corporations would need to act together. It didn’t matter whether a company drilled for oil, manufactured steel, or sold soap.

“[I]ndependent and uncoordinated activity by individual corporations . . . will not be sufficient. . . . Political power [is] available only through united action and national organizations.”

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Activity  2  

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SUMMARY 1. By the early 1970’s, anti-war protests, civil rights demonstrations, mass labor

strikes, Ralph Nader’s consumer actions, environmentalism, and other movements had created an anti-business climate.

2. Corporate lawyer Lewis Powell wanted business to defend the system by building a vast presence on college campuses and in the media and using political power aggressively.

3. He recognized this campaign could not be successful unless corporations broke out of their silos.

4. Today there are many movements but they are fractured from each other, often operating in separate silos. To build a powerful movement for economic and racial justice will require “silo busting.”

Key  takeaway:    We  must  not  only  break  down  the  silos  we’re  in,  but  also  build  a  new  identity.  We  have  to  become  more  than  just  a  labor  person  or  a  community  activist.  We  need  to  wear  the  hat  of  a  movement  builder.  

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Activity  3  

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ACTIVITY 3: INTRODUCTION TO THE CEO-TO-WORKER WAGE GAP AND THE WEALTH GAP Purpose    To understand how the wage gap between CEOs and the average worker has changed and how it might lead to important organizing opportunities. To understand the enormous wealth gap between Black, white, and Latino workers.

Task  1:  Measure  the  wage  gap  

In  your  groups,  please  answer  the  following  questions  and  report  back  on  #3  and  #6.  

1.   How  much  do  you  believe  a  CEO  of  a  large  company  receives  each  year  in  total  compensation?  

 ___________

2.   How  much  do  you  believe  an  average  worker  in  a  large  

company  receives?    ___________

3.  What  ratio  do  you  get  when  you  divide  the  CEO  estimate    by  the  worker  estimate?  

 ___________

4.   In  your  opinion,  what  should  a  CEO  of  a  large  company  receive  each  year  in  total  compensation?  

 ___________

5.  What  do  you  think  an  average  worker  should  receive  per  year?     ___________

6.  What  ratio  do  you  get  when  you  divide  the  CEO  estimate  by  the  worker  estimate?  

 ___________

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Activity  3    

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Task  2:  Americans  underestimate  the  wage  gap.  Is  this  an  organizing  opportunity?  

In your groups, please review the fact sheets on pages 21-24, then answer the question below. Please choose a new spokesperson for your group who will take notes and report back to the larger group.

1. In  your  opinion,  is  the  growing  wage  gap  between  CEOs  and  the  rest  of  us  an  important  issue?  Why  or  why  not?      

   

2. Of  the  fact  sheets  on  pages  21-­‐24,  which  one  do  you  think  would  be  most  important  to  share  with  your  co-­‐workers  and  community  members?    

Page  _____  

 

Title  of  fact  sheet  ___________________________________________  

 

Why  did  you  choose  this  fact  sheet?  

Read more about the wage gap in chapter 1 of Runaway Inequality, pp. 9-14.

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Top  100  CEOs  vs.  Average  Workers  

Wage Gap: Top 100 CEOs versus Average Workers

$30,750,000

*Average production or nonsupervisory worker, based on weekly wages, multiplied by 52 weeks.  

CEO   Avg.  worker*  

$38,134

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The  Wage  Gap  Has  Skyrocketed  The wage gap has skyrocketed since 1970, when a top CEO earned 45 times what an average worker made. Today, a top CEO makes 844 times more than the average worker!

Wage Gap Over Time: Top 100 CEOs versus Average* Workers 1970 compared with 2014

45

844

1970   2014  

*Average production or nonsupervisory worker, based on weekly wages, multiplied by 52 weeks.  

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Wage  Gap  Is  Much  Bigger  Than  We  Think  The general public has no idea how large the wage gap has become. We estimate the wage gap to be 36-to-1—lower even than it was more than 40 years ago—while we want it to be about 7-to-1.    

The Public Doesn’t Understand the Magnitude of the Wage Gap

Source: Opinion data from International Social Survey Programme: Social Inequality IV-ISSP 2009, zacat.gesis.org; author’s calculations based on data for 2013 from Equilar CEO compensation survey reported on in New York Times, June 8, 2014; average wages from Bureau of Labor Statistics, www.bls.gov/data#wages

Reality   What  we  think  it  is   What  we  want  it  to  be  

844 to 1

7 to 1

36 to 1

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What  Americans  Think  the  Pay  Gap  Should  Be    Another survey looked at how different parts of the population think about the wage gap. It found that people with different political ideas and different levels of education have similar ideas about what a fair pay gap would look like.

Americans Estimate What the CEO-to-Worker Pay Gap Should Be

All estimates are calculated for the median respondent—the midpoint in the array of responses. The ratios are calculated by creating a ratio of responses to survey questions that ask how much a chairman and an unskilled worker should earn. Source: Leibniz Institute for the Social Sciences, International Social Survey Programme: Social Inequality IV-ISSP 2009. zacat.gesis.org

Strong  Republican   Strong  Democrat   Less  than  High  School  Degree  

Graduate  degree  

12 to 1

5 to 1

12 to 1

5 to 1

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Task  3a:  Income  vs.  wealth    

So far we’ve talked about income, or what we earn. Now we’ll look at wealth, which is what we own—our assets—minus our debts. To make sure we understand the difference, together in the large group we will list examples of income and wealth.

Income is what we’re paid by other people.

Wealth is what we’re able to accumulate over time.

Wealth matters because it can:

▪ be passed on to future generations;

▪ be a financial cushion during hard times;

▪ pay for higher education;

▪ provide a financially secure retirement.

Examples  of  income

 

Examples  of  wealth

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Task  3b:  The  wealth  gap  by  racial  and  ethnic  group  

The fact sheets in the following pages look at the ethnic/racial wealth gap from a variety of perspectives.

In your groups, please review the fact sheets on pages 26-30 and then select one fact sheet that you think would be the most useful to share with others at your workplaces or in your communities to highlight this severe wealth gap.

Page  _______  

 

Title  of  fact  sheet  ___________________________________________  

 

Why  did  you  choose  this  fact  sheet?  

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Differences  in  Home  Ownership  For most of us, our primary asset is our home. If we have any wealth at all, it’s because we’ve bought a home at some point in our working lives and it has appreciated in value as we’ve paid down the mortgage. As we can see from this fact sheet, African-Americans, Asians, and Latinos are much less likely to own their homes than are whites.*

Home Ownership by Group

Source: U.S. Census Bureau, “Homeownership Rates by Race and Ethnicity of Householder: 1994-2012,” www.census.gov/housing/hvs/files/annual12/ann12t_22.xls

*Note: Throughout this workbook, where we show data by race or ethnicity, we have included all of the categories that are shown in the original data. In most cases, the original data breaks out only Latino, Black, and white.

73.5%

56.6%

43.9% 46.1%

White   Asian   Black   Laeno  

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Differences  in  Wealth  by  Group  Wealth is what we’re able to accumulate over time, usually as property and savings. Families who have some wealth are in a better position to withstand a bad economy, a period of unemployment, or a medical emergency. They may be able to pass something on to the next generation.

Household Median* Wealth by Group 2013

Source: www.pewresearch.org/fact-tank/2014/12/12racial-wealth-gaps-great-recession

The median is the middle of a group of numbers. Half of the responses are above the median, and half are below. In a group that’s very unequal, the median is a better description of reality than the average.

Take a group of 5 people. One person has $1,000,000 and each of the rest has $1. On average, each member of the group has about $200,000, which doesn’t tell us anything useful. The median member of the group has $1. Median is the best measure we have of a “typical” person.

$141,900

$11,000 $13,700

White   African  American   Hispanic  

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Effects  of  Education  on  Wealth  Even without finishing high school, whites on average have more wealth than African Americans or Latinos with college degrees.

Household Wealth by Education and Group 2013

Source: Federal Reserve Data calculated by Matt Bruenig, http://www.demos.org/blog/9/23/14/white-high-school-dropouts-have-more-wealth-black-and-hispanic-college-graduates

$51,300

$41,000

$25,900 Black College Graduate

Latino College Graduate

White High School Dropout

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Rising  Wealth  Gap  by  Group  The wealth gaps that we see between Latinos and whites and between Blacks and whites keep getting bigger, even in the last few years.

Rising Wealth Gap Between Whites and Latinos 2007-2013

Rising Wealth Gap Between Whites and Blacks 2007-2013

2007   2013  

10.3 to 1

8.2 to 1

2007   2013  

10 to 1

12.9 to 1

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Differences  in  Poverty  by  Group  The graph below shows that 27% of Black households and 24% of Hispanic households had incomes below the poverty line. (In 2013, that was $18,751 for a family with 2 adults and one child.) The percentage of white households in poverty was less than half of that.

Poverty by Group 2013

*According to the source data, “Other includes Asians, Native Hawaiians and Pacific Islanders, American Indians, Aleutians, Eskimos and persons of ‘Two or More Races’. These groups have been combined due to their small populations in many states which prevent meaningful statistical analyses of the groups individually.”

Source: kff.org/other/state-indicator/poverty-rate-by-raceethnicity/.

10%

27%

24%

14%

White   African  American   Hispanic   Other  

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SUMMARY 1. Economic inequality is growing, but most Americans have no idea how severe it

is. Americans will want to know how it got there, and what we can do about it.

2. Democratic and Republican voters alike want a much fairer wage gap.

3. Working people—Black, Latino, and white—are falling further and further behind as wealth increasingly accumulates in the hands of the few. But as always in American history, the hardest hit are those at the bottom.

4. If we are going to build a broad-based movement for economic justice, we also will have understand the enormous wealth gap among Black, white and Latino working people, and work diligently to close it.

   

Key  takeaway:     There  are  two  important  things  most  don’t  know:  how  big  the  wage  gap  is  and  how  big  the  wealth  gap  is  among  us.  

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ACTIVITY 4: THE PRODUCTIVITY AND WAGE GAP Purpose    To understand why wages and productivity stopped rising together.

Task  1:  Why  did  workers’  wages  and  productivity  split  apart?  

The chart below shows that a gap has developed between productivity and real wages. Productivity measures how much we produce in a given hour. In general, in a productive economy, we collectively have the knowledge, skill, technology, and organization to produce more each hour. Real wages is what we earn after taking inflation into account.

Real Wages vs. Productivity Increases

For generations, as productivity (top line) increased, so did real wages (bottom line). As we can see, from WWII until the mid-1970’s, productivity and wages were virtually inseparable. Average workers shared in the rewards of higher productivity.

In the mid-1970’s, something changed. Productivity kept going, but our wages didn’t. Today we produce two and a half times more goods and services per hour of labor than we did in 1947. Yet average wages have stalled since the mid-1970’s.

Had we continued to get our fair share of productivity gains, the average American worker’s wage* would have been $1,241 per week in 2014. That’s almost double the actual average wage of $687.*

*Average weekly wages for production and non-supervisory workers based on Bureau of Labor Statistics data. Wages measured after inflation in 2012 dollars.

If  wages  had  kept  up  with  productivity,  an  average  worker  would  be  making  $1,241  per  week.

Productivity

$469

$790 Real

wages $687

1947  1951  1955  1959  1963  1967  1971  1975  1979  1983  1987  1991  1995  1999  2003  2007  2011  

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Why  do  you  think  the  two  lines  pulled  apart?  Please  make  a  list  of  reasons.  

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Task  2:  Understanding  financialization    

In 2012, the International Labor Organization published a study on the causes of wage stagnation in 70 developed countries. The researchers found that the largest cause is something called “financialization.”

Financialization means that the more an economy is based on the financial industry (Wall Street), the bigger the gap between productivity and wages.

How does financialization work? That’s the subject of a video by Les Leopold, author of Runaway Inequality. We’ll watch a 10-minute segment of that video now.

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Financial  strip-­‐mining  video,  segment  #1  

How  big  is  the  pay  gap  between  a  top  100  CEO  and  the  average  worker?

Discussion  Question  1:

CEO-­‐to-­‐Worker  Pay  Gap  Soars

45  127  

321  

726  

844  

1970 1980 1990 2010 2014

AVERAGE CEO  PAY (TOP 100  FIRMS)  VS.  AVERAGE STARTING WORKER

Sources: CEO pay from “CEO Compensation Survey,” Forbes, April or May issues, 1971-2012; earnings for workers from Bureau of Labor Statistics.

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Wage  Gap:  Top  100  CEOs  vs.  Average  Worker(2014)

$38,134

CEO Avg.  worker

$30,750,000

Source: Labor Institute

Why  Have  Wages  &  Productivity  Stopped  Rising  Together?

Productivity

$469

$790Real  wages

$687

1947 1951 1955 1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011

REAL WAGES VS. PRODUCTIVITY INCREASES

Source: Economic Policy Institute

Discussion  Question  2:

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Financialization:  Primary  Cause  of  Wage  Stagnation  

10%

19%

25%

45%

Technology Globalization Cuts  in  Gov'tPrograms/Unions

Financialization

CAUSES OF WAGE STAGNATION

Source: International Labor Organization, Global Wage Report 2012-13

Wall  Street  Wages  Have  Soared

$30,488

Financial  sector

$105,785

$27,265

Non-­‐financial  sector

$60,488

1947 1957 1967 1977 1987 1997 2007

ANNUAL COMPENSATION IN FINANCIAL &  NON-­‐FINANCIAL SECTORS

In 2010 dollars. Sources: Data compiled by the author from Bureau of Economic Analysis, "National Income and Product Accounts Tables, Section 6--Income and Employment by Industry,” at www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1, accessed March 28, 2012; Average compensation of employees adjusted for inflation using the Bureau of Labor Statistics CPI Inflation Calculator at www.bls.gov/data/inflation_calculator.htm

approx.  $50,000

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Financialization and  the  Productivity  Gap

1947 1954 1961 1968 1975 1982 1989 1996 2003 2010

REAL WAGES VS. PRODUCTIVITY INCREASES

1947 1957 1967 1977 1987 1997 2007

FINANCIAL VS. NON-­‐FINANCIAL COMPENSATION

The  Better  Business  Climate

Profits  &  Investments

All  Boats  RiseRegulations

Gov’t  Social  Spending

Taxes

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How  does  so  much  wealth  end  up  on  Wall  Street  and  with  top  CEOs?

Discussion  Question  3:

Buy  Companies  Using  Borrowed  Money

§ After  finance  was  deregulated  around  1980,  corporate  raiders  bought  up  company  after  company  using  borrowed  money

STEP 1:

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41

Make  the  Target  Co.  Pay  Back  the  Loan

§The  corporate  raiders  take  some  of  the  loan  as  fees  and  special  dividends

§They  give  some  to  the  CEOs  and  bankers§Then  they  make  the  company  pay  it  all  back

STEP 2:

Pay  CEOs  with  Stock  Incentives

$1,943  

$2,915  

$8,647  $9,271  

1989-­‐1993 1994-­‐1998 1999-­‐2003 2004-­‐2008

RISE IN CEO  STOCK AND INCENTIVE PAY

STEP 3:

Yearly average in 2012 dollars

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How  the  Top  500  Executives  Are  Paid(2013)

5.2%

83.6%

Salary  and  bonuses Stock  payments

Source: Standard & Poor’s ExecuComp database, calculations by Matt Hopkins

If  you  are  the  CEO  and  you  are  paid  with  stock  incentives,  what  would  you  do?

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Task  3:  CEO  stock  incentives    

In your small groups, please answer the following question:

If  you  are  the  CEO  and  you  are  paid  with  stock  incentives,  what  would  you  do?  

We’ll now watch the next 6-minute segment of the video.

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44  

Financial  strip-­‐mining  video  segment  #2  

Use  Profits  to  Buy  Back  Stock  to  Raise  Its  Price  and  Your  Salary!

2%

34%

47%

75%

1981 1986 1991 1996 2001 2006

PERCENTAGE OF CORPORATE PROFITS USED TO BUY BACK STOCK

Source: Data made available by William Lazonick, The Academic-Industry Research Network

STEP 4:

Squeeze  the  Co.  to  Pay  Back  the  Loans  and  to  Buy  Back  Stock

§ Downsize  through  layoffs§ Ship  production  abroad  § Sell  off  product  lines  and  divisions§ Speed-­‐up  production§ Raid  pension  funds  or  discontinue  them§ Cut  wages  and  benefits§ From  “Retain  and  Reinvest”  to  “Downsize  and  Distribute”

STEP 5:

 

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Four  Methods  of  Financial  Strip  Mining  

§ Interest  payments  on  massive  debt§Fees  to  banks§Special  dividends  to  corporate  raiders§Stock  buybacks

Financialized  corporation  is  re-­‐designed  to  extract  wealth  for  financial  elites  &  CEOs

Bottom  Line:

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Outcomes  of  Financialization

§Average  real  wages  stagnate§Financial  and  CEO  incomes  skyrocket§Good  jobs  and  benefits  decline

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SUMMARY 1. Something big and powerful must have happened to so abruptly separate

average wages from productivity.

2. The biggest cause for stagnating wages is something called “financialization.” That means that the more an economy is based on the financial industry, the bigger the gap between productivity and wages.

3. Financialization means the financial strip-mining of our country�extraction of value from our workplaces by a combination of Wall Street hedge funds, private equity firms and CEOs.

Key  takeaway:     The  huge  change  in  our  economy  and  society  was  caused  by  financial  strip-­‐mining  by  Wall  Street  and  the  rest  of  the  1%.  The  only  way  to  stop  it―and  to  reverse  runaway  inequality—is  to  build  a  new  mass  movement  with  staying  power.  

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ACTIVITY 5: HOW DOES FINANCIAL STRIP-MINING AFFECT US?

Task  1:  How  does  financial  strip-­‐mining  affect  you  personally?  

In your groups, please make a list of the ways that financial strip-mining affects you personally.

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Task  2:  How  does  financial  strip-­‐mining  affect  our  workplaces  &  communities?    

Please review the information on pages 51-58. Then, in your groups, use those fact sheets and/or your own experience to answer the question below.

How  do  financial  strip-­‐mining  and  runaway  inequality  impact  our  workplaces  and  communities?  

 

 

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U.S.  CEO-­‐to-­‐Worker  Wage  Gap  Dwarfs  Rest  of  the  World  It’s shocking to learn that the CEO-to-worker pay gap in the U.S. is 844 to one. But when we look at it next to pay gaps in other countries, it’s almost unbelievable.

International Comparisons of CEO-to-Average Worker Wage Gap 2014

Source: Data from Sorapop Kiatpongsan and Michael I. Norton, “How Much (More) Should CEOs Make?” Perspectives on Psychological Science, Vol. 9 (2014); Runaway Inequality, p. 64, author’s research.

28 to 1

28 to 1

844 to 1

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$38,786 $40,346 $40,535 $41,367 $42,222

$45,451 $47,998

$53,292 $57,027

$60,953 $61,880 $63,000

$73,487 $79,371 $81,274 $81,610 $81,649

$87,137 $95,542 $95,685

$115,242 $115,245

$119,937 $123,710

$141,410 $153,967

$193,653

United States Kuwait Cyprus

Sweden Germany

Taiwan U.A.E. Spain Qatar

Ireland Netherlands

New Zealand Finland Norway France

Canada Austria

Switzerland Singapore

Iceland United Kingdom

Great Britain Belgium

Italy Japan

Luxembourg Australia

Median  Wealth  in  the  U.S.  Is  Low    American workers aren’t doing very well compared to workers in other countries. One astounding statistic is wealth. Remember, wealth is how much we own (house, car, bank accounts, stocks, etc.) minus what we owe (credit cards, loans, mortgages).

As the chart below shows, the median American (median is the best measure we have of a “typical” American) is even poorer than his or her equivalent in Greece. The median Australian is four times wealthier. The Canadians are twice as wealthy. After 30 years of runaway inequality in the U.S., we rank 26th among nations in median wealth.

Median Wealth by Country 2012

Source: Credit Suisse. See also Runaway Inequality, p. 65.

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U.S.  Has  2nd  Highest  Rate  of  Children  Living  in  Poverty  Nothing is more painful and inexcusable than children living in poverty. Among the 35 developed countries in the world, only one—Romania—has a higher rate of children living in poverty than the U.S. does.

Percent of Children Living in Relative Poverty 2012

Data is for children younger than 18 years old living in households at less than 50% of median income for the country. Source: UNICEF Innocenti Research Centre, Measuring Child Poverty, 2012, www.unicef-irc.org/publications/pdf/rc10_eng.pdf. See also Runaway Inequality, pp. 85-86.

23.1%

4.7%

0% 5% 10% 15% 20% 25% 30%

Romania U.S

Lativia Bulgaria

Spain Greece

Italy Lithuania

Japan Portugal

Poland Canada

Luxembourg UK

Estonia N. Zealand

Slovakia Australia Hungary Belgium

Malta France

Germany Ireland

Switzerland Czech Republic

Sweden Austria

Denmark Slovenia

Cyprus Netherlands

Norway Finland Iceland

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Half  of  Americans  Stay  in  the  Same  Economic  Class  as  Their  Parents    This graph shows that it’s harder to move up the class ladder in America than countries like Japan, Germany, Australia, and the Scandinavian nations. Contrary to the myth of the American Dream, not very many people who are born into a lower income household will be able to rise to middle class.

Odds You’ll Be Stuck in the Same Class as Your Parents

Source: Steve Hargreaves, “The Myth of the American Dream,” CNN Money, 12/9/2013, money.cnn.com/2013/12/09/news/economy/america-economic-mobility/

Not  likely    you’ll  be  stuck  in  the  same  class

Extremely  likely    you’ll  be  stuck  in  the  same  class

Denmark

Canada

Peru

Japan

France

Pakistan

U.S.

United Kingdom

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Climate  Change  Hits  Hardest  for  the  Most  Vulnerable  In this graph, we can see that levels of carbon dioxide started to increase sharply starting around 1980. But this is NOT to say that runaway inequality and financial strip-mining are to blame for global warming. We cannot place the entire blame for climate change on Wall Street. The rapid rise of CO2 emissions started after WWII, many years before the deregulation of finance.

What’s important here is that across the country and the world, the people most at risk from climate change are low-income and working people. Low-income people can’t afford to shield themselves from the floods and storms. Nor can they easily recover from the losses they suffer in catastrophes like Katrina or Sandy. They can’t afford to pay the high food prices that result from the worsening drought now gripping the western states. They can’t easily move somewhere else when the water dries up. Climate change only compounds runaway inequality.

Carbon Dioxide (CO2) in the Atmosphere 1851-2011 Source: NASA,data.giss.nasa.gov/modelforce/ghgases/Fig1A.ext.txt. See also Runaway Inequality, pp. 173-186.

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Highly  Consolidated  Assets  Make  Some  Banks  “Too  Big  to  Fail”    When the financial sector crashed the U.S. and world economy in 2008, we were told that taxpayers had to save banks that were so big that letting them fail would be (even more) disastrous. Six years later, bank assets are more concentrated, with the four largest banks owning just under 42% of bank assets.

The four largest banks today: JP Morgan Chase, Bank of America, Wells Fargo, and Citibank.

Percentage of Bank Assets Owned by Largest 4 Banks 1994-2014

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Student  Loan  Debt  Collectively, students owe $1.2 trillion in school loans.

Student Loan Debt 1975-2014 (in trillions of U.S. dollars)

Source: Federal Reserve, Statistical Release, “Financial Accounts of the United States, Historical Tables,” Table 222, various years, www.federalreserve.gov/releases/z1/current/annuals/a2005-2014.pdf; Runaway Inequality, p. 111.

$0.77

$0.83 $0.88

$0.93 $0.98

$1.04

$1.12

$1.20

1975-­‐79   1980-­‐84   1985-­‐89   1990-­‐94   1995-­‐99   2000-­‐04   2005-­‐09   2010-­‐14  

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Gender  Wage  Gap  Women continue to earn significantly less than men in similar jobs. In 1955, women earned 65 cents for every $1 men earned. Today, it’s 79 cents for every $1.

Gender Wage Gap 1955-2014

$0  

$10,000  

$20,000  

$30,000  

$40,000  

$50,000  

$60,000  

1955   1960   1965   1970   1975   1980   1985   1990   1995   2000   2005   2010   2014  

Men

Women

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Task  3:  Financial  strip-­‐mining  video  segment  #3    

We’ll now watch the next 6-minute segment of the video.  

Corporate  Debt  Explodes,  But  Interest  Is  Not  Taxable

$7.9

$0

$2

$4

$6

$8

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

CORPORATE DEBT IN TRILLIONS

Source: Federal Reserve Economic Data, FRB of St. Louis, research.stlouisfed.org/fred2; quarterly, end of period.

Corporate  Taxes  as  Percent  of  State  and  Local  Revenues  Declines

6.3%

5.6%

4.3%

4.7%

3.9%

4.7%

3.7%

3.8%

1980 1985 1990 1995 2000 2005 2010 2014

PERCENTAGE OF STATE &  LOCAL REVENUES FROM CORPORATE TAXES

Source: Bureau of Economic Affairs

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Off-­‐Shore  Tax  Shelters  Cost  Us  $150  B

§$150  billion  per  year  lost  in  off-­‐shore  tax  shelters,  aided  and  abetted  by  Wall  Street

Annual  Tax  Revenues  Lost  to  Tax  Havens  

Individual  and  Corporate  Income  Taxes  Combined

Rank State Revenue  Losses

1 California $7.1  billion

2 New  York $4.3  billion

3 New  Jersey $2.8 billion

4 Illinois $2.5 billion

5 Pennsylvania $2.1 billion

6 Minnesota $2.0  billion

7 Massachusetts $1.7  billion

8 North  Carolina $1.0  billion

9 Florida $  .98 billion

10 Maryland $  .97 billion

Rich  Pay  Taxes  at  a  Lower  Rate

10.9%

9.8%

9.4%

8.7%

7.6%

7.0%

5.4%

EFFECTIVE TAX RATE BY INCOME BRACKET (STATE &  LOCAL TAXES)

Source: Institute on Taxation and Economic Policy, whopays.org

Top  1%  of  taxpayers

Next  4%

Next  15%

Fourth  20%

Middle  20%

Second  20%

Lowest  20%

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Corporate  and  Financial  Elites  Pour  Money  Into  Politics

$54,106,668  

$71,138,498  

$343,517,137  

SUPER-­‐PAC  CONTRIBUTIONS,  2014

Source: Center for Responsive Politics

Corporations  /  Finance

Single  Issues

Labor

§ Michael  Froman  leads  charge  to  repeal  Glass-­‐Steagall§ Leaves  for  Citigroup  § Lobbies  against  regulating  Wall  Street§ Leaves  Citigroup  with  $4.5  million  bonus  § Obama’s  chief  trade  negotiator  § TPP  makes  it  harder  to  regulate  Wall  Street

Wall  Street  Revolving  Door  Makes  TPP  Work  for  Financial  Elites    

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SUMMARY 1. Because of runaway inequality, we are falling behind many other nations of

the world in terms of childhood poverty, health, education, and worker rights.

2. As financial strip-mining grows, so do the largest banks as more and more areas of our economy go deeply into debt.

3. The combination of rising tax-deductible debt and tax avoidance by the super-rich has reduced their contribution to the public sector, placing more of the burden on the rest of us.

4. This has led to a crisis of the public sector where there never seems to be enough money for vital services and public employees wages and benefits.

Key  takeaway:    While  the  super-­‐rich  dodge  taxes  and  corporations  pour  their  profits  into  running  up  stock  prices,  we  bear  the  burdens:  millions  of  children  in  poverty,  underfunded  schools,  infrastructure  in  desperate  need  of  repair,  impossible  levels  of  debt.    

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ACTIVITY 6: INSTITUTIONAL RACISM HELPS THE 1% STAY IN POWER Purpose  To understand how elites use racial division to maintain the political and economic structures that keep them in power.

Task  1:  What  is  race?    

Individuals, institutions, and social structures can discriminate based on race. In the tasks in this activity, we are concentrating on institutional/structural racial discrimination, not individual acts or attitudes.

Please read the fact sheets on pages 64-65. Then in your groups answer the following questions. Please choose a different group member to take notes and report back to the larger group.

 

Why  do  you  think  management  created  this  chart?  

 

 

 

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The  Creation  of  Race  To justify enslaving Africans and exterminating indigenous “American Indians,” plantation owners and other economic elites came up with the idea that skin color means biological inferiority—that Blacks and American Indians were subspecies that deserved to be enslaved or killed.

By creating a racial hierarchy, slaveholders and the rest of the 1% of their day protected their economic interests: workers and poor people were divided from one another by race.

“Race Science” In the late 1800’s, a pseudoscience developed around the idea that race determines how smart we are and what we are capable of doing. By 1920, the Federal government used “race science” to rank groups who could immigrate to the U.S. At the time, nationalities and religions like Italian and Jewish were also assumed to be biological races.

Management at some companies also used “race science” to carve up the workforce into who was qualified to do what. The fact sheet on the next page shows the result of one such effort.

 

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An  Example  of  “Race  Science”  Run  Wild  

Employment fact sheet of the Central Tube Company, Pittsburgh, 1925: “Racial Adaptability to Various Types of Plant Work” 1925

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Source: Image from Pittsburgh Urban League Archive, 1925. Reprinted in John Bodnar, Roger Simon, and Michael Weber, Lives of Their Own: Blacks, Italians, and 1900-1960 (University of Illinois Press, 1983)

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Task  2:  Institutional  racism  in  U.S.  history  

Economic elites have a long history of using race to divide workers who would otherwise cooperate to challenge the powerful. Please read the historical examples on pages 66-69 and then answer the question below in your small groups.

What  information  in  these  fact  sheets  is  new  to  you?  

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Slaves,  Servants,  Laborers  Rebel  in  1675    In the late 1600s, economic and social power in the Virginia colony was concentrated in the hands of a few planters. These elites refused to defend colonists’ land from attacks by indigenous people. One white property owner, Nathanial Bacon, decided to attack an indigenous village and stop the raids on the colony. He asked the planter elite for militia support, but they refused.

In response, Bacon

”managed to unite [Black] slaves, [Black and white] indentured servants and poor whites in a revolutionary effort to overthrow the planter elite. Although slaves clearly occupied the lowest positions in the social hierarchy and suffered the most under the plantation system, the condition of indentured whites was barely better, and the majority of free whites lived in extreme poverty…[Bacon] openly condemned the rich for their oppression of the poor and inspired alliance of white and black bond laborers, as well as slaves, who demanded an end to their servitude.”

The rebellion fought the colonial government for months, eventually burning down the capital building. While Bacon’s rebellion was eventually put down by reinforcements sent from England, the uprising was one of the first multiracial coalitions to combat the power of the ruling elite.

To prevent any future multiracial alliance against their interests, the planter elite and colonial authorities “abandoned their heavy reliance on indentured servants in favor of the importation of more black slaves.”

“Deliberately and strategically, the planter extended special privileges to poor whites in an effort to drive a wedge between them and black slaves. White settlers were allowed greater access to Native American lands, white servants were allowed to police slaves through slave patrols and militias, and barriers were created so that free labor would not be placed in competition with slave labor.”

This became know as the “racial bribe.”

“Poor whites suddenly had a direct, personal stake in the existence of a race-based system of slavery. Their own plight had not improved much, but at least they were not slaves.”

The threat of a future alliance between Black slaves and poor whites was effectively ended.

Source: Michelle Alexander The New Jim Crow: Mass Incarceration in the Age of Colorblindness, 2015.

The racial bribe: Give poor whites a direct stake in a race-based system

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Woodrow  Wilson  Re-­‐Segregates  the  Federal  Government  1913-1921 When Woodrow Wilson, an avowed racist, became president, he imposed complete racial segregation in Washington, firing and demoting Black managers and closing jobs to Blacks.

Civil service jobs provided rare opportunities for advancement, better pay, and security to African Americans. Wilson “believed in white supremacy as government policy” and “destroyed the careers of thousands of talented and accomplished black civil servants.”

One of these civil servants was John Davis, hired in 1882 as a laborer and rising to midlevel management. He supervised both white and black employees.

Once Wilson became president, Davis was demoted and then transferred from one department to another in a number of menial jobs.

His grandson recounts the toll it took on Davis:

“John Davis, a self-made black man of achievement and stature in his community at the turn of the 20th century, was, by the end of Wilson’s first term, a broken man.”

“What is most striking is his sense of humiliation; after all, he had spent his career in a time and place where, whatever was happening in the South, African-Americans were able to get ahead. And then, suddenly, with Wilson’s election, that all changed.”

Thousands of other Black men and women suffered the same fate. Just a few years after Wilson’s election, almost all Black managers had been demoted to menial jobs or fired.

Sources: Gordon Davis, “What Woodrow Wilson Cost My Grandfather,” New York Times, 11/24/2015, www.nytimes.com/2015/11/24/opinion/what-woodrow-wilson-cost-my-grandfather.html; Eric S. Yellin, Racism in the Nation’s Service, uncpress.unc.edu/books/T-8889.html; “The Rise and Fall of Jim Crow,” www.pbs.org/wnet/jimcrow/stories_events_segregation.html

Woodrow Wilson believed in white supremacy as

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Railroad  Companies  &  Chinese  Laborers  1860’s-1890’s

With the boom across the U.S. west, railroad companies like Central Pacific needed a huge amount of cheap labor. However, due to the hardship faced in building the transcontinental railroad, the company couldn’t keep workers for very long. After a wage dispute launched by Irish workers, the company focused its recruitment efforts on Chinese migrants. The Central Pacific Railroad recruited more than 12,000 Chinese laborers, mostly from the south of China.

The Chinese workers were paid less than white, usually Irish, workers ($27-30 per month versus $35 plus free board for Irish workers). Once the railroad was completed, the trains brought more workers west who displaced the Chinese. An anti-Chinese movement of laws and mob violence culminated in the Chinese Exclusion Act in 1882.

It was the first ban in the U.S. based on nationality. In 1924, the U.S. banned virtually all migrants from Asia; loopholes often allowed white people from those countries to migrate.

Sources: American Experience, “Transcontinental Railroad,” www.pbs.org/wgbh/americanexperience/features/general-article/tcrr-cprr/; “Modern Immigration Wave Brings 59 Million to U.S., Driving Population Growth and Change Through 2065,” www.pewhispanic.org/2015/09/28/chapter-1-the-nations-immigration-laws-1920-to-today/ September 28, 2015; Ancestors in the Americas,” www.pbs.org/ancestorsintheamericas/timeline.html; Larry Pletcher, It Happened in Massachusetts, Morris Books, 2009; Tomas Almaguer, Racial Fault Lines, University of California Press, 1994, 2009.

Bosses  Pitted  Chinese  Workers  Against  Other  Workers    

“Chinese  laborers  became  quite  useful  to  various  companies,  who  brought  them  into  several  regions  of  the  country  specifically  where  there  were  labor  troubles:  into  Louisiana  cotton  plantations  to  “discipline”  freed  blacks  [as  well  as  cotton  and  sugar  plantations  in  Mississippi  and  Arkansas];  into  Belleville,  New  Jersey,  laundries  to  counter  “uppity”  Irish  washerwomen;  into  a  North  Adams,  Massachusetts,  shoe  factory  to  break  a  strike;  and  into  the  coal  mines  at  Rock  Springs,  Wyoming,  to  counter  the  union  organizing  actions  of  the  Knights  of  Labor.”  

1870:  North  Adams,  Mass.  Union  workers  at  a  shoe  factory  struck  for  higher  pay  and  an  8-­‐hour  day.  Factory  owner  Calvin  Sampson  recruited  75  Chinese  workers  from  California  who  didn’t  know  they  were  brought  in  as  strikebreakers.  They  were  paid  half  of  what  union  workers  had  been  paid.  Wages  at  the  other  5  shoe  factories  in  the  town  decreased.  

1875:  Rock  Springs,  WY.  Union  Pacific  sends  Chinese  workers  to  its  company-­‐owned  coal  mines  to  quell  miners’  discontent  over  work  conditions.      

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Mexican  Migrants  Used  as  Disposable  Labor  by  U.S  Corporate  Agriculture  1940’s-1960’s ‘In this camp, we have no names. We are called only by numbers.’ -- Mexican Bracero guest worker, 1950’s (quoted in Strangers in Our Fields, Ernesto Galraza)

The Bracero Program gave temporary entry into the U.S. to millions of Mexican agricultural workers between 1942 and 1964. Agriculture companies claimed that World War II would create a labor shortage. Unions countered that the program was simply a way to get cheaper labor.

Guest workers’ contracts gave them rights such as minimum or prevailing wage; adequate, sanitary, and free housing; and the right to recoup lost wages. The reality was vastly different. Housing was substandard, growers deducted money for food, housing and other expenses, while workers could wait around for months between jobs. Workers were not even allowed to enter the U.S. before being sprayed with DDT, a toxic pesticide eventually banned in the U.S. in 1972.

Labor organizer Ernesto Galarza concluded that workers were lied to, cheated and “shamefully neglected.” The U.S. Department of Labor officer in charge of the program, Lee G. Williams, described the program as a system of “legalized slavery.”

Braceros were pitted against workers from the U.S.:

“The availability of braceros undermined the ability of U.S. workers to demand higher wages. During the 1950s, growers brought in braceros when their U.S. workers either went on strike or merely threatened to do so. In the late 1950s and early 1960’s, Cesar Chavez mounted farmworker protests over the program and later said that organizing the United Farm Workers would have been impossible had the bracero program not been abolished in 1964.”

Sources: Southern Poverty Law Center, “Close to Slavery: Guestworker Programs in the United States,” 2013, www.splcenter.org/20130218/close-slavery-guestworker-programs-united-states; Bracero History Archive, www.braceroarchive.org; National Museum of American History ,”Opportunity or Exploitation: The Bracero Program”, amhistory.si.edu/onthemove/themes/story_51_5.html; David Bacon, “Fast Track to the Past: Is a New Bracero Program in Our Future? (and what was life like under the old one),” Aug. 8, 2002, dbacon.igc.org/Imgrants/17FastPast.htm

Cesar Chavez said that it would have been impossible to organize the United Farm Workers if the Bracero

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Task  3:  Legacies  of  Institutional  racism  

We’ll now watch a portion of an interview of Michelle Alexander, author of The New Jim Crow: Mass Incarceration in the Age of Colorblindness.

MSNBC, April 5, 2016

After we watch the video, please discuss the following question in your small groups:

What  did  you  get  out  of  the  video?  

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Task  4:  Institutional  racism  in  the  21st  century  

In your small groups, please read the fact sheets on pages 73-78, then answer the question below.

How  does  institutional  racism  contribute  to  runaway  inequality?  

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Segregated  Housing  Reinforces  Inequity  Researchers have quantified some of the economic impact of growing up in a poor neighborhood. One long-term study compared children whose families were relocated from Chicago public housing with children whose families remained in the area.

Children from the relocated families went on to earn 16% more than those who grew up in public housing. They were 9% more likely to be employed. Over all, being kicked out of public housing might add about $45,000 to each child’s lifetime earnings. The effects may be even larger for those who moved while they were young.

Segregated, Under-resourced Neighborhoods Are No Accident Like everything else about runaway inequality, the fact that a huge proportion of housing is segregated by both race/ethnicity and income is no accident.

In fact, federal policy was a major force in creating it. The Federal Housing Authority, established during the New Deal to help working people become homeowners, financed homes for millions of white families in the suburbs at the expense of “inner cities.”

Federal Policy Overtly Discriminated Against Non-whites The FHA helped more than 11 million families to buy homes in the suburbs from 1934-1975. The agency issued virtually no mortgages in the growing suburbs to anyone who wasn’t white, even when they qualified. The net result: almost all-Black and Latino urban ghettos and almost all-white suburbs.

The FHA further reinforced the racial segregation of neighborhoods through policies like:

▪ red-lining (making minority neighborhoods were ineligible for mortgages);

▪ “advising” developers and builders to draw up restrictive covenants which prohibited non-whites from buying homes in various neighborhoods.

Jobs Followed Housing to the White Suburbs Between 1954 and 1965, greater than half of the new businesses, stores, schools and hospitals were built outside the central cities. The new jobs that came with this boom were far from the central cities where so many African-Americans and Latinos were segregated.

Source: Justin Wolfers, “Growing Up in a Bad Neighborhood Does More Harm Than We Thought,” New York Times, 3/25/2016, www.nytimes.com/2016/03/27/upshot/growing-up-in-a-bad-neighborhood-does-more-harm-than-we-thought.html, citing Ed Chyn, “Moved to Opportunity,” 3/27/2016,

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Voter  Suppression  

Changing voting times and places. Since 2011, eight states have curtailed early voting.

“Republicans in Ohio and Wisconsin… pushed through measures limiting the time polls are open, in particular cutting into weekend voting favored by low-income voters and blacks, who sometimes caravan from churches to polls on the Sunday before election.”

Voter ID laws Republican governors in 22 states have passed laws to require higher levels of voter identification in order to vote. Studies show that those efforts disproportionately impact African American and Latino voters who tend to vote for Democrats. In no states have Democrats passed such laws.

Pennsylvania Republican House Leader Mike Turzai admitted the real goal of voter I.D. during the race between President Obama and Mitt Romney in 2013: “We are focused on making sure that we meet our obligations that we’ve talked about for years….Voter ID, which is gonna allow Governor Romney to win the state of Pennsylvania, done.”

Gerrymandering election maps “Packing” most minority voters into one district or “cracking” slicing minority communities into multiple districts, each of which is majority white.

Sources: Steven Yaccino and Lizette Alvarez, “New G.O.P. Bid to Limit Voting in Swing States,” New York Times, 3/29/2014, www.nytimes.com/2014/03/30/us/new-gop-bid-to-limit-voting-in-swing-states.html; www.brennancenter.org/analysis/why-it-so-hard-vote-america, www.nytimes.com/2015/07/29/magazine/voting-rights-act-dream-undone.html?_r=0

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6  Million  People  Disenfranchised    Forty-eight states and the District of Columbia restrict felons’ right to vote. Currently, there are currently almost six million people who have served their sentences and are disenfranchised. These laws date back to the late 1800’s and early 1900’s “when Southern lawmakers were working feverishly to neutralize the black electorate.”

”Poll taxes, literacy tests, grandfather clauses and cross burnings were effective weapons in this campaign. But statutes that allowed correctional systems to arbitrarily and permanently strip large numbers of people of the right to vote were a particularly potent tool in the campaign to undercut African-American political power.”

State felony bans:

“exploded in number during the late 1860s and 1870s, particularly in the wake of the Fifteenth Amendment, which ostensibly guaranteed black Americans the right to vote.”

A study also “found that the larger the state’s black population, the more likely the state was to pass the most stringent laws that permanently denied people convicted of crimes the right to vote.”

“The white supremacists who championed such measures were very clear on their reasons. …[V]oting laws needed to be amended, lest whites be swept away at the polls by the black vote.”

Sources: The Sentencing Project; Brent Staples, “The Racist Origins of Felon Disenfranchisement,” New York Times,

11/18/2014, ; Angela Behrens, Christopher Uggen, and Jeff Manza.’Ballot Manipulation and the “Menace of Negro Domination”: Racial Threat and Felon Disenfranchisement in the United States, 1850-2000.’ American Journal of Sociology 109 (2003): 559-605.

Voting Rights Restored to 200,000

In 2016, Governor Terry McAuliffe of Virginia ended a lifetime felony ban and restored voting rights to more than 200,000 people. McAuliffe acknowledged the direct tie of felony disenfranchisement to Virginia’s racist history. “There’s no question that we’ve had a horrible history in voting rights as relates to African Americans—we should remedy it.”

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Disproportionate  Drug  Sentencing  White people use drugs at higher rates than African Americans or Latinos. Yet, blacks are arrested for drug possession more than three times as often as whites.

▪ Nearly 20 percent of whites have used cocaine, compared with 10 percent of blacks and Latinos

▪ African Americans and Latinos are disproportionately represented in the prison population.

▪ One reason was the hundredfold difference in sentencing between crack cocaine (used more by minorities) and powdered cocaine (used more by whites). A 5-year mandatory sentence was given for 500 grams of powered cocaine�or for 5 grams of crack cocaine.

▪ In 2010, the Fair Sentencing Act shrank the difference from 100:1 to 18:1.

A Human Rights Watch report, also offered a broader explanation for this discrepancy.

“The race issue isn’t just that the judge is going, ‘Oh, black man, I’m gonna sentence you higher,’“ she said. “The police go into low-income minority neighborhoods and that’s where they make most of their drug arrests. If they arrest you, now you have a ‘prior,’ so if you plead or get arrested again, you’re gonna have a higher sentence. There’s a kind of cumulative effect.”

The consequences have impacts long after someone has served their sentence:

▪ Students who have been convicted of drug possession are barred from receiving federal financial aid and substantial education tax credits.

▪ Public housing assistance can be denied to anyone who has been convicted of a felony drug offense.

▪ Employers often require applicants to disclose their criminal histories, despite a growing nationwide movement to ban that practice.

Sources: Human Rights Watch, 2009; Survey from the Substance Abuse and Mental Health Services Administration, 2011 (most recent data available); www.huffingtonpost.com/2013/09/17/racial-disparity-drug-use_n_3941346.html

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Disparate  Effects  on  Health    ‘

Latino Health Disparities (Compared to Non-Hispanic Whites)

African American Health Disparities (Compared to Non-Hispanic Whites)

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Schools  are  as  Segregated  Now  as  in  1968  We have lost much�in some places all�of the progress in school desegregation made from the mid-1960’s to the late 1980’s.

Percentage of Black Students in Majority White Schools

Just as was true before Brown v. Board, today’s separate schools are deeply unequal:

▪ Many students of color experience “double segregation” by race and income.

▪ Three-quarters of schools that have mostly Black and Latino students* have poverty rates above 70%. *Black and Latino students make up more than 80% of the school.

Source: Civil Rights Project/Proyecto Derechos Civiles, Brown at 60: Great Progress, a Long Retreat and an Uncertain Future, May 2014, civilrightsproject.ucla.edu/research/k-12-education/integration-and-diversity/brown-at-60-great-progress-a-long-retreat-and-an-uncertain-future

0.1% 2.3%

13.9%

23.4%

37.6%

43.5%

23.2%

1954 1960 1964 1967 1968 1970 1972 1976 1980 1986 1988 1991 1994 1996 1998 2000 2001 2006 2011

1964  Civil  Rights  Act

1954  Brown  v.  Board

1968 2011

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SUMMARY 1. Race is not biological. It’s a social concept.

2. From the earliest days of the colonies, American elites saw that they could use racial hierarchy to divide and conquer workers.

3. The “racial bribe” gave poor whites an incentive to support slavery of Blacks.

4. Institutional racism is alive and well and can be seen in voting, education, housing, criminal justice, and other areas.

5. For us to build a mass movement across race and class (and other identities) we need to break the racial silos that have been created and recreated over the past five hundred years.

Key  takeaway: Institutional  racism  divides  working  people  based  on  color  /  ethnicity  /  nationality  /  religion  for  the  advantage  of  financial  elites.  It  promotes  runaway  inequality.  

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Activity  7  

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ACTIVITY 7: TAKING ON WALL STREET TO REVERSE RUNAWAY INEQUALITY Task  

In your small groups, read the passage below, then follow the instructions on the next page.

We are at a rare moment in U.S. history. Challenges to the status quo are coming from all sides, from Occupy Wall Street and the Fight for $15 campaign; from proposals to close huge loopholes for hedge fund billionaires and stop rigging the system; from Black Lives Matter and resistance to mass deportations. Millions of Americans are coming to recognize that runaway inequality is at the root of so much that has become intolerable.

At the same time that these rumblings of social disruption are getting louder, millions of people have responded to Bernie Sanders’ direct challenge to Wall Street’s power. Regardless of how close Sanders gets to a presidential nomination and regardless of any individual’s support of Sanders himself, the response to his campaign shows that millions of Americans are awake and ready to take on Wall Street. People are waiting for something defiant.

What would the world look like if we were able to reverse runaway inequality? How is your vision different from the world we live in today?

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Activity  7  

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1. Your  trainers  will  give  each  group  a  piece  of  easel  paper  and  some  markers.  Please  make  a  map  or  drawing  of  what  your  community  might  be  like  in  a  world  without  runaway  inequality.  

Each  group  will  bring  its  drawing  to  the  front  of  the  room  and  describe  their  vision.  

 

 

 

 

2. What  is  your  role  as  a  movement  builder  in  creating  this  future?      

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ACTIVITY 8: TIME FOR ACTION! We get none of this unless we take on Wall Street.

Meaningful social change requires a mass movement, as we have learned from looking at the history of the 1930’s and 1960’s. But those movements didn’t start with thousands of folks in the streets right away. It started in rooms like this one all over the country, regular working-class people coming together to educate their co-workers and neighbors and demand action.

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Activity  9  

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ACTIVITY 9: NEXT STEPS Task  1  

In your small groups, make a list of every place you can think of where you can share information about financial strip-mining.

Task  2  

Your trainers will give you copies of of the fact sheets from Activity 3 and one from Activity 4. Please choose one fact sheet that you will share with your co-workers.

1. Top 100 CEOs vs. Average Workers 2. Wage Gap More and More Extreme 3. Wage Gap Is Much Bigger than We Think 4. Real Wages versus Productivity Increases

 

Which  fact  sheet  will  you  show  to  your  co-­‐workers?  

Why  did  you  choose  that  fact  sheet?  

 

 

 

 

 

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Task  3  

In order to really take on Wall Street, we need thousands of people like you mobilizing for action. You will be the best organizers to educate and mobilize your co-workers and members of your community.

Fill out the commitment sheet that your trainers will pass out and then hand it back in.

Your trainers will give you an action tool kit to take back to your local and workplace.

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FINAL TAKEAWAYS 1. Runaway inequality will not cure itself.

2. It will take a massive popular movement to counter runaway inequality.

3. We are the ones who will build that movement. We need to take on a new identity as silo busters and movement builders.

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APPENDIX: TIMELINE OF (SOME) IMPORTANT AMERICAN SOCIAL MOVEMENTS

1600’s   Abolition  movement  (mid-­‐1600’s-­‐1865).  Though  associated  with  the  1800’s,  the  abolitionist  movement  began  as  soon  as  enslaved  Africans  were  brought  to  the  American  colonies.  The  movement  was  led  by  legally  free  Blacks  as  well  as  escaped  slaves.  White  Quakers  and  others  were  moved  by  strong  religious  conviction  and  helped  build  the  Underground  Railroad  in  the  1800’s.  

1799:  New  York  state  passed  a  law  for  gradual  abolition;  all  remaining  slaves  were  freed  on  July  4,  1827.  

Bacon’s  Rebellion  (1686),  Virginia  Colony.  Alliance  between  indentured  servants  (slaves  for  5  to  7  years,  if  they  survived)  mostly  Caucasians,  and  Africans  (most  enslaved  until  death  or  freed),  united  by  their  bond-­‐servitude.  Ruling  class  responded  by  hardening  the  racial  caste  of  slavery  in  an  attempt  to  divide  the  two  races  from  subsequent  united  uprisings  with  the  passage  of  the  Virginia  Slave  Codes  of  1705.  A  similar  uprising  took  place  in  Maryland  colony.  

1700’s   American  Revolution  (1775-­‐1783).  

Shays’  Rebellion  (1786-­‐1787).  Series  of  protests  by  American  farmers  against  state  and  local  enforcement  of  tax  collections  and  judgments  for  debt.  Farmers  took  up  arms  in  states  from  New  Hampshire  to  South  Carolina;  the  rebellion  was  most  serious  in  Massachusetts,  where  bad  harvests,  economic  depression,  and  high  taxes  threatened  farmers  with  the  loss  of  their  farms.  

1800’s      

Populist  Movement  (1870-­‐1900).  The  National  Farmers  Alliance  and  Industrial  Union  was  a  democratic  movement  that  tried  to  wrest  financial  control  away  from  the  private  banking  industry.  The  Farmers  Alliance  organized  itself  into  state  and  county  organizations,  with  national  journals  and  national  conventions.  The  Alliance  fielded  six  thousand  “lecturers”  to  conduct  grassroots  education  to  spread  the  word  and  to  bring  grassroots  insights  back  to  state  and  national  leaders.    

Progressive  Movement  (1890-­‐1920).  Progressivism  rejected  social  Darwinism  or  “survival  of  the  fittest.”  Progressives  sought  to  clean  up  government  and  decrease  the  power  of  political  machines.  Believed  government  must  play  a  role  in  addressing  social  ills  and  basic  economic  fairness.  Muckraking  journalists  exposed  the  horrors  of  poverty,  urban  slums,  dangerous  factory  conditions,  and  child  labor.    President  Theodore  Roosevelt,  elected  in  1900,  ranged  himself  on  the  side  of  the  progressives.  He  thought  corporate  power  and  greed  needed  to  be  kept  in  check—breaking  up  monopolies  (“trust  busting”),  regulating  business,  and  protecting  common  resources—230  million  acres  of  public  land—for  the  common  good.  

1910’s   Union  organizing,  often  connected  to  immigrant  communities.  For  example,  the  “Bread  and  Roses”  strike  (1912)  at  a  wool  mill  in  Lawrence,  Mass.  When  the  company  cut  their  pay,  22,000  workers—mostly  immigrant  women  and  children  from  at  least  30  nations,  speaking  45  different  languages—shut  down  their  looms  and  walked  out.  They  were  supported  by  both  the  Industrial  Workers  of  the  World  (IWW  or  “Wobblies”)  and  the  Women's  Trade  Union  League,  a  progressive  association  of  middle-­‐class  white  women.  

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1930’s   Bonus  Army  (1932).  Thousands  of  unemployed  WWI  veterans  camped  out  in  Washington,  D.C.  for  months,  demanding  bonuses  promised  for  serving  in  the  war.  D.C.  police  tried  to  clear  out  the  camp  the  veterans  and  their  families  had  created.  Two  marchers  were  shot  and  killed.  President  Hoover  then  ordered  the  military  in,  resulting  in  many  more  casualties,  the  deaths  of  two  infants,  and  total  destruction  of  the  camp.    

Unemployed  workers  movements.  Protests  involving  tens  of  thousands  to  demand  jobs  and  relief  program.  Rent  riots  also  took  place  in  which  hundreds  gathered  in  city  after  city  to  stop  evictions  as  they  were  happening.    

Ham  &  Eggs  movement.  An  old-­‐age  pension  movement  in  California.  Wanted  a  massive  state  pension  apparatus  and  inundated  the  State  Legislature  with  mail.  At  one  time,  their  movement  had  almost  one  million  members.    

The  End  Poverty  in  California  movement  (EPIC).  Called  for  a  massive  public  works  program,  sweeping  tax  reform,  and  guaranteed  pensions.  The  plan  gained  major  support,  with  thousands  joining  End  Poverty  Leagues  across  the  state.  EPIC  never  came  to  fruition,  but  is  seen  as  an  influence  on  New  Deal  programs.  

Share  the  Wealth  /  Huey  Long  movement.  Louisiana  senator  Huey  Long  proposed  a  program  that  would  provide  a  decent  standard  of  living  for  all  Americans.  (Long  was  assassinated  in  1935.)  

§ Cap  personal  fortunes  at  $50  million  each  (equivalent  to  $600  million  today)    § Guarantee  every  family  an  annual  income  of  one-­‐third  of  the  national  average  § Free  college  education  and  vocational  training  § Old-­‐age  pensions  for  all  persons  over  60  § Veterans  benefits  and  healthcare  § 30-­‐hour  work  week  § Four-­‐week  vacation  for  every  worker  § Greater  regulation  of  commodity  production  to  stabilize  prices  § Debt  moratorium  to  give  struggling  families  time  to  pay  their  mortgages  and  other  debts  before  losing  their  property  to  creditors.  

Civil  rights  movement.  NAACP  anti-­‐lynching  campaign  &  campaign  to  desegregate  education.  1931:  Conviction  of  the  “Scottsboro  boys”  receives  national  attention,  helps  pave  the  way  for  the  civil  rights  movement.    National  Council  of  Negro  Women  brought  together  20  leaders  of  national  women's  organizations  

Southern  Tenant  Farmer’s  Union  (STFU)  was  an  interracial  organization  founded  in  Arkansas  by  sharecroppers  with  the  help  of  the  Socialist  party.  Its  intention  was  to  seek  relief  from  the  federal  government  for  sharecroppers  and  tenant  farmers,  two  groups  that  had  clearly  not  benefitted  from  New  Deal  agricultural  policies  and  that  were  growing  more  desperate  as  the  depression  worsened.  STFU  organized  strikes  aimed  at  increasing  daily  wages,  sent  delegates  to  lobby  in  Washington,  and  by  1936  had  over  25,000  members  across  several  southern  states.    

Massive  waves  of  union  organizing,  including  the  Flint  sit-­‐down  strike  (1936-­‐37).  Workers  occupied  GM  plants  for  44  days  to  force  GM  to  recognize  and  bargain  with  the  UAW.  At  least  two  years  of  preparation  preceded  the  historic  strike.  Active  chapters  of  various  left-­‐wing  parties  organized  a  League  for  Industrial  Democracy  which  began  to  hold  regular  meetings  and  lectures  where  workers  could  discuss  their  conditions  and  learn  about  politics  and  labor  history.  

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1935:  Congress  of  Industrial  Organizations  (CIO)  founded.  Federation  of  unions  that  organized  workers  in  industrial  unions  in  the  U.S.  and  Canada  from  1935  to  1955.  1937:  Pullman  Railroad  finally  agreed  to  recognize  the  Brotherhood  of  Sleeping  Car  Porters.  (Organizing  began  in  the  1920’s.)    

1950’s   Montgomery  bus  boycott  (1955-­‐56).  Brought  Martin  Luther  King  to  national  attention.  

1960’s   Civil  rights  movements.  Major  legislative  victories  with  Voting  Rights  Act  and  Civil  Rights  Act.  Major  organizations  included  NAACP,  Student  Non-­‐Violent  Coordinating  Committee  (SNCC),  Southern  Christian  Leadership  Conference  (SCLC),  Congress  on  Racial  Equality  (CORE)  1960:  Lunch  counter  sit-­‐in,  Greensboro,  NC  1963:  March  for  Jobs  &  Freedom  brings  250,000  to  Washington,  D.C.  1964:  Freedom  Summer.  Voter  registration  drive  by  Black  Mississippians  and  more  than  1,000  out-­‐of-­‐state,  predominately  white  volunteers.  1964:  Mississippi  Freedom  Party  demanded  to  be  seated  at  the  Democratic  National  Convention  in  place  of  the  official  delegation  that  had  been  elected  excluding  black  voters.  1965:  Selma  to  Montgomery  voting  rights  march  1967:  Mexican  American  Legal  Defense  and  Education  Fund,  the  first  national  Chicano  civil  rights  legal  organization,  created.    

Black  power  movement.  Less  about  integration  and  more  about  self-­‐determination.  Blacks  should  decide  what  we  need,  take  care  of  own  communities  (For  example,  the  Black  Panthers  Party  provided  free  breakfast  for  thousands  of  schoolchildren  across  the  country  and  set  up  health  clinics.)  Distinct  economic  element  and  recognition  of  role  of  capitalist  system’s  interest  in  maintaining  racism.    Two  American  athletes  used  the  world  stage  at  the  Olympics  to  bring  attention  to  racism  in  the  U.S.  On  the  medal  platform,  they  raised  their  fists  in  a  Black  Power  salute  

Students  for  a  Democratic  Society,  New  American  Movement,  other  leftist,  anti-­‐capitalist,  pro-­‐union  organizations  

Anti-­‐Vietnam  war.  Campuses  were  major  nexus  of  anti-­‐war  activity,  but  there  was  a  false  impression  that  the  movement  consisted  only  of  students  and  hippies.  As  the  war  continued,  opposition  came  from  broader  public,  including  Vietnam  Veterans  Against  the  War.  

Free  Speech  Movement.  UC-­‐Berkeley  banned  on-­‐campus  political  activity.  Students  occupied  campus  buildings,  organized  sit-­‐ins,  picketed,  committed  civil  disobedience.  

Environmental  movement.  –  In  1962,  Silent  Spring  was  published,  detailing  the  effects  of  pesticides,  especially  DDT,  on  people  and  the  environment.  The  book  was  a  catalyst  for  the  modern  environmental  movement.  1970:  EPA  created;  first  national  Earth  Day  -­‐-­‐  over  20  million  people  participated.  1972:  DDT  banned  in  U.S.;  Clean  Water  Act  and  Clean  Air  Act  passed  with  union  support  

Consumer  advocacy.  1965:  Ralph  Nader  wrote  Unsafe  at  Any  Speed,  which  exposed  auto  companies  for  knowingly  failing  to  make  cars  safer.  Amid  the  public  outrage  that  followed,  Congress  created  federal  agencies  to  set  standards  for  auto  safety  and  monitor  compliance.  First  of  many  such  campaigns  by  Nader,  the  organizations  he  founded,  and  other  consumer  and  community  activists  to  hold  companies  accountable  

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for  the  damage  they  cause.  In  the  wave  of  activism  that  followed,  other  laws  were  passed  that  limited  corporations’  power  to  pollute  and  to  put  workers  at  risk,  were  passed  with  the  combined  efforts  of  consumer  advocates,  environmentalists,  students,  labor,  and  others.  These  included  the  Clean  Air  Act,  the  Clean  Water  Act,  and  OSHA.    

1965:  Farm  worker  organizing.  Several  thousand  farmworkers  went  on  strike.  Launched  boycott  of  grapes  without  the  union  label.  Millions  of  consumers  participated.  Workers  from  different  ethnic  and  language  groups  began  to  organize  together.    1968:  Memphis  sanitation  workers  strike  Public  sector  unionism    

Women’s  liberation.  Many  strains  of  the  movement,  including  those  with  explicit  economic  agendas,  e.g.,  equal  pay  for  equal  work  1966:  National  Organization  for  Women  (NOW)  founded.  

Gay  and  lesbian  liberation.  1969:  Stonewall  riots.    1970:  First  gay  pride  parade  held  in  New  York  City.  

1970’s   Pro-­‐choice.  1973:  Roe  v.  Wade  decision  American  Indian  Movement  (AIM)  occupies  village  of  Wounded  Knee.  

1980’s   Anti-­‐nuclear  Anti-­‐apartheid/divestment  from  South  Africa  

1990’s   Anti-­‐war  (1st  Gulf  war)  NAFTA  

2000’s   Anti-­‐war  (invasion  of  Iraq)    Occupy  Black  Lives  Matter  Climate  change/  climate  justice  Marriage  equality  TPP  

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Workshop Evaluation Date  _________________  

Overall  workshop   Excellent   Very  good   Good   Fair   Poor  

Introduction     Excellent   Very  good   Good   Fair   Poor  

Activity  1:  Social  Movements,  Social  Change     Excellent   Very  good   Good   Fair   Poor  

Activity  2:  The  Powell  Memo   Excellent   Very  good   Good   Fair   Poor  

Activity  3:  Intro  to  Wage  Gap  &  Wealth  Gap     Excellent   Very  good   Good   Fair   Poor  

Activity  4:  The  Productivity  &  Wage  Gap   Excellent   Very  good   Good   Fair   Poor  

Activity  5:  How  Financial  Strip  Mining  Affect  Us?   Excellent   Very  good   Good   Fair   Poor  

Activity  6:  Institutional  Racism  Helps  the  1%     Excellent   Very  good   Good   Fair   Poor  

Activity  7:  Taking  on  Wall  Street     Excellent   Very  good   Good   Fair   Poor  

Activity  8:  Time  for  Action!   Excellent   Very  good   Good   Fair   Poor  

Activity  9:  Next  Steps   Excellent   Very  good   Good   Fair   Poor  

Trainer  1  ____________________________   Excellent   Very  good   Good   Fair   Poor  

Trainer  2  ____________________________   Excellent   Very  good   Good   Fair   Poor  

Would  you  recommend  this  workshop  to    your  co-­‐workers?   Definitely   Maybe   No  

How  useful  was  the  written  material?   Very     Somewhat     Not    

How  useful  was  the  video  with  Les  Leopold  explaining  financial  strip-­‐mining?   Very     Somewhat     Not    

How  useful  was  the  video  of  Michelle  Alexander?   Very     Somewhat     Not    

Do  you  think  you  will  become  more  active      in  movement  building  as  a  result  of  this  workshop?   Definitely   Possibly   No  

What  was  the  best  part  of  this  workshop?  (please  use  the  back  if  you  need  more  room)  

 

   What  would  you  improve  or  like  to  see  in  the  future?  (please  use  the  back  if  you  need  more  room)              Name  &  local  (optional)  _____________________________________________________