The REAL Economy and American Working Families
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The REAL Economy and American Working Families Young Elected Officials Network, Policy Council Retreat Washington, DC June 23, 2012
description
The REAL Economy and American Working Families Young Elected Officials Network, Policy Council Retreat Washington, DC June 23, 2012. www.earncentral.org. Introduction Economic Context – where we’ve been, where we are, and where we’re headed (and it’s not very pretty). - PowerPoint PPT Presentation
Transcript of The REAL Economy and American Working Families
The REAL Economy and American Working Families
Young Elected Officials Network, Policy Council RetreatWashington, DC
June 23, 2012
www.earncentral.org
Introduction • Economic Context – where we’ve been, where we are,
and where we’re headed (and it’s not very pretty).• National overview helpful, but obscures a lot of what’s
going on
Economic Context -- Two Time-Frames
• Immediate short-term consequences and characteristics of recession/very weak recovery
• Longer-term challenges that need to be addressed NOW– Decline of manufacturing– Erosion of critical infrastructure (eg, roads,
bridges, schools, human capital (early care, K-16)
RECESSION AND RECOVERY
Underemployment includes three classifications of persons: unemployed workers who are actively looking for work, involuntarily part-time workers who want full-time work but have had to settle for part-time hours, and marginally attached workers who want and are available for a job, but are not actively looking
Source: EPI Analysis of BLS CPS data, 2010, 2011All Black Hispanic Asian White
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
10.6%
15.8%
13.1%
8.5% 8.3%
9.8%
15.4%
12.3%
7.6% 7.6%
Percent of Children with at Least One Unemployed Parentby Race/Ethnicity (average month, 2010 & 2011)
2010
2011
Distress Sales Focused in Three Regions…Count of distress sales as % of total sales, Nov 2010 to Nov 2011
Source: Moody’s Analytics and CoreLogic: repeat-purchase sales, monthly average, Nov 2010 to Nov 2011
0% to 19%20% to 32%33% to 66%
U.S.=35.3%
The West, Texas and Florida Lead Job Growth
HoustonMemphis
MiamiFt. Worth
AustinTampaDallas
San JoseSan Francisco
SeattleSanta AnaPhonenix
WarrenCincinnatiPittsburgh
0 1 2 3 4
Fastest job growth among 50 largest metro areas.
Sources: BLS, Moody’s Analytics, Note: Colors represent census regions
Payroll employment, Dec 2011, % change yr ago, revised 3/14/12
1717
Income Growth Favors West and SouthwestWage and salary income growth, % change yr ago, 2011Q3
Sources: BEA, Moody’s Analytics
>3.3
<1.81.8 to 3.3
U.S.=2.6%
Employment Outlook for 2012Total employment, 2012Q4, % change yr ago
U.S.=0.8%Less than 0.4%
1.2% and above
0.4% to 1.1%
Sources: US Census Bureau, Moody’s Analytics
LONGER TERM CHALLENGES
Cause…. …and effect
Chart from "Trends in Transport Infrastructure Investment 1995-2009," by the International Transport Forum(WEC = Western European Countries, CEEC = Central and Eastern European Countries)
POLICY SOLUTIONS
4 Policies to Improve Well-Being of Workers and Families
• Pursue policies to create Jobs Now• Raise the minimum wage at the state or
national levels [Eg, Senator Harkin’s Rebuild America Act, introduced this week, raises federal minimum wage to $9.80 over three years, and indexes to inflation]
• Adopt Paid Sick Days legislation• Adopt State Level Earned Income Tax Credit
(EITC)
Jobs Now (with eye on tomorrow)• “First, Do No Harm” – don’t lay off public
sector workers!• Invest in infrastructure – roads, bridges,
schools (a) new (if needed), b) repairs, c) make them green [abundant supply of labor, historically low bond rates, need is great, payoff includes kick-starting your economy]
Cities and States with Active Paid Sick Days Campaigns/Bills Introduced or Successfully Adopted
Parting Thoughts• Jobs/Jobs/Jobs: The best way to defend workers and
help families is to get the economy on track • “First, Do No Harm” -- Do NOT shred the safety net
that’s critical to child well-being, eg:– Unemployment Insurance– LIHEAP (home heating)– SNAP (aka “Food Stamps”)
• Reach High – Expand State EITC, Increase Minimum Wage, Adopt Paid Sick Days Legislation
www.taxcreditsforworkingfamilies.org
www.raisetheminimumwage.org
http://paidsickdays.nationalpartnership.org
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