Post-Great Recession Blues (and then some) Sylvia A. Allegretto, - PowerPoint PPT Presentation

Post-Great Recession Blues (and then some…) Sylvia A. Allegretto, PhD Co-director, Center on Wage & Employment Dynamics Institute for Research & Labor Employment University of California, Berkeley

Unions, NLRB, FLSA Corporate power & the wealthy elite Economy Workers & citizens PUBLIC GOOD

1,200,000 Top 1% 1,000,000 800,000 600,000 Top 5% 400,000 200,000 Bottom 90% 0 Source: Piketty, T. and Saez, E., The World Top Incomes Database. U.S. before-tax income, excluding K-gains.

45% 40.9% 40% 36.2% 35% 30% 25% 20% 15% 12.2% 10.1% 10% 4.4% 5% 0% -1.1% -5% -3.4% -10% Bottom Middle 4th 20% Next 10% Next 5% Next 4% Top 1% 40% 20% Source: Ed Wolff, Survey of Consumer Finances.

25% 23% 21% 19% 1% 17% 15% 13% 11% 9% 7% 5%

26% 24% 22% Top tax NLRA 20% rate 75% End of 18% Glass-Steagall Enact Glass-Steagall Citizens 16% United Great Bush tax War-era wage 14% Depression cuts increases Top rates FLSA 12% lowered NAFTA to 25% Expand free-trade 10% Eisenhower-era 90% top rates 8% ·Feds target inflation Taft-Hartley ·Deregulation--banking Act 6% ·Reagan breaks air traffic strike 4% 2% 0% Source: Saez & Piketty. Top 1% income shares in the United States. Center for Economic & Policy Research. Ex. K-gains.

$40,000 $35,000 $30,000 Bottom 90% $25,000 $20,000 $15,000 $10,000 $5,000 $0 Source: Piketty, T. and Saez, E., The World Top Incomes Database. U.S. before-tax income excluding K-gains 2014$.

250% 200% 150% Productivity 100% Typical hourly compensation 50% 0% Source: Economic Policy Institute. Analysis of BLS data.

Share of income going to the Top 10% 50% 45% 40% 35% 30% 25% 20% 15% Union membership 10% 5% 0% Source: EPI: Piketty and Saez (2013) and U.S. Census Bureau.

60% 47.4% 50% 40% 31.2% 30% 18.5% 20% 10.6% 8.1% 10% 6.0% 1.9% 0.9% 0% -0.9% -5.4% -10% 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th (Median) Source: BLS Current Population Survey.

$70 $60 $60 $50 $47 $45 $40 $36 $33 $30 $27 $26 $22 $22 $18 $18 $20 $15 $15 $13 $13 $11 $11 $10 $9 $8 $10 $0 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th Source: Economic Policy Institutes analysis of BLS Current Population Survey 2014 data.

$90,000 0.90 $80,000 0.80 $70,000 0.70 Female-to-male Earnings ratio $60,000 0.60 $50,000 0.50 Men $40,000 0.40 0.30 $30,000 Women $20,000 0.20 $10,000 0.10 $0 0.00 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 Source: U.S. Census Bureau. March CPS data 2014$. Full-time, year round workers 1960-2014. Allegretto 2015

100% 90% 80% 70% Female-to-male 60% Earnings ratio 50% 40% 30% 20% 10% 0% 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 Source: U.S. Census Bureau. March CPS data 2014$. Full-time, year round workers 1960-2014. Allegretto 2015

Typical HH 12% increase Top 5% 68% increase Contributions to increase in annual wages • Increase in hourly wages • Increase in hours of work Source: Economic Policy Institute State of Working America.

80% Males 70% 60% 50% 40% Females 30% 20% Source: BLS Current Population Survey, 2014.

100% 89% 90% Paid sick days 80% Paid family leave 73% 70% 60% 50% 40% 30% 24% 22% 20% 13% 10% 4% 0% Bottom 10% Middle 50% Top 10% Source: Allegretto’s analysis of EPI’s SWA 2012. Table 4.12. Data from Employee Benefits Survey. Allegretto 2015

20% 18% USA 16% AUS 14% 12% 10% GER 8% FRA 6% ICE 4% 2% 0% 13.0% 18.0% 23.0% 28.0% Social expenditure as share of GDP

$8.00 $7.25 $7.00 $6.00 $5.00 $4.00 $3.00 $2.13 $2.00 TC = 50% $1.00 TW= 50% $0.00 Source: Fair Labor Standards Act & amendments. Allegretto 2015

$8.00 $7.25 $7.00 $6.00 $5.00 Subsidy 71% $4.00 $3.00 40% $2.13 $2.00 TC = 50% Wages 29% $1.00 TW= 50% $0.00 Allegretto 2015

$10.00 $8.00 $7.25 $6.00 $4.00 $2.00 $2.13 $0.00 Allegretto 2015

Allegretto 2015

80% Male 70% Female 60% 50% 40% 30% 20% 10% 0% All workers Tipped workers Minimum wage workers Source: BLS CPS data. Allegretto & Cooper, 2014 EPI Brief

25% Full TC ($2.13 TW) Partial TC ($2.13<TW<MW) 19.4% 20% No TC (No TW!) 16.2% 16.1% 14.6% 15% 13.5% 12.1% 10% 6.7% 6.7% 6.0% 5% 0% All workers Tipped workers Waiters Source: BLS March CPS data. Allegretto & Cooper 2014. Allegretto 2015

Worker Rights The Economy: Communities, citizens & democracy

 Raise the minimum wage and eliminate the tipped minimum wage  Strengthen collective bargaining rights  Strengthen laws against discrimination in hiring, pay, and promotion  Provide paid family leave  Provide paid sick leave  Require fair scheduling practices  Provide accessible, affordable, high-quality child care and early childhood education  Protect and expand Social Security  Provide undocumented workers a path to citizenship  Support strong enforcement of labor standards  Prioritize wage growth and full employment policy from the Fed.