Promoting Economic Equity in 2020 and Beyond February 25, 2020 - PowerPoint PPT Presentation

Promoting Economic Equity in 2020 and Beyond February 25, 2020

Prosperity Now’s mission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.

Housekeeping Trouble dialing in? Just listen through your computer with ▪ The webinar is being recorded and will speakers or be available online headphones! ▪ Ask a question or make a comment at any time by typing it into text box of GoToWebinar Control Panel. ▪ If you experience any technical issues, email gotomeeting@prosperitynow.org. ▪ Follow us on Twitter : @ProsperityNow

Today’s Speakers Emanuel Nieves Vanna Cure Senior Advocacy Manager Associate Director, Policy

Today’s Agenda ✓ Overview of Wealth Inequality in America ✓ The Case for Bold Policy Solutions ✓ Designing Baby Bonds to Promote Economic and Racial Justice ✓ Prosperity Now Tax Campaign Priorities ✓ Group Discussion and Q&A ✓ Next Steps & Close

Poll Question Are you currently working on policy issues to address wealth inequality? ▪ Yes, at the federal level ▪ Yes, at the state level ▪ Yes, at the municipal level ▪ No (Use the poll tool on your screen to record your answer.)

Wealth Inequality in America: An Overview Emanuel Nieves Associate Director, Policy

Distribution of Household Wealth in the U.S Share of Household Wealth, by Wealth Percentile I 1989:Q3 — 2019:Q3 75% 70% 70% 65% 61% 60% 55% 50% 45% 40% 35% 35% 29% 30% 25% Top 10% Middle 40% Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Distribution of Household Wealth in the U.S Share of Household Wealth, by Wealth Percentile I 1989:Q3 — 2019:Q3 75% 70% 61% 60% 45% 30% 15% 4% 2% 0% Top 10% Bottom 50% Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Distribution of Household Wealth in the U.S Share of Household Wealth, by Wealth Percentile I 1989:Q3 — 2019:Q3 75% 70% 61% 60% 45% 35% 29% 30% 15% 4% 2% 0% Top 10% Middle 40% Bottom 50% Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Distribution of Household Wealth in the U.S Level of Household Wealth, by Wealth Percentile I 1989:Q3 — 2019:Q3 Trillions $100 $80 $60 $40 $20 $ 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bottom 50% Middle 40% Top 10% Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Distribution of Household Wealth in the U.S Level of Household Wealth, by Wealth Percentile I 1989:Q3 — 2019:Q3 Trillions $100 $80 $60 $40 $20 $ 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Latinx Black White Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Household Wealth in the U.S Median Wealth by Race I 2016 $180K $171K $160K $141K $140K $120K $100K $80K $60K $40K $21K $17K $20K $6K $3K $K Black Latinx White without durable goods with durable goods Source : Federal Reserve, Survey of Consumer Finances (wealth with durable goods), Edward N. Wolff, Household Wealth Trends in the United States, 1962 to 2016: Has Middle-class Wealth Recovered? (wealth without durable goods)

Stocks vs Income S&P 500 and Real Family Income Between 1989 and 2018, as a percentage of 1989 levels 400% 350% 300% 250% 200% 150% 100% 50% 0% 1989 1999 2009 2018 -50% S&P 500 Real Average Household Incomes Real Median Household Incomes

Percent Share of Total U.S. Assets Held By Asset Class and Wealth Percentile I 1989:Q3 100% 85% 80% 80% 61% 51% 60% 49% 39% 40% 20% 15% 20% 0% Pension/Retirement Accounts Real Estate Stocks and Mutual Funds Total Debt Top 10% Bottom 90% By Asset Class and Wealth Percentile I 2019:Q3 100% 88% 75% 80% 55% 54% 60% 46% 45% 40% 25% 12% 20% 0% Pension/Retirement Accounts Real Estate Stocks and Mutual Funds Total Debt Top 10% Bottom 90% Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

Composition of Household Wealth By Race/Ethnicity I 2019:Q3 40% 38% 35% 35% 30% 26% 26% 25% 23% 23% 21% 20% 15% 12% 11% 10% 6% 6% 5% 5% 0% Private Businesses Stocks and Mutual Funds Real Estate Pensions White Black Latinx Source : Federal Reserve, Survey of Consumer Finances and Financial Accounts of the United States

The Rising Cost of Upside Asset / Wealth-Building Programs SOURCE I Prosperity Now analysis of Office of Management and Budget data

The Rising Cost of Upside Asset / Wealth-Building Programs

Designing Baby Bonds to Promote Economic and Racial Justice Enrollment and Age of Eligibility • At birth and possibly before the age of 13 • Automatic enrollment Administration and Account Structure • Administered by a central entity – the U.S. Department of the Treasury • Funds invested in U.S. Treasuries Seed Amount and Deposits • Lump sum at birth • Universal sum at birth, followed by tiered deposits

Designing Baby Bonds to Promote Economic and Racial Justice Allowable Uses of Funds and Age of Disbursements • Higher education • Homeownership • Entrepreneurship Cost Estimate and Funding • $60 - $100 billion per year • Upside-down tax expenditures

2020 Advocacy Goals for Baby Bonds ✓ Bills have been introduced in the House and Senate ✓ American Opportunity Accounts Act (Sen. Booker/ Rep. Pressley) • Drum up as many co-sponsors as possible in both chambers • Build momentum for the 117 th Congress

What Can You Do?

2020 Right-Side Up Tax Campaign Priorities • GOAL: Fund VITA Program at $30 million in FY21

2020 Right-Side Up Tax Campaign Priorities • GOAL: Co- sponsorships and passage in the House

Audience Q & A What questions do you have? Share them in the Questions box!

Stay in Touch! Vanna Cure | Senior Advocacy Manager vcure@prosperitynow.org Emanuel Nieves | Associate Director, Policy enieves@prosperitynow.org

Next Steps and Wrap Up Vanna Cure Senior Advocacy Manager Prosperity Now

Next Steps ▪ Please complete the survey ! ▪ Explore new state and Congressional district Scorecard data: https://scorecard.prosperitynow.org/ ▪ Visit our online Advocacy Center at https://prosperitynow.org/take-action

Thank You! Please Complete Our Survey