The American Dream Fraying of the Folklore ~Bruce Springsteen - PowerPoint PPT Presentation

The American Dream Fraying of the Folklore

~Bruce Springsteen Allegretto Cal Teach-in Inequality April 4, 2012

T ENET #1 • Crux of the American Dream Horatio • Equal opportunity Alger • Pull yourself up by your boot straps • Hard work ensures “Rags to economic security Riches” • Middle class and beyond is attainable & sustainable Allegretto Cal Teach-in Inequality April 4, 2012

Intergenerational Mobility More mobility less mobility Denmark 0.15 Norway 0.17 Finland 0.18 Canada 0.19 Australia 0.26 Sweden 0.27 Germany 0.32 Spain 0.40 France 0.41 United States 0.47 Italy 0.48 United Kingdom 0.50 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Source: Coark 2006. Allegretto Cal Teach-in Inequality April 4, 2012

T ENET #2 • You get what you deserve • Hard work is rewarded • No issue: class, race, gender • Equal opportunity for all Allegretto Cal Teach-in Inequality April 4, 2012

Education and Income 80% 74.0% Low Income 70% Middle Income Percent Completing College 60% High Income 51.0% 47.0% 50% 40% 30.0% 29.0% 30% 21.0% 20% 8.0% 7.0% 10% 3.0% 0% Low Score Middle Score High Score Allegretto Cal Teach-in Inequality April 4, 2012 Source: Fox, M.A., B.A. Connolly, and T.D. Snyder. 2005.

Workers not getting their share 400 Productivity 350 300 Index (1947= 100) 250 Average hourly compensation 200 150 Average hourly wage 100 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 Source: EPI stateofworkingamerica.com Allegretto Cal T each-in Inequality April 4, 2012

T ENET #3 • Deterministic Free • Religion Market • Patriotism Allegretto Cal Teach-in Inequality April 4, 2012

Astonishing picture of income growth (Growth in real post-tax income from 1979 to 2007) 300% 277.5% 250% 200% 150% 100% 65.0% 43.3% 50% 35.2% 27.5% 18.3% 0% Lowest 2nd quintile: 3rd quintile: 4th quintile: 81st-99th T op 1% quintile: <20% 21%-40% 41%-60% 61%-80% percentiles Source: CBO 2011. Allegretto Cal Teach-in Inequality April 4, 2012

CAs widening wedge of wage inequality 140 130 90th 120 I ndex ( 1 9 7 9 = 1 0 0 ) 80th 110 70th 100 50th 30th 90 10th 80 70 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Source: EPIs analysis of CPS data, pre-tax wages for California, 1979-2010. Allegretto Cal Teach-in Inequality April 4, 2012

T ENET #4 • Gov’t is the enemy Gov’t is • Doubling down on not the more of the same • Plutocracy solution Allegretto Cal Teach-in Inequality April 4, 2012

Wealth Political Policies access Allegretto Cal Teach-in Inequality April 4, 2012

Falling top-marginal tax rates 1945 100% 94.0% op marginal income tax rate on ordinary income 90% 80% 70% 60% 50% 40% 30% 2011 35.0% 20% 10% T 0% 1945 1947 1949 1951 1953 1955 1957 1959 1961 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Citizens for Tax Justice. Allegretto Cal T each-in Inequality April 4, 2012

Work Vs. a call to your broker (this isn’t a natural result of the ‘free market’) 40% 35% op Capital Gains Tax Rates 30% 1945 25.0% 25% 20% T 15% 2011 15.0% 10% Source: Citizens for Tax Justice. Allegretto Cal T each-in Inequality April 4, 2012

The only deficit that matters…JOBS 2% US 1 9 8 1 recession 0% 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 -2% US today -3 .8 % or -5 .3 m illion -4% -6% CA today! -8% -6 .6 % or -1 m illion -10% Source: Sylvia Allegretto’s analysis of Current Employment Statistics data. Cal Teach-in Inequality April 4, 2012

~George Carlin Allegretto Cal Teach-in Inequality April 4, 2012