Ten Solutions to Bridge the Racial Wealth Divide

4. Medicare for All

People of color accounted for more than half of the total 32 million nonelderly uninsured in 2016. Poor access to health care and poor health outcomes is inextricably tied to race in the United States. The privatized healthcare system in the United States continues to leave behind millions of families despite progress made by the Affordable Care Act. This deeply unfair and immoral system leaves low-income, low-wealth in the most vulnerable position. The number one cause of bankruptcy is an illness to oneself or a family member. Medicare for All removes the burden and stigma associated with finance at the point of the delivery of medical care.  Medicare for All would guarantee high quality healthcare as a human right not a privilege.

5. Postal Banking

The number of unbanked families remains stubbornly high in this country, with the FDIC reporting that about 10 million American families lack bank accounts. Predatory financial services targeting low-wealth families have thrived due to the lack of competition from a public banking option. People of color are particularly vulnerable to being unbanked, as are rural populations, the very young and the elderly.  The postal service is uniquely positioned to provide essential financial services to these families including short term, low-level loans to address income volatility.


Power

6. Significantly raise taxes on the ultra-wealthy

It is impossible to address the racial wealth divide without breaking up the concentration of wealth at the top. The growing concentration of wealth has translated to a growing concentration of economic and political power by the ultra-wealthy. The tiny group that controls the vast majority of the nation’s private wealth is overwhelmingly white and have been the primary beneficiaries of the past four decades of economic growth and historically low tax rates. Significantly raising taxes on the ultra-wealthy serves both the intrinsic value of reducing the corrupting influence of plutocratic power as well as the instrumental value of producing significant public revenue that can be invested in creating wealth building opportunities for those who have been blocked from generating wealth.

7. Turn Upside-Down Tax Expenditures Right-Side Up

Federal tax subsidies are currently skewed dramatically to ensure the wealthy are able to become wealthier. Shifting these tax expenditures toward wealth-building programs for low-wealth people, particularly those of color, would have a monumental impact in reducing the racial wealth divide and solving economic inequality more broadly.


Process

8. Congressional Committee on Reparations

Congress has considered for decades the topic of reparations, but never created a formal commission to take on the issue or grapple with what it would really look like.  In 2008, the House of Representatives passed a resolution issuing a symbolic formal apology for slavery and Jim Crow. Unfortunately, this resolution did not acknowledge the ongoing injustice created by this history and did not move forward any effort to address this injustice. Legislation like HR 40, championed for many years by now retired Rep. John Conyers (D-MI-13) and currently by Rep. Sheila Jackson Lee (D-TX-18), proposes to create a commission to study the issue and then propose what an apology and policy might look like.

9. Improve Data Collection on Race and Wealth

It is difficult to understand the breadth and scope of the racial wealth divide without the necessary data on the full range of racial diversity in the United States. It would be a significant benefit to have local data that includes information on household asset and debt disaggregated by respondent race, ethnicity, tribal affiliation and ancestral origin to provide better insight into the nation’s racial and economic differences.

10. Racial Wealth Analysis

Analytical tools like the “Racial Wealth Audit” from the Institute on Assets and Social Policy (IASP) and the “Racial Equity Toolkit” from the Government Alliance on Racial Equity (GARE), provide a framework to assess how legislation will widen on narrow the divide. If closing the racial wealth divide is to be a priority, adopting a framework to assess public policy through a racial equality lens is essential to understand the impact and potential unintended consequences of legislation on the racial wealth divide.


Racial Wealth Divide Snapshot

  • Between 1983 and 2016, the median black family saw their wealth drop by more than half after adjusting for inflation, compared to a 33 percent increase for the median white household.
  • The Forbes 400 richest Americans own more wealth than all black households plus a quarter of Latinx households.
  • Black families are about 20 times more likely to have zero or negative wealth (37 percent) than they are to have $1 million or more in assets (1.9 percent). Latinx families are 14 times more likely to have zero or negative wealth (32.8 percent) than they are to reach the millionaire threshold (2.3 percent). White families are equally likely to have zero or negative wealth (about 15 percent) as they are to be a millionaire (15 percent).

False Solutions

Changes in individual behavior will not close the racial wealth divide, only structural systemic policy change can do that. Adjustments to black and Latinx education rates, homeownership, savings, and employment do not greatly reduce the racial wealth divide due to the structural underpinnings holding the racial wealth divide in place.


Dedrick Asante-Muhammad is the director of the Bridging the Divide project at the Institute for Policy Studies where he is an Associate Fellow. He is also Chief of Equity and Inclusion at NCRC, the National Community Reinvestment Coalition, where he oversees NCRC’s Fair Housing, Fair Lending and Small Business programs.

Chuck Collins directs the Program on Inequality and the Common Good at the Institute for Policy Studies, where he also co-edits Inequality.org. His most recent book is Is Inequality in America Irreversible? from Polity Press and in 2016 he published Born on Third Base: A One Percenter Makes the Case for Tackling Inequality, Bringing Wealth Home, and Committing to the Common Good.

Darrick Hamilton is the executive director of the Kirwan Institute for the Study of Race and Ethnicity at The Ohio State University. In addition, Professor Hamilton holds a primary faculty appointment in the John Glenn College of Public Affairs, with courtesy appointments in the departments of economics and sociology in the College of Arts and Sciences at The Ohio State University.

Josh Hoxie directs the Project on Opportunity and Taxation at the Institute for Policy Studies and co-edits Inequality.org. He has co-authored a number of reports on topics ranging from economic inequality, to the racial wealth divide, to philanthropy.

***

Reposted from Inequality.org

Posted In: Allied Approaches

Union Matters

Steel for Wind Power

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

Siemens Gamesa last month laid off 130 workers at its turbine blade manufacturing plant in Iowa, just months after GE Renewable Energy decided to close an Arkansas factory and eliminate 470 jobs.

The companies reported shrinking demand for their products, even though U.S. consumption of wind energy increases every year.

America’s prosperity depends not only on harnessing this crucial energy source but also ensuring that highly skilled U.S. workers build the components with the cleanest technology available.

Right now, the nation relies on imported steel and turbine components from foreign manufacturers like China while America’s own steel industry—well equipped for this production—struggles because of dumping and other unfair trade practices.

Steel makes up the bulk of turbine hubs and the wind towers themselves. It’s also used to make the cranes and platforms necessary for installing the towers.

Yet the potential boon to America’s steel industry is just one reason to ramp up domestic production of wind energy infrastructure.

American steel production ranks among the cleanest in the world, while China has the highest carbon emissions of any steelmaking nation and flouts environmental regulations.

The nation’s highly-skilled steelmaking workforce must play an essential role in the deeply-needed revitalization and modernization of the nation’s failing infrastructure. Producing the components for harnessing wind energy domestically and cleanly is an important step that will put Americans to work and position the United States to be world leaders in this growing industry.

 

More ...

There is Dignity in All Work

There is Dignity in All Work