Iwf recovery act_7_01_2010

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  • It is important to remember how the recession started and what it did to all of us. Investment bankers triggered the great recession playing mortgage monopoly with our investments and pension money. The game exploded and we are all paying the price.
  • The recession hit the private and public sectors. When people lose their jobs – they don’t pay income tax.When the job market is tanking, people stop buying anything but necessities and sales tax revenue drops like a rock. When the real estate bubble burst – property tax revenue goes down. When these revenues shrink – state and local government lose the capacity to pay for crucial services.
  • The Recovery Act/stimulus stopped the job loss from getting worse. Looking at this chart, you can see the job loss numbers growing from 2007 to the beginning of 2009. After the recovery Act in February 2009, the job loss rate starts to get smaller and we are beginning to see hiring in mid-2010.
  • The Recovery Act is bringing Wisconsin $11 billion during the two year period – 2009-2010. A huge portion of that is through tax cuts to individuals and families. Many people didn’t notice this because the money was spread throughout the two years by reducing the federal payroll taxes. This was designed to increase spending. The child deduction amount went up as did credits for college, conservation and major purchases- homes, cars, etc
  • Iwf recovery act_7_01_2010

    1. 1. INSTITUTE FOR<br />WISCONSIN’S FUTURE<br />www.wisconsinsfuture.org<br />Fighting for <br />Wisconsin <br />Families<br />Summer 2010<br />
    2. 2. Big Banks Crashed the Economy<br />Big banks brought down the economy by inflating the housing market, making risky loans and betting against their own investments – with our pension money<br />Investors bundled thousands of risky mortgages, then divided them into loan ‘slices’ claiming they were a mix of strong and risky mortgages.<br />These financial tricks put the whole economy in jeopardy. Federal regulators failed to intervene. <br />The mortgage bubble burst and the recession ‘officially’ began in December 2007.<br />
    3. 3. The Great Recession spread like an oil slick<br />$15 trillion in personal wealth was gone <br /> Pension funds and other investments lost $50,000 for every man, woman and child in America <br />$6 trillion in housing value disappeared<br />Equal to the value of every house in every state on the Atlantic coast from Maine to Florida<br />Unemployment topped 10% (15 million people)<br />As if every man in America aged 50-59 lost his job <br />40 million people in poverty—the most since 1960<br />Equivalent to the total population in the thirty largest US cities<br />Sources: US Census Bureau, US Bureau of Labor Statistics; US Bureau of Economic Analysis<br />
    4. 4. State and local budgets collapseddue to lost revenues and increased needs<br />Property taxes fell, as property values declined<br />Sales taxes dropped, with fewer items purchased<br />Income taxes plunged, with job losses and wage cuts<br />Corporate taxes slumped, as business contracted<br />The fiscal crisis in state and local governments is the worst in US history<br />
    5. 5. $800 billion Recovery Act for 2009-2010<br />Stop the job loss<br />Help people in crisis<br />Support business growth<br /><ul><li>Increase public investment on roads and energy</li></ul>Prevent devastating cuts to education and public services<br /><ul><li>Stimulate private spending – </li></ul> Tax cuts, Cash for Clunkers, <br /> Unemployment Benefits<br />
    6. 6.
    7. 7. Recovery Act helped end job loss<br />Recovery Act funds kept job losses from getting worse.<br />Federal aid helped keep state and local governments from collapsing.<br />But job growth and economic recovery are still fragile.<br />
    8. 8. The Recovery Act prevented a full-fledged depression in America, using millions of economic sandbags to hold communities together<br />More Unemployment Insurance<br />Business<br />Loans<br />Road Repair<br />Buses<br />and<br />Trains<br />$$ for<br />Police<br />Tax<br />Cuts<br />River <br />Clean Up<br />Improve<br />Airports<br />Energy<br />Savings Rehab<br />Health<br /> Care<br />Aid for<br />Elderly<br />Funds for <br />Teachers<br />Housing for <br />Disabled<br />School<br />Loans<br />Food Stamps<br />Farm <br />Aid<br />Medical<br />Research<br />School Rehab<br />Cash for <br />Clunkers<br />Veteran<br /> Aid<br />Child<br />Protection<br />Funds <br />for DAs<br />
    9. 9. Recovery Act funds helped Wisconsin manage its severe economic problems<br />As the recession deepened, Wisconsin faced:<br /><ul><li>A multi-billion dollar budget deficit
    10. 10. Soaring unemployment
    11. 11. Rising demand for state and local social services</li></ul>Federal dollars helped patch the budget, create jobs and preserve critical services<br />Wisconsin’s unemployment rate<br />is slowly coming down<br />
    12. 12. Wisconsin Recovery Act Funding 2009-2010:$11 billion<br />Energy 5%<br />Transportation 6%<br />Medical care 7% <br />Schools 9%<br />Sources: www.recovery.gov; projects.propublica.org/recovery/; www.recovery.wisconsin.gov/<br />
    13. 13. The Recovery Act helped Wisconsin families<br />Gave almost every employee a <br />$500 tax break in 2009 and 2010<br />Saved 59,000 jobs<br />Supported health care for <br />1.3 million elderly, disabled <br />and low-income families<br />Provided $153 million in <br />support for laid off workers<br />
    14. 14. Huge state deficits will plague US for several years<br />More federal aid needed to keep states functioning<br />Source: Center on Budget and Policy Priorities <br />
    15. 15. The stimulus money for states is almost gone and communities are heading for a funding cliff in 2011-2013<br />Wisconsin faces a $5 billion deficit for 2011-2013, <br />which means reduced investments in cities, counties and schools.<br />The state has almost no added revenue sources for the next budget cycle. <br />This could short circuit <br />recent economic growth. <br />
    16. 16. Some people don’t think we should invest in public structures—Be careful what you wish for<br />
    17. 17. Public structures will disappear …unless we fight for them<br />In Colorado Springs, every third streetlight is dark. Buses no<br />longer run at night or on weekends.<br />The police helicopters are for sale on the Internet. The city is dumping firefighting jobs, a vice team, burglary investigators, beat cops—dozens of police and fire positions will go unfilled. Parks workers removed trash cans, replacing them with signs urging users to pack out their own litter.<br />Neighbors are encouraged to bring their own lawn mowers to local green spaces…Water cutbacks mean most parks will be brown turf by July; the flower and fertilizer budget is zero. City recreation centers, indoor and outdoor pools, and a handful of museums closed March 31. The city won't pay for any street paving …. <br />Sources: Denver Post, CNN, CBS News, 5280 Denver’s Magazine<br />
    18. 18. What’s in it for private sector workers?<br />$700 million for road building and construction,<br /> boosting production of materials and equipment<br />Airport Improvement Program $23,637,434 <br />Broadband Infrastructure Build-out $22,978,367 <br />Build America Bonds $97,367,700 <br />University of Wisconsin System $5,106,373 <br />State Broadband Development Grant Program $1,717,684 <br />State Highway, Local Road and Bridge Program $519,226,021 <br />Transit Capital Assistance $20,130,095 <br />WI Army National Guard $6,370,000<br /> Total: $696,533,674<br />
    19. 19. Why should public sector workers care?<br />Clearing the roads of snow, providing health care or ensuring public safety, public sector union members provide vital services to make communities work.<br />BUT states are facing an estimated $260 billion shortfall in 2011-2012, which would mean the loss of nearly a million public and private sector jobs.<br />
    20. 20. Why is this important for senior citizens ?<br />
    21. 21. Why does this matter to our families? <br />Without more federal <br />aid, Wisconsin schools<br />will lose over 2,000<br />teachers and staff<br />Federal funds are needed to maintain school programs for children with disabilities<br />Federal funds are vital to keep day care <br />programs operating<br />
    22. 22. Those opposed to more federal stimulus aid <br />claim the US can’t afford a bigger deficit<br />US debt is the same percentage of the national economy as it was in 1950.<br />It is large, but it is sustainable until the economy fully recovers.<br />US debt tripled under Reagan<br />Debt critics forget recent history;<br />Conservative hero ran budget deficits<br />Source: www.usgovernmentspending.com<br />
    23. 23. Recovery Act spending accounts for a small portion of the deficit<br />Most of the long-term deficit comes from wars, Bush-era tax cuts and the economic slump<br />Source: Center on Budget and Policy Priorities<br />
    24. 24. We can’t afford a double-dip recession<br />Too many economic indicators are weak<br />Borrowing now, to support state and local governments and stimulate the economy, is the best way to prevent another recession and its destructive effects.<br />We don’t want the fragile economic recovery…<br />…to collapse back into another recession.<br />2011<br />
    25. 25. Campaign for 2011 Federal Aid<br />ORGANIZING to Press members of Congress <br />Community meetings<br />Talk about how the stimulus has helped and what will happen in 2011 without more aid<br />Meetings with Senators Feingold and Kohl<br />Meetings with regional Congressional reps<br />Telephone, email and letters to Congress<br />
    26. 26. WI Recovers Popular Website <br />

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