Racial Equity Impacts of the Economic Recovery
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Racial Equity Impacts of the Economic Recovery

on

  • 427 views

 

Statistics

Views

Total Views
427
Views on SlideShare
401
Embed Views
26

Actions

Likes
0
Downloads
1
Comments
0

2 Embeds 26

http://kirwaninstitute.osu.edu 17
http://research.kirwaninstitute.org 9

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Racial Equity Impacts of the Economic Recovery Presentation Transcript

  • 1. john a. powellKirwan Institute for the Study of Race and Ethnicity
  • 2.  What is happening?  An unusual recession/economic crisis  A deep and uneven recession/economic crisis Implications?  Long term The response  Our Critique  What needs to happen
  • 3.  Our Recovery Principles  Recovery fund investments must be marked by full transparency and accountability  Families and communities hit hardest by the economic crisis merit focused attention in the recovery process  Investments must promote equity and expand opportunity for all (targeted investment) Our work/initiatives  National work  State level assistance 3  Research, communications
  • 4.  The recession has hit the entire nation, but the economic impact has varied across the nation’s states and communities. Our goal for Recovery should be national, but our investment strategy must reflect the disparate economic impact among our states and communities.
  • 5.  Is the Recovery reaching our hardest-hit communities?
  • 6.  Was ARRA built to Actual Federal Outlay (in $billions) stimulate or stabilize Health, 55.3, 55% the economy?  Was ARRA designed Education & with equity in mind? Training, 29.0, 29% Energy andEnvironment, 1.2, 1% Community Development, 2.4, 2% Income Transportation, Security, 3.5, 8.6, 9% 4%Source: Government Accountability Office (GAO),November 27, 2009
  • 7. (1) To preserve and create jobs and promote economicrecovery.(2) To assist those most impacted by the recession.(3) To provide investments needed to increase economic efficiency by spurring technological advances in science and health.(4) To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits.(5) To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. 7
  • 8. National Unemployment Rates by Race17.0 16.5 16.5 16.5 16.2 15.7 15.6 15.816.015.014.0 13.1 12.913.0 12.7 12.6 12.4 12.6 12.512.011.0 10.1 10 10 9.910.0 9.7 9.7 9.7 9.0 9.4 9.3 9.0 8.7 8.8 9.0 8.0 8.8 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 White Black Latino Total Source: US Bureau of Labor Statistics)
  • 9. May Unemployment Rates by Race and Gender20.0 18.018.016.0 13.714.012.0 11.2 11.1 10.310.0 9.2 8.6 7.4 8.0 6.0 4.0 2.0 0.0 White Black Latino Total Men Women Source: US Bureau of Labor Statistics)
  • 10. May Unemployment Rates by Race and Age40.0 37.335.0 29.230.0 25.725.0 23.520.0 15.715.0 11.1 8.4 9.510.0 5.0 0.0 White Black Latino Total Age 16-19 Age 20+ Source: US Bureau of Labor Statistics)
  • 11.  In 1998, unemployment reached a 30-year low of 4.5% In 1998, the incarceration rate reached its highest point in U.S. history, with 1.78 million men in prisons and jails. What does this mean for the true unemployment in African American communities? Source: Bruce Western; Incarceration, Unemployment, and Inequality
  • 12. Percent of U.S. population in racial group under correctional supervision10.00%9.00%8.00%7.00%6.00%5.00%4.00%3.00%2.00%1.00%0.00% 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 White Black Other Source: US Bureau of Justice Statistics
  • 13. Federal ARRA Contract Procurement as of May 7th30.0% 28.2%25.0%20.0% 17.0% 16.1%15.0%10.0% 9.3% 5.4% 4.1% 5.2% 5.5% 6.8% 3.7% 4.8%5.0% 3.0% 4.1% 2.9%0.0% Non-White Women Black Latino Asian Contracts % Contract Value % % of all US Businesses Source: Federal Procurement Data System, and US Census Bureau 2002 Economic Survey of Business Owners
  • 14. Source: Federal Procurement Data SystemFirm O wnership # of Contracts % of Contracts $Value of Contracts % of Contract $ValueNon-White* 7,274 16.1% $4,393,897,361 17.0%Black 1,365 3.0% $1,050,405,579 4.1%Latino 1,874 4.1% $1,411,950,746 5.5%Women 4,234 9.3% $1,405,745,109 5.4%Asian 1327 2.9% $950,637,041 3.7%Totals 45, 306 - $25, 891, 578, 760 -  Women-owned, Latino-owned, Black-owned, and Asian-owned businesses account for 28.2%, 6.8%, 5.2%, and 4.8% of all U.S. businesses respectively, according to the US Census Bureau, 2002 Economic Census Survey of Business Owners
  • 15. Federal ARRA Contract Procurement: Growing in Equity 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Feb-Sept 2009% of Contracts Feb-Sept 2009 % of Contract $Value Sept-May 2010% of Contracts Sept- May2010 % of Contract $Value Source: Federal Procurement Data System
  • 16.  ARRA has provided a much-needed safety net for communities in crisis. A lesson in building a more open form of government; as of October 1, 2010, all Federal spending will be tracked similarly to Recovery.gov, developing more sub-recipient tracking. How can we capitalize on new infrastructure and energy investments?
  • 17.  Is ARRA stimulating the job growth we need? How can transparency and tracking become more useful for pursuing equity? What will happen with state budgets when the state stabilization funding in ARRA is over? What have the inequities found in ARRA shown us about our systems and funding streams?
  • 18.  An unprecedented housing crisisSource: Policy Matters Ohio
  • 19.  A deep and prolonged recessionSource: U.S. Federal Reserve Bank of St. Louis Source: Center for Budget & Policy Priorities
  • 20. 30.0 Underemployment Rate by Race July 2007 to Nov 2009 (Calculated by the Economic Policy Institute)  An uneven recession with many disparate impacts25.0  Race, Age, Gender, Geography, Educational20.0 Attainment, Occupation15.0  Intersections where the recession cuts deep  From recession to economic10.0 crisis 5.0 J-07 S-07 N-07 J-08 M-08 M-08 J-08 S-08 N-08 J-09 M-09 M-09 J-09 S-09 N-09 Black Latino White Total
  • 21.  African Americans of all income levels were twice as likely or more than twice as likely to receive high-cost loans as Whites in 171 metropolitan statistical areas (MSAs) during 2005.  In 159 metropolitan areas, more than 40% of the loans received by middle and upper income African Americans were high-cost loans.Source: National Community Reinvestment Coalition; Income is No Shield Against Racial Differences in Lending, July 2007
  • 22. Unemployment Rate by Race (January 09 to January 10)18.0 16.516.014.0 12.8 12.612.0 9.9 9.710.0 8.7 7.7 8.0 7.0 6.0 White Black Latino Total Jan-09 Jan-10 Percent Change in Unemployment, by Race: (January 2009 to January 2010)40.0% 38.4% 33.9%35.0% 32.2%30.0%25.0% 22.3%20.0%15.0%10.0% White Black Latino Total
  • 23. Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment) Projected Projected Projected Projected 3rd Quarter 3rd Quarter 3rd Quarter 3rd QuarterTotal 1st Quarter Black 1st Quarter White 1st Quarter Latino 1st Quarter 2009 2009 2009 2009 2010 2010 2010 2010Michigan Michigan Michigan Nevada 15.2% 15.7% 23.9% 24.8% 13.7% 14.2% 20.1% 19.0% South RhodeNevada California 13.0% 12.3% Carolina 20.4% 22.7% Island 11.2% 11.7% 15.6% 16.9% Rhode Ohio Oregon FloridaIsland 12.8% 13.4% 19.5% 22.0% 11.0% 12.4% 13.1% 14.3% NewCalifornia Illinois Kentucky 12.1% 13.1% 18.6% 20.2% 10.6% 11.2% Jersey 12.0% 12.6%Oregon Alabama Nevada Arizona 11.8% 13.3% 18.0% 18.8% 10.6% 10.0% 11.6% 13.1%Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org
  • 24.  Race and Gender in Relation to Access to Opportunity in Los Angeles70.0%60.0% 61.9% 61.5%50.0% 52.6% 52.5% 48.4% 48.3% 43.7% 43.6%40.0% 35.8% 35.6%30.0% 32.3% 32.0% 29.8% 29.5% 24.3% 24.2%20.0% 19.2% 19.1%10.0% 8.7% 8.6%0.0% Very Low Low Moderate High Very High Black Males; 0-14 Black Females; 0-14 White Females; 0-14 White Males; 0-14
  • 25. 20.0 1 7 .618.016.0 1 3 .3 1 3 .814.0 1 1 .512.0 1 0 .810.0 9 .1 8 .4 8.0 6 .8 6.0 4.0 2.0 0.0 White Black Latino Total Men Women Unemployment by Gender & Race January 2010 Unemployment by Age & Race January 2010 50.0 4 3 .8 45.0 40.0 3 7 .2 35.0 30.0 2 6 .4 2 3 .5 25.0 20.0 15.0 1 2 .9 1 0 .2 9.0 10.0 8.1 5.0 0.0 White Black Latino Total Age 16-19 Age 20+
  • 26.  A “recession generation”, As New York Times columnist Bob Herbert stated:  “…there is little doubt that poverty and family homelessness are rising, that the quality of public education in many communities is deteriorating and that legions of children are losing access to health care as their parents join the vastly expanding ranks of the unemployed. This is a toxic mix for children, a demoralizing convergence of factors that have long been known to impede the ability of young people to flourish.” ▪ Bob Herbert. “Children in Peril”, The New York Times. April 20th 2009.
  • 27. Top Ten States for Child Poverty (By Race) in 2008 Child Poverty Child Poverty Child Poverty Child PovertyBlack 2008 Native American 2008 Latino 2008 White 2008Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22%Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20%Kentucky 44% California 24% Tennessee 39% Montana 18%Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17%Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17%Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16%Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15%Ohio 41% Oregon 35% Indiana 14%Indiana 40% North Carolina 34% Maine 14%Alabama 38% Oklahoma 34% Missouri 14%Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database
  • 28.  Foreclosures pull wealth/equity and assets out of the neighborhood Widespread displacement of renters, homeowners which rips the neighborhood’s social fabric and creates instability for school age children The growth of vacant property encourages crime, disinvestment and public safety risks Challenges which eventually ensnare all residents (even 33 those who were never foreclosed upon)
  • 29.  Positives – preventing “draconian” state budget cuts Keeping families out of povertySource: Center for Budget & Policy Priorities Source: Center for Budget & Policy Priorities
  • 30.  Federal and State government failure to effectively track racial elements of recovery Recovery.gov contains no race-based tracking  No sub-recipient tracking  Jobs data contains no race, gender, zip code information
  • 31.  Universal policies assume a universal norm.  People are situated differently in society, so any conceptualization of what is “universal” is inherently flawed. ▪ Treating people who are situated differently as though they are the same can result in greater inequities. ▪ These slides will highlight historical examples of policies that were universal in name, but not necessarily in practice, thus resulting in greater inequities. GI Bill ■ Social Security ■ Title I 3
  • 32.  Two concerns:  1) Agency programs funded by ARRA are using pre- existing formulas. There is a greater need to more carefully align Agency programmatic activities with ARRA’s goals, particularly its emphasis on job creation and assistance to those most affected by the crisis.  2) The mandate to expend ARRA funds as quickly as possible, with special priority given to ‘shovel-ready’ projects and projects receiving private investment, may be giving short-shrift to civil rights compliance, particularly Title VI and Title VIII of the Civil Rights Act of 1964. 3
  • 33.  Our research/critique  American Recovery Reinvestment Act (stimulus) ▪ Has ARRA helped communities in greatest need? ▪ Yes and No ▪ Data challenges make “equity” assessment extremely challenging ▪ Many areas for improvement  Proposed jobs bill?
  • 34.  If ARRA is going to fulfill its purposes, and help those who have been most impacted by the economic downturn, then greater targeting is necessary.  Targeted policies may appear to favor some groups over others.  Targeted policies often are perceived as zero-sum.  Advocating for targeted policies can be construed as catering to “special interests” or advocating for “preferences.” 4
  • 35.  The “shovel ready” stimulus package jobs “can benefit unemployed people of color and women if specific incentives and enforcement tools are enacted to ensure fair access to these opportunities.  All stimulus projects should require local resident hiring goals and create a link to community-based groups as the first line contact for construction jobs. ▪ Local hiring requirements are a proven approach to bring jobs to under-represented constituencies in construction trades. These requirements can be applied to permanent jobs as well.”Center for Social Inclusion. “Economic Recovery for Everyone: Racial Equity and Prosperity.” Talking Points. 4
  • 36.  Assuring civil rights compliance, tracking and data on recovery and recession More targeted investment (geography, race, areas of need) More investment in broader community infrastructure (not just roads) Connecting marginalized workers to the growth sectors in the “new” economy  E.g. Linking green economy initiatives to worker training
  • 37.  The most recently proposed jobs bill  Targeted economic investments and job relief programs with universal goals ▪ Targeting by geography/race/need ▪ More proactive (and mandatory) minority business procurement activities This also needs to be tied to more long term solutions  Education/training, preparing for the new economy  Addressing state budget challenges (at the state level and the federal level)  Addressing structural issues
  • 38. One Last Thing…….. Looking for more information? Please visit: www.fairrecovery.org