Train the trainer common sence economics power point
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In this section, we will be looking at: a historical view of the rules of the economy—how the choices made throughout our nation’s history have changed who benefited from the economy and how; how the neoliberal agenda is driving policy changes that benefit CEOs and the top 1% in our country, creating an economy out of balance; how we can build power to change the rules to create an economy that works for everyone. But what do we mean by “the economy?” You know, a lot of people talk about the economy like it’s a force of nature—something that happens to us, like the weather. That’s not true. The economy is a result of deliberate policy choices made by powerful people. We can make different choices. That’s what we’re going to look at in more detail.
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Train the trainer common sence economics power point
- 2. AGENDA Rules of the Economy: A Look Back An Economy Out of Balance We Can Change the Rules: Our Strategy to Build Power
- 3. Rules of the Economy: A Look Back
- 4. Who Chooses the Rule-Makers Who Benefits From the Rules DETERMINES Who is free or slave Who can own land Who has access to what jobs Whether working people have the right to join a union without fear of violence or loss of job Fighting for an Inclusive Economy We’ve struggled over the economic rules throughout our history 1776: Only white men with land 1792–1856: Any free white man 1870: Free black men 1920: Women 1924: Native Americans 1971: 18- to 21-year-olds
- 5. A Boom and Bust Economy Farms to Factories, Great Wealth and Poverty 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Source: Maddison Project database U.S. GDP Per Capita (2015 Dollars) 1850–1934 1850 18701860 18901880 1900 1910 1920 1930
- 7. Time for a New Deal Working people demanded economic rules that worked for everyone • The right to form and join a union • 40-hour workweek • Unemployment insurance • Minimum wage • Social Security • Rules on banks and the stock exchange • Government agencies to enforce the rules
- 8. The Virtuous Cycle More profits, broadly shared, drove increased wages and investment Investments in Research, Transportation and Infrastructure Technology Advances Productivity Rises Wealth Increases Wages Rise More Tax Revenue Demand Increases Investment in Business Grows Investor Profits Rise An Economy That Works for Everyone
- 9. We Invested in Public Structures and Public Institutions Public Works Space Program Federal Highways Research and Development Higher Education
- 10. Productivity and Wages From 1948 to 1973, productivity and wages rose together; employers and working people both benefited Source: Economic Policy Institute 1948–1973 Productivity: 100% Hourly Compensation: 91.3% CumulativeChange(%)Since1948 120% 100% 80% 60% 40% 20% 0% 1948 1953 1958 1963 1968 1973
- 11. Many Still Were Excluded
- 12. Organizing for Change We organized to create a more inclusive democracy and a fairer economy 1940s–1950s Ending Segregation 1950s–1960s Expanding Civil Rights 1950s–1970s Expanding Voting Rights 1960s–1970s Expanding Women’s Rights
- 13. An Economy Out of Balance Today’s Economy
- 14. An Economy Out of Balance Why America’s middle class is lost An Unstoppable Climb in CEO Pay For most workers, real wages have barely budged for decades.
- 15. • Attack unions and workers’ right to organize; • Promote trade agreements that benefit corporations instead of working people; • Allow Big Banks and Wall Street to gamble with our money; • Give tax breaks and loopholes to corporations and the wealthy; and • Cut government programs that help working people. “Neoliberalism” = no restraints on corporate power/ workers’ bargaining power weakened The Neoliberal Agenda The rich and powerful pushed back
- 16. Productivity and Wages After 1973, employers benefited from rising productivity, while denying working people higher wages for their work Productivity 262% Hourly compensation 109% 1948–1973 Productivity: 100% Hourly Compensation: 91.3% 1973–2013 Productivity: 81% Hourly Compensation: 19.28% Source: Economic Policy Institute CumulativeChange(%)Since1948 300% 250% 200% 150% 100% 50% 0% 1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013
- 17. Union Membership and the Economy As union membership declined, the share of income going to the top 10% increased 24% 24% 13% 44% 33% 44% Source: Economic Policy Institute Share of income going to top 10% Union membership 60% 50% 40% 30% 20% 10% 0% 1917 1927 1937 1947 1957 1967 1977 1987 1997 2007 2012
- 18. A Growing Economy Even though our economy continues to grow $7.6 Trillion (indexed to 2014) Size of U.S. economy (measured in GDP) 1973 2014 $17.4 Trillion
- 19. Growing Inequality Wealth is more and more concentrated These 8 people control $216 billion in wealth
- 20. The Vicious Cycle Wages Flat, Profits Hoarded, No Investment Rules Changed to Benefit Wealthy and Corporations CEO Compensation Soars (300 x average workers pay) Lobbyists, Campaign Contributions, Revolving Door to Public Sector
- 21. We Can Change the Rules: Our Strategy to Build Power
- 22. Our Choice: Fight for an economy that works for everyone or watch our democracy and our families’ futures collapse WE CAN EXERCISE OUR POWER
- 23. We Can Raise Wages • Strengthen workers’ rights to organize and collectively bargain. • Raise the minimum wage and tipped wage. • Pass living wage ordinances. • Support prevailing wage standards and project labor agreements. • Increase the overtime threshold. • Pass paid sick leave and family leave legislation.
- 24. We Can Invest in the Common Good Community Resources 21st Century Energy Systems InfrastructureGood Jobs Mass Transit Early Childhood Education Research Public Spaces
- 25. We Can Create a Government by and for People
- 26. We Can Advance Together in the 21st Century
- 27. We Can Change the Rules
- 28. The Fight for a Better Life Starts Now We are improving LIVES and WAGES all over America
- 30. The Immediate [National/Local] Fight (CUSTOMIZE FOR PLACE AND TIME) • Right to Join a Union • Overtime Pay • Bad Trade Agreements • Living Wage Laws
Editor's Notes
- In this section, we will be looking at: a historical view of the rules of the economy—how the choices made throughout our nation’s history have changed who benefited from the economy and how; how the neoliberal agenda is driving policy changes that benefit CEOs and the top 1% in our country, creating an economy out of balance; how we can build power to change the rules to create an economy that works for everyone. But what do we mean by “the economy?” You know, a lot of people talk about the economy like it’s a force of nature—something that happens to us, like the weather. That’s not true. The economy is a result of deliberate policy choices made by powerful people. We can make different choices. That’s what we’re going to look at in more detail.
- The economy is a set of laws, rules and policies made by powerful people. The choices those people have made over the last 30 years are not working for working people. As a nation, we can make different choices. We can change the rules. We can create an economy where working people have a say at work, get fair pay and benefits, and earn enough to sustain a family. The economy should work for we the people, not just the wealthy and well connected.
- We have struggled over economic rules since the beginning of our nation. In a democracy, we choose who makes the rules. And who votes determines what the rules are and who benefits from them. As we expanded the right to vote, through protest and pressure, we changed the rules, and more people got work that could sustain a family. In 1776 the U.S. Constitution said that only white men with land or property could vote or hold office. It took another 64 years before all white men without property could vote. Black men couldn’t vote until 1870. Women did not have a voice in electing the rule-makers until 1920. Native Americans—the first people on the continent—couldn’t vote until 1924. It wasn’t until 1971 that the nation decided that if 18-year-olds could be drafted to fight and die for their country, then they should be able to decide whether or not we GO to war. As the electorate grew, working people helped change the rules—slavery was abolished, land ownership opened up, it became illegal to limit access to jobs because of a person’s race or gender, and laws were established to protect workers who join unions.
- During the period from the Civil War to the New Deal, the shift from agriculture to manufacturing accelerated. Urban factories recruited European immigrants and the children of farmers. But the transition from farm to the factory was not easy. There was no national banking system at the time. The economy cycled between boom and bust—the blue lines on this chart are periods of recession. Huge fortunes were made through fraud and intimidation. Wealthy elites consolidated control over entire industries, fixing prices and raking in huge profits, while working people faced uncertain, insecure and unsafe employment. Industrialists employed private “security firms” to suppress collective action by working people. Few states or cities had minimum wage standards, prohibitions on child labor, limits on working hours or workplace safety rules. If a worker was crippled or killed on the job, employers were not required to provide anything to their families. There were strikes and walkouts in cities across the country as workers fought for the right to organize and sought to improve working conditions and wages. In the Midwest and South, small farmers joined the Farmers Alliance and Populist party to get fair shipping fees from the railroads and fair prices for their crops. In the Deep South, both black and white tenant farmers were tied to the land through the debts they owed landlords, and faced chain gangs if they tried to leave.
- In 1929, the U.S. stock market crashed, thanks to speculation and fraud by Wall Street traders, enabled by incompetent and dishonest bankers. In the Great Depression, unemployment skyrocketed, with one in every four men out of work. Many people were thrown off their land and became “hoboes” moving from place to place in search of work. In cities across the country, there were rent strikes and demonstrations as people struggled to sustain their families and survive. It became clear the economic rules weren’t working for most Americans. Working people had had enough. They voted Franklin D. Roosevelt into office with a mandate to change the rules of the economy.
- Working people demanded new rules for the economy and the Roosevelt administration responded by creating rules that changed the power dynamic between employees and employers: The right to join a union—without getting fired, beaten up or killed. 40-hour workweek—with mandatory overtime and an end to child labor. A national minimum wage. Social Security—providing public income support for the elderly, widows and orphans. Rules on banks and the stock exchange—to prevent reckless bankers and traders from gambling with other people’s money. Unemployment insurance—with mandatory contributions from employers. Government agencies—to ensure the rules were enforced. The nation raised taxes on the wealthy to pay for enforcement. What do you think the top tax rate was in 1937? In 1937, the wealthy paid 79% of every dollar over $5 million—the equivalent of 79% of every dollar over $81 million today. What do you think the top tax rate is today? 39.6%
- Together we created rules that ensured the profits from productivity and growth were broadly shared. As the United States started mobilizing for World War II, our national government invested millions in research and munitions. The war effort mobilized both public and private investments, rapidly growing jobs and the economy. When the war ended, the new rules, coupled with strong unions, ensured that wages and benefits increased along with productivity, giving working people more money to spend on goods and services. This increased demand drove investment in new businesses. The rules of the economy created a virtuous cycle—higher wages increased demand, demand stimulated new investments, technology advanced, productivity rose, tax revenue increased and we had more wealth to invest in public infrastructure, public education, research and other things important to our communities.
- As a nation we invested in: Construction of the interstate highway system and hydroelectric plants; Public institutions of higher learning, including the G.I. Bill that put millions of veterans through college with federal funding; Scientific research in public universities and government labs that led to inventions associated with the space program, spurring new products and businesses in the private sector; Our national space program that led to numerous technological advances and a landing on the moon. And under President Eisenhower—a REPUBLICAN—the tax rate on the wealthy was HIGHER than under FDR: The tax rate on income over the first $200,000 (today, that would be $1.8 million) was more than 90%. Could you live comfortably on $1.8 million a year?
- For 25 years, wages (the red line) and productivity (the blue line) rose together—both nearly doubled between 1948 and 1973.
- Although the New Deal rules and growth improved the economy, many working people still were excluded: Domestic workers were left out of most New Deal protections—primarily women of color. Agricultural workers also were excluded—primarily workers of color. Tipped workers weren’t covered by the minimum wage—more than 70% of tipped workers were women. Black workers in the South continued to live under legal segregation. In the North, employers paid black workers less and excluded them from some jobs. Latino migrant workers in the Southwest were regularly subjected to mass deportations from areas their families had lived in for generations (e.g., Texas). Lesbian, gay, bisexual and transgender people had no legal protections. Many of these exclusions continue to impact people today.
- Then, as now, working people came together to fight for change: African Americans led civil rights marches to protest segregation and political exclusion. Latino and Asian communities fought for equal access to education, immigration reform and an end to job discrimination. Women demanded equal pay and equal treatment in the workplace, and an end to sexual harassment and discrimination. The movements for lesbian, gay, bisexual and transgender rights worked to end discrimination based on sexual orientation, gender identity or expression. Through collective action, we changed the rules to build a more inclusive democracy and economy. CIVIL RIGHTS: 1957 – The Civil Rights Act was passed, allowing the federal government to investigate abuses. 1964 – President Lyndon Johnson signed the Civil Rights Act of 1964. Title VII of the act banned discrimination based on sex, race, color, religion or national origin. VOTING RIGHTS: 1964 – 24th Amendment ratified; prohibited poll taxes used to prevent African Americans from voting. 1965 – Voting Rights Act passed; prohibited voting test requirements for African Americans and established federal election supervision in places where African Americans had been prevented from voting. 1975 – Voting Rights Act expanded to require language assistance at polling stations. WOMEN’S RIGHTS: 1963 – The Equal Pay Act made it illegal to pay men and women different wages for equal work. 1972 – Title IX of the Education Amendments prohibited discrimination based on gender in federally assisted educational programs. 1974 – Equal Credit Opportunity Act prohibited discrimination in granting credit based on race, sex, age, national origin or marital status. If time permits, ask participants about their personal knowledge or experience with the impact of these rule changes.
- Let’s look closer at what’s happening to the rules in today’s economy.
- Let’s start with looking at how the economy is out of balance. Reflecting on the exercise we did at the start of this section, and considering who stepped forward and why, what does this say to you about the current economy? Who was negatively impacted? [Take a few responses from participants.] It wasn’t just one or two people, it was almost everyone in the room—and some folks were impacted in multiple ways. And it’s not just those of us in this room; working people across the country are struggling to make ends meet in this economy. [CLICK] We can see from the headlines that many families are struggling. All over America, people are wondering what’s happening, why the middle class is having a hard time making ends meet. Well there is ONE group that is not worrying—corporate CEOs and the top 1%.
- In the early 1970s, conservative elites came together and set about changing the rules to reduce constraints on their power and to weaken the power of working people. They dubbed their ideas “neoliberal economics.” They wanted to remove any constraints on the power of corporations and businesses that reduced their profits. What does this mean for working people like us? What have you seen in your community? [Review a few key points from the list and connect to participant responses.] Make it harder to form and join unions and to negotiate contracts Make it easier to break strikes Misclassify workers (e.g., taxi workers as independent contractors) Keep the minimum wage low Weaken overtime rules Attack project labor agreements and prevailing wage rules Deregulate the banking sector and Wall Street, remove laws protecting consumers Promote trade agreements, like NAFTA, that pit working people against each other Change policies at the Federal Reserve to keep unemployment rates high Cut programs and enforcement of standards that help working people Cut corporate tax rates and create new tax loopholes Change campaign finance laws to allow unlimited contributions by corporations and the very wealth to ensure the election of leaders who support their change in the rules
- We looked before at how productivity and wages rose together from 1948 to 1973. Looking at this graph, what starts to happen in the early ’70s? What do you think caused this change? [Take a few responses from participants. Responses might include trade, attacks on unions, corporate influence, etc.] As we can see from the slide, from 1973 on productivity continued to rise, but employers refused to pay higher wages. The wealthy and powerful changed the rules of the economy to keep wages low and make it harder for working people to make a living.
- What has been the result of these changes to the rules of the economy? When unions are strong, they act as a check on corporate power and provide a way for working people to exert economic and political power to set and enforce rules that work for everyone. This graph shows union membership rates (the blue line), and the share of income that goes to the top 10% of our country (the red line). What do you notice about these lines? [Take a few responses from participants.] We can see the relationship between union membership and income—as union density declined, the share of income going to the top 10% increased substantially. When unions represented 30 to 40% of the workforce, they influenced all wages. As it became harder to form and join unions, and to speak up together, it became harder to demand our fair share of economic growth and the wealth we all create.
- Our economy in 2014 was more than two times bigger than it was in 1973, but average wages and the share of household wealth has declined. As the rules changed to reduce the power of working people, our share of the growth of the economy went to corporations, CEOs and the top 1%.
- Wealth is much more concentrated in today’s economy. Just eight people, the heirs to the Walmart fortune and the Koch brothers, control $216 billion—the same amount of wealth as 44% of American households. Under the current neoliberal economic rules, wealth inequality is growing. In 1982, there were just 32 billionaires in the United States, according to Forbes. Last year, there were 513 billionaires in the United States.
- The rules of the economy have changed to benefit the top 1% and keep us in a vicious cycle of low-wage work and communities starved of resources. Low wages mean no customers, no growth and no business investment. Instead of the wealth of our country being invested in research, infrastructure, education and other things important to our communities, the increased wealth is going into the pockets of the top 1% of our country. This starves the public sector and undermines the institutions that built the middle class—public colleges and universities, good government jobs that protect public health, build and maintain our infrastructure and provide valuable public services. CEO pay has skyrocketed. Investor profits are on the rise. Contributions to lobbyists and political campaigns are at an all-time high. The attacks on unions have made it harder for working people to negotiate together to demand a fair share of the wealth they create. The economy of the 1% doesn’t work for most of us.
- We can change the rules. By acting together, by organizing, we can create an economy that works for everyone.
- This is our choice—fight for an economy that works for everyone, or watch our democracy and our families’ future collapse. That’s why we’re here today—to take action. What can we do change the rules? [Take a few responses from participants.]
- We can exercise our power to change the rules to build and support an economy for shared prosperity. We can start by raising wages and labor standards—as thousands of people are doing now across the country—by: Strengthening workers’ rights to organize unions and to negotiate for better wages and working conditions. Raising the minimum wage and tipped wage. Passing living wage ordinances. Supporting prevailing wage standards and project labor agreements. Increasing the number of people eligible for overtime. Passing paid sick leave and family leave legislation. Wage growth increases consumer demand. When there is more demand, businesses hire more workers, invest in research and development, and expand operations, driving increased productivity. Strong unions ensure working people get a fair share of economic growth.
- We can lower unemployment rates by investing in infrastructure, education and research to create more jobs that pay wages to sustain a family on and to ensure the United States remains competitive in the global economy. For America to succeed in the 21st century, we have to invest in the things that help us all grow and improve as a country: 21st century energy systems Learning and education Early childhood education for all children Public infrastructure—roads, bridges, ports, schools, etc. Mass transit Clean water Science Public lands and resources This means we have to reclaim our relationship with government—we have to understand that government can and should be a tool for a fairer America.
- We can exercise our power to change the rules and ensure our government represents all working people. We need a government that will fight for a better America. When people like us elect people who work for us, and we hold them accountable, then we will have rules that benefit all working people.
- For America to succeed in the 21st century, we have to include everyone: We can provide economic security and health care for all our seniors, including strengthening Social Security and Medicare and expanding access to pensions. We can invest in high-quality, fairly compensated child care so every child has a healthy start in life. We can create an immigration system that works for working people—not a system that benefits corporations and separates families. The current system allows corporations to take advantage of immigrant workers by paying them low wages and denying their rights on the job. This undercuts the living standards for all workers in the United States. We need to put an end to mass incarceration that robs people—especially African Americans and Latinos—of a future. This matters to the economy because when you have millions of people incarcerated or formerly incarcerated, it presses down wages for everyone. The United States has more incarcerated people than any other nation in the world. Over the past 30 years, our crime rate has stayed the same, but the number of people incarcerated has tripled. And now corporations are fighting to privatize prisons, so they can rake in profits from this system. We can ensure we all have rights at the workplace, no matter who we love.
- We’ve looked at how working people have come together in the past to fight for a more inclusive democracy and a fairer economy. But I want to find out from all of you the different actions you’ve taken to create a fairer economy. I’m going to ask a series of statements; if the statement applies to you, please stand [If you have participants who may not be able to stand, have them raise their hand]. Please stand if: You have walked a picket line. You have helped organize an event to raise funds for a cause you believe in. You have worked with people in your place of worship to help others in need. You have volunteered to help in your community. You have voted in a city, county or state election. You have volunteered to phone bank or knock on doors for a political campaign. You have called or emailed an elected representative. [If time permits, ask participants for specific examples of what they did.] As we can see from all the people who stood, we have experience in taking collective action. We know how to work together to get things done. We know how to do this. We’ve done it before. We can do it again.
- We can come together to demand more time for our families, our children, for rest, wages that allow us to make a living and a decent life. To THRIVE, not just survive. We can demand more of the wealth we all create together. We have a $17 trillion economy and more than 500 billionaires—if they paid their fair share, we’d have plenty to invest in the common good—education, infrastructure, basic research. We can rewrite the rules to stop offshore tax havens, loopholes and excessive CEO pay. We can write rules that stop billionaires from trying to buy elections and lawmakers. We can vote for, and work for, people who care about people like us, people who will go to Washington, D.C., and fight for our interests and for a better America. We have momentum—we are moving forward all over the country. But we need more people to get involved. Not for today or a week or a month, but for the long haul. We need you, your friends, your family and your co-workers to take action.
- Together, we can change the rules of the economy. Take out your phones and text “WIN” to 235246; you will be added to the AFL-CIO’s activist database and receive updates about ways to get involved in your local community. And that’s what we’re going to focus on now—taking action here and at home to create change.
- [Modify this slide to match the campaign being used for the presentation. Use to introduce the campaign after showing the video.] There are national fights and there are local fights. Right now, we want to ask you to help us with: A key national fight [insert national campaign information]. An important local campaign [insert local campaign information].