This talk discusses how we can use the issues raised by the coronavirus crisis to develop a new theory and practice of economics in which we take seriously the human impulse for connection and belonging.

1. Solidarity Economics for the
Coronavirus Crisis
and Beyond
CHRIS BENNER, cbenner@ucsc.edu
June 22, 2020

2. Ethiopia
Then and Now

3. Ethiopia: From Charity to Solidarity
• Health infrastructure:
– Strong prevention-based primary public
health-care system
– Coordinated COVID response focused on
public awareness and education
• Economic opportunity
– 10.4% GDP growth rate 2004-2018
– One of the lowest levels of inequality
– Growing manufacturing exports—from
wine and textiles to aerospace

5. The disease has revealed our underlying sickness . . .
- 46% of Americans can’t access $400
in an emergency
- By age 60, 80% of Americans will
have experienced at least one full
year of poverty or joblessness
- 28 million people without health
insurance, and 44 million more with
inadequate health insurance
- Sharp racial disparities being revealed
in emerging data on the crisis
30%
35%
40%
45%
50%
55%
1917
1922
1927
1932
1937
1942
1947
1952
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
2017
PercentofTotalIncome
Share of total income going to top 10% of earners, 1917-2018
Source: Piketty and Saez, 2003 updated to 2018. Series based on pre-tax cash market income including

6. 39%
37%
15%
6%
3%
57%
17%
7%
5%
14%
33% 33%
15%
9%
2%
0%
10%
20%
30%
40%
50%
60%
Latino White Asian African
American/Black
All other
Percent
Source: California Dept. of Public Health (as of June 20, 2020)
California COVID-19 Cases and Deaths by Race/Ethnicity
Percent CA Population Percent Cases Percent Deaths

7. Source: Rob Fairlie
analysis of CPS
8%
13%
10%
9%
20%
29%
28% 27%
0%
5%
10%
15%
20%
25%
30%
35%
White Black Latinx Asian
Unemployment Rates by Race (Including NILF Want Job and Absent Job)
Feb-20 May-20

8. • - 11% for white
self employed
business owners
Source: Rob Fairlie
analysis of CPS
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Black Latinx Asian
Number of Self-Employed Business Owners before and after COVID-19 by Race
Feb-20 May-20
-19%
-26%
-21%

9. USC Equity Research Institute
&
UCSC Institute for Social
Transformation
Solidarity Economics
For more info visit:
https://transform.ucsc.edu
An approach that takes seriously the economic benefits of
human impulses for connection, community, & “belonging.”
Centers race, place, and power and understands
the possibility and importance of scale in
shifting institutions.
Work alongside organizers, power-builders, and
change-makers to inform the theory, narrative, and
policies.

10. Power of an Economic Frame
• Integrates economic theory, policies,
and narrative
• Structures perceptions and actions
• Shapes institutions and social norms

11. Traditional Competing Frames
• Neoliberal Frame:
– Free markets
– Individual ‘freedoms’
– Deregulation
• Social democratic frame
– Macro-economic stability
– Government protection
– Public goods

12. • Both share a similar view of
human nature:
– People act in their self-interest
• But people also act out of
solidarity & mutuality
– Normative and descriptive
• Scaling solidarity would benefit
people, planet and prosperity
Self-interest versus solidarity frames

13. 1. Solidarity and Prosperity: Equity can positively impact growth
• Diverse and Dynamic Epistemic
Communities
• Roots, Relationships, Reason
Income Inequality
Racial Segregation
Metro Government
Fragmentation
Political Sorting by Space
What Derails Sustained Growth?

14. 0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CaliforniaEmployment in High-Tech Services versus
Nursing, Elder, Family, Home Health, and ChildCare Services, 1990-2018
High-Tech Services Nursing, Elder, Family, Home Health, & Child Care Services
11.5%
21.4%
24.4%
0%
5%
10%
15%
20%
25%
30%
2010
2015
2020
2025
2030
2035
2040
2045
2050
2055
2060
Getting Greyer: The rising percent of the California
population 65 years old or older
2. Solidarity & Caring: Benefits our Demography & Economy

15. 3. Solidarity & Health: Prevention is cheaper than treatment

16. 3. Solidarity & Health: Prevention also leads to better health outcomes
Source: Lown Institute (2019) California’s health care paradox: Too much health care spending may lead to poor community health

17. Percentage of
Fossil Fuels
Unburnable:
84%
Vs.
4. Solidarity and the Environment: Going Green is Good Economics
Source: NOAA

18. • Emerging evidence that disproportionate
exposure by race & income is one factor
behind current vulnerability
• Centering equity is key to tackling
climate and coronavirus crisis
4. Solidarity and the Environment: Health and Environmental Justice

19. $4,905
$54,279
$3,905
$81,443
$20,207
$53,273
$4,391
$15,023
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
1965 (2010$) 2016 (2011PPP$)
GDP Per Capita, Selected
Countries, 1965 & 2016
Hong Kong Singapore United States World
5. Solidarity & Housing: More Affordable Housing Helps Economy
• Constrained housing supply
in NY, SF, and San Jose
alone between 1964 and
2009 is estimated to have
resulted in 3.7-8.9% lower
GDP, or $3,685-$8,775 per
worker (Hsieh & Moretti
2019)
• Mis-directed housing
policies and NIMBYism are
both important causes of
lack of affordable housing

20. • Lack of affordable
housing has also
contributed to
COVID-19 spread

21. 6. Solidarity & Education: Investing in education helps economy
0.00
0.50
1.00
1.50
2.00
2.50
Public Spending On Active Labor Market Policies as % of
GDP, OECD Countries, 2016
http://impact.all4ed.org/
For California:

22. 7. Solidarity & Public Safety: What really makes us safe?
• Total public spending in California for policing,
incarceration, and related criminal justice system
is ~$40 billion in 2019-20 (compared to only ~$18
billion for higher education)
• We spend ~$65,000/year per prisoner in CA
Rank Country Prisoners per 100,000
population
1 USA 655
2 El Salvador 590
7 Cuba 510
23 Russia 358
131 China 121
Adult Prison Incarceration Rates by Country

23. Collective Inheritance Network, Platform, Data Value
8. Solidarity and Innovation: Collective Knowledge Creates Value

24. Winner-Take-All Markets and Technological Rents
Undermine Livelihoods and Innovation
0.25
0.3
0.35
0.4
0.45
0.5
0.55
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
HerfindahlIndex
Market concentration, 1985-2015

25. U.S. Is Declining in Technology Leadership
Total Expenditure on R&D, as % of GDP
Top 10 OECD Countries
Country % Country %
Germany 2.35 Korea 4.55
United States 2.27 Israel 4.54
Great Britain 2.24 Sweden 3.40
Sweden 2.06 Switzerland 3.37
Japan 2.05 Japan 3.21
Switzerland 1.97 Austria 3.16
France 1.87 Denmark 3.05
Netherlands 1.62 Germany 3.04
Canada 1.20 United States 2.79
Norway 1.15 Finland 2.75
OECD Total 1.84 2.37
Source: OECD Data
20171981
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Source: OECD Data
U.S. Government Financed R&D as % of
GDP. 1981-2017

26. 9. Solidarity & Inclusion: Social Wage not Safety Net

27. We need to be:
• Tackling concentrated wealth and power
• Challenging racism and other forms of
dominations
• Practicing solidarity & building movements
Lifting up high road business,
stressing empathy, & spreading
norms is key but not enough
10. Solidarity and Struggle: Social Change Requires Challenge

28. A “NEW”
FRAMEWORK FOR OUR
ECONOMY
Growing
Together
Connecting
Communities
Securing
Livelihoods
and the
Future
SOLIDARITY ECONOMICS
ECONOMICS OF MUTUALITY

29. https://transform.ucsc.edu/
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Thank you!