1. + Income Inequality Challenges Facing Young Households in the US Chunzi Lin Nick Pawloski Benjamin Rustman Wei Rong Tay Zach Uminski

2. + Pew Research Center Founded in 1990 and based in Washington D.C. Provides information on social issues, public opinions, and demographic trends Conducts public polling, research, media content analysis, etc. Mission is to enrich the public dialogue and supports sound decision-making

3. + Income Inequality

4. +

5. + Young Households Income gap among young households has become bigger Lowest quintile of earners have seen their share of income fall, while highest-earning quintile grown their share of income Decreasing mean income for young adults As young generation grow older, it will widen the income inequality gap Causing social and economic problems So what can be the root causes…?

6. + Causes 1)Education College graduates are more likely to earn twice the salary of high school diplomas

7. + Causes 1)Education (conti.) The median wage growth of college graduates is higher than non-college graduates This could be due to the supply and demand of labor market

8. + Causes 2)Student Loans 69% of graduates had student loan debt Average student loan debt is more than $30,000 Increased by 33% since 2005

9. + Causes 2)Student Loans (conti.) College tuition fees has increased dramatically over the last few decades

10. + Causes 2)Student Loans (conti.) Average earnings of young college graduates has been decreasing

11. + Causes 3) Occupation Young adults with higher degree tend to find higher-paid jobs Increasing starting salaries for high-skilled jobs 4) Consumption & Investment behavior Higher educated individuals have better financial knowledge and act accordingly People with less financial literacy are more likely to be in debt

12. + Alternatives Current system is not working Changes must be made Education Student Loans Source: Intrust

13. + Annual expenditures per FTE student for elementary and secondary education in selected OECD countries, by gross domestic product (GDP) per capita: 2010 Alternatives

14. + Annual expenditures per FTE student for postsecondary education in selected OECD countries, by gross domestic product (GDP) per capita: 2010 Alternatives

15. + Alternatives 1)Education Establish committee to grade teacher’s performance Repercussions for low performing teachers Eliminate/Reduce “Common Core” More local control

16. + Alternatives 1)Education

17. + Alternatives 2)Student Loans 69% of graduating seniors had student loan debt Pell Grants are major source for low income families Increase threshold from $23,000 to $32,000

18. + Criteria Public Nature of Problem Problems: 1) Public 2)Governmental 3)Economic Targeted Demographic Low Income (>$30,000)

19. + Methods Social Acceptance Political Backing Lobbyist Economic Feasibility Time sensitivity Short and Long Term Goals

20. + Recommendations Student Debt Rising costs in education Inability to pay Pell Grant Adjustment 30% of College Costs Income Restriction Change from $23,000 back to $32,000 Increase in Social benefits

21. + Recommendations (conti.) Education Gap No Incentive for teachers to perform well. Different levels of teachers in each level creates unstable learning environment Performance-Based Pay Restructured Tenure Teacher Monitoring

22. + Implementation Plan Step 1: Find multiple possible solutions & select the best option Pell Grant adjustments Education adjustments Estimated time: 10 weeks Step 2: Propose our income and education bill to the community & collect feedback Specific interviews Estimated time: 6 months

23. + Implementation Plan (conti.) Step 3: Analyze community feedback Break data into different demographics *Age, educational background, race, wealth, etc. Estimated time: 8 weeks Step 4: Propose income and education bill to our local representative Hire assistance to draft official bill Estimated time: 4 weeks

24. + Implementation Plan (conti.) Step 5: Income and education bill passes into law Hire lobbyist Attract media attention Estimated time: 10 weeks to a year Future Steps: Track performance Is it helping to solve the problem? Does it need updates or revisions?

25. + Potential Challenges Gathering community feedback Getting the bill passed

26. + Conclusion Income inequality among young households is a newly raised issue in the United States Education, student loans, occupations, consumption behaviors are root causes Our team propose Pell Grant adjustment as a solution Short-term and long-term goals Our team is confident

27. + Reference Lists DeNavas-Walt, C., Proctor, B. & Smith, J. (2013). Income, Poverty, and Health Insurance Coverage in the United States: 2012. Retrieved April 5, 2015 from http://www.census.gov/prod/2013pubs/p60-245.pdfhttp://www.census.gov/prod/2013pubs/p60-245.pdf NCES. (2013). Digest of Education Statistics: 2012. Retrieved April 7, 2015 from http://nces.ed.gov/programs/digest/d12/http://nces.ed.gov/programs/digest/d12/ NCES. (2014, January 1). Education Expenditures by Country. Retrieved April 7, 2015, from https://nces.ed.gov/programs/coe/indicator_cmd.asp https://nces.ed.gov/programs/coe/indicator_cmd.asp Rotherman, A. (2012, May 24). How To Fix Pell Grants | TIME.com. Retrieved April 6, 2015,from http://ideas.time.com/2012/05/24/how-to-fix-pell-grants/ http://ideas.time.com/2012/05/24/how-to-fix-pell-grants/ Baum, S. & Steele, P. (2010). Who Borrows Most?Bachelor’s Degree Recipients with High Levels of Student Debt. Retrieved April 1, 2015 from https://trends.collegeboard.org/sites/default/files/trends-2010-who-borrows-most-brief.pdfhttps://trends.collegeboard.org/sites/default/files/trends-2010-who-borrows-most-brief.pdf Strauss, V. (2013, December 15). How much teachers get paid — state by state. Retrieved April 7, 2015, from http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/12/15/how-much-teachers-get-paid-state-by-state/ http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/12/15/how-much-teachers-get-paid-state-by-state/ Student Body of America Assosiation. (n.d.). Possible Solutions to the $1 Trillion Student Debt Crisis. Retrieved April 6, 2015, from http://www.studentbodyofamerica.org/possible-solutions-to-the-1-trillion-student-debt-crisishttp://www.studentbodyofamerica.org/possible-solutions-to-the-1-trillion-student-debt-crisis U.S. Census Bureau. The Statistical Abstract of the United States: 2012. Retrieved March 30, 2015 from http://www.census.gov/compendia/statab/2012/tables/12s0232.pdf http://www.census.gov/compendia/statab/2012/tables/12s0232.pdf

28. + Question?