Presentation is loading. Please wait.

Presentation is loading. Please wait.

Strategies for Helping People Make a Living August 26, 2015 NCAP Annual Conference-San Francisco Jim Masters: CCAP, NCRT.

Similar presentations


Presentation on theme: "Strategies for Helping People Make a Living August 26, 2015 NCAP Annual Conference-San Francisco Jim Masters: CCAP, NCRT."— Presentation transcript:

1 Strategies for Helping People Make a Living August 26, 2015 NCAP Annual Conference-San Francisco Jim Masters: CCAP, NCRT. jmasters@cencomfut.comjmasters@cencomfut.com Allen Stansbury, Senior Associate. Allen@Stansbury.netAllen@Stansbury.net Center for Community Futures

2 22 Strategies for Helping People Make a Living To expand opportunity and enhance economic security, we must change the rules under which the economy operates. This workshop will present findings from the White paper about how to bring this about. 1.Strategies proposed by think tanks and national advocacy organizations to expand opportunity (demand side) 2.Strategies for Human Development (supply side) 3.Alternatives to “Making it" in the Mainstream Economy 2

3 33 Strategies proposed by think tanks and national advocacy organizations to expand opportunity Expand Number of Jobs Increase the Amount of Money that Workers Earn Expand Access to Education and Expand Work Supports Expand Household Income from Other Sources Support Banking and Corporate Financial Reforms Alternative Economics What kind of economy are we trying to create? 3

4 44 Piketty, Reich, Stiglitz, Bernstein and others 4

5 55 Thomas Piketty’s “solution” to inequality Describes evolution of inequality since the beginning of the industrial revolution to present As a general rule wealth grows faster than economic output, captured in the expression r>g, rate of return to capital (r), growth rate of world output (g) No natural forces pushing against the steady concentration of wealth. Only rapid growth (from technological progress or rising population) or government intervention can be counted on to keep economies from returning to the “patrimonial capitalism” such as a global wealth tax: – Inherited wealth – Top incomes – Capital gains 5 http://www.economist.com/node/21601642/print

6 66 Stiglitz: Consequences-Instability “We are paying a high price for our inequality — an economic system that is less stable and less efficient, with less growth,” According to Stiglitz studies have shown conclusively that inequality leads to political instability that may hamper countries’ effectiveness in responding to external shocks. In turn the result can be both economic shocks leading towards political instability 6

7 77 Robert Reich – Income Distribution 1928 vs 2007 7

8 88 Jared Bernstein 8 Factors most commonly cited as driving poverty in America: Education, Family structure, Race and more Number-one factor by far is the growth in inequality, which added 7% to the poverty rate since the late 1970s.

9 99 Expand Number of Jobs Energy Conservation – Weatherization, etc The Sharing Economy National and Regional Capital Investment – maintaining and improving our infrastructure: roads, environment, utilities Advocate for Tax Reform Cap and Trade Microbusinesses and self-employment Social Enterprises Expand Labor Unions 9

10 10 “Half in Ten” Campaign Success Stories: Child Care Food and Nutrition Education Health Housing Income Assistance Jobs training Low-income tax credits WIC Unemployment Insurance Minimum wage Call to ActionCall to Action July 21, 2014 Re: New House Child Tax Credit Bill Leaves Behind Millions of Low-Income Working Families While it permanently extends the Child Tax Credit higher up the income scale so more families with six- figure incomes will benefit. It fails to make permanent the 2009 reduction in the CTC’s earnings threshold, set to expire at the end of 2017. If this provision expires, a single mother with two children who works full time throughout the year at the minimum wage and earns $14,500 would lose her full CTC of $1,725 in 2018.lose her full CTC of $1,725 in 2018 It indexes the current maximum credit of $1,000 per child to inflation. This provision would not help most working families with low or moderate incomes, because it benefits only those with incomes high enough to receive the maximum credit.

11 11 Economic Policy Institute (www.EPI.org) Issues Focus: Labor Laws – Examples – Extend Unemployment Benefits - State Cuts to Jobless Benefits State Cuts to Jobless Benefits – Tipped Workers and Minimum Wage (by the end of 2015 29 states will have increased their minimum wage) Tipped Workers and Minimum Wage Tax Credits –Examples – The Earned Income Tax Credit The Earned Income Tax Credit – Child Tax Credit Child Tax Credit Immigration reform - Example – Overloaded Immigration Courts Overloaded Immigration Courts 11

12 12 Other EPI Recommendations Enact the Surface Transportation Act, if enacted will increase employment by an average of 117,000 jobs annually over the next three years, or 350,000 jobs total, with larger job gains in later years. Renewable energy and energy efficiency improvements (WHEEL and PACE) potential 2.1 million jobs. FAST - a direct job creation program to renovate 16,000 schools nationwide 12 http://www.epi.org/publication/putting_america_back_to_work_policies_for_job_creation_and_stronger_economi/

13 13 New American Foundation Asset Building ProgramAsset Building Program: issues and papers Children's Savings Accounts Solving the Retirement Puzzle Rebalancing the Scales The Financial Health Check Connecting Tax Time to Financial Security California Civic Innovation ProjectCalifornia Civic Innovation Project technology to influence local government “Public Pathways: A Guide to Online Engagement Tools for Local GovernmentsPublic Pathways: A Guide to Online Engagement Tools for Local Governments Economic Growth ProgramEconomic Growth Program research papers such as: The Wizard of Jobs a US labor status report on the first 6 months of 2014 and its continued jobs slump. America's Debt Problem discusses the impact on middle and low income classes due to excessive private debt and its consequences. America's Debt Problem Pay More, Get Less that takes a look at the cost of health, medical, education, basic financial services and communications Pay More, Get Less 13

14 14 TAX AND BANKING REFORM MEASURES

15 15 Tax Reform - Background Last overhauled of the federal tax code: 1986overhauled of the federal tax code: 1986 Tax Cuts, i.e. lowering of capital gains to 15% have benefited the wealthy, however, Middle and Low Income have been hit by increased “payroll” taxes Tax reform is the best way to tackle “income inequality” 15

16 16 Tax Reform and Simplification Recommendations for reform and simplification: One tax reform strategy: raising taxes on high-income earners and corporations to pay for expanded benefits to low-income Americans “Broaden the base, lower the rates” Three Strategies to consider: National Commission on Fiscal Responsibility and Reform Simpson-Bowles 6 Part Budget Plan National Commission on Fiscal Responsibility and Reform Urban and Brookings Institute Tax Policy CenterTax Policy Center US Senate Committee on Finance Tax Reform List US Senate Committee on Finance Reform of The Distribution of Major Tax Expenditures in the Individual Income Tax SystemThe Distribution of Major Tax Expenditures in the Individual Income Tax System 16

17 17 Support Banking and Corporate Financial Reforms Since 2007, 1,400 smaller banks have completely disappeared from the banking industry. Our economic system is now more dependent on the 6 “too big to fail” banks than ever - JPMorgan Chase, Citibank, Goldman Sachs, Bank of America, Morgan Stanley and Wells Fargo 5 of these account for approximately 42% of all loans, all 6 account for approximately 67 percent of all assets in our financial system. Together have accumulated $278 Trillion Of exposure to derivatives 17

18 18 Strategies for Bank Reform Enforce Dodd-Frank - continue writing bank and corporate financial regulations Support the Consumer Finance Protection BureauConsumer Finance Protection Bureau – Laying the groundwork for rules to end debt-trap loans of Pay Day lending – Ended deceptive and predatory mortgages – Ended credit card deceptive and fraudulent add on products Re-enact Glass-Steagall Banking Act of 1933 - prohibits banks using deposits that put the bank or the economy at undue risk (Joint Warren-McCain amendment pending)

19 19 INCREASE THE AMOUNT OF MONEY THAT WORKERS EARN

20 20 Ways to Increase the Amount of Money that Workers Earn Increase minimum wage levels at national, state and local level Enact Fair Pay Legislation – equal pay for male and female workers (NEW) End “Perma-Temp” positions – temporary positions that are permenant End misclassification of workers to avoid paying benefits (workman comp, social security, health insurance) such as: – Hire through 3 rd party personnel agencies that are employed as contractors – Classify workers as supervisors to avoid paying overtime ($23,000 limit) – Use only part time and temp. employees 30 hr max to avoid ACA Enact paid sick leave, required vacation time legislation Support the development of Employee Stock Ownership Plans (ESOP) 20

21 21 Wage Theft and Misclassification in America Unpaid overtime, “Off-the clock” work violations, (clock out, but don’t clock in), Outright wage forfeiting (illegals), or Through bankruptcy avoid required benefits and wage payment 21

22 22 Example: Perma - Temp Temporary workers — and not employees — pick crops, sew garments, clean hotel rooms, flip burgers and toil in a range of low-wage industries either direct hire or 3 rd party contractor No sick days, vacation days, health insurance benefits, no pregnancy leave Legislation is required to make both the labor contractor and its client company, jointly liable for payment of wages, accurate reporting of hours worked, wages, benefits, tax deductions and insurance coverage for victims of on-the-job injuries (Illinois) 22

23 23 EXPAND WORK SUPPORTS EXPAND ACCESS TO HIGHER EDUCATION

24 24 Expand Work Supports to Include: Increase or expand work supports for: Child care, off-site and on-site Family leave and pregnancy leave, On the job training, Dislocation services and skills training Employers providing or paying for educational upgrading 24

25 25 Expanding Work Support Strategies: Streamlining Access, Strengthening Families WSS - A five-year 6 state initiative to help low-income families get and keep work supports (Colorado, Idaho, Illinois, N. Carolina, Rhode Island, and S.Carolina) WSS Supports states in their efforts to reform and align the systems delivering work support programs intended to increase families’ well-being and stability—particularly SNAP, Medicaid and CHIP, and child care assistance. States work to streamline and integrate service delivery, using e-technology to improve administrative efficiency to reduce burden on states and working families. Directed by the Center for Law and Social Policy (CLASP) in partnership with the Urban Institute (and the Center on Budget and Policy Priorities (CBPP) (technical assistance lead). Funded by the Ford Foundation, the Open Society Foundations, The Annie E. Casey Foundation, The Kresge Foundation, and J.P. Morgan Chase & Co. 25

26 26 Expand Household Income from Other Sources The Center on Budget and Policy Priorities (CBPP) A few examples: EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support Children’s Development - (April 3, 2015 Report) EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support Children’s Development WIC Works: Addressing the Nutrition and Health Needs of Low- Income Families for 40 Years (MAY 6, 2015) WIC Works: Addressing the Nutrition and Health Needs of Low- Income Families for 40 Years Social Security Keeps 22 Million Americans Out Of Poverty 26

27 27 College Student Loan Debt Currently $1.3 Trillion outstanding in student loans, Average debt of a graduate with a BA is now $27,000, average BA graduate salary $53,000 6.6 million jobs created since 2010, 2.9 million were good jobs, 100,000 of those jobs were filled by people with less than a Bachelor’s degree. 12 % are unable to save for their retirement or their children’s education and feel less secure 20% unable to purchase home, average home purchase before 2007 was 27, now age 35 (Zillow.com) Causing longer live with parents, delay home purchase and even marriage 27

28 28 Strategy on Lowering Student Debt Two Part Strategy: 1) Reform Student Loan program 2) Increase Education Subsidy Lower current interest rate of 5-6+% End prohibition of bankruptcy protection Free 2 year college tuition Increase state budget allocation to off-set college/university overhead Hold to 4 year BA degree by increasing facility and class-rooms 28

29 29 WHAT KIND OF ECONOMY ARE WE TRYING TO CREATE?

30 30 Otto Scharmers: 8 innovations to update the economic system 1. Nature- Consider the natural world as an eco-system that we need to cultivate. 2. Entrepreneurship- Think about “jobs” as passion-led entrepreneurship. 3. Money - Instead of extractive, capital should be intentional, serving rather than harming the real economy. 4. Technology - Empower people to be makers and creators rather than passive recipients. 5. Leadership - Build the capacity to co-sense and co-shape the future on the level of the whole system. 6. Consumption - Move towards sharing and collaborative consumption 7. Governance - Move toward complementing the three older mechanisms (hierarchies, markets, and special interest groups) through a fourth mechanism: acting from shared awareness, from seeing the whole. 8. Ownership - Create a new category of ownership rights: commons-based ownership that better protects the interests of future generations. 30 http://www.theguardian.com/sustainable-business/2014/sep/26/8-innovations-economic-system-capitalism

31 31 David Korten: Change the Story, Change the Fut ure Sacred Money and Markets story is the corporate message, serves as the basis for the US economy, as it defines our future Use as the framework for every news report and political debate, Basis of their legal arguments Taught in our schools and universities The counter-story: Sacred Life and Living Earth story to advance justice, sustainability, peace, and democratic governance campaign organize around individual issues Focal point of discussions in our living rooms, schools, churches, and civic centers The frame of our social media exchanges, community initiatives, and political advocacy. Introduce it into academic curricula Compel the champions of money to make their case within a sacred life and living earth frame 31

32 32 Reframing Professor George Lakoff Dr. Meg Bostrom. Cultural universals Center for Community Change Partnership discussion with The Frameworks Institute http://www.frameworksinstitute.org/ http://www.frameworksinstitute.org/ 32

33 33 Strategies for Human Development The pursuit of human development and expansion of economic opportunity Moving to Opportunity - moving people to new geographic areas mostly to middle-class suburbs Adverse Childhood Experiences (ACEs) or “good parenting” Child Care Development block grants, (CLASP) Child Care Development block grants Gates Foundation -supports kindergarten readiness and elementary school achievement Gates Foundation 33

34 34 Issues for CAAs to Think About –Part 1 Support expansion of early childhood development How Much Could We Improve Children’s Life Chances by Intervening Early and Often? The Future of Education. The Human Development Capability Approach Two Generation Strategies Nurse-Family Partnership 34

35 35 Issues for CAAs to Think About –Part 2 Conditional Cash Transfers Health Issue. The Unbelievable Rise of Single Motherhood Health Issue: Use of Long Acting Removable Contraceptives (LARCs) Work to keep youth “at risk” from going further downhill Social Capital Work to prevent people from killing each other 35

36 36 Issues for CAAs to Think About –Part 3 Support criminal justice reform All kids must have high-school skills Support the Affordable Care Act BE INCREDIBLY CAREFUL about use of Social Impact Bonds Final thoughts on human development – the effects of credentialism 36

37 37 Alternatives to “Making It” in the Mainstream Economy Part 1 Reduce or redirect the human desire for to expand consumption Explore sustainable, alternative approaches like “Transition Towns” HOW TO “reform capitalism” Reducing Consumption 37

38 38 Alternatives to “Making It” in the Mainstream Economy Part 2 The Sharing Economy and the On-Demand Economy The Informal Economy Turn citizens into shareholders of the countries natural resources Utopian Movements 38

39 39 New ways of thinking about how people can “make a living” Community supported agriculture, Co-housing, Makerspaces, Reducing consumption Artisanal work in metals and wood, Producing culture (400,000 hours of YouTube videos and 350 million photos are posted to Facebook EVERY DAY, Kindle books) 3-d printing, Tiny homes, New contests in sports and video games, Reducing consumption, Trading services, Transition towns, and Various forms of “citizen’s income.” 39

40 40 Remember The Office of Economic Opportunity ran several Guaranteed Annual Income (GAI) experiments in the late 1960’s and early 1970’s, President Nixon was in favor of a GAI. Nine other countries are exploring ways to do citizen’s incomes, and So should the U.S. 40

41 41 Questions and Answers 41

42 42 Thank You For more detailed information Please check our website America’s New Working Poor- Its Middle Class America’s New Working Poor- Its Middle Class 42


Download ppt "Strategies for Helping People Make a Living August 26, 2015 NCAP Annual Conference-San Francisco Jim Masters: CCAP, NCRT."

Similar presentations


Ads by Google