Racial Economic Inequality

1. Racial Economic Inequality

2. Agenda • Race and Economics in the United States • The Founding of the NAACP • The Great Migration: Looking for Economic Opportunity • The Great Depression: Fighting for Economic Inclusion • The Civil Rights Victory and Struggle for Greater Inclusion • The Civil Rights Economic Focus • Post Civil Rights Advances • The Contemporary Barriers to Greater Racial Economic Equity

3. Race and Economics in the United States • Wealth in the form of land was appropriated from the Indigenous peoples of this country and enslaved Africans were imported to the United States as the wealth of white Americans.

4. Race and Economics in the United States Asians like most people of color were not permitted to immigrate in substantial numbers until the Immigration and Nationality Act of 1965. Latinos were first included in large numbers into the US through the defeat of Mexico in the Mexican- American war. Through law, custom, and violence economic opportunity has often been prohibited and at least limited for people of color in the United States creating an economic apartheid whose legacy can still be seen today.

5. The Founding of the NAACP The Springfield Race Riot of 1908 • Springfield, Illinois was a rapidly-growing industrial center at the turn of the century • Fierce job competition and the use of black workers as strike breakers during labor strikes caused increased tension • An attack by a white mob against the black section of Springfield spurred the creation of the NAACP

6. 1910 – 1930’s: The Great Migration African Americans migrated from the South to industrial cities in the North, Northeast and West to pursue better economic opportunities and escape the racism of the South.

7. 1910 - 1930’s: The Great Migration Angered by the influx of working African Americans in urban cities, a variety of tactics designed to enforce residential segregation were developed (e.g., lynching and race riots against blacks, neighborhood covenants, racial steering, redlining, discriminatory lending practices, and restrictive zoning laws).

8. Great Depression: 1929 – 1940’s • The Great Depression was the longest and deepest economic crisis of the 20th century. • The NAACP directed its focus to economic justice issues as the Great Depression was disproportionately disastrous for African Americans.

9. 1950s – 1960’s Civil Rights Struggle May 17th 1954 the Supreme Court unanimously ruled that “separate educational facilities are inherently unequal” and unconstitutional thus setting the legal precedent which the civil rights movement of the 50’s and 60’s would build upon and continue the battle for social, political and economic inclusion.

10. The Civil Rights Economic Focus • Goals of The Freedom Budget • 1. Abolition of poverty • 2. Full employment • 3. Full production / high economic growth • 4.Adequate minimum wage • 5. Farm income parity • 6. Guaranteed income for those who can’t work • 7. Decent homes for all • 8. Modern health services for all • 9. Full educational opportunity for all • 10. Better social security and welfare • 11. Equitable tax and money policies

11. Post Civil Rights Advances

12. Post Civil Rights Advances

13. Little Advance in Income Equality

14. What Happened? The Great Regression • The lowest paid 20% of Americans saw a 7% decline in their income over the last 30years • Middle income Americans saw a 11% increase over the last 30 years all the while the highest 5% in terms of income saw their income increase by over 70% • For the last thirty years the regressive nature of income growth where the rich get richer and the poorer farther behind has greatly limited African Americans ability to achieve income equality For more info see www.inequality.org

15. The Economics of America’s Promise • In the past America’s economy was more progressive rewarding the poor and middle class more than the highest income earners but during much of this period state sanctioned racial discrimination was the law of the land.

16. From the Great Depression to the Great Recession • The growing economic inequality in our country has made the Great Recession so damaging. Middle class and poorer Americans do not have the income to get our consumer based economy going again.

17. Worsening Racial Income Inequality • 1977 to 2007 only about a 1% increase in Black / white income equity. 2007 to 2009 Black / white income inequality is increasing.

18. The Great Recession & The Racial Wealth Divide

19. The Wealth Divide in the United States 60% of America doesn’t even have 5% of the nations wealth while the wealthiest 20% has over 80% of the nations wealth.