The American Dream Fraying of the Folklore ~Bruce Springsteen - - PowerPoint PPT Presentation

The American Dream

Fraying of the Folklore

~Bruce Springsteen

Allegretto Cal Teach-in Inequality April 4, 2012

TENET #1

• Crux of the American Dream
• Equal opportunity
• Pull yourself up by your

boot straps

• Hard work ensures

economic security

• Middle class and beyond is

attainable & sustainable

Horatio Alger

“Rags to Riches”

Allegretto Cal Teach-in Inequality April 4, 2012

Intergenerational Mobility

0.50 0.48 0.47 0.41 0.40 0.32 0.27 0.26 0.19 0.18 0.17 0.15 0.0 0.1 0.2 0.3 0.4 0.5 0.6

United Kingdom Italy United States France Spain Germany Sweden Australia Canada Finland Norway Denmark

Source: Coark 2006. Allegretto Cal Teach-in Inequality April 4, 2012

More mobility less mobility

TENET #2

• You get what you deserve
• Hard work is rewarded
• No issue: class, race,

gender

• Equal opportunity for all

Allegretto Cal Teach-in Inequality April 4, 2012

3.0% 8.0% 29.0% 7.0% 21.0% 47.0% 30.0% 51.0% 74.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% Low Score Middle Score High Score Percent Completing College Low Income Middle Income High Income

Education and Income

Source: Fox, M.A., B.A. Connolly, and T.D. Snyder. 2005.

Allegretto Cal Teach-in Inequality April 4, 2012

Workers not getting their share

100 150 200 250 300 350 400 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 Index (1947= 100)

Source: EPI stateofworkingamerica.com Allegretto Cal T each-in Inequality April 4, 2012

Average hourly compensation Average hourly wage

Productivity

TENET #3

• Deterministic
• Religion
• Patriotism

Free Market

Allegretto Cal Teach-in Inequality April 4, 2012

Astonishing picture of income growth

(Growth in real post-tax income from 1979 to 2007)

18.3% 27.5% 35.2% 43.3% 65.0% 277.5%

0% 50% 100% 150% 200% 250% 300%

Lowest quintile: <20% 2nd quintile: 21%-40% 3rd quintile: 41%-60% 4th quintile: 61%-80% 81st-99th percentiles T

• p 1%

Source: CBO 2011. Allegretto Cal Teach-in Inequality April 4, 2012

CAs widening wedge of wage inequality

70 80 90 100 110 120 130 140

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

I ndex ( 1 9 7 9 = 1 0 0 )

Allegretto Cal Teach-in Inequality April 4, 2012

90th 80th 30th 50th 10th

Source: EPIs analysis of CPS data, pre-tax wages for California, 1979-2010.

70th

TENET #4

• Gov’t is the enemy
• Doubling down on

more of the same

• Plutocracy

Gov’t is not the solution

Allegretto Cal Teach-in Inequality April 4, 2012

Wealth Political access Policies

Allegretto Cal Teach-in Inequality April 4, 2012

Falling top-marginal tax rates

1945 94.0% 2011 35.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1945 1947 1949 1951 1953 1955 1957 1959 1961 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 T

• p marginal income tax rate on ordinary income

Source: Citizens for Tax Justice. Allegretto Cal T each-in Inequality April 4, 2012

Work Vs. a call to your broker

(this isn’t a natural result of the ‘free market’) 1945 25.0% 2011 15.0%

10% 15% 20% 25% 30% 35% 40% T

• p Capital Gains Tax Rates

Source: Citizens for Tax Justice. Allegretto Cal T each-in Inequality April 4, 2012

The only deficit that matters…JOBS

• 10%
• 8%
• 6%
• 4%
• 2%

0% 2%

3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 US 1 9 8 1 recession CA today!

• 6 .6 % or -1 m illion

US today

• 3 .8 % or -5 .3 m illion

Source: Sylvia Allegretto’s analysis of Current Employment Statistics data. Cal Teach-in Inequality April 4, 2012

~George Carlin

Allegretto Cal Teach-in Inequality April 4, 2012