policylink: america's tomorrow: equity is the superior growth model

7/29/2019 Policylink: America's Tomorrow: Equity is the Superior Growth Model

1/4

Americas Tomorrow:

Equity is the Superior Growth Model

The nations current economic model is broken. Theproblem is not just the recent economic downturn,as pressing and important as that has been. Overthe past several decades, economic growth hasslowed, racial and income inequality has spiked,and the middle class has withered. America needs

a new strategy to bring about robust growth thatis widely shared by all who live within its borders.

The new growth model must embrace thenations changing demographics, and make theinvestments needed to allow the next generationto reach its full potential. The United States isundergoing a major demographic transformationin which the racial and ethnic groups that havebeen most excluded are now becoming a larger

portion of the population. By 2042, the majorityof the population will be people of color.

Because youth are at the forefront of the nationsdemographic transition, there is a growing racialgeneration gap between Americas oldest and

youngest: Eighty percent of seniors are white,compared with 54 percent of those under age18. Too many elders and decision makers donot see themselves reected in the faces of thenext generation, and they are not investing inthe same educational systems and communityinfrastructure that enabled their own success.This racial generation gap does not only putyouth of color at risk, but it threatens the well-being of all children and the nation as a whole.

by Sarah Treuhaft, Angela Glover Blackwell, and Manuel Pastor

As the country witnesses the emergence of a new racial and ethnic majority, equitylong a matterof social justice and moralityis now also an economic imperative. The nation can only achieveand sustain growth and prosperity by integrating all into the economy, including those who have

too often been left behind. Americas Tomorrow describes the components of an equity-drivengrowth model and acknowledges that a true social movement is needed to achieve equity.

SUMMARY

America Needs a New Growth Model

Download the full report,Americas Tomorrow: Equity is the Superior Growth Model, at www.policylink.org.


2/4

Reducing inequality, growing the middle class,and turning todays youth and workers intotomorrows skilled workers and innovators

are critical to restoring Americas growth andcompetitiveness. Given the nations demographictransition, its leaders must address the wide racialdisparities in educational outcomes, income,health, wealth, and employment that drag downthe economy and hold back its potential.

Reducing Inequality is Good for Growth

Increasingly, economists are nding that inequalityis not only bad for those at the bottom of theincome spectrum, but places everyones economicfuture at risk. Recent studies suggest that inequality

hinders growth and that greater economic inclusioncorresponds with more robust economic growth.

Diversity is an Economic Asset

Americas transformation into a world nation insideits borders can help it connect toand succeed

inthe global economy. Diverse perspectiveshelp teams solve problems and can foster theinnovation needed to grow the economy.

Diverse communities also create new markets:by developing new enterprises and providing asignicant consumer base for existing businesses.

Building a Skilled Workforce is Criticalto Securing Our Economic Future

The jobs of tomorrow will require ever-higher levelsof skills and education, but the nations educationaland workforce systems are not adequately preparingpeople for these jobs. Forty-ve percent of all jobs in2018 are projected to require at least an associatesdegree, but among todays workers only 27 percent

of African Americans, 26 percent of U.S.-bornLatinos, and 14 percent of Latino immigrants haveachieved this level of education. Closing the wideand persistent racial gap in educational attainmentis the key to building the strong workforce thatis the backbone of the American economy.

83%

80%76%

69%

64%

59%54%

50%

45%

11%

12%

12%

12%

12%

12%

12%

12%

12%

4%7%

9%

13%

16%20%

23%

27%31%

2% 3%4% 5% 6% 6%

7% 8%

3% 3% 3% 4% 4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1970 1980 1990 2000 2010 2020 2030 2040 2050

Other

Black

White

Asian/

Pacic Islander

Latino

Racial and Ethnic Composition of the United States, 1970-2050

Source: Statistical Abstract of the United States (1970 and 1980); U.S. Census Bureau, decennial censuses(1990 STF3, 2000 SF3, and 2010 SF1); U.S. Census Bureau Population Projections, 2008 (2020-2050), adjustedusing the results of the 2010 Census.

Racial and Economic Inclusion Will Help America Grow and Compete


3/4

An equity-driven growth model would grow new jobsand bolster long-term competitiveness while at thesame time ensuring that allespecially low-income

people and people of colorhave the opportunityto benet from and co-create that growth.

Americas Tomorrowhighlights promising strategiesthat link vulnerable populations to good jobs andcareer pathways while strengthening their localand regional economies within three key arenas:

1. Rebuilding Our Public Infrastructure

High-quality public infrastructureroads, transitlines, schools, bridges, sidewalks, etc.is an essentialingredient for fostering competitive regions, and

public investment in infrastructure projects is one ofthe best strategies available to create jobs and getdollars owing in the economy after a downturn.By choosing infrastructure projects that maximize

job opportunities, targeting infrastructure jobs andprojects to the people and communities most inneed of jobs, and creating opportunities for local-and minority-owned businesses, communities canachieve equity and growth at the same time.

Example: In St. Louis, Metropolitan CongregationsUnited and the Transportation Equity Network

got the Missouri Department of Transportation to

agree to devote 30 percent of the workforce hourson a $500 million highway project to low-incomeapprentices, and 1/2 of 1 percent of the project

budget to job training. Other cities and stateshave adopted similar workforce provisions, andadvocacy groups are now working to incorporate

a similar construction careers policy in the nextmultibillion-dollar federal transportation bill.

2. Growing New Businesses and

New JobsSmall businesses create two out of every three

jobs in this country and are critical for providingeconomic opportunities for low-income communitiesand communities of color. Providing trainingsupport and linking entrepreneurs to larger-scaleopportunitieslarger markets, larger sources ofcapital, and larger economic development and growth

strategiescan create more start-ups and helpexisting small businesses grow so that they generatemore jobs for the people who need them most.

Example: Since 1993, the NeighborhoodDevelopment Center in St. Paul has collaboratedwith community-based organizations to helpdiverse residents start their own businesses. Thecenter provides a 16-week entrepreneurshipcourse and follows up with business start-up andexpansion loans, ongoing business support andtechnical assistance, and low-cost commercial

space through its seven business incubators.Five hundred graduates are currently operatingbusinesses, sustaining 2,200 jobs in the community.

7%15% 19%

50%

4%13%

27%

32%30%

24%

11%

16%

23%

27% 26%

12%

18%

13%

9%

8% 8%

4%

9%

7%

34%

19% 18%10%

59%

52%

White Black Latino,U.S.-born

Latino,immigrant

Asian,U.S.-born

Asian,immigrant

Educational Attainment of Workers (Ages 25-64)by Race/Ethnicity/Nativity, 2009

Bachelor's degree orhigher

Associate's degree

Some college

High school grad

Less than high schooldiploma

Source: PolicyLink/PERE analysis of IPUMS 2009 American Community Survey data.

Implementing an Equity-Driven Growth Model


4/4

Headquarters:1438 Webster StreetSuite 303Oakland, CA 94612t 510 663-2333f 510 663-9684

http://www.policylink.org

Communications:55 West 39th Street11th FloorNew York, NY 10018t 212 629-9570f 212 730-2911

University of Southern California950 W. Jefferson Blvd.JEF 102Los Angeles, CA 90089t 213 821-1325f 213 740-5680

http://dornsife.usc.edu/pere

2011 by PolicyLinkAll rights reserved.

3. Preparing Workers for the Jobs

of Tomorrow

The nations public- and private-sector leaders needto create an education and workforce training systemthat equips current and future workers with the skillsthey need to thrive in the world of work. Ensuring that

all workersincluding those who face high barriersto employmentcan get the advanced trainingor education needed to access middle-skill jobsthat pay family-supporting wages and offer careergrowth is critical. For the low-income children whoface the greatest risk of not succeeding in school orwork, this preparation must begin before they enterkindergarten and last throughout their careers.

Example: The Chambers of Commerce in SantaAna and Los Angeles launched partnerships withtheir local school districts to bridge the growing

gap between the education levels of their

diverse youth populations and the needs of theiremployers. The Santa Ana Chamber created a

jointly administered high school that trains studentsfor careers in six growth industries (automotiveand transportation, engineering and construction,

global business, health care, manufacturing, andnew media), while the Los Angeles Chamber hasarranged summer jobs and internships for the

students with thousands of employer partners.

It Takes a Movement

Only a real social movement can bring about the social,cultural, market, and political shifts needed to create anequitable and inclusive economy. Major shifts in policyand politics are needed at every levelfrom local jobcreation to national economic policyand bringing

about those shifts will require sustained advocacy anddiverse leadership that spans generations, sectors,and issues. New champions for equity-driven growth,including unlikely ones, will need to emerge.

A new national conversation must begin about equity-driven growth. This should be a broad and opendiscussion. Honest debates about how to move aheadwill be critical; no one group has all the problems andno one leader has all the solutions. But what is clearis that the task of creating jobs and opportunitiesfor everyonerequires the nations full attention.

For growth and equity to come together, all willneed to stretch outside of their comfort zones. Growthadvocates will need to stop seeing equity as somethingthat hopefully trickles down from their efforts to attractand grow businesses, and recognize that racial andeconomic inclusion will help them achieve their primarygoals of growth and competitiveness. Equity advocates,who have traditionally focused on how the benets ofgrowth are divvied up, will need to concentrate moreon generating job growth, and choose strategies thatwork with market forces to reach their equity goals.

As the country nears its status as a people-of-color majority nation, we must actnowtoprepare for the future. Equity is the superior growthmodel. It is the path to prosperityfor all.

policylink: america's tomorrow: equity is the superior growth model

Documents