AGENDARules of the Economy: A Look Back

An Economy Out of Balance

We Can Change the Rules:Our Strategy to Build Power

Rules of theEconomy:

A Look Back

Who Chooses the Rule-Makers

Who Benefits From the Rules DETERMINES

Who is free or slave

Who can own land

Who has access to what jobs

Whether working people have the right to join a union without fear of violence or loss of job

Fighting for an Inclusive EconomyWe’ve struggled over the economic rules throughout our history

1776: Only white men with land

1792–1856: Any free white man

1870: Free black men

1920: Women

1924: Native Americans

1971: 18- to 21-year-olds

A Boom and Bust EconomyFarms to Factories, Great Wealth and Poverty

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

U.S. GDP Per Capita (2015 Dollars)1850–1934

Source: Maddison Project database

1850 18701860 18901880 1900 1910 1920 1930

The Great Depression

Time for a New DealWorking people demanded economic rules that worked

for everyone

• The right to form and join a union

• 40-hour workweek

• Unemployment insurance

• Minimum wage

• Social Security

• Rules on banks and the stock exchange

• Government agencies to enforce the rules

The Virtuous CycleMore profits, broadly shared, drove increased wages and

investment

Investmentsin Research, Transportation and Infrastructure

Technology Advances

Productivity Rises

Wealth Increases

Wages Rise

More Tax Revenue

Demand Increases

Investment in Business Grows

Investor Profits Rise

An Economy That Works

for Everyone

We Invested in Public Structures and Public Institutions

Public Works

Space Program

Federal Highways

Research and Development

Higher Education

Productivity and WagesFrom 1948 to 1973, productivity and wages rose together;

employers and working people both benefited

Source: Economic Policy Institute

1948–1973Productivity: 100%Hourly Compensation: 91.3%

Cum

ulati

ve C

hang

e (%

) Sin

ce 1

948

120%

100%

80%

60%

40%

20%

0%1948 1953 1958 1963 1968 1973

Many Still Were Excluded

Organizing for ChangeWe organized to create a more inclusive democracy

and a fairer economy

1940s–1950s Ending Segregation

1950s–1960s Expanding Civil Rights

1950s–1970s Expanding Voting Rights

1960s–1970s Expanding Women’s Rights

An Economy Out of Balance

Today’s Economy

An Economy Out of Balance

Why America’s middle class is lost

An Unstoppable Climb in CEO Pay

For most workers, real wages have barely budged for decades.

• Attack unions and workers’ right to organize;

• Promote trade agreements that benefit corporations instead of working people;

• Allow Big Banks and Wall Street to gamble with our money;

• Give tax breaks and loopholes to corporations and the wealthy; and

• Cut government programs that help working people.

“Neoliberalism” = no restraints on corporate power/ workers’ bargaining power weakened

 

The Neoliberal AgendaThe rich and powerful pushed back

Productivity and WagesAfter 1973, employers benefited from rising productivity,

while denying working people higher wages for their work 

Productivity262%

Hourly compensa-

tion

109%

1948–1973Productivity: 100%Hourly Compensation: 91.3%

1973–2013Productivity: 81%Hourly Compensation: 19.28%

Source: Economic Policy Institute

Cum

ulat

ive

Cha

nge

(%) S

ince

194

8

300%

250%

200%

150%

100%

50%

0%1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

Union Membership and the EconomyAs union membership declined,

the share of income going to the top 10% increased

24%24%

13%

44%

33%

44%

Source: Economic Policy Institute

Share of income going to top 10%

Union membership

60%

50%

40%

30%

20%

10%

0%1917 1927 1937 1947 1957 1967 1977 1987 1997 2007 2012

A Growing EconomyEven though our economy continues to grow

$7.6 Trillion(indexed to 2014)

Size of U.S. economy(measured in GDP)

1973 2014

$17.4 Trillion

Growing InequalityWealth is more and more concentrated

These 8 people control $216 billion in wealth

The Vicious CycleWages Flat, Profits Hoarded, No Investment

Rules Changed to Benefit Wealthy and Corporations

CEO Compensation Soars(300 x average workers pay)

Lobbyists, Campaign Contributions, Revolving Door to Public Sector

We Can Changethe Rules:

Our Strategy toBuild Power

Our Choice:Fight for an economy that works for everyone

orwatch our democracy and our families’ futures collapse

WE CAN EXERCISE OUR POWER

We Can Raise Wages

• Strengthen workers’ rights to organize and collectively bargain.

• Raise the minimum wage and tipped wage.

• Pass living wage ordinances.

• Support prevailing wage standards and project labor agreements.

• Increase the overtime threshold.

• Pass paid sick leave and family leave legislation.

We Can Invest in the Common Good

Community Resources

21st Century Energy Systems

InfrastructureGood Jobs Mass Transit

Early Childhood Education

Research

Public Spaces

We Can Create a Governmentby and for People

We Can Advance Togetherin the 21st Century

We Can Change the Rules

The Fight for a Better Life Starts NowWe are improving LIVES and WAGES all over America

JOIN US Text

to 235246WIN

The Immediate [National/Local] Fight (CUSTOMIZE FOR PLACE AND TIME)

• Right to Join a Union• Overtime Pay• Bad Trade Agreements• Living Wage Laws