Class Crash- Talking Points
Long Term Joblessness
According to the Economic Policy Institute’s National Employment Law Project, There has been a significant rise in long-term joblessness (6 months and more), especially among women.
Three and a half years into this recovery, one in five unemployed Americans has been out of work for six months or more – marking the first time ever that so many jobless have been out of work for so long while the unemployment rate is relatively low and falling, according to a report from the Economic Policy Institute (EPI) and the National Employment Law Project (NELP).
· Women represented 43% of long-term jobless workers from 2001-2004, up from 35% from the comparable period in 1990-1993, creating a direct impact on children and families, especially for single mothers.
· After experiencing historic labor market gains during the late 1990s, African-American long-term unemployment was still worse than during the 1990-1993 period.
· Long-term unemployment is hitting occupations more broadly. From the 1990s recovery to the 2001 recovery, the average share of long-term unemployed white-collar workers grew by 6 percentage points.
See the full text: The rising stakes of job loss: Stubborn long-term joblessness amid falling unemployment rates
http://www.epi.org/content.cfm/bp162
Income Distribution Trends
CBO has just released its income and tax information for 2002. This information underscores the degree to which income gains have been concentrated at the top of the income scale over the past two-plus decades. Between 1979 (the first year the CBO data cover) and 2002:
The average after-tax income of the top one percent of the population more than doubled, rising from $298,900 to $631,700, for a total increase of $332,800, or 111 percent. (CBO adjusted these figures for inflation and expressed them in 2002 dollars.)
By contrast, the average after-tax income of the middle fifth of the population rose a relatively modest 15 percent, or $5,700, reaching $43,700 in 2002.
The average after-tax income of the poorest fifth of the population rose just 5 percent, or $600, over the period.
Because incomes grew fastest among the most affluent, this group’s share of the total national income grew as well.
The top one percent of the population received 11.4 percent of national after-tax income in 2002, up from its already-large 7.5 percent share in 1979. (Each percentage point of after-tax income is equivalent to $62 billion in 2002 dollars.)
In contrast, the shares of national income received by various groups of low- and middle-income people all fell. The middle fifth of the population received 16.5 percent of the national after-tax income in 1979, but 15.8 percent in 2002. The bottom fifth received 6.8 percent of such income in 1979, but 5.1 percent in 2002.
See the full report titled, WHAT NEW CBO DATA INDICATE ABOUT LONG-TERM INCOME DISTRIBUTION TRENDSBy Isaac Shapiro
http://www.cbpp.org/3-7-05tax.htm
The Have-Nots
· Today…nearly 1 in 5 American households has zero net worth or actually owes more than it owns.
· 1 in 4 households does not own enough to support itself - even at the poverty line - for three months.
· The picture is worse for most minorities and women: 1 in 3 minority households has zero net worth or is in debt (compared with the average of 1 in 5).
· Black families have, on average, only one-sixteenth the net assets of white families.
· For every dollar of net worth of a household headed by a man, households headed by a woman have less than 40 cents.
· Some 30 percent of families don't have bank accounts.
See entire CSMonitor article, The American Dream gains a harder edge
By David R. Francis
http://www.csmonitor.com/2005/0523/p17s01-cogn.html