CSAI – Escalating Inequality Session #3 – Conventional Explanations for Inequality UUCF – July 20, 2015 Session Leader: Terry Steichen

What is a CSAI? ● “Congregational Study/Action Issue” ● Bi-annual selection by UU General Assembly ● Usually leads to “Statement of Conscience” ● Four year duration (3 plus SOC) ● Recent CSAIs: ● Escalating Inequality (2014) ● Reproductive Justice (2012; 2015 SOC) ● Immigration as a Moral Issue (2010; 2013 SOC) ● Ethical Eating (2008; 2011 SOC) ● Creating Peace (2006; 2010 SOC)

Seminar Session Overview ● Scope of Escalating Inequality (EI) ● Economic and non-Economic Consequences of EI ● (Inadequate) Conventional Explanations of EI ● Hints of More Likely Causes of EI ● Details and Evidence of Likely Causes of EI ● Past Reform Attempts and Results ● Lessons Learned (what doesn't work) ● Identifying Parameters of Possible Solution(s) ● Identifying and Zeroing in on Solution(s) ● Advocating for Chosen Solution(s) ● External (good governance) groups ● Grassroots - UUCF->UU->Faith

Seminar 2 Session Overview ● CSAI Discussion ● Escalating Inequality Project Discussion ● Gini Index ● Global Inequality Comparisons ● Well-being vs. Inequality ● Video – Wilkinson's work ● The Phony rationale for austerity ● Wrap-up Questions

REUTERS/Lucy Nicholson A man looks at his phone as he walks out of the courthouse past a man arranging his bags in Los Angeles, California July 8, 2014.

profit-sharingNo profit-sharing

Conventional Rationalizations for Inequality 'Winners' (1) entrepreneurial spirit and skills (2) globalized economic effects (3) education/training/skills/smarts (4) skillful use of modern technology But, here's the 'inconvenient' reality: C) Entrepreneurs make up only a small portion of biggest winners. A) Other developed countries have same economic growth, exposed to same globalization, education, technology – but far less inequality B) Other members of near-rich exposed to same factors, yet have far less wealth. ∆

∆ Since around 1980, inequality soared, but mainly in U.S.

3.3X wealth concentration gain = 1.5 5X ∆ Top 10% Earners' Capture of U.S. National Income (a measure of wealth concentration and inequality)

∆ Inequality – 'parasitic, ''oligarchic' (high earners to average earners) Inequality – 'intrinsic,' 'classic,' 'normal' (low earners to average earners)

Bottom fifth Second fifth Third fifth Fourth fifth 80 th - 90 th percentile 90 th - 95 th percentile 95 th - 99 th percentile Top 1 percent Current Equal growth Delta $16,500 $22,366+$5,866 $35,400 $45,181+$9,781 $52,100 $64,393+$12,295 $73,800 $84,209+$10,409 $100,915$106,696+$5,781 $132,258$128,714-$3,544 $211,768$181,992-$29,776 $1,200,300$506,002-$694,298 Source: The Winner-Take-All Economy (chapter) in Winner-Take-All Politics (book) Winners/Losers if Playing Field was Level ∆

losers winners

∆

Conventional Rationalizations for Inequality 'Winners' (1) entrepreneurial spirit and skills (2) globalized economic effects (3) education/training/skills/smarts (4) skillful use of modern technology So these don't cut it – what's left? (See Next Seminar)

Seminar Session Overview ● Scope of Escalating Inequality (EI) ● Economic and non-Economic Consequences of EI ● (Inadequate) Conventional Explanations of EI ● Hints of More Likely Causes of EI ● Details and Evidence of Likely Causes of EI ● Past Reform Attempts and Results ● Lessons Learned (what doesn't work) ● Identifying Parameters of Possible Solution(s) ● Identifying and Zeroing in on Solution(s) ● Advocating for Chosen Solution(s) ● External (good governance) groups ● Grassroots - UUCF->UU->Faith

Discussion Any other reasons for escalating inequality? Any signs of inequality abatement? Biggest differences in top levels?