What is happening? – An unusual recession/economic crisis – A deep and uneven recession/economic crisis Implications? – Long term The response – Our Critique – What needs to happen

A deep and prolonged recession Source: U.S. Federal Reserve Bank of St. Louis Source: Center for Budget & Policy Priorities

An uneven recession with many disparate impacts – Race, Age, Gender, Geography, Educational Attainment, Occupation Intersections where the recession cuts deep – From recession to economic crisis Underemployment Rate by Race July 2007 to Nov 2009 (Calculated by the Economic Policy Institute)

Percent of Population in Poverty: Source: American Community Survey

Source: US Bureau of Labor Statistics *not seasonally adjusted December 2009 (national unemployment: 9.7%)

Source: US Bureau of Labor Statistics *not seasonally adjusted

Source: Economic Policy Institute (EPI)

National Unemployment Rates by Race Source: US Bureau of Labor Statistics

May Unemployment Rates by Race and Gender Source: US Bureau of Labor Statistics

May Unemployment Rates by Race and Age Source: US Bureau of Labor Statistics

In 1998, unemployment reached a 30-year low of 4.5% In 1998, the incarceration rate reached its highest point in U.S. history, with 1.78 million men in prisons and jails. What does this mean for the true unemployment in African American communities? Source: Bruce Western; Incarceration, Unemployment, and Inequality

Percent of U.S. population in racial group under correctional supervision Source: US Bureau of Justice Statistics

Figures taken from Howard J. Wall’s, “The Effects of Recessions Across Demographic Groups.” Federal Reserve Bank of St. Louis, Sept. 2009

Sources: U.S. Census (ACS), Annie E. Casey Foundation

A “recession generation”, As New York Times columnist Bob Herbert stated: – “…there is little doubt that poverty and family homelessness are rising, that the quality of public education in many communities is deteriorating and that legions of children are losing access to health care as their parents join the vastly expanding ranks of the unemployed. This is a toxic mix for children, a demoralizing convergence of factors that have long been known to impede the ability of young people to flourish.” Bob Herbert. “Children in Peril”, The New York Times. April 20 th 2009.

Our research/critique – American Recovery Reinvestment Act (stimulus) Has ARRA helped communities in greatest need? Yes and No Data challenges make “equity” assessment extremely challenging Many areas for improvement – Additional jobs bills?

Positives – preventing “draconian” state budget cuts Keeping families out of poverty Note: Includes 2010 shortfalls Source: Center for Budget & Policy Priorities

Source: Center for Budget & Policy Priorities, Congressional Budget Office

Federal ARRA Contract Procurement as of May 7 th Source: Federal Procurement Data System, US Census 2002 Economic Survey of Business Owners

Source: Federal Procurement Data System Women-owned, Latino-owned, Black-owned, and Asian-owned businesses account for 28.2%, 6.8%, 5.2%, and 4.8% of all U.S. businesses respectively, according to the US Census Bureau, 2002 Economic Census Survey of Business Owners

Source: Federal Procurement Data System Federal ARRA Contract Procurement: 1 st half vs. 2 nd half

Source: Government Accountability Office (GAO) Universal goals require a more targeted approach

Administration has taken a “race-lite” approach to public investment. Examples of targeted investment (like N.S.P.) represent a relatively small portion of an otherwise universal package. Budget stabilization funds keep communities of color afloat, but don’t recover or develop. Rising tides…don’t lift all boats equally.

Assuring civil rights compliance, tracking and data on recovery and recession More targeted investment (geography, race, areas of need) More investment in broader community infrastructure (not just roads) Connecting marginalized workers to the growth sectors in the “new” economy – E.g. Linking green economy initiatives to worker training New $6 billion Homestar Program Local Jobs For America Act (HR 4812)

The most recently proposed jobs bill – Targeted economic investments and job relief programs with universal goals Targeting by geography/race/need More proactive (and mandatory) minority business procurement activities This also needs to be tied to more long term solutions – Education/training, preparing for the new economy – Addressing state budget challenges (at the state level and the federal level) – Addressing structural issues