1 Promoting Economic Justice in the Face of Globalization * Jon Forman Alfred P. Murrah Professor of Law University of Oklahoma Keynote speech for DOES GLOBALIZATION REPRESENT A THREAT OR PROMISE FOR SOCIAL JUSTICE AND DEMOCRATIC INSTITUTIONS? Detroit, MI October 27, 2007 *Based on Jonathan Barry Forman, Making America Work (Urban Institute Press, 2006).

2 10 th percentileMedian90 th percentile All workers age 16 and over ,603 Sex, race, and Hispanic origin Men ,832 Women ,367 White ,647 Black ,241 Educational attainment Less than a high school diploma High school graduates, no college ,203 College graduate5201,0882,300 Table 1. Usual Weekly Earnings

3 Year MenWomen Table 2. Individual Earnings Inequality (90/10 Ratios)

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6 Country90/10 ratio Canada 3.8 France 3.4 Germany 3.5 Japan 4.9 Mexico 9.3 Sweden 2.8 Turkey 6.5 United Kingdom 4.2 United States 5.4 Table 3. International Comparisons of Income Inequality

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9 Market income Disposable income Poorest Second Middle Fourth Richest Table 4. Share of Aggregate Income by Quintile

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13 Promoting Economic Justice Fix the Tax System Reform the Welfare System Restructure the Social Security System Move to a Mandatory Universal Pension System Provide Universal Health Care Coverage Move to Full Employment

14 Promoting Economic Justice Summary Government should intervene –To encourage work –Promote economic justice Tax, spending, and regulatory proposals –Increase the size of the economic pie –Allow us to divide it more equally