$0 $0.5 t $1.0 t $1.5 t $2.0 t $2.5 t $3.0 t $ trillions 1 · 2019. 1. 18. · $0 $0.5 t $...

$0

$0.5 T

$ Trillions

$1.0 T

$1.5 T

$2.0 T

$2.5 T

$3.0 T

1990 1995 2000 2005 2010 2015

U.S. Exports U.S. Imports

North AmericanFree Trade Agreement

(NAFTA)Net U.S. Job Loss

1994-2014:(850,000)

China joinsWorld TradeOrganization

(WTO)Net U.S. Job Loss

2001-2017:(3,400,000)

Central American

Free TradeAgreement

(CAFTA)

$552 BDeficit(2017)

Total U.S. Trade Debt Since 1994: $10.6 T

Korea-U.S.Free Trade

(KORUS)Net U.S. Job

Loss 2012-2015:(95,000)

Presentation Designed & Developed by Witte Design, LLC ©2010-2018 • Tucson, Arizona

www.ConnectTheDotsUSA.com©2010

Source: Paul Krugman, Nobel Prize-Winning Economist, December 22, 2010©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Updated 5/21/14

Job

Cre

atio

nC

ycle

Job

Cre

atio

nC

ycle

JOBS& GOODWAGES

HIRING

SALES DEMAND

MONEYTO

SPENDCU

STOMERS

CREA T E J OB

S

What Creates Private Sector Jobs?What Creates Private Sector Jobs?

Quote: Robert Frank, Economist and Professor at Cornell University, December 1, 2010 ©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Created 2010

“Businesses aren’t investing because they can already produce more than people want to buy...

If you can’t sell what an extra worker would produce then there’s no economic reason to hire that extra worker.”

Fordism Vs. WalmartitisFordism Vs. WalmartitisPaying Good Wages Creates Sustained Demand

•••••••••••••••••••••••••••••••••••••••••••••••

In 1914,

Henry Ford

paid double

the going

daily wage:

“One’s own

employees ought to be one’s

own best customers... Paying

high wages is behind the

prosperity of this country.”

Sources: “Stop Walmart Act...” by Jake Johnson, Nov 15, 2018 (CommonDreams.org) “Meet The Waltons...” by Mary Hanbury, Aug 16, 2018 (BusinessInsider.com); Walmart Income Statement (nasdaq.com)

©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Updated 11/18/18

ALWAYS LOW WAGES.

Walmart pays many workers poverty wages of just $11/hr despite $13 Billion profit and $22 million CEO pay in 2017.

Used its 2018 tax cut to buy back $20 Billion of its own stock to further enrich the six Walton heirs who already hoard $163 Billion in wealth.

Gets > $6 Billion/yr in corporate welfare via govt provided food stamps, healthcare and housing for itsmany low-paid workers.

Sources: Top 1% avg pre-tax national income from World Inequality Database, Piketty, Saez, et al. (wid.world)Productivity, Average Hourly Comp: U.S. Bureau of Labor Statistics data analysis by Economic Policy Institute (epi.org)


Income Growth & The Great DivideIncome Growth & The Great Divide

Change adjusted for inflation. Baseline = 1948. Top 1% dollar amounts shown in $2017.

% Change 1948-2016

EISENHOWERTRUMAN JFK JOHNSON NIXON FORD CARTER REAGAN BUSH 1 TRUMPCLINTON OBAMABUSH 2

19551950 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

0%

100%

200%

300%

50%

150%

250%

$343,392••

••••

••••

••••

••••

••••

••••

••••

•••

1948-1979:Productivity: +108%Hourly Comp: +94%Top 1% Avg Income:

+40%

+242%

+115%

©2012

1979-2016:Productivity: +64%Hourly Comp: +11%Top 1% Avg Income: +183% (2014 latest data)

$481,071

$1.36 M+296%

Sources: Economic Policy Institute analysis of “Raise the Wage Act of 2017,” April 26, 2017 & July 24, 2017 (epi.org)based on data from U.S. Bureau of Labor Statistics (bls.gov) and Congressional Budget Office (cbo.gov)

©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Created 11/19/18

Federal Min Wage Would Be >$19/hrIf It Had Kept Pace With Productivity Federal Min Wage Would Be >$19/hrIf It Had Kept Pace With Productivity

$0

$5

$10

$20

$15

1940 1950 1960 1970 1980 1990 2000 2010 2020EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXON FORD CARTER REAGAN BUSH 1 TRUMPCLINTON OBAMABUSH 2

1968:$9.90

2017$19.33

$7.25

2017:$11.62

Nominal Minimum Wage (listed rate, not adjusted for inflation)

Real Minimum Wage (adjusted for inflation in $2017)

At Pace of Average Wage Growth

At Pace of Productivity Growth

U.S. Economy CanAfford $15 Min Wage

Sources: 1947-1979: United for a Fair Economy (FairEconomy.org) analysis of US Census data1979-2017: Census Bureau, Table F03AR (Census.gov); Top 1%: Piketty & Saez, et al., World Inequality Database (wid.world)


Growth Of Family Income: Then & NowGrowth Of Family Income: Then & Now

Bottom20%

Second20%

Middle20%

Fourth20%

Top20%

+116%+100%

+111% +114%+99%

180%

160%

140%

120%

100%

80%

60%

40%

20%

0%Bottom

20%Second

20%Middle

20%% change in pre-tax income; Avg pre-tax $ incomes are for 2017 in $2017

Fourth20%

Top20%

0%+13%

+23%+36%

+68%

Top 20%IncludesTop 1%

+183%

Top 1%

Avg$18,944

/yr

Avg$46,346

/yr

Avg$75,840

/yr

Avg$115,834

/yr

Avg$245,039

/yr

Avg

$1.3

6 M

illio

n/yr

Top 20%IncludesTop 1%

+59%

Top 1% ••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

••

•1947-1979:We All Grew

Together

1947-1979:We All Grew

Together

1979-2017:We Grew

Apart

1979-2017:We Grew

Apart

Latestdata

is 2014in $2017

©2012

Sources: ”Distribution of Household Income 2015,” Congressional Budget Office, Nov 2018, pgs 20 & 14 (cbo.gov)Household income includes market income, social insurance benefits (Soc Sec, Medicare) & govt transfers (Medicaid, SNAP, etc).


Since Trickle-Down Con, Top 1%Grabbed Most Income Gains

Since Trickle-Down Con, Top 1%Grabbed Most Income Gains

BUSH 2REAGAN CLINTONBUSH 1 OBAMACARTER

300%

250%

200%

150%

100%

50%

0%

1980 1985 1990 1995 2000 2005 2010 2015

+ 79%

+ 46%

81st to 99th %

Middle21st to 80th %Bottom 20%

Cumulative Growth in Avg Income

After Transfers and Taxes Since 1979

+ 242%

Top 1%©2012

Before transfers & taxes, growth was 233% for Top 1%; 74% for 81st to 99th; 32% for Middle & 32% for Bottom

+ 78%

Source: “CEO Compensation Surged in 2017,” Economic Policy Institute, Aug 16, 2018 (epi.org) based on data from Compustat’s ExecuComp database, Current Employment Statistics and Bureau of Economic Analysis NIPA tables


CEO Pay SkyrocketsCEO Pay Skyrockets

19701965 1975 1980 1985 1995 20051990 2000 2010 2015

JOHNSON NIXON FORD CARTER OBAMAREAGAN BUSH 1 TRUMPCLINTON BUSH 2

0

100x

200x

300x

400x

32x 58x

312x

344x327x

20x

Avg Large Corp CEO Pay ($2017):

1978: $1.6 Million2015: $18.9 Million

Up 1,070%!(Worker pay up only 11.2%)

CEO-to-Worker Compensation Ratio1965-2017

x =

tim

es

avg

wo

rke

r

©2012

Sources: Piketty & Saez, The World Top Incomes Database, accessed Sept 6, 2015 & July 17, 2016 (wid.world)& “Striking It Richer: The Evolution of Top Incomes in the U.S.” Emmanuel Saez, June 30, 2016 (eml.berkeley.edu)


Top Sucks Up More Income Again:Back To Roaring 1920s

Top Sucks Up More Income Again:Back To Roaring 1920s

0%

5%

10%

20%

25%

15%

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXONHOOVERCOOLIDGE FORD CARTER REAGAN BUSH 1 CLINTONWILSON OBAMABUSH 2HARD

ING

TOP 1%TOP 1%

22%24%

9%

11%12%

3%5%

1%

5%

2015: Total Tax Units = 167 Million; Total Households = 125 Million; Total Income = $10.4 Trillion

TOP 0.01%TOP 0.01%

TOP 0.1%TOP 0.1%

Share of Total U.S. Income1913-2015

©2012

$1.36 M avg/yr

$6.75 M avg/yr

$31.62 M avg/yr

Sources: World Inequality Report 2018, Piketty, Saez, Zucman, etal, pgs 70, 78-92 (wir2018.wid.world)and World Inequality Database (wid.world); Dollar amounts are constant $2016


Income Share Rise Of Top 1%Mirrors Fall Of Bottom 50%

Income Share Rise Of Top 1%Mirrors Fall Of Bottom 50%

BUSH 2REAGAN CLINTONBUSH 1 OBAMACARTER

22%

20%

18%

16%

14%

12%

10%

1980 1985 1990 1995 2000 2005 2010 2015

20.2%$1.34 M avg

$439,000 avg

$16,600avg

$16,400avg

10.7%

12.5%

20% ©2012

As comparison, in Western Europe shift was much more modest:

Top 1% share grew from 10% to 12%,while Bottom 50% share dropped from 24% to 22%

Shar

e o

f P

re-T

ax N

atio

nal

In

com

e

Bottom 50%

Top 1%

©2010

27X avg worker in Bottom 50%

81X avg worker in Bottom 50%

Source: Institute for Policy Studies (Inequality.org), based on analysis by NPR of household income shares for 0 – 99% from U.S. Census data (Census.gov) and Top 1% from World Top Incomes (wid.world)


Their Gain Is Your LossTheir Gain Is Your Loss

Second 20%$40,681*

Middle 20%$66,899*

Fourth 20%$103,115*

Top 81st-99th$161,903*

Top 1%$1.26 Million*

Bottom 20%$16,110*

0

+$100 K

+$200 K

+$300 K

+$400 K

+$500 K

+$600 K

+$700 K

+$800 K+ $824,844

– $3,282 – $6,928 – $8,752 – $5,834 – $17,311

Avg 2014 Income Lost(or Gained)

Due To 35 Years Of Growing Inequality

Since 1979

*Avg Income 2014

©2012

©2010

Reverse RobinHood: By 2014, $1 Trillion/yr had redistributed upward

from the 99% to Top 1%

Sources: Survey of Consumer Finances, Sept 2017, Federal Reserve Bulletin, pgs 10-13 (FederalReserve.gov)Median net worths (45%, 94.5%), 1% threshold from Matt Bruenig, JacobinMag.com, Oct 2017 (PeoplesPolicyProject.org)


Who’s Hoarding America’s Wealth?Who’s Hoarding America’s Wealth?

2016

Top 1% slice grew while Bottom 90% slice shrank.Top 10% now has > 3/4 of all U.S. wealth.

Top

1to

0.1%

Top

0.1

to0.01%

Top 0.01%*

80thto

90th%

Next 9percent39% =

$33.6 TrillionMedian = $2.2 M

Next 9percent39% =

$33.6 TrillionMedian = $2.2 M

Top 1percent39% =

$33.7 Trillion> $10.4 M

Top 1percent39% =

$33.7 Trillion> $10.4 M

*Stratification of 1% based on Saez & Zucman Oct 2014

Bottom 90percent23% =

$19.9 Trillion Median = $71,500

1989

Top 1percent

30%

Top 1percent

30%

Next 9percent

37%

Next 9percent

37%

Bottom 90percent

33%

©2010

Total Wealth = $87 T • Total Households = 126 M©2012

Share of Total U.S. Wealth Owned 1913-2012

Sources: “Wealth Inequality in the U.S. since 1913,” Emmanuel Saez & Gabriel Zucman, Oct 2015, pgs 43, 44 & 49 (nber.org)& “Exploding Wealth Inequality in the U.S.” Emmanuel Saez & Gabriel Zucman, Oct 20, 2014 (EquitableGrowth.org)


Wealth Inequality Explodes: 1920s Are BackWealth Inequality Explodes: 1920s Are Back

0%

10%

20%

40%

50%

30%

5%

15%

25%

45%

35%

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXONHOOVERCOOLIDGE FORD CARTER REAGAN BUSH 1 CLINTONWILSON OBAMABUSH 2HARD

ING

BOTTOM 90%BOTTOM 90%

$371 Mavg

$72.8 Mavg

$13.8 Mavg

52%

23%

42%

$1.3 Mavg33%

35%

45%

$84,000avg

15%

23%

36%

2012 Total Families = 161 Million; Total Wealth = $55 Trillion

TOP 0.01%TOP 0.01%

TOP 0.1%TOP 0.1%

TOP 1%TOP 1%TOP 10% TO 1%TOP 10% TO 1%

Sources: 2010 Survey of 5,000 Americans at all income levels by Michael Norton, Harvard & Dan Ariely, Duke University;Survey of Consumer Finances, Sept 2017 (FederalReserve.gov); Edwin Wolff, Nov 2017 (nber.org)


U.S. Wealth Distribution:Perception vs Reality

U.S. Wealth Distribution:Perception vs Reality

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Top 20%(next to highest) 4th 20%

Middle 20%(next to lowest) 2nd 20%

Bottom 20%What Americans Think The Distribution Is

Top 20% Middle20%

2nd20%

Bo

tto

m

4th20%

Distribution That 92% Choose As Ideal

Top 20% Middle20%

2nd20%

Bottom20%

4th20%

Actual Distribution Of Wealth In 2016

Top 20%4th

20%

Mid

dleTop 1% Top 2–10%

2016: Each quintile = 25 million households and Total U.S. Wealth = $87 Trillion

Bottom 40% has < $0 wealth

Sources: Colin Gordon (graphs at Public.Tableau.com) for Center for Economic & Policy Research (cepr.net) Based on data in Thomas Piketty’s Capital in the Twenty-First Century & The World Top Incomes Database (wid.world)


Top 1% Income Share Climbs As Top Tax Rate Drops (& Vice-Versa)

Top 1% Income Share Climbs As Top Tax Rate Drops (& Vice-Versa)

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXONHOOVERCOOLIDGE FORD CARTER REAGAN BUSH 1 CLINTONWILSON OBAMABUSH 2 TRUMPHARD

ING

10%

20%

15%

20%

40%

80%

60%

10%

30%

70%

90%

50%

Top 1%Income Share

Top MarginalIncome Tax Rate

24%

9%

23%91%

70%

50%

28%

40% 40%35%

37%

75%

25%

Stock MarketCrash1929

FDR, Truman& Eisenhower

push up top tax rate

Glass Steagall& other

bank regulations

1933-34Bank deregulations

1978 -2000

Reagan slashes top tax rate 1982 & 1988

Bush 2tax cuts

Trumptax cuts

©2012

Bush 1, Clinton & Obama

nudge up top rate

Income Tax Rates: What The Bracket?Income Tax Rates: What The Bracket?

Source: Internal Revenue Service (irs.gov)$ amounts for brackets adjusted for inflation every year ($2017 shown here); *Long-term cap gains/dividends held >1 yr


**0% rate began 2008, after 5% rate 2003-2007.Rate decrease = Rate increase =

Up to $18,650$18,651 to $75,900

$75,901 to $153,100$153,101 to $233,350$233,351 to $416,700$416,701 to $470,700

Over $470,700

Up to $75,900$75,901 to $470,700

Over $470,700

Married Filing Jointly

Up to $9,325$9,326 to $37,950

$37,951 to $91,900$91,901 to $191,650

$191,651 to $416,700$416,701 to $418,400

Over $418,400

Up to $37,950$37,951 to $418,400

Over $418,400

Single

OBAMA RATES 2013-2017OBAMA RATES 2013-2017

Non-Retirement Investment* Income (based on total taxable income)

CLINTONRATESBEGAN

1993

CLINTONRATESBEGAN

1993

Ordinary IncomeBased on total taxable income (= after all deductions) in 2017

15.0%

28.0%31.0%36.0%

39.6%

10.0%

20.0%

MarginalTax Rate

BUSHRATESBEGAN

2003

BUSHRATESBEGAN

2003

10.0%15.0%25.0%28.0%33.0%

35.0%

0%**

15.0%

10.0%15.0%25.0%28.0%33.0%35.0%39.6%

0%15.0%20.0%

Sources: ”Analysis of the Tax Cuts and Jobs Act,” Tax Policy Center, Dec 18, 2017 (TaxPolicyCenter.org)and “How the Final Version of the Republican Tax Bill Would Affect You, ” NPR, Dec 20, 2017 (npr.org)


Trump/GOP Tax Rate ChangesSkewed To Favor The Very RichTrump/GOP Tax Rate Changes

Skewed To Favor The Very RichMarried Filing Jointly

10%

33%

35%

15%

25%

28%

39.6%

$19,050

$77,400

$156,150

$237,950

$480,050

>$480,050

$424,950

$19,050

$77,400

$165,000

$315,000

$400,000

$600,000

> $600,000

Single Filer

$9,525$38,700

$93,700

$195,450

$426,700

> $426,700

$424,950

35%

37%

10%12%22%

24%

32%

$9,525$38,700$82,500

$157,500$200,000

$500,000

> $500,000

10%

33%

35%

15%25%

28%

39.6%NEW

OLD

2018TaxableIncome

Rate DropCost: $1.2 T

LostRevenue

Over 10 yrs

35%

37%

10%

12%

22%

24%

32%

Sources: “Trump Exaggerates ‘Small-Business’ Tax Cuts,” Oct 19, 2017 (FactCheck.org)“Three-fourths of the Nation’s Businesses Don’t Have Paid Employees,” Sept 18, 2018 (census.gov)


“Small-Business” Tax Debunking“Small-Business” Tax Debunking

30 Million

“Small Biz”(<500 employees)<500 employees)

30 Million

“Small Biz”(<500 employees)

Profit or Loss from Business

I NeedCustomersNot Tax Cuts

• Fewer than 25% (8 million) actually have any employees.

• Only 3% of owners reported income in the top 3 tax brackets in 2017 and will get any benefit from Trump’s new 25% pass-through rate. Many have no employees.

• No taxes on money spent in business (expensed out before taxes calculated).

Sources: Colin Gordon (graphs at Public.Tableau.com) for Center for Economic & Policy Research (cepr.net) Based on data from Historical Statistics of U.S. (UnionStats.com) & World Top Incomes Database (wid.world)


Top 1% Income Share Climbs As Union Membership Drops (& Vice-Versa)

Top 1% Income Share Climbs As Union Membership Drops (& Vice-Versa)

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXONHOOVERCOOLIDGE FORD CARTER REAGAN BUSH 1 TRUMPCLINTONWILSON OBAMABUSH 2HARD

ING

10%

20%

25%

15%

24%

9%

22%Stock MarketCrash1929

5%

10%

15%

20%

25%

30%

34%

11%

7%

Union Density (all workers)

Union Density (private sector)

©2012

Reagan breaksair traffic

controllers’strike (1981)

Taft -Hartley Actlimits union power

(1947)

Fair Labor Standards Act

protects workers (1938)

Wagner, Soc Security &Nat’l Labor Relations Acts

protect workers (1935)

NAFTA (1994)

Top 1%Income Share

©2010

China joinsWTO (2001)

Sources: Colin Gordon (graphs at Public.Tableau.com & cepr.net) based on data from Historical Statistics of U.S.(UnionStats.com) & World Top Incomes Database (wid.world) & Federal Reserve Economic Data (fred.StLouisFed.org)


As Union Density & Worker Share Drop, Top 1% Income Share Climbs

As Union Density & Worker Share Drop, Top 1% Income Share Climbs

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXONHOOVERCOOLIDGE FORD CARTER REAGAN BUSH 1 TRUMPCLINTONWILSON OBAMABUSH 2HARD

ING

10%

20%

25%

15%

24%

9%

22%Stock MarketCrash1929

5%

10%

15%

20%

25%

30%

34%

11%

Union Density Wage

& SalaryIncome©2012

Reagan breaksair traffic

controllers’strike (1981)

Taft -Hartley Actlimits union power

(1947)

Fair Labor Standards Act

protects workers (1938)

Wagner, Soc Security &Nat’l Labor Relations Acts

protect workers (1935)

NAFTA (1994)

52%

43%

51%

49%

47%

45%

43%China joinsWTO (2001)

Top 1%Income Share

©2010

Sources: Union Membership Database, Hirsch & Macpherson (UnionStats.com); Colin Gordon (Public.Tableau.com); “How ‘Right to Shirk’ Laws Kill Jobs and Hurt All of Us” by Richard Eskow, Dec 14, 2012 (HuffingtonPost.com)


“Right -To-Shirk”Freeloaders ReceiveUnion Benefits withoutPaying Dues or Fees

Collective Bargaining& Unions Protected

WA18.7% MT

11.8%ND

5.1% MN 15.2%

IA 7.0%

MO 8.6%

AR5.1%

LA 4.4%

IL 15.0%

WI 8.3% MI

15.6%

8.9%IN OH

12.5%

PA12.0%

NY23.8%

2.6%5.7% 3.4%

ME 11.4%

NH – 11.2%MA – 12.4%

CT – 17.0%NJ – 16.1%DE – 10.8%

DC – 9.7%MD – 10.7%

RI – 16.1%

VT11.0%

KY 9.7%4.6%

11%

TN

MS 5.3%

AL7.4% GA

4.0%

FL5.6%

SC

NC

VAWV

SD 5.3%

NE 8.1%

KS 7.8%

OK5.5%

ID 4.8%

NV 12.7%

AZ 4.0%

UT 3.9% CO

9.5%

NM 6.7%

TX 4.7%

CA 15.5%

OR 14.9%

WY 6.0%

AK18.1%

HI 21.3%

% of Workersin Unions 2017

“Right-To-Shirk” Laws UndermineWorker Power & Protections

“Right-To-Shirk” Laws UndermineWorker Power & Protections

Sources: Profits & Taxes – Economic Policy Institute, Sept 2016 (epi.org) & Bureau of Economic Analysis, Sept 2018 (bea.gov);Congressional Budget Office, Nov 2018 (cbo.gov); Wages: Federal Reserve Economic Data (fred.StLouisFed.org)


Corporate Profits Are Way Up ButWages & Corporate Taxes Way Down

Corporate Profits Are Way Up ButWages & Corporate Taxes Way Down

% GDP % GDI

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015EISENHOWERTRUMAN JFK JOHNSON NIXON FORD CARTER REAGAN BUSH 1 CLINTON OBAMABUSH 2 TRUMP

1.0% =$205 B

43%

51.5%

CorporateIncome Tax

Co

rpo

rate

Pro

fits

& T

ax

Wo

rker

Co

mp

ensa

tio

n S

har

eas

% G

ross

Do

mes

tic

Inco

me9

7

5

3

1

8

6

4

2

0

9

7

5

3

1

8

6

4

2

0

51

49

47

45

43

50

48

46

44

42

2014 EffectiveCorp. Tax Rate:

13% to 19%1952 EffectiveCorp. Tax Rate:

52%

After-TaxCorporate Profits

Wage & SalaryIncome

9.7%

$2 T

5.9%

5.5%©2012

©2010

Political joke making the rounds on the blogs in response to Wisconsin union busting, March 2011©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Updated 2012

©2010

The Class Warfare HustleThe Class Warfare Hustle

©2012

A Wall Street CEO, a union worker, and a Tea Partier are sitting at a table with 12 cookies. The CEO grabs 11, turns to the Tea Partier and says “You better watch him... That union guy

is out to take your cookie.”

Source: Unions4Workers©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • www.ConnectTheDotsUSA.com • Created 11/19/18

What Difference Does A Union Make?What Difference Does A Union Make?Union No Union

••••

••••

••••

••••

••••

••••

••••

••••

••••

••••

••••

••••

••••

••••

Wages, benefits and working conditions are

protected by a legal contract.

A contract spells out how much each worker earns.

Unions negotiate raises for everyone. Members vote on it, and if they

feel it’s unfair, they can vote it down.

If you are unfairly disciplined, unions provide due process to protect

against unscrupulous supervisors.

If you don’t like something at work, you can work together with your

union to change it.

Americans can thank

unions for:• The Weekend• 8-hr Workday

• 40-hr Workweek• Overtime Pay

• Minimum Wage• Paid Vacation

• Sick Days• Safety Standards• Child Labor Laws

• Employer Health Benefits

• Retirement Security

• Unemployment Insurance

• Worker’s Comp• Family & Medical

Leave Act

Management can change wages, benefits and working

conditions unilaterally, at whim.

No one knows how much anyone else earns. Unfair treatment and

favoritism exist.

If you want a raise, you must plead your case to a supervisor or manager.

As an at-will employee, if you are unfairly disciplined, you’re on your own.

No due process or representation.

If you don’t like something at work, you are at the mercy of management.

Sources: Center on Budget and Policy Priorities (cbpp.org) based on data from Bureau of Labor Statistics (bls.gov) Quote Explaining Keynesian Economics: Rebooting the American Dream by Thom Hartmann, 2010


When Govt Must Break The CycleWhen Govt Must Break The Cycle“When consumers don’t have a job, an economy will stagnate...

the best response of government is to use government money to put people to work so they’ll have money to buy things.”

–100k

–200k

–300k

–400k

–500k

–600k

–700k

–800k

0

+100k

+200k

+300k

+400k

+500k

2008Jan

2009Jan

2010Jan

2011Jan

2012Jan

2013Jan

2014Jan

2015Jan

2016Jan

2017Jan

2018Jan

CensusJobsSpike

Monthly Job Loss/Growth(non-farm jobs; seasonally adjusted)

Total Employment (Public & Private Jobs)

Private Sector Only

BUSH

TRU

MP

OBA

MA

OBAMABUSH TRUMP

Feb 2009: $787 B Stimulus

GreatRecession

Begins

From March 2010 to Dec 2016, Obama’s Economy Added

15.8 Million Private Sector Jobs

Trump Is JustContinuing

Obama’s Legacy


Aus

teri

ty:

The

Vic

ious

Cyc

leA

uste

rity

: T

he V

icio

us C

ycle

CUT$CO$TJOB$

CUT$CO$TJOB$

GOVT SPENDING

CUTS

HIGHERDEFICITS

SLOWERGROWTH &MORE JOB

CUTS

FEWERCUSTOMERS

& LESSDEMAND

JOB,WAGE & BENEFITCUTS

Quote: Paul Krugman, Nobel Prize-Winning Economist at the “Take Back The Dream Conference,” June 19, 2012Also see Krugman’s book End This Depression Now!, 2012, pg 28


Belt-Tightening by the Federal Govt Worsens a Struggling Economy

“...an economy is a very different thing from an individual family because (in an economy) we are each others customers.

Your spending is my income. And my spending is your income.

And if we both try to get ourselves in better shape by spending less, all that happens is we end up reducing all our incomes.”

– Paul Krugman, Nobel Prize-Winning Economist

A Country Is Not LikeA Household!A Country Is Not LikeA Household!

Sources: “Modern Money Theory for Beginners,” Presentation by Economist L. Randall Wray, April 6, 2018“But How Will We Pay for It? Making Public Money Work for Us,” Presentation by Economist Stephanie Kelton, Oct 15, 2018


Don’t Fret Over The Debt/Deficit;Focus On A Balanced ECONOMY Instead!

Don’t Fret Over The Debt/Deficit;Focus On A Balanced ECONOMY Instead!

Good PolicyRunning federal deficits is good policy if it balances conditions in the broader economy.

Bad PolicySelf-inflicted austerityschemes — paygo, balanced budget, debt limit — are cruel, harmful and fiscally illiterate.

GovtSpending

GovtSpending

TaxReceipts

TaxReceipts

FederalDeficitFederalDeficit

InflationUnemploy-

mentUnemploy-

mentInflationInflation

BalancedEconomyBalancedEconomy

HighUnemploy-

ment

HighUnemploy-

ment

LowInflation

LowInflation

UnbalancedEconomy

UnbalancedEconomy

How ModernMoney Works1) Federal govt is the sole issuer of the U.S. dollar so it can never run out. It is not like a family or business budget.

2) Money is created by fiat when Congress authorizes spending.

3) Taxes do not pay for spending. They control inflation and create demand for the dollar.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

$$$

$$

$$$

TaxReceipts

TaxReceipts

GovtSpending

GovtSpending

BalancedBudget

BalancedBudget

$$ $$$$ $$

$$

Sources: “Modern Money Theory for Beginners,” Presentation by Economist L. Randall Wray, April 6, 2018 and“But How Will We Pay for It? Making Public Money Work for Us,” Presentation by Economist Stephanie Kelton, Oct 15, 2018


Modern MonetaryTheory (MMT)

aka “Modern Money”

Modern MonetaryTheory (MMT)

aka “Modern Money”• Federal govt is the sole issuer of U.S. money so it can never run out (like a scoreboard can never run out of points). It’s not like a family or business that is simply a user of the money.

• Money is created by fiat when Congress authorizes the spending. Recipients’ accounts get marked up.

• Taxes do not pay for spending. Taxation just removes money from the economy to control inflation and extreme inequality. By creating demand for the dollar, taxes give it value.

• Govt does not need our money. On the contrary, we need the money created by federal govt (the issuer).

• How much can we spend? We are only limited by the real resources available — workers, raw materials, etc.— to absorb the spending.

Don’t Fret over the Debt/Deficit.Focus on a Balanced ECONOMY!Running federal deficits is good policy if it

balances conditions in the broader economy.

InflationUnemploy-

mentUnemploy-

mentInflationInflation

BalancedEconomyBalancedEconomy

GovtSpending

GovtSpending

TaxReceipts

TaxReceipts

FederalDeficitFederalDeficit

$$$$$$

$$$$

Sources: Sectoral Balances Map by Economist Scott Fullwiler, July 2016; Presentation by Economist Stephanie Kelton, Oct 15, 2018;“Hillary Clinton loves to trumpet Bill’s budget surplus. She shouldn’t” by Jeff Spross, May 24, 2016 (TheWeek.com)


% of GDP

SUR

PLU

SD

EFI

CIT

-15%

-10%

-5%

0%

5%

10%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015EISENHOWERTRUMAN JFK JOHNSON NIXON FORD CARTER REAGAN BUSH 1 CLINTON OBAMABUSH 2

Govt Deficits = Private Or ForeignSurpluses (& Vice-Versa)

Govt Deficits = Private Or ForeignSurpluses (& Vice-Versa)

Foreigners’ Trade Surpluses

(= U.S. Trade Deficits)

Sectoral Financial BalancesGovt Sector (mainly Federal, but also State/Local)

Domestic Private Sector (Households, Biz, Banks, etc.)

Foreign Sector (Trade)

Unprecedented &Unsustainable

Private Sector Deficits

Govt surplus is a drain on the economy. It means too much money is being taxed out of the economy.

Clinton’s GovtSurpluses

Sources: U.S. Census Bureau – Exhibit 1 & 20 (Census.gov); Wall Street Journal, May 5, 2015 (wsj.com); Economic Policy Institute: “The China Toll Deepens,” Oct 23, 2018; KORUS Update, May 5, 2016 (epi.org)


“Free Trade” Deals Led To $550+ Billion/yrU.S. Trade Deficit & Millions Of Jobs Lost “Free Trade” Deals Led To $550+ Billion/yrU.S. Trade Deficit & Millions Of Jobs Lost

BUSH 1 TRUMPCLINTON OBAMABUSH 2

$0

$0.5 T

$ Trillions

$1.0 T

$1.5 T

$2.0 T

$2.5 T

$3.0 T

1990 1995 2000 2005 2010 2015

U.S. Exports U.S. Imports

North AmericanFree Trade Agreement

(NAFTA)Net U.S. Job Loss

1994-2014:(850,000)

China joinsWorld TradeOrganization

(WTO)Net U.S. Job Loss

2001-2017:(3,400,000)

Central American

Free TradeAgreement

(CAFTA)

Korea-U.S.Free Trade

(KORUS)Net U.S. Job

Loss 2012-2015:(95,000)

$552 B Deficit(2017)

Total U.S. Trade Debt Since 1994: $10.6 T

Corporate-RiggedCorporate-Rigged

©2010

Cagle Cartoon: © Copyright Paresh Nath. Used here with permission.Information Source: Rebooting the American Dream by Thom Hartmann, 2010


In 2009, China had a labor shortage,causing its average wage to increase from $0.80 per hour to $1.14 and its economy to grow 8%.

©2010

We Don’t Make Much AnymoreWe Don’t Make Much Anymore

Source: Federal Reserve Economic Data (fred.StLouisFed.org) Based on data from Bureau of Labor Statistics (bls.gov)


(Millions of jobs)20 M

(% Share)

18 M

16 M

14 M

12 M

10 M

8 M

45.0%

37.5%

30.0%

22.5%

15.0%

7.5%

ManufacturingEmployees

Manufacturing Share OfTotal Non-Farm Employment

1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015EISENHOWERTRUMANROOSEVELT JFK JOHNSON NIXON FORD CARTER REAGAN BUSH 1 CLINTON OBAMABUSH 2 TRUMP

8.5%

38.7%

21.8%12.8 M

19.5 M >60,000 U.S. factories closedbetween 2001 and 2014

Source: Article by David A. Graham, Newsweek Online, November 2010©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Created 2010

Made In The USAMade In The USA

Made in ChinaSince 2004

Made in Costa RicaSince 1990

Made in Made in Mexico

Since 2001

Made in Mexico

Since 2001

Made in ChinaSince 2000

Made in AsiaMade in AsiaSince 2010Since 2010

“Made in USA” LabelChallenged in 2006

“Made in USA” LabelChallenged in 2006

Made in IndonesiaMade in IndonesiaSince 2001

Made in IndonesiaSince 2001

Made in AsiaSince 2010

Made in Made in Latin America & AsiaLatin America & Asia

Since 2003Since 2003

Made in Latin America & Asia

Since 2003

Cagle Cartoon: © Copyright Andy Singer. All rights reserved. Used here with permission.Quote: Thom Hartmann, Rebooting the American Dream, 2010

©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Created 2010

FAIR Trade, Not FREE TradeFAIR Trade, Not FREE Trade

“Free trade is a guaranteed ticket to the poorhouse for any nation.”

Corporate-

RiggedCorporate-

Rigged

Cagle Cartoon: © 2009 Copyright Monte Wolverton. All rights reserved. Used here with permission.©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Created 2010

Service Jobs: How Low Can You Go?Service Jobs: How Low Can You Go?

For more on this topic: Rebooting the American Dream by Thom Hartmann, 2010©2010-2018 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com • Updated 11/23/18

Policies For Job & Wage GrowthPolicies For Job & Wage Growth123

456789

Green New Deal / Infrastructure

Make Unionizing Easier

Raise Federal Minimum Wage

Invest In Education

Tax Policies To Address Inequality

Jobs Guarantee & Universal Basic Income

Fair Trade, Not Corporate-Rigged Trade

Medicare-For-All Good For Business

Get Big Money Out Of Politics


Jobs & Wages: Action Plan!Jobs & Wages: Action Plan!Support People Who Support The Policies:JusticeDemocrats.com

Join/Support Unions

Support Local Businesses

Share These GraphicsConnectTheDotsUSA.com

Join The Progressive Movement:PDAmerica.org • FightFor15.org • MoveOn.org

1

2

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3

5

ConnectTheDotsUSA.com

CIVICS AND POLICY BASICS F O R T H E B U S Y M A J O R I T Y ™

“Busy Majority” said by Jon Stewart, Sept 2010 ©2010 -2019 Design by Witte Design, LLC • Tucson, Arizona • ConnectTheDotsUSA.com

Presentation updated 1/13/19

©2010

JOBSWAGESECONOMY

HEALTHCARE

©2012

BUDGETTAXES

©2011

VOTING

FRAMING

TheConnectThe Dots Lady™

Graphic Updated 2/26/18

$0 $0.5 t $1.0 t $1.5 t $2.0 t $2.5 t $3.0 t $ trillions 1 · 2019. 1. 18. · $0 $0.5 t $...

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