Occupy Harvard Teach-In 12/7
“Why Has Inequality Grown in America? What Should We Do?”
Archon Fung, Ford Foundation Professor of Democracy and Citizenship and Co-Director of Transparency Policy Project, Kennedy School of Government, Harvard University
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Archon Fung - Why Has Inequality Grown in America? What Should We Do?
1. American Inequality:
How Did We Get Here and
What Can We Do About it?
Archon Fung
Harvard Kennedy School
#OccupyHarvard Teach-In
December 7, 2011
Thursday, December 8, 11
6. AVERAGE HOUSEHOLD INCOME
before taxes
$ 2M
top 1%
top 20%
second 20%
third 20%
$ 1.5M
fourth 20%
bottom 20%
$ 1M
$ 0.5M
BASED ON GRAPHS BY:
COURTESY OF:
‘79 ‘83 ‘87 ‘91 ‘95 ‘99 ‘03 ‘07
2007 dollars. Source: Congressional Budget Office
Thursday, December 8, 11
7. Growth in After-Tax Income, 1979-2007
Source: Congressional Budget Office, 2011
Thursday, December 8, 11
10. ■
■
Distribution of Wealth ■
Source: Michael Norton and Dan Ariely
Thursday, December 8, 11
11. Who Eats The Pie?
120,000
GDP / Family
105,000
90,000
75,000
($ 2006)
60,000
45,000
30,000
Median Family Income
15,000
0
1945 1955 1965 1975 1985 1995 2005
Thursday, December 8, 11
12. Text
Source: Mother Jones Magazine
Thursday, December 8, 11
13. How Did It Get So F**ked Up?
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22. Who Is Top 1%? Composition of Top 1%
40
30
Executives, managers, supervisors (non-finance)
Medical
Financial professions, including management
Lawyers
Computer, math, engineering, technical (nonfinance)
20
10
0
1979 1993 1997 1999 2001 2002 2003 2004 2005
Source: Source: Mike Konzcal via New York Times
Thursday, December 8, 11
25. Top 1% in Anglo Countries
Figure 4. Plutonomy At Work: The Income Share of the Top 1% Has Risen Dramatically
in the U.S., the U.K., and Canada
19 Income Share of the Top 1% 19
17 17
USA
15 15
UK
13 Canada 13
11 11
9 9
7 7
5 5
60 63 66 69 72 75 78 81 84 87 90 93 96 99 02
Please see references 18, 4, 22 in the bibliography at the end of the report for the data underlying the chart. Estimates b
Source: CitiGroup Investment Research
Source: Citigroup Investment Research
Thursday, December 8, 11
26. Please see references 18, 4, 22 in the bibliography at the end of the report for the data underlying the chart. Estimat
Source: Citigroup Investment Research
Top 1% Elsewhere
Figure 5. Of Egalitarian Bent: The Income Share of the Top 1% Is Much Smaller and
at All, in Switzerland, the Netherlands, Japan, and France
19 Income Share of the Top 1% 19
17 Switzerland 17
France
15 Japan 15
Netherlands
13 13
11 11
9 9
7 7
5 5
60 63 66 69 72 75 78 81 84 87 90 93 96 99 02
Source: CitiGroup Investment Research
Please see references 7,17,15,4 in the bibliography at the end of the report for the data underlying the chart. Estima
Source: Citigroup Investment Research
Thursday, December 8, 11
27. Political Causes
• Executive compensation policies
• That tie exec incomes to stock markets
• Deregulation of financial sector
• Tax policy (esp. capital gains and corporate
tax)
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34. Modes of Production
Low Road High Road
Price Competition Value Competition
Sweated Labor Good training & equipment
Poor Labor Relations Productivity Partnerships
Economic Insecurity Continuous improvement
Minimal state Rich public goods
Rising inequality Higher worker incomes
Source: Joel Rogers, University of Wisconsin
Thursday, December 8, 11
35. Public Policy
“Help pave the high-road,
block off the low road”
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36. Industrial Policy
• Real, relevant training
• Aligned standards
• Deliberative spaces for employers,
workers, communities, governments to
form productivity partnerships
• Even playing field for workplace governance
Thursday, December 8, 11