Lessons from the New Deal of the 1930s for a Green New Deal today

Hundreds of young people occupy Representative offices in Washington, D.C. to pressure the new Congress to support a committee for a Green New Deal, December 10, 2018.

This post was adapted from remarks delivered at Vision 2020: Evidence for a Stronger Economy, the Washington Center for Equitable Growth’s policy conference, which was held November 1, 2019.

Climate change activists in the United States and around the world can take heart from recent polls that show a majority of Americans in both major political parties and all ages support interventions to reduce greenhouse gases and encourage renewable energy. Ferocious hurricanes, extensive flooding, and destructive fires certainly help underscore the dire situation for the public.

Yet the scale of action and the agenda for change that many Americans endorse is nowhere near as ambitious as what the authors of a proposed array of policies, collectively known as a Green New Deal, are calling for. Their proposals, although in flux, generally call for a total shift to renewable energy within 10 years, as well as the creation of a transformative green economy that will provide decent jobs with benefits, universal healthcare, and more affordable housing and infrastructure investments.

A Green New Deal, in short, is conceived as the opening wedge in a radical shift from a private, market-based neoliberal economy to a more social democratic one, where new federal policies will create a more egalitarian, just, and greener United States. Advocates for this revolutionary change have seized the mantle of the New Deal of the 1930s and 1940s as their inspiration—and for good reason. President Franklin Roosevelt’s New Deal—designed to address the crisis of the Great Depression—remains the gold standard for the federal government taking responsibility in a national emergency, despite all the backtracking since the 1970s.

My research into how ordinary workers in Chicago responded to FDR’s New Deal provides insights into how popular support for a massive set of new federal programs might be mobilized for a change of this magnitude today. And my recent new book, Saving America’s Cities, tracks how the retreat from empowering the federal government fueled the current crisis in affordable housing and crumbling urban infrastructure. Together, I believe there are four key lessons that Green New Dealers can take from the original New Dealers and the eventual breakdown in support of federal government intervention in the U.S. economy beginning in the 1970s.

But first, it’s important to understand why Americans in the 1930s and 1940s came to embrace the New Deal, as we seek parallels to it today.

How Americans came to support the New Deal

Before the New Deal, many of the workers in the steel mills, packing plants, and other industrial workshops of a city such as Chicago lived political lives defined narrowly by their local ward boss, either a Democrat or a Republican—that is, if, as first- and second-generation Americans, they even voted or participated politically at all. For African Americans, the national Democratic Party was the enemy, the party of their southern oppressors and the party to vote against now that they were in the North.

Moreover, within workplaces, unions, to the extent that they existed in the 1920s, were dominated by elite (usually white and native-born) craft workers, who aimed to limit opportunity for the more numerous, less skilled, and commonly immigrant nonunion workers. After the union organizing defeats of 1919, unions held little promise for lesser-skilled industrial workers. To the extent that working-class Chicagoans could depend for survival on any affiliations beyond their own families, it was on the institutions of their ethnic and racial communities—mutual benefit societies, building and loan associations, churches, and neighborhood “Mom and Pop” stores extending credit.

Workers also looked to the paternalistic welfare programs that their employers had instituted in the 1920s to protect themselves against the failed, but still worrisome, unionization drives that had followed World War I. Companies touted such benefits as paid sick leave and vacation, pensions, and employee representation to foster loyalty in their workers, but their unwillingness to put their money where their promises were gave few workers full access to these benefits.

By 1936, the year of President Roosevelt’s first re-election, the world had turned upside down. Faced with a global Great Depression, ordinary working-class Chicagoans, in a few short years, had become enthusiastic adherents of a national Democratic Party with FDR at the helm, voting in much greater—and Democratic—numbers in national elections. That trend also included African Americans, who increasingly replaced the motto “Stick to Republicans because Lincoln freed you” with “Let Jesus lead you and Roosevelt feed you.”

Workers took full advantage of President Roosevelt’s federally funded New Deal programs, benefiting especially from its relief programs but also becoming the rank and file of a massive drive to unionize industrial workers across many sectors, coordinated by the newly founded Congress of Industrial Organizations, or CIO, whose success was made possible by Congress’ passage of the Wagner Act of 1935, which guaranteed the right of private-sector U.S. workers to organize, engage in collective bargaining, and strike. By 1940, one in three workers in Chicago manufacturing would be a union member, whereas 10 years earlier hardly any had been.

The political landscape of Chicago was transformed. Workers who, not many years before, had ignored or shunned the national Democratic Party, had had few connections to Washington, and had been excluded from national unions now identified with the national government and a nationwide party and union.

Lessons from the New Deal era

Given the challenge today to mobilize ordinary Americans for an ambitious climate policy agenda in the 21st century, what can they learn from the original New Dealers, who successfully recruited supporters to such a paradigm-shifting program more than eight decades ago?

First, President Roosevelt and his advisers never had a master plan for the New Deal of the 1930s. Rather, they promoted and implemented a set of new laws and regulations in FDR’s first 100 days as practical fixes to pressing problems. As time went on, programs that worked remained while others died, to be replaced by new initiatives.

When the National Industrial Recovery Act—with its voluntary codes of fair competition and limited encouragement of collective bargaining—proved inadequate and then was ruled unconstitutional, it was replaced with the stronger Wagner Act that offered a clearer path to unionization. And it was not until the so-called Second New Deal beginning in 1935 that a welfare state of Social Security, minimum wages and hours, Unemployment Insurance, and public housing would take shape.

In other words, the New Deal was improvisational and incremental. Furthermore, to minimize the impact of the shift away from state-based federalism to more national management of the polity, many federal programs were operated and dollars were channeled, through states, counties, and cities—injecting federal resources and regulations without marginalizing all existing local sources of political power.

The result was a hybrid governance structure of national statism and persistent localism. President Roosevelt pledged to create “a new deal for the American people,” but he also insisted that he was rescuing capitalism, not overthrowing it. And he never laid out a fully developed blueprint for action. For ordinary Americans, embracing the New Deal did not require signing on to a totally new, radical platform.

Second, this New Deal of the 1930s was more practical than ideological, tolerating constraints imposed by its coalition partners. Most tragically, powerful southern Democrats insisted on excluding agricultural and domestic workers, many of whom were black and Mexican, from the protections of the Fair Labor Standards Act, and rejected much-needed anti-lynching legislation.

But there were also crucial partners on the left. Ideologically motivated, radical activists pushed the New Deal to make deep, structural changes in the U.S. economy and society, orchestrating Communist Unemployed Councils, Socialist Workers’ Committees for Unemployment, hunger marches, and left-wing unions. In the end, despite all the hardships of the Great Depression, the average worker did not buy into an anti-capitalist message. Communist organizer Steve Nelson recalled how he and his comrades had “spent the first few weeks agitating against capitalism,” but then quickly learned to shift to a “grievance approach,” raising “demands for immediate federal assistance to the unemployed, and a moratorium on mortgages.”

In fact, partly inspired by the failed promises of their employers’ welfare capitalism schemes of the 1920s, working-class Americans came to embrace what I have labeled “moral capitalism.” While benefiting from radical leaders, they more often opted for liberal goals, to be achieved by pressuring employers and national leaders to deliver a fairer, more just capitalism, but not to refashion the existing economic order.

But rather than lead the Green New Dealers of today to conclude they must accept the inherent conservatism of ordinary Americans in their agenda setting, this experience of the 1930s should remind us that a radical flank played a crucial role in achieving even a liberal outcome. Left leaders of the CIO worked hard to cultivate what I call an inclusive “culture of unity” in the union movement. They knew that success required it, or else the ethnic and racial divisions that had doomed the 1919 organizing drives would re-emerge. If they did not brazenly call for class solidarity, then white working people might well retreat to their segmented ethnic worlds and express open hostility to African American co-workers.

Applying these lessons to climate policy today

One broad lesson, then, from the New Deal of the 1930s is the necessity of having both a radical flank of idealists to inspire action and a willingness to accept a more gradualist and moderate path to change.

The history of the Roosevelt New Deal, however, offers up three more specific lessons for building support for a Green New Deal. First is the importance of leadership, both at the top and the bottom. Workers admiringly championed President Roosevelt. And committed local leaders, both in the Democratic Party and on the shop floor, effectively managed to bring a national agenda of change back home.

Second, working people were mobilized within existing and new institutions and organizations, not as isolated individuals. Even as churches, ethnic organizations, and the like failed to meet the crisis of the Great Depression on their own, they provided entryways to new solutions. This is perhaps one of the greatest challenges facing progressive policymakers today. Even as people’s social media affiliations have grown, many intermediary institutions—particularly unions, but also churches, clubs, and other centers of social capital—have weakened or even disappeared. The success of the political right might, in fact, be attributed to the greater survival of organizations such as evangelical churches, which provide infrastructure as well as inspiration for conservative politics.

Third, the New Deal of the 1930s was most remarkable for how it inspired a generation of Americans to trust the federal government as capable of solving many of the nation’s—and their own personal—problems. That confidence would persist during at least three more post-war decades. Today, however, we are in a very different place. Trust in the federal government has eroded. And as distrust has grown, responsibility has devolved to lower levels of government and has fed the anger and disillusionment that is so visible today. Global warming is not a problem that can be solved easily at lower levels. National—even international—remedies are needed to address climate change and a host of other challenges.

In my recent book, Saving America’s Cities, I analyze how this rejection of the federal government also fueled today’s lack of affordable housing and disinvestment in urban infrastructure. Mounting a Green New Deal—or solving the nation’s housing crisis—will require reawakening people’s confidence in the vision and effectiveness of Washington. The Green New Deal carries the potential of helping to inspire that greater confidence—or of being dismissed by a still-skeptical public as one more federal folly. How shrewdly progressives play that hand may ultimately determine their success.

Lizabeth Cohen is the Howard Mumford Jones Professor of American Studies and Harvard University Distinguished Service Professor.

Equitable Growth’s Vision 2020 book of essays on economic inequality and growth will inform 2020 policy debate

Equitable Growth will release of a compilation of 21 innovative, evidence-based, and concrete ideas to shape the 2020 policy debate.

At our “Vision 2020 conference” last month, the Washington Center for Equitable Growth announced the forthcoming release of a compilation of 21 innovative, evidence-based, and concrete ideas to shape the 2020 policy debate. This compilation of essays into a book, Vision 2020: Evidence for a Stronger Economy, will be released mid-to-late January.

Several of the contributors to this book of essays spoke at the Vision 2020 conference—which brought together leading voices from the policymaking, academic, and advocacy communities to highlight the most pressing economic issues facing Americans today.

Chief among the themes of Vision 2020 are the exploration of recent transformative shifts in economic thinking that demonstrate how inequality obstructs, subverts, and distorts broadly shared economic growth, as well as what can be done to fix it. “Through these essays, the Washington Center for Equitable Growth aims to infuse cutting-edge research findings and prominent academics into the current policy debate,” said David Mitchell, director of external and government relations at Equitable Growth. “Our goal is for future decisions about the U.S. economy to be informed by the best available evidence.”

Essay authors who spoke at the Vision 2020 conference include:

  • Heather Boushey, president and CEO of the Washington Center for Equitable Growth, who will write about new ways to measure the economy
  • Arindrajit Dube, professor of economics at the University of Massachusetts Amherst, who will write about minimum wage and sectoral wage boards
  • Dania Francis, assistant professor of economics at the University of Massachusetts Boston, who will write about reparations
  • Bradley Hardy, associate professor of public administration and policy at American University, who will write about race and economic mobility
  • Alexander Hertel-Fernandez, assistant professor of international and public affairs at Columbia University, who will write about labor unions

Additional contributors to the essay compilation and their topics include:

  • Kimberly Clausing, professor of economics at Reed College, on trade policy
  • Robynn Cox, assistant professor of social work at the University of Southern California, on criminal justice policy
  • Blythe George, post-doctoral sociologist at the University of California, Berkeley, on Native American resilience in the face of incarceration and drug use
  • Darrick Hamilton, professor of public affairs at The Ohio State University, and Naomi Zewde, assistant professor of public health and health policy at The City University of New York, on student debt
  • Aaron Kesselheim, professor of medicine at Harvard University, on prescription drug costs
  • Susan Lambert, professor of social service and administration at University of Chicago, on stable scheduling in the workplace
  • Yair Listokin, professor of law at Yale University, on macroeconomics and the law
  • Trevon Logan, professor of economics at The Ohio State University, and American University’s Hardy, on race and economic mobility
  • Taryn Morrissey, associate professor of public policy at American University, on childcare
  • Suresh Naidu, professor of economics and international and public affairs at Columbia University, and Sydnee Caldwell, incoming assistant professor of business administration and economics at University of California Berkeley, on U.S. labor market monopsony
  • Maya Rossin-Slater, assistant professor of health policy at Stanford University, and Jenna Stearns, assistant professor of economics at University of California, Davis, on paid leave
  • John Sabelhaus, visiting scholar at the Washington Center for Equitable Growth, on fiscal and monetary policy
  • Diane Schanzenbach, professor of human development and social policy at Northwestern University, and Hilary Hoynes, professor of public policy and economics at the University of California, Berkeley, on the Supplemental Assistance Nutrition Program, on supplemental nutrition assistance
  • Fiona Scott Morton, professor of economics at Yale University, on antitrust policy
  • Leah Stokes and Matto Mildenberger, assistant professors in the Department of Political Science and affiliated with the Bren School of Environmental Science & Management at the University of California, Santa Barbara, on climate policy and economic inequality
  • Emily Wiemers, associate professor of public administration and international affairs at Syracuse University, and Michael Carr, associate professor of economics at University of Massachusetts Boston, on U.S. workers’ earnings instability and mobility
  • Owen Zidar, associate professor of economics and public affairs at Princeton University, and Eric Zwick, associate professor of finance at the University of Chicago, on income tax reform

For more information on the Vision 2020 conference and to view the recorded panels, click here. To sign up for notifications on upcoming content, including the Vision 2020 essay compilation, and events, click here.

Vision 2020 conference probes inequality’s effects on the U.S. economy and policy changes to counteract them

On Nov. 1, Equitable Growth hosted Vision 2020: Evidence for a Stronger Economy.

A spirit of optimism about the ability of government to address fundamental issues underlying U.S. economic inequality and a determination to advance evidence-based policies for broad-based economic growth infused an all-day policy event hosted by the Washington Center for Equitable Growth on November 1.

At “Vision 2020: Evidence for a Stronger Economy,” which was designed to help inform economic policy ideas in advance of the 2020 elections, speakers and participants engaged in thoughtful discussion on a number of key topics. Those topics included the effects of the decline of union power, structural racism in the economy, the rise of monopsony power in the labor market, and more.

The speakers at the conference made clear that the depth of structural problems, such as racial and gender income and wealth gaps, the decline of worker power, and economic concentration, make dramatic changes in policy essential, yet they also acknowledged the difficult political, economic, and societal barriers to achieving real change. There are no simple solutions, and inequality has caused the economic and political decks to be stacked against systemic reform.

Attendees heard several major threads woven through the day of panels, speeches, and conversations (to watch video from the day’s session, click here, and for photos, click here).

The first major theme was that the change needed to achieve broad-based economic growth and significantly diminished inequality is not possible without the legislative and regulatory tools of the federal government. This point was made by several speakers. Carmen Rojas, formerly of The Workers Lab, related that her former organization’s efforts to empower workers were initially aimed at getting the private sector to act, but the organization found that “government is actually key to scaling anything that would benefit working people.” She noted that this “should have been obvious, given the history of the labor movement in this country, and unfortunately, it wasn’t.”

Economy in Focus: Building Worker Power

Federal Trade Commissioner Rohit Chopra emphasized the power of the federal government needed to be brought to bear on corporate concentration. The FTC, he said, “should be about confronting massive concentrations of power in our economy, ending conflicts of interest in some of the biggest businesses in our society, going after the practices that diminish workers’ wages and independence, and fundamentally, making sure that the economy is competitive and delivers benefits for everyone who wants to work hard.”

And Harvard University’s Lizabeth Cohen, discussing the political challenges facing supporters of the Green New Deal, pointed to the New Deal implemented by President Franklin Delano Roosevelt in response to the Great Depression, as the “gold standard” for the federal government taking responsibility in a national emergency.

The second major theme of the day was that inequality in the United States has led to the concentration of economic power at the top of the income distribution, which has led to a comparable aggregation of political power. That confluence of power has turned policy in favor of elites and stands in the way of change.

Equitable Growth President and CEO Heather Boushey said that inequality gave those at the top not only economic power but also political power. As inequality has risen, she said, “it’s not just the buying of a particular piece of legislation, but how that concentration of economic resources gives people that political and social power to set the agenda, to decide what it is that we’re going to talk about, what it is that’s important to us.” She added, “How can you have democratically accountable institutions when you have so much concentration of wealth in the hands of individuals and across markets?”

Panel: Toward a New Economy

On this topic, Alexander Hertel-Fernandez of Columbia University also invoked FDR, who, he said, “understood that public policy is a tool for building both economic and political power.” Explaining one of the reasons wages have lagged and unions have declined, Hertel-Fernandez pointed to the post-World War II era when he said, “employers realized that they could use public policy to entrench their economic positions and … since the New Deal … the story of declining worker power is not just one of automatic changes in the economy. Employers have worked in new domains and invested in old domains to change policies in ways that disadvantage workers.”

As Tom Perriello of the Open Society Foundations put it:

I think we need to understand the interrelationships of economic [and] corporate power with democratic power and with racial power. And we see right now an unbelievable concentration of wealth, but that concentration of wealth is able to translate itself into political power that affects the ability to produce results for the very parties or organizations that want to build power by standing up for working-class people, middle-class folks of all races.

He added that there “are very few examples through human history, including American history, of multiracial democracy existing with genuine equality of voice.” He argued that “to sustain that kind of multi-identity democracy is difficult in part because of how those with power can divide in order to prevent the building of power.”

Citing a specific example, Karen Dynan of Harvard University discussed the student debt burden facing millennials, especially people of color, and noted that the problem is not with the federal student loan program in general. College is a worthwhile investment for most students, she said, particularly those from low-income families. But weak regulation, she noted, fails to hold colleges—in particular, private for-profit colleges—accountable for luring students into taking on significant debt and then too often failing to deliver value in the form of college degrees. In the same session, Claudia Sahm, formerly with the Federal Reserve and now the director of macroeconomic policy at Equitable Growth, noted that the victims of for-profit colleges were disproportionately the first in their families to attend college. Both Dynan and Sahm made clear that the for-profit college industry has used its political power to weaken regulation.

Panel: Macroeconomic Implications of Inequality

The third theme, a loss of trust, probed the diminution of Americans’ confidence in institutions—in politics and government, in business, and in the media—resulting from economic anxieties and the concentration of power.

In describing the different political landscapes faced by President Franklin D. Roosevelt and today’s supporters of the Green New Deal, Harvard’s Cohen pointed to the difference in the level of trust among the American people. “The New Deal of the 1930s was most remarkable for how it inspired a generation of Americans to trust the federal government as capable of solving many of the nation’s and their personal problems,” she said. “That confidence would persist during at least three more post-war decades. Today, however, we are in a very different place. Trust in the federal government has eroded.”

Boushey said that inequality subverts trust in institutions, and the people most in need of political and economic change mistrust the ability of government, political parties, and other organizations to support them and their families. It makes the public less willing to pay taxes, she said, because there is less confidence that resources will be spent in ways that make their lives better.

Duke University’s Sarah Bloom Raskin, describing how an increasing number of Americans have lost their economic resilience, or the financial ability to withstand economic shocks, noted that people become alienated from the political system as they lose confidence that it can produce change for them. “As income levels get a match on the political side, we lose a political and a regulatory responsiveness that actually could be doing something to address these questions of resilience,” she said. “People then lose confidence in [actual] solutions to do anything for them.”

Finally, the President of the Services Employees International Union Mary Kay Henry said that this weakening of trust in institutions was affecting the efforts of unions to gain the support of workers.

The fourth theme was that economic anxieties felt by much of the U.S. population are due, in considerable part, to the decline of worker power—the ability, mainly through labor unions, to stand up for higher wages from employers.

In a conversation about the rise of monopsony—when firms, rather than labor markets, set wages—Arindrajit Dube of the University of Massachusetts Amherst said that the most significant trends limiting wages over the past several decades have been the loosening of certain constraints on employers, such as fairness norms, labor unions, and more meaningful minimum wages. Hertel-Fernandez emphasized the inadequacy of the law and of the judiciary to address the “malign neglect” of labor law by employers. He cited the potential revamping of labor laws as an opportunity to find out what workers want in labor organizations. Likewise, Cecilia Muñoz of New America focused on how the nature of work is changing and stressed the need to engage workers in the conversation about how best to empower them to affect work’s future direction. Rojas cited the need to build new models of worker power, using 21st century technology. And the FTC’s Chopra said that he hopes the FTC will bring an antitrust case that focuses on labor market competition, noting that the agency has been too weak with respect to enforcement in this area.

But perhaps the most powerful evocation of how workers are faring in today’s economy was a story told by the SEIU’s Henry, who made the case for workers to be able to organize in entire sectors to combat the increasing concentration in many industries. She told the audience about a hospital worker named Nyla Payton, an employee at the University of Pittsburgh Medical Center. Hospital mergers have given UPMC something close to monopsony power over the labor market for hospital workers in the Pittsburgh region, she said. Henry spoke in detail about how the institution has abused that power to impose egregious working conditions on its workers and prevent them from forming a union.

Fighting Power with Power: Unions for All

The fifth theme of the day was the experience of individuals and families in the U.S. economy as fundamentally different based upon race, ethnicity, and gender.

The economic and political disparities faced by people of color and by women (and especially by women of color) were a major theme throughout the day. Dania Francis of the University of Massachusetts Boston pointed to the impact of the gaping racial wealth gap on human capital investment. She noted that wealth, in addition to being a source to draw on for such investment, is protective (providing shelter from life’s unexpected setbacks), affords opportunities (to be an entrepreneur, to take risks), and perpetuates itself (is intergenerational). “Who are we losing?” she asked.

Similarly, Camille Busette of The Brookings Institution said that the asset creation process “is very racialized.” She pointed to government policies such as redlining, the exclusion of blacks from certain kinds of jobs, and other structural issues built upon existing disparities to contribute greatly to the racial wealth gap. Even for African Americans who owned homes before the 2007 financial crisis, a disproportionate amount of those were bought using subprime loans, so they were set up to fail, and those assets disappeared. “The reason that we have a racial wealth gap,” she said, “is that we have racism.”

In the same session, Opportunity at Work’s Byron Auguste discussed the skills gap, pointing out that if employers wanted more workers in a particular field, then they could raise compensation for those jobs. He also said that the conversation about the skills gap misses a key point. “We’re thinking about the skills gap backwards,” he argued. “The skills gap is the consequence of an opportunity gap … it’s not the cause.” He said that artificial credentials requirements for certain jobs, such as a bachelor’s degree for office administrative assistants, tended to exclude black workers.

Bucknell University’s Nina Banks told the story of Sadie Alexander, who, in 1921, became the first African American woman to receive a Ph.D. in economics in the United States (at the University of Pennsylvania). Since nobody would hire her, she went on to earn a law degree at UPenn as well and became one of the leading civil rights voices challenging the legacy of slavery. She did so from the point of view of an economist. Concerned about the status of African American workers—who were frequently the last hired and therefore first fired—she focused on the need for full employment policies and was possibly the first economist to advocate a federal jobs guarantee, a policy idea that is enjoying renewed attention in the current economic and political debate.

And finally, the last theme of the day was elicited by the session moderators, as well as through audience questions, which asked for evidence-based policy recommendations from the panelists and speakers. Among them were the following:

  • Bradley Hardy of American University pointed to the need to direct considerably greater public resources into education, safety net programs, skills training, and other programs critical to building human capital.
  • Monica Garcia-Perez of St. Cloud State University urged policymakers not to focus only on the job market. She said it was a symptom, not the fundamental problem. She called for wellness benefits such as health insurance and retirement to be separated from jobs, so that individuals and families could receive them regardless of whether they are employed.
  • Maya Rockeymoore Cummings of Global Policy Solutions said the policy changes that were most needed were programs that support families along the continuum of life, such as paid family leave, universal childcare, and long-term care, and while expressing strong support for Social Security, pointed to the need to strengthen other retirement benefits to provide greater income to seniors.
  • Francis called for a program of reparations that includes a direct transfer of resources in order to help African Americans reduce the wealth gap created by the legacy of slavery, Jim Crow laws, and other state-sanctioned discrimination.
  • Henry, in addition to supporting sectoral collective bargaining, which is the norm in many European countries, called for “a new American social wage” that includes benefits such as healthcare, childcare, parental leave, vacation, and pension support. Similarly, Dube called for sectoral wage standards and for wage boards to enforce them.
  • Auguste noted the need for greater income support for those learning new skills to improve their status in the job market, and for student loan forgiveness in unusual circumstances such as the financial crisis.
  • Busette called for the elimination of the juvenile justice system, which she said has a deeply negative, lifelong impact on countless African American boys.
  • Dynan and Sahm stressed the need for policies to inject money into the U.S. economy when a recession is beginning by providing benefits to low- and middle-income Americans, who are most likely to spend those resources. Sahm pointed to the proposals contained in Recession Ready, a book of ideas compiled by Equitable Growth and the Hamilton Project.

These and other policy ideas will be compiled into a collection of 20 innovative, evidence-based, and concrete ideas to shape the 2020 policy debate, which Equitable Growth’s Director of External and Government Relations David Mitchell announced will be published in January by Equitable Growth. Several of the speakers at “Vision 2020” are among the academics who are contributing essays.

Equitable Growth hosts Vision 2020 Conference in Washington, highlighting connection between economic inequality and growth

Economic inequality in the United States has grown over the past few decades to levels not seen in nearly a century. As a result, more than any presidential election in recent memory, the 2020 campaign has become an arena for debating transformative ideas to address the generational challenges of income and wealth inequality. Inequality and the need to achieve strong, broad-based economic growth are the structural problems that underlie fundamental issues from taxation to lagging wages, from healthcare and higher education to climate change and competition.

Equitable Growth is committed to providing a platform for bold policy ideas that can be adopted in 2021 by the new Congress and whoever the president might be. To help advance the conversation about these and other evidence-based policy proposals and the research behind them, Equitable Growth is hosting Vision 2020: Evidence for a Stronger Economy, an all-day conference in Washington on Friday, November 1. The event will bring together leading voices from the policymaking, academic, and advocacy communities to explore bold new ideas and discuss how the issues that candidates are debating are affected by ongoing shifts in economic thinking about how inequality obstructs, subverts, and distorts broadly shared economic growth.

Speakers will include:

  • Federal Trade Commissioner Rohit Chopra, who will discuss his vision for modernizing federal antitrust power and enforcement
  • Mary Kay Henry, international president of the Service Employees International Union, who will address her agenda for workers, “Unions for All,” which would, among other things, enable unions to bargain at the sectoral level
  • Sarah Bloom Raskin, a Rubinstein Fellow at Duke University, a former U.S. deputy secretary of the Treasury, and a former member of the Federal Reserve System Board of Governors, who will participate in a panel on the causes and consequences of economic inequality
  • Bucknell University economist Nina Banks, who will tell the story of Sadie Alexander, the first African American economist, and describe why her ideas are increasingly relevant today (Alexander, who was not able to practice economics when she received her doctorate in 1921 due to racial and gender exclusion, became, in 1945, one of the first U.S. economists to champion a federal jobs guarantee.)
  • Cecilia Muñoz, former director of the White House Domestic Policy Council and current vice president for Public Interest Technology and Local Initiatives at New America, who will serve on a panel on the role of state and local stakeholders in addressing structural inequality and boosting broadly shared growth

The day’s sessions will include:

Toward a New Economy

Raskin, Dania Francis of the University of Massachusetts Amherst, and Equitable Growth President and CEO Heather Boushey will discuss the causes and consequences of economic inequality, along with bold policy solutions to tackle inequality and promote strong, sustained, and broad-based economic growth.

Macroeconomic Implications of Inequality

Harvard University economist Karen Dynan, University of California, Irvine School of Law professor Mehrsa Baradaran, and Claudia Sahm, currently a section chief at the Federal Reserve Board and soon to join Equitable Growth as its new director of macroeconomic policy, will join moderator Ylan Mui of CNBC to discuss the growing research evidence of the impact of inequality on economic growth. The panelists will discuss these findings and their implications for fiscal and monetary policymaking, as well as housing and financial regulation issues.

Envisioning a New Climate Economy

Historian Lizabeth Cohen of Harvard University will discuss what we can learn from how working Americans came to embrace President Franklin D. Roosevelt’s New Deal policies in the midst of the Great Depression, and its relevance to engaging Americans in the economic, social, and political change required by today’s climate crisis.

The Rise of Monopsony Power in the Labor Market

Equitable Growth director of Labor Market Policy and economist Kate Bahn will moderate a conversation with economist Arindrajit Dube of the University of Massachusetts Amherst and Columbia University political scientist Alexander Hertel-Fernandez about the role in the labor market of monopsony power, the ability of employers to suppress wages regardless of tightening labor supply. The panel will discuss the evidence of monopsony power and potential policies to address it.

Trust Busting in the 21st Century

The U.S. economy is increasingly dominated by a few firms. This has led to higher profits for shareholders but lower wages for workers, and has had additional impacts on innovation, entrepreneurship, and inequality. A clear consensus for how U.S. policymakers should combat concentration and anticompetitive behavior remains elusive. In this session, Federal Trade Commissioner Rohit Chopra will provide his vision for modernizing antitrust power and enforcement in a conversation with CNN reporter Brian Fung.

A Conversation About Structural Racism in the Economy

This panel, consisting of Camille Busette, director of the Race, Prosperity, and Inclusion Initiative at The Brookings Institution, Equitable Growth board member Byron Auguste, who is CEO and co-founder of Opportunity@Work, economist Monica García-Pérez of St. Cloud State University, and moderator Gillian White, deputy editor of The Atlantic, will discuss ideas for social, political, and economic policy changes to address persistent income and wealth gaps between racial groups and advance racial equity in the United States.

Fighting Power with Power: Unions for All

The history of the U.S. labor movement illustrates that unions play a critical role in mitigating inequality and empowering workers across the economy. Recent research also illustrates that an increasing proportion of nonunion workers have a desire to form a union in their workplace. In this session, Mary Kay Henry will address her agenda for workers, “Unions for All.”

The Front Line of Structural Change

Joining Muñoz in a conversation about the economics of place and race, with a focus on the role of state and local stakeholders will be Tom Perriello, executive director of Open Society-US, Maya Rockeymoore Cummings, president and CEO of Global Policy Solutions and chair of the Maryland Democratic Party, economist Bradley Hardy of American University, and moderator Anmol Chaddha, research director for the Equitable Futures Lab at the Institute for the Future.

Building Worker Power

Carmen Rojas, co-founder and CEO of The Workers Lab, will close out the event with a discussion of promising new strategies for building worker power, particularly for low-income workers, in today’s changing economy.

Equitable Growth is planning a number of other actions in the coming months to inform the 2020 policy conversation. Stay tuned!