This document discusses the impacts of the recession and economic crisis. It notes that the recession has hit communities unevenly across states and demographics. Certain groups, such as Black and Latino youth, have faced particularly high unemployment rates. The response to the recession through policies like the American Recovery and Reinvestment Act aimed to stimulate the economy and assist those most impacted, but there are questions around whether the recovery has reached all communities equally and how future policies and investments can better promote equity.

1. john a. powell
Kirwan Institute for the Study of Race and Ethnicity

2.  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

3.  Our Recovery Principles
 Recovery fund investments must
be marked by full transparency and
accountability
 Families and communities hit
hardest by the economic crisis
merit focused attention in the
recovery process
 Investments must promote equity
and expand opportunity for all
(targeted investment)
 Our work/initiatives
 National work
 State level assistance
3
 Research, communications

4.  The recession has hit the entire nation, but the
economic impact has varied across the nation’s
states and communities.
 Our goal for Recovery should be national, but our
investment strategy must reflect the disparate
economic impact among our states and
communities.

5.  Is the Recovery reaching our hardest-hit
communities?

6.  Was ARRA built to
Actual Federal Outlay (in $billions)
stimulate or stabilize
Health, 55.3,
55% the economy?
 Was ARRA designed
Education & with equity in mind?
Training, 29.0,
29%
Energy and
Environment,
1.2, 1%
Community
Development,
2.4, 2% Income Transportation,
Security, 3.5, 8.6, 9%
4%
Source: Government Accountability Office (GAO),
November 27, 2009

7. (1) To preserve and create jobs and promote economic
recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic
efficiency by spurring technological advances in
science and health.
(4) To invest in transportation, environmental
protection, and other infrastructure that will provide
long-term economic benefits.
(5) To stabilize State and local government budgets, in
order to minimize and avoid reductions in essential
services and counterproductive state and local tax
increases.
7

8. National Unemployment Rates by Race
17.0 16.5 16.5 16.5
16.2
15.7 15.6 15.8
16.0
15.0
14.0
13.1 12.9
13.0 12.7 12.6 12.4 12.6 12.5
12.0
11.0
10.1 10 10 9.9
10.0 9.7 9.7 9.7
9.0 9.4 9.3
9.0 8.7 8.8 9.0
8.0 8.8
Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10
White Black Latino Total
Source: US Bureau of Labor Statistics)

9. May Unemployment Rates by Race and Gender
20.0 18.0
18.0
16.0
13.7
14.0
12.0 11.2 11.1
10.3
10.0 9.2 8.6
7.4
8.0
6.0
4.0
2.0
0.0
White Black Latino Total
Men Women
Source: US Bureau of Labor Statistics)

10. May Unemployment Rates by Race and Age
40.0 37.3
35.0
29.2
30.0
25.7
25.0 23.5
20.0
15.7
15.0 11.1
8.4 9.5
10.0
5.0
0.0
White Black Latino Total
Age 16-19 Age 20+
Source: US Bureau of Labor Statistics)

11.  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

12. Percent of U.S. population in racial group under correctional supervision
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
White Black Other Source: US Bureau of Justice Statistics

13. Federal ARRA Contract Procurement as of May 7th
30.0% 28.2%
25.0%
20.0% 17.0%
16.1%
15.0%
10.0% 9.3%
5.4% 4.1% 5.2% 5.5% 6.8% 3.7% 4.8%
5.0% 3.0% 4.1%
2.9%
0.0%
Non-White Women Black Latino Asian
Contracts % Contract Value % % of all US Businesses
Source: Federal Procurement Data System, and US Census Bureau 2002 Economic Survey of Business Owners

14. Source: Federal Procurement Data System
Firm O wnership # of Contracts % of Contracts $Value of Contracts % of Contract $Value
Non-White* 7,274 16.1% $4,393,897,361 17.0%
Black 1,365 3.0% $1,050,405,579 4.1%
Latino 1,874 4.1% $1,411,950,746 5.5%
Women 4,234 9.3% $1,405,745,109 5.4%
Asian 1327 2.9% $950,637,041 3.7%
Totals 45, 306 - $25, 891, 578, 760 -
 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

15. Federal ARRA Contract Procurement: Growing in Equity
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Feb-Sept 2009% of Contracts Feb-Sept 2009 % of Contract $Value
Sept-May 2010% of Contracts Sept- May2010 % of Contract $Value
Source: Federal Procurement Data System

16.  ARRA has provided a much-needed safety
net for communities in crisis.
 A lesson in building a more open form of
government; as of October 1, 2010, all
Federal spending will be tracked similarly to
Recovery.gov, developing more sub-recipient
tracking.
 How can we capitalize on new infrastructure
and energy investments?

17.  Is ARRA stimulating the job growth we need?
 How can transparency and tracking become
more useful for pursuing equity?
 What will happen with state budgets when
the state stabilization funding in ARRA is
over?
 What have the inequities found in ARRA
shown us about our systems and funding
streams?

18.  An unprecedented
housing crisis
Source: Policy Matters Ohio

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

20. 30.0 Underemployment Rate by Race July 2007 to Nov 2009
(Calculated by the Economic Policy Institute)  An uneven recession with
many disparate impacts
25.0
 Race, Age, Gender,
Geography, Educational
20.0 Attainment, Occupation
15.0
 Intersections where the
recession cuts deep
 From recession to economic
10.0
crisis
5.0
J-07 S-07 N-07 J-08 M-08 M-08 J-08 S-08 N-08 J-09 M-09 M-09 J-09 S-09 N-09
Black Latino White Total

21.  African Americans of all income levels were
twice as likely or more than twice as likely to
receive high-cost loans as Whites in 171
metropolitan statistical areas (MSAs) during
2005.
 In 159 metropolitan areas, more than 40% of
the loans received by middle and upper
income African Americans were high-cost
loans.
Source: National Community Reinvestment Coalition; Income is No Shield Against Racial Differences in Lending, July 2007

22. Unemployment Rate by Race
(January 09 to January 10)
18.0 16.5
16.0
14.0 12.8 12.6
12.0
9.9 9.7
10.0 8.7
7.7
8.0 7.0
6.0
White Black Latino Total
Jan-09 Jan-10
Percent Change in Unemployment, by Race:
(January 2009 to January 2010)
40.0% 38.4%
33.9%
35.0% 32.2%
30.0%
25.0% 22.3%
20.0%
15.0%
10.0%
White Black Latino Total

27. Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment)
Projected Projected Projected Projected
3rd Quarter 3rd Quarter 3rd Quarter 3rd Quarter
Total 1st Quarter Black 1st Quarter White 1st Quarter Latino 1st Quarter
2009 2009 2009 2009
2010 2010 2010 2010
Michigan Michigan Michigan Nevada
15.2% 15.7% 23.9% 24.8% 13.7% 14.2% 20.1% 19.0%
South Rhode
Nevada California
13.0% 12.3% Carolina 20.4% 22.7% Island 11.2% 11.7% 15.6% 16.9%
Rhode
Ohio Oregon Florida
Island 12.8% 13.4% 19.5% 22.0% 11.0% 12.4% 13.1% 14.3%
New
California Illinois Kentucky
12.1% 13.1% 18.6% 20.2% 10.6% 11.2% Jersey 12.0% 12.6%
Oregon Alabama Nevada Arizona
11.8% 13.3% 18.0% 18.8% 10.6% 10.0% 11.6% 13.1%
Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org

29.  Race and Gender in Relation to Access to Opportunity in Los Angeles
70.0%
60.0%
61.9%
61.5%
50.0%
52.6%
52.5%
48.4%
48.3%
43.7%
43.6%
40.0%
35.8%
35.6%
30.0%
32.3%
32.0%
29.8%
29.5%
24.3%
24.2%
20.0%
19.2%
19.1%
10.0%
8.7%
8.6%
0.0%
Very Low Low Moderate High Very High
Black Males; 0-14 Black Females; 0-14 White Females; 0-14 White Males; 0-14

30. 20.0
1 7 .6
18.0
16.0
1 3 .3 1 3 .8
14.0
1 1 .5
12.0 1 0 .8
10.0 9 .1
8 .4
8.0 6 .8
6.0
4.0
2.0
0.0
White Black Latino Total
Men Women
Unemployment by Gender & Race
January 2010 Unemployment by Age & Race
January 2010
50.0
4 3 .8
45.0
40.0 3 7 .2
35.0
30.0 2 6 .4
2 3 .5
25.0
20.0
15.0 1 2 .9
1 0 .2 9.0
10.0 8.1
5.0
0.0
White Black Latino Total
Age 16-19 Age 20+

31.  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 20th 2009.

32. Top Ten States for Child Poverty (By Race) in 2008
Child Poverty Child Poverty Child Poverty Child Poverty
Black 2008 Native American 2008 Latino 2008 White 2008
Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22%
Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20%
Kentucky 44% California 24% Tennessee 39% Montana 18%
Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17%
Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17%
Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16%
Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15%
Ohio 41% Oregon 35% Indiana 14%
Indiana 40% North Carolina 34% Maine 14%
Alabama 38% Oklahoma 34% Missouri 14%
Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database

33.  Foreclosures pull
wealth/equity and assets out
of the neighborhood
 Widespread displacement of
renters, homeowners which
rips the neighborhood’s social
fabric and creates instability
for school age children
 The growth of vacant
property encourages crime,
disinvestment and public
safety risks
 Challenges which eventually
ensnare all residents (even 33
those who were never
foreclosed upon)

35.  Positives – preventing “draconian” state budget cuts
 Keeping families out of poverty
Source: Center for Budget & Policy Priorities Source: Center for Budget & Policy Priorities

37.  Federal and State government failure to
effectively track racial elements of recovery
 Recovery.gov contains no race-based
tracking
 No sub-recipient tracking
 Jobs data contains no race, gender, zip
code information

38.  Universal policies assume a universal norm.
 People are situated differently in society, so any
conceptualization of what is “universal” is
inherently flawed.
▪ Treating people who are situated differently as though
they are the same can result in greater inequities.
▪ These slides will highlight historical examples of policies
that were universal in name, but not necessarily in
practice, thus resulting in greater inequities.
GI Bill ■ Social Security ■ Title I
3

39.  Two concerns:
 1) Agency programs funded by ARRA are using pre-
existing formulas. There is a greater need to more
carefully align Agency programmatic activities with
ARRA’s goals, particularly its emphasis on job creation
and assistance to those most affected by the crisis.
 2) The mandate to expend ARRA funds as quickly as
possible, with special priority given to ‘shovel-ready’
projects and projects receiving private investment,
may be giving short-shrift to civil rights compliance,
particularly Title VI and Title VIII of the Civil Rights Act
of 1964.
3

40.  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
 Proposed jobs bill?

41.  If ARRA is going to fulfill its purposes, and help
those who have been most impacted by the
economic downturn, then greater targeting is
necessary.
 Targeted policies may appear to favor some groups
over others.
 Targeted policies often are perceived as zero-sum.
 Advocating for targeted policies can be construed as
catering to “special interests” or advocating for
“preferences.”
4

42.  The “shovel ready” stimulus package jobs “can
benefit unemployed people of color and women if
specific incentives and enforcement tools are
enacted to ensure fair access to these
opportunities.
 All stimulus projects should require local resident hiring
goals and create a link to community-based groups as
the first line contact for construction jobs.
▪ Local hiring requirements are a proven approach to bring jobs to
under-represented constituencies in construction trades. These
requirements can be applied to permanent jobs as well.”
Center for Social Inclusion. “Economic Recovery for Everyone: Racial Equity and Prosperity.” Talking Points. 4

43.  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

44.  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

45. One Last Thing……..
Looking for more information? Please visit: www.fairrecovery.org