Donovan Hicks Archives - Talk Poverty https://talkpoverty.org/person/donovan-hicks/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 15:22:40 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png Donovan Hicks Archives - Talk Poverty https://talkpoverty.org/person/donovan-hicks/ 32 32 What Trump Leaves Out When He Talks About the Black Unemployment Rate https://talkpoverty.org/2018/12/20/trump-leaves-talks-black-unemployment-rate/ Thu, 20 Dec 2018 18:02:48 +0000 https://talkpoverty.org/?p=27087 President Donald Trump has a lot to say about the economy. His tweets on it are as incessant as they are unreliable: There’s his insistence that we have the “best jobs numbers” in the history of the country (job creation has slowed since Obama’s presidency ended), the time he bragged that we have the “hottest jobs market on planet Earth,” and his confusing claim that he has revitalized the steel industry and spurred the development of six new steel mills (he has not).

None of those claims are exactly true, but the one that happened during his State of the Union address this year is what keeps me up at night. While making the case for his economic platform, Trump specifically touted low black unemployment, saying, “[It’s] something I’m very proud of, African American unemployment stands at the lowest rate ever recorded.” Republicans cheered; Democrats grimaced. I rolled my eyes.

The average black unemployment rate since November 2017 is 6.5 percent — indeed the lowest it has been since the United States started recording unemployment for black workers back in 1972. But that does not mean all black Americans are in full economic health, as the president’s proclamation would suggest. More to the point, it is debatable whether Trump should get any credit for such low unemployment metrics or whether they are just a continuation of the Obama administration’s efforts.

First of all, black unemployment is still nearly double white employment nationwide. (In 14 states and the District of Columbia, black unemployment rates are more than double white rates, and in South Carolina black unemployment is triple white rates.) If white unemployment levels were anywhere near this high, it would be considered a national crisis.

There were only 11 times in the past 50 years when the white unemployment rate has been higher than today’s black unemployment rate — and five of those were during the worst recession since the Great Depression. As a reminder, the government responded to that recession with a $831 billion stimulus to boost the economy and lower unemployment. Yet, Trump is praising the same unemployment rate for blacks today without a similar economic response.

What’s worse, the jobs that black workers and white workers get do not pay the same: Black workers earn less money and build less wealth than white workers.

Trump’s rosy economic picture is dangerously misleading for black workers in America.

The typical full-time black worker still earns about $12,000 less annually than a white worker. Gender pay gaps also compound this inequity. On average in 2017, black women earn 66 cents for every dollar earned by a white man. That has a serious impact on peoples’ lives: Roughly 20 percent of black and Hispanic people live in poverty compared to less than 9 percent of white people. This is, in part, because black workers are more likely to be trapped in low-wage work, and the federal minimum wage has been stuck at $7.25 for nearly a decade. A yearly income at this rate is just over $15,000.

Structural racism contributes to pull black men, in particular, into low-wage work, especially for those with a criminal record. Black men are incarcerated at six times the rate of white men. With an estimated 87 percent of employers conducting criminal background checks, formerly incarcerated individuals are more likely to remain unemployed one year after their release and formerly incarcerated men are paid 40 percent less annually than non-incarcerated men.

In addition to wages, wealth disparities along racial lines are even more disturbing. Wealth, which is often held in the form of a person’s homes, savings, and investments, is a cushion that helps families pay for education or keep themselves afloat during periods of unemployment. In 2016, the median wealth of white Americans was $142,180 compared to $13,460 for black Americans.

This directly impacts black Americans’ social mobility. Racial gaps are identifiable with respect to college completion, homeownership, and criminalization. Black Americans hold college degrees at only 62 percent the rate of whites. Among black households, one-third fewer are homeowners compared to white households. Even when black Americans do become homeowners, if the neighborhood they reside is more than 50 percent black, their homes are valued at nearly half the price of similar homes in communities with no black residents. And, with a prison population of 487,300, black Americans account for one-third of America’s federal and state prison inmates, which is more than twice their share of the U.S. population.

Trump’s rosy economic picture is dangerously misleading for black workers in America. The unemployment rate may be lower for black Americans than in the past, but it is still high compared with white rates — and a web of discrimination, criminalization, and low wages is still holding people back. Glossing over those truths to focus on the statistic that suits the president’s talking points doesn’t make the reality of things any better. Black people should not be used as a convenient political prop — especially without meaningful investment in our communities to better our full economic outcomes.

Editor’s note: This article has been updated to clarify the nature of employment statistics for formerly incarcerated individuals.

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Michigan Is the Latest Example of the Restaurant Lobby Subverting Democracy https://talkpoverty.org/2018/12/07/michigan-restaurant-lobby-democracy/ Fri, 07 Dec 2018 19:45:05 +0000 https://talkpoverty.org/?p=27000 It’s been a bad week for democracy. While all eyes have been on a Republican power grab in Wisconsin, the Republican-controlled Michigan legislature quietly gutted its brand-new laws to increase the state’s minimum wage and provide residents with paid sick leave.

Lawmakers initially passed the popular policies in September, after it became clear that ballot initiatives to raise the minimum wage to $12 an hour by 2022, phase out the tipped minimum wage, and guarantee 72 hours of paid sick leave were likely to be approved if they were put to the state’s voters in November. Concerned that they’d be unable to overturn a ballot initiative, which would require a three-fourths supermajority, Republican legislators took the extraordinary step of passing the law themselves — so they could come back and dismantle it with a simple majority in the current lame duck session.

The new Republican bill delays the minimum wage increase by eight years, until the year 2030. Paid sick time is slashed in half, to just 36 hours per year. In addition, it maintains the tipped minimum wage, increasing it to just $4.58 by 2030, which earlier legislation would have phased out. The bill now heads to the desk of the outgoing Republican governor, Rick Snyder, who is expected to sign it into law.

Outright subversion of democracy to defeat minimum wage hikes isn’t new. A similar series of events played out in Washington, D.C., just this year, when the supposedly progressive D.C. council repealed a ballot initiative to eliminate the tipped minimum wage just four months after the voters passed it. In Maine, lawmakers reinstated the tipped minimum wage in 2017 after voters eliminated it the year before.

It seems that the same lobbying group may have been behind the repeal of all three bills.

The National Restaurant Association, or NRA, represents more than 500,000 restaurant businesses, making it the world’s largest food service trade association. Over the last 28 years, the NRA and its largest corporate members have spent more than $78 million on campaign contributions, spending $12 million just in the 2016 election cycle. And they have a powerful and dangerous playbook: prevent minimum wage increases at any cost.

All three of the most recent minimum wage hike reversals received significant backing from the National Restaurant Association. In Michigan, dozens of legislators received campaign contributions from the National Restaurant Association during this past election cycle, including the House majority leader.

The Michigan Restaurant and Lodging Association, the state-level partner of the NRA, openly bragged about the amount of control that this bought it over the state’s minimum wage fight, saying that it “worked tirelessly with the Michigan Legislature to prevent this onerous proposal from going to the ballot.”

Similarly, in Washington, D.C., the NRA contributed more than $236,000 in campaign funds to 13 of the city council’s 14 members. It helped fund an astroturf campaign designed to appear as if it was led by restaurant workers, which flooded public hearings with testimonies. In Maine, the Maine Restaurant Association vehemently lobbied the state legislature until the tipped minimum wage increase was overturned.

One in six restaurant workers, or 16.7 percent, live below the official poverty line.

In most of its campaigns, the National Restaurant Association claims that minimum wage increases will hurt businesses and eliminate tips that workers depend on. Even a cursory review of the research shows that neither claim is true. The growth of restaurants and restaurant employment is more robust in “equal treatment states,” where there is no tipped minimum wage, compared with states that use the federal minimum tipped wage of $2.13 per hour. And tipped workers in those states see 17 percent higher earnings on average, including tips.

According to the Economic Policy Institute, one in six restaurant workers, or 16.7 percent, live below the official poverty line — fully 10 percentage points higher than workers outside the restaurant industry. Abolishing the tipped minimum wage is particularly beneficial to women and people of color, both of whom receive significantly less in tips than their white, male counterparts.

Raising the minimum wage is among the most popular polices out there, across party lines. In fact, a study released earlier this week finds that in literally every single state in the U.S., the minimum wage is lower than residents want it to be. That’s why when minimum wage increases are on the ballot, they pass. So the National Restaurant Association is doing everything it can to keep voters from having a say, with dangerous consequences for low-wage workers — and for democracy writ large.

 

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