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Towards a Just and Prosperous Economy: Where Do We Go From Here?

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The question Dr. Martin Luther King, Jr. asked 42 years ago, "Where do we go from here?" could not be more timely than it is today. King raised the question to draw attention to ending poverty; spreading wealth, he argued, would help spread justice and peace.

King's sharpening focus on economic deprivation may be even more relevant today, in the midst of a recession in which suffering is color-blind.

In his prime during the Soviet-U.S. rivalry, King was not opposed to private citizens accumulating money. He knew the power of the dollar. In a 1967 address to the Southern Christian Leadership Conference, he said those fighting discrimination would more likely prevail "when they have the additional weapon of cash to use in their struggle."

Today, a black man leads our nation and an African-American woman, Oprah Winfrey, is both one of America's wealthiest citizens and among its most influential cultural figures. King might never have imagined such accomplishments would occur in only a few decades; but he likely would also be astounded to see the degree to which poverty pervades our society today.

In that SCLC speech, King implored that "the tragic walls that separate the outer city of wealth and comfort and the inner city of poverty and despair shall be crushed by the battering rams of the forces of justice."

He spoke those words when Southern California stood out as a place where the division between rich and poor was softer than in many other parts of the U.S. Wages, housing accessibility and public schools in Los Angeles were all relatively strong. For countless working-class immigrants to Southern California of all races, King's assertion that cash could combat discrimination was a reality they were fortunate to experience first-hand.

High-wage jobs with benefits, in both private industry and government, made pioneers out of plain folk. Countless individuals and their children were the first in their families to own a home, the first to own a car, the first to graduate from college. These individual triumphs built a foundation of personal financial security and skills that fueled civic engagement and political participation.

As Dr. King noted, financial clout was a vital weapon in fighting discrimination. When minorities fought housing discrimination they could do so with the means to pay rent or take out a home mortgage. Companies that discriminated could face consumer boycotts. Contributions from well-paid workers strengthened labor unions. The taxes generated by these workers funded the exceptional schools and public infrastructure that defined 20th Century Los Angeles.

Decades of de-industrialization have devastated wages in Los Angeles County. The individual poverty rate in Los Angeles County was about 11% according to the 1970 Census; it climbed to nearly 18% in the 2000 Census.

The explosion of poverty in our midst began before the current national economic crisis, and is so severe its ill-effects will persist even as the economy recovers. As we commemorate the life of Dr. Martin Luther King, Jr., we must repeat his question, "where do we go from here?" Today in greater Los Angeles, we must ask if the downhill slide in working people's wages also threatens broader democratic advances that have defined us as a land of opportunity.

Observers of developing nations generally agree that social progress tends to follow economic progress. Gains in wealth eventually beget human rights advances; environmental protection, health care and literacy also improve when nations have money to fund programs or enforce laws, and citizens with personal property and economic clout demand high standards.

Our modern heritage as Southern Californians is one of leadership in environmental reform, widespread educational opportunities and social equality, as well as the promise of personal prosperity to reward hard work. Well-paying jobs fueled not only spending on houses, cars and consumer goods, but built a healthy tax base that funded our world-class colleges and infrastructure. It is this very heritage that is now challenged by declining wages, education health care and infrastructure.

Where we go from here -whether we advance or regress as a society -- now depends more than ever on cooperation.

Getting our region back on track requires a communal commitment to revitalizing our economy from labor, business and government. In the past, labor unions and corporate leaders could afford to fight lengthy battles with one another. Labor was emboldened by a growing workforce and employers had a rising tide of profits to back them up. In his 1967 speech King quoted labor leader Walter Reuther as saying the power of the United Auto Workers was evident in its ability to get General Motors to say "yes" when it wants to say "no."

Neither General Motors nor the united Auto Workers, or any combination of employers and workers, can afford such chest-thumping conflict today. Both labor and business are on the ropes. The consumer boycott -- one of King's most effective organizing tools -- has less relevance now when so many businesses already require bailouts and so few consumers have money to choose to buy things anyway.

The current economic crisis thus provides a great opportunity for consensus. Labor, business and government must recognize our future prosperity is linked. There are no simple solutions to the spread of poverty and income inequality, but we believe long-term progress can begin with a few ambitious goals:

  1. California's budget process is broken. Replacing the two-thirds legislative vote required to enact a budget with a simple majority requirement would end budget gridlock;
  2. Efficient budgeting policies should free lawmakers to put more money into better-managed public schools;
  3. A single-payer health care system for California will ease a costly burden on employers and workers that is hampering job creation and bankrupting households.

We must move decisively. We cannot afford to do otherwise. Where we must go from here has never been more clear.

Mark Ridley-Thomas is a Los Angeles County Supervisor and former Executive Director of the Los Angeles Chapter of the Southern Christian Leadership Conference. Eli Broad is founder of The Broad Foundations.

 
 
 
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10:14 AM on 01/19/2010
The authors are spewing out a great deal of abstract nonsense. It is a common diversionary tactic by those who possess obscene and ill-gotten wealth. Together with their agents and their dupes, they have managed to keep the national wealth concentrated in ridiculously few hands. From this vantage point, the wealthy upper 5% have been successful in controlling elections so that most elections these days are merely intra-mural contests. And, it is impossible to pass legislation that this small segment of society does not approve of since most members of the Congress are in their pockets. The elitist Supreme Court has sanctioned it all by deciding that money is speech, thereby relegating those who do not have a great deal of it to virtual serfhood. The extreme poverty existing in the world’s wealthiest country exists because it benefits those who own most of the national assets.
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Cosatjockomo
01:57 PM on 01/19/2010
Not only are most members in their pockets - most members are in the 5%
08:51 AM on 01/19/2010
I don't trust either of these guys. One is a rich, old white guy trying to buy his way into heaven. The other is a power hungry black guy that knows how to prey on white guilt. Their collective solution is more of the same progressive policies that have bankrupted our state.

Both of these guys refuse to admit that economies suffer whenever regulations are increased. So when they cry for more environmental protection, greater "social justice" and universal government run health care they are simultaneously calling for the increasing destruction of our state's economic engine, even though they won't come right out and say it.
08:01 AM on 01/19/2010
Stop the wars.

Stop exporting jobs.

Medicare for all.

Solar on every roof.

Steve Hovland for Congress
San Francisco
Retire Nancy Pelosi
07:15 AM on 01/19/2010
You have to encourage people to spend. Otherwise where is the money coming from? The best way to encourage this is to offer great deals. If people find a shop where they realize they can get quality merchandise for discount prices (especially discounts of above more than 50%), then they're going to flock to those stores. Best example I have offhand for that is http://www.dubli.com.

Of course, the situation is a lot more complicated than that and needs a team of economic experts to find a way through the maze, but I truly believe that the steps mentioned above are a hugely fundamental part of leading the US towards economic recovery.
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texastrixie
I invented the internet.
09:15 AM on 01/19/2010
Why spend? NOTHING is made in this country anymore, so buying something won't put anyone to work except maybe the trucker who drags the stuff across country, the store clerk, and maybe one or two other people who are employed in the paperwork process of bringing the stuff from whatever foreign country it came from, and routing it through America to the store. All jobs that may close to the minimum wage, or involve a great deal of work time (truckers) for a relatively modest return (if they were actually paid by the hour).

Except for food, there really isn't anything on the market that is going to benefit the American economy. Wall Street, yes. Rich corporate execs, yes. Regular working people, whether white collar, pink collar, or blue collar? NO!

Got a job. Got an income. Got any incentive to buy anything except what we need to keep going? NO!
04:13 PM on 01/19/2010
People first need money to spend. Without good paying jobs - for more of our citizens - our economy will not recover. Every job "lost" is not one job lost...it's many jobs lost (that depended on the wages from that first job "lost").
03:31 AM on 01/19/2010
Drop the So-Cal, correct the Census numbers to reflect a national view and you have a great article.
WE have to fix our communities. To fix them we need to make many small choices, it may cost more up front, but the benefit offsets the price eventually. An article I came across stated locally administered land did better than those overseen by distant government departments, that logic is applicable to business. National chains/ multinational brands have a place in society, but our culture requires local and regional brands. Main streets and suburban malls don't have to look the same - I don't think they should - nation wide. Some issues require the state take to action others require a federal response. If we take the time and expense to do 3 things state and national discourse will improve then policy and action will follow. They're;
1. Meet the local school board,
2. Show up to few local council meetings during the year,
3. Call your county and state wide elected officials ask a few questions make comments. After election day forget the politics when you do.
This will let them know they're being watched. A Congressman is accountable on paper to about 790,000 people if 50% vote and 4 people run for office he needs 98,750 + 1 votes to get in. Congressmen talk to school board members, councilmen, and county/ state officials the effect of small actions can be greatly magnified. In small places big changes take shape and
01:15 AM on 01/19/2010
Economic & Social Engineers , Prosperity , Job's , Education , Fair Wages , Decent Housing , and Universal Health Care !
Power To God's People !
11:01 PM on 01/18/2010
Thank you for elevating the foundation (the people) via the magnifying glass of deliberate and open contemplation.
09:23 PM on 01/18/2010
I left California because of the gangs, dangerous atmosphere in the public schools, and too many ridiculous laws.
11:08 PM on 01/18/2010
Ditto, zzcat. California has built a political "house of cards" that bears a striking resemblance to the one that recently collapsed on Wall Street. Instead of using financial derivatives based on faulty securities, their's is a taxpayer base comprised mainly of public sector unions. Looks like the outcomes are pretty much the same too.
12:07 AM on 01/19/2010
I agree. California must fail for America to grow. We have to learn that America is great because of our struggle to become better through the people not through Government mandates and Socialism.
03:09 PM on 01/19/2010
Said like one who's never struggled.
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Overtone
See bio on the Aesop Institute website
07:28 PM on 01/18/2010
JOBS!

A Human Investment Tax Credit Program was designed to generate 3 to 6 million new jobs and encourage between 1 to 4 million men and women to become self-employed.

A few decades ago a program of employment tax credits was suggested to the Commerce Department.

The 1977 job tax credit program, which adopted very few of the recommended incentives, generated almost a million private-sector jobs; twenty percent of all new jobs created that year. It resulted in more jobs in less time than any prior legislation.

An updated Report is available free at: http://www.aesopinstitute.org

In addition, imagine future cars that can pay for themselves - becoming power plants when parked!

An entirely new path to millions of well-paid jobs is described in the article: 5 Steps to Revive the Auto Industry and the Economy - on that website.

It outlines revolutionary new technology that opens surprising paths to cars that need no fossil fuel or recharge

The technology will be greeted with extreme skepticism and disbelief.

However, independent laboratory validation of one remarkable breakthrough has taken place at Rowan University. It produced far more heat than can readily be explained by existing science, clearly suggesting a new source of energy is involved.

GEN3 Partners, advisors to Fortune 100 firms, successfully reproduced the Rowan experiments.

A barrel of water can replace 200 barrels of oil!

It will change what is currently believed about energy.

That can create a great many jobs!

Let's accelerate the process!
Bernique
Solar is clean, cheap and plentiful
08:12 PM on 01/18/2010
Overtone -- It is telling that the projects you describe were created in the 1970s, the decade before Raygun became President and led our country to the disastrous situation it is in today. If more young people knew this, they would join in the Aesop Institute project. Thank you for your contribution.
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lrobb
Southern Rational
05:47 PM on 01/18/2010
The problem is very simple. Since 1990 California has been hemmoraging "wealth producers." Those are the middle and upper income residents who actually produce jobs and pay taxes. In return they have gotten "benefit utilizers" who use more in tax and fee revenue than they produce.

I was in the vanguard of revenue flight back in 1990 when I was told I would have to pay a fee of $1,500 for a hanidcapped curb-cut and replace all the toilets in my house, built in 1947, if I wanted to sell it. Not to mention my apartments--from which I could already not evect a non-paying tenant without waiting 6 months and paying a high priced attorney--were being considered for the possibility of rent-control.

There is not enough money in the known universe to convince me to move my business and employees back to San Diego.

Until you can educate your children, oust illegal aliens, tame the state employee unions and fix the system which had subjected the legislature to complete gridlock, you are only going to see an increasing number of "producers" evacuating a soon-to-be failed state.
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usna73
We are all in this together
07:05 PM on 01/18/2010
I'm curious? Did your business benefit from the well educated employees that helped create your profits that may have been a product of the excellent state supported University system. Perhaps you too gained your skills that way?

Did you move your prodcution to China, like so many of the "traitors" who inherited the legacy from their fathers, whose business model was built on the backs of those whose children could no longer have a share of the equity that is exploited at will?

Or did you simply move to Nevada, where the ugly game of selling out your neighbors has turned Americans into a fool's errand of rearanging the deck chairs on the Titanic.

To characterize some as "producers" and others as "utilizers" is at best arrogant, At worst, it is cruel, shortsighted and dangerous to the nation. This experiment in democracy we enjoy will not stand up to the stress that you advocate.
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lrobb
Southern Rational
07:34 PM on 01/18/2010
The excellent education I received in California public schools, including UCSB, between 1952 and 1969 was a long forgotten dream by 1990. The education my children were receiving was substandard, and private school was unaffordable. That I and my employees benefitted from California's erstwhile educational establishment has absolutely no bearing on anything as it no longer existed.

I moved to South Carolina where my, and my employees, standard of living took an immediate uptick even considering the fact I had to put my children in private school. The only thing I inherited from my parents was a decent work ethic. something which is all too rare anywhere in the US these days.

May I ask when was the last time a TANIF recipient signed your paycheck?
07:43 PM on 01/18/2010
How is it "dangerous to the nation" to "characterize some as producers and others as utilizers" when that's exactly what they are?

In moving his business from a state in which the government is clearly corrupt, "lrobb" has simply exercised his freedoms guaranteed him by the Constitution, i.e. life, liberty, and the pursuit of happiness.

The only experiment in democracy that will not hold up are those being practiced in states like California, Connecticut, Massachusetts, etc.
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PCL07
educate, don't berate
05:42 PM on 01/18/2010
Thank you for at least providing different alternatives. I think the state of California really needs to go full steam ahead w/alternative sources of energy to provide employment.

Solar powered mobile health shelters seem to be something we can pick up from Haiti.

L.A. also needs to look at how we can make all these professional athletes/coaches salaries provide revenue for at least the workers of the Staples Center and similar venues.

Most of all, we need to quit having the political bickering that always holds improvements to California up. When you hear that the governor wouldn't even join in a press conference w/a Democratic State Assembly person who introduced a great idea into legislature, you realize the good ole' boy system is still hard at work...
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labrown
05:38 PM on 01/18/2010
If not for 2 LA talk radio hosts, Mark Ridley-Thomas would have spent a million dollars remodeling his office downtown. When Pressed by reporters about why he needed to spend a million bucks remodeling he replied with a snippy "those days are over" suggesting that race was the reason for the question.

Radio hosts, John and Ken spent days talking about the hypocrisy of remodeling with starving constituents right outside. They also invited Thomas on the show but he declined. Because the entire Board of Supervisors voted to allow the remodel, Don Knabe came on in a gimp attempt to defend their vote. Knabe stated that each supervisor had a million dollars discretionary money and that Thomas had chosen to spend his this way rather than on the community. When asked why he, Knabe had voted to allow it he stated "it was his (Thomas's) money" to which John and Ken replied "no it's not, it's the tax payer's money". Under harsh public scrutiny, the Board of Sups ultimately reversed their vote.

Those of us who supported Obama, largely to overcome racial barriers are now tasting the disappointment, and feel that he turned out to be the best friend Wall Street bankers and insurance companies ever had and that we were "had".

Ridley is playing the same race card. As a leader in a state as broken as California and city as bankrupt as Los Angeles, Ridley-Thomas is "morally bankrupt" as well. Mr. Thomas, you are a disgrace.
09:36 PM on 01/18/2010
Mark Ridley Thomas just got busted in the press for a $700,000.00 attempted renovation to his city office with another $300,000.00 set aside for furniture. As long as government leaders get to keep on spending for themselves with so many out of work and in California in particular where our budget is going off of a cliff, politicians just keep showing the people how out of touch they are with the average American.
04:12 PM on 01/18/2010
Something rings hollow in a blog that suggests the way forward to economic advancement for all is "cooperation." It has the schoolboy charm of Obama's call for "change;" an utterly meaningless phrase into which all of his followers poured their hopes and dreams. Like "change", "cooperation" means everything to everyone and, hence, nothing at all.

In fact, labor and management cooperate most all of the time. The documents that demonstrate this are called "contracts." Yes, the budget system in California is broken, but who will fix it - your elected officials?? And how, through "cooperation."

Sadly, we are in a time of scarcity once again, and once again the path to economic advancement has been shown to be as clear as day - education and personal responsibility. Go to school, young people, learn your lessons, quit bitching and take crummy jobs at first. It's up to you. No amount of "cooperation" will ever take the place of seriousness of purpose and effort. Sorry.

PWR
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04:28 PM on 01/18/2010
we are not in a time of scarcity. there are no unusual droughts etc. the earth is capable of producing approximately as much as it did in 2006 or 2007.. the workers if put to work are capable of the same levels of production. it is the rules and methods of distributing the stuff we and nature produce that is the problem. when the government rules strongly favor accumulation and protection of wealth, you get artificial scarcity for those who are not wealthy. you get more wealth for the wealthy.
05:01 PM on 01/18/2010
Anyone who thinks he or she knows the root of the problem should read Doug Blackmon's "Slavery By Another Name." It is categorized as history but it reveals why so many African Americans are in economic distress today. In a nutshell, slaves were treated better before the Civil War. Before the Civil War they had value to their "owners" who not only paid handsomely for healthy slaves but could count on profit from "breeding" and selling the offspring.

After, there was no incentive to protect their health. They were enslaved in a variety of ways, not the least being that a former slave could not obtain employment unless his previous "employer" provided him with written confirmation that he no longer was wanted or needed at that site. They were turned into convicts, sometimes for minor offenses (e.g., talking too loudly), sometimes for no offense, then sold for the cost of their "trial." Since they worked so cheaply and were so easily and inexpensively replaced, many were forced to work in mines where they received no medical care, little food, poor shelter. Many worked in chains.

Not until WWII did African Americans have a chance to be treated as human beings and citizens.

What we see today is an extension of what this nation did for nearly a century after emancipation. And continues to do, by incarcerating many black youths for minor crimes and not assisting the families we injured for far too long.
03:23 PM on 01/19/2010
Great post. Only now, we're not reserving this treatment solely for our black children. All poor and under-resourced kids (black, white, latino, etc.) struggle to be treated like human beings and citizens in our nation.
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04:00 PM on 01/18/2010
For decades, wages have been sacrificed on the alter of "the economy", while our leaders ignored the vital role they play in its sustenance. Now, as 95% of the wealth is in the hands of 1% of our people, the clambor for the selfsame policies that landed us in the midst of economic disaster rings out loudly from the powerful and their army of the ignorant...
03:58 PM on 01/18/2010
The solution is a high-tech, high-wage economy, high speed rail, rebuild America FIrst, interest free loans to business who want to rebuild. End NAFTA, stop off shoring, get rid of the FED... control our own money, reign in the Bankster/Gangsters.

That is just for starters... but so far... NOTHING has been done. We are waiting for the next shoe to drop.. which it will.