WASHINGTON – Joint Economic Committee (JEC) Ranking Member Carolyn Maloney (D-N.Y.) addressed the Color of Wealth Summit Thursday, which sought to engage the public about the racial wealth gap, its effect on households of color, its impact on the economy, and solutions for closing the gap. The Center for Global Policy Solutions sponsored the event.

Following is text of her speech, as prepared for delivery:

My most sincere thanks to Maya Rockeymoore, the president and CEO of the Center for Global Policy Solutions. And to Henry Ramos, the President and CEO of the Insight Center for Community Economic Development for organizing this important event.

And thanks to all of you – for taking time out of your busy lives to be here, and for the insights and energy you bring to an issue that affects us all.

Today I bring you some good news and some bad news. Let me get the bad news out of the way first. The bad news is that you are absolutely right - Income inequality is a growing problem in the United States. And new research by the Joint Economic Committee shows that beyond question – that’s the case. And our data reveals that this problem has been growing for more than three decades - and it’s now near a record high.

And, that’s not good for anyone – rich or poor – black or white. Extreme inequality is corrosive. It hurts families; it weakens our economy; and it weakens our democracy. It affects how we think of ourselves as a nation, and diminishes our standing in the court of world opinion.

But many Americans don’t experience stark inequality in their daily lives. And many policymakers choose to ignore it. But careful study of economic data can help provide vivid insight into complex issues.

As the Ranking Democrat on the U.S. Congress Joint Economic Committee, I have the privilege of being able to direct studies of critically important economic issues.

Recently, working in cooperation with my colleagues at the Congressional Black Caucus and CBC Chairman G.K. Butterfield, I instructed the Democratic staff of the JEC to investigate the economic challenges facing the black community.

The numbers we found are pretty shocking:

• The current unemployment rate for blacks is more than double the rate for whites. (10.1 percent for blacks, versus 4.7 percent for whites.) A higher percentage of blacks are unemployed now than the percentage of whites who were unemployed in the very depths of the recession.
• The median annual income of African-American households is nearly $24,000 less than the median income of white households. And that’s year – after year – after year.
• The median net worth of white households is 13 times the level for black households, according to data from the Federal Reserve. In 2013, the entire net worth of the median African-American household was only $11,000 – hardly enough to buy a reliable used car.
  • Black Americans are almost three times more likely to live in poverty than white Americans.

 There is nothing good to say about these numbers – they paint a disturbing picture of the status of black Americans.

But carefully researching and internalizing numbers like these can yield an immensely positive result – they can inspire us to action. Even those who loathe government will have a difficult time facing these statistics and be content with doing – nothing. And that is why we must make sure that every American knows these numbers and understands them.

The good news is there are things that can be done to make the situation better. Practical policies that we can do right now to start the process of change. I’ll give you my top four:

First and foremost, we should increase the shrinking Minimum Wage.

Bills to increase the minimum wage are being introduced in the House and Senate today. I am a proud co-sponsor of Congressman Bobby Scott’s bill to raise the minimum wage. In fact, the minimum wage is worth far less today than it was almost fifty years ago. In 1968, someone earning the minimum wage and working full-time year-round earned the equivalent of $22,700 today. It’s not much to live on.

But today – that same full time, year-round worker makes just over $15,000. That is almost $8,500 below the poverty line for a family of four. By other measures, the United States is the most prosperous country in the world. No American who works full time, year-round should have to live in poverty.

Simply restoring the hourly minimum wage to what it was worth in 1968 - would mean an additional $7,600 annually to full-time minimum wage workers. I urge Congress to pass the new bills by Senator Patty Murray and Congressman Bobby Scott to increase the minimum wage.

Second, we should expand the Earned Income Tax Credit, which provides poorer families with greater economic incentive to work hard and earn more. The EITC has been proven to be both practical and effective – and in 2013 it lifted about 6.2 million people out of poverty.  

Third, we should make sure every American has access to a quality education – from pre-school to college. Members on both sides of the aisle say that education is the key to success in America – let’s act like we mean it! We should expand early childhood education, restore cuts to Pell Grants and strengthen the role of community colleges.

And fourth, we should also get serious about passing some of the bipartisan bills that address problems in our criminal justice system. The Smarter Sentencing Act would be a great place to start.

The majority of Americans support these ideas. These are not pie in sky notions. They are practical – achievable – affordable. The fact sheets that the Center for Global Policy Solutions have been putting out on the Wealth Gap are a tremendous resource – and I applaud them for their work.

Because nothing will get done until policymakers truly grasp the scope of the problems we face. And that is why even the most tragic statistics – like one in your fact sheets and those in our recent JEC report on the economic status of black Americans – can lead us to a better future.

Thank you for your commitment to these issues. I urge you to focus laser-like on the numbers that reveal the scope of the problems we face, and to help make sure that all Americans know these well. Only by understanding the depth of the problem can we begin to fashion a solution.

Thank you.

 

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