Race-sensitive Policies through Targeted Universalism

john a. powell

Director, Kirwan Institute for the Study of Race and EthnicityWilliams Chair in Civil Rights & Civil Liberties, Moritz College of Law

America’s Future Now! ConferenceJune 3, 2009Washington D.C.

The Allure of Universal Policies The impulse to promote universal policies is

seemingly sensible for democratically elected leaders. Targeted policies may appear to favor some groups Targeted policies often are perceived as zero-sum. Advocating for targeted policies can be construed as

catering to “special interests” or advocating for “preferences.”

To avoid these perceived pitfalls, elected leaders often favor universal policies that appear to benefit everyone.

Different Kinds of Universalists Strategic: Support universal policies as best

strategy, not because they will work Showing that race sensitive policies won’t cost

them, it’s a matter framing

Pragmatic: Hope universal policies will yield positive outcomes Showing that these policies may not produce the

practical, positive outcomes that they seek

If people in red receive job training through the universal program, If people in red receive job training through the universal program, Group B would seem to benefit more than Group A (more people in red)Group B would seem to benefit more than Group A (more people in red)

Key:Key:RedRed = job training = job training BoxesBoxes = isolated = isolated neighborhood (not neighborhood (not addressed by addressed by universal program)universal program)

UNIVERSAL PROGRAM

Group BGroup A

Although the universal program affected everyone in red, Group B Although the universal program affected everyone in red, Group B is still constrained by living in isolated neighborhoods (the boxes).is still constrained by living in isolated neighborhoods (the boxes).

Key:Key:RedRed = job training = job training BoxesBoxes = isolated = isolated neighborhoodneighborhood

UNIVERSAL PROGRAM

Group A Group B

GI Bill The GI Bill, officially the Selective Service

Readjustment Act, sought to ease the path for soldiers returning to civilian life post-WWII. It reached eight out of ten men born in 1920s. Bill provisions included assistance with:

• Buying a home• Attending college• Starting new business ventures• Locating a job

GI Bill Outcomes Homeownership:

Capped interest rates and waived down payments opened up the market drastically.

From 1946 to 1947, VA mortgages comprised more than 40% of the total.

Education: GI Bill benefits included full tuition and a stipend.

By 1955, approximately 2,250,000 veterans had participated in higher education.

Barriers to Opportunity Despite the bill’s achievements, many barriers

were placed in the path of black soldiers.

Implementation was left to states and localities, including those that practiced Jim Crow racism.

Blacks’ access to primarily white colleges and institutions was limited 95% of black veterans used their education

vouchers at historically black colleges (HBCUs) in the South.

These historically black institutions were limited in number and had limited space to admit the influx of black veterans

Barriers to Opportunity (con’t) Job placement centers staffed by whites

channeled black veterans into “black jobs” even though the veterans had work experience/training

Black veterans were often denied access to the loans promised by the GI Bill.

Blacks were often deemed ineligible for small business loans

Financial institutions often denied home loans, citing lack of established credit, insufficient capital, and other inadequacies.

Summary of GI Bill Effects The education gap widened instead of closed.

The vocational training black veterans received was not held to any standards, thus often proving inadequate.

Job placements reinforced the existing division of labor by race.

Blacks often failed to qualify for loans.

“…despite the assistance that black soldiers received, there was no greater instrument for widening an already huge racial gap in postwar America than the GI Bill.” (Katznelson 2005, p. 121)

Learning From Our Mistakes? If we fail to pay attention to the resources that

communities possess, we are likely to repeat the mistakes of the New Deal.

For example, Social Security benefits were initially denied to household and farm laborers – effectively excluding 65% of the Black population

How do we avoid the New Deal mistakes? We must be intentional. Policies should be targeted and programs should

be structured so that they reach certain populations and communities.

Ex: Economic Stimulus Package The economic stimulus package fails to directly

account for race. Yet, race is a key component of many major

economic issues. People of color are more than three times as likely as

whites to have subprime mortgages. Borrowers of color were more than 30 percent more

likely to receive a higher-rate loan than whites, even after accounting for differences in risk.

Besides considering race-sensitive design, we must be concerned about the impacts.

Rogers, Christy. “Subprime Loans, Foreclosure, and the Credit Crisis – A Primer.” Dec. 2008.

Racially Sensitive Policies What do racially sensitive policies look like?

Targeted: They recognize the nature of our interconnected structures / larger inequitable, institutional framework.

Pay attention to situatedness: They account for the fact that people are situated differently in the economic and social landscape of society.

Driven by outcomes: It may seem great if unemployment is cut in half, but if all the jobs go to white males, serious problems remain.

Include people of color in the process: Their input is vital.

Racially Sensitive Policies (con’t)

What do racially sensitive policies look like?

Transparent: - Transparency allows for gauging progress and making corrections if necessary.

Multi-faceted: Incentivize a systems approach. Reorient how we think about policy.

Serve as a bridge to the next economy: These policies should be the stepping stones for the future.

Race-Sensitive Policy Analysis of the Stimulus

How do we make the stimulus fair, sustainable, accountable?

Incentives for inclusion of people of color

Grants and loans for small and minority-, women-, and community-disadvantaged businesses

Collect data by race and gender to understand impacts of economic recovery policy

Investment in public transit (prioritize projects that connect people to jobs)

Wiley, Maya. “Economic Recovery for Everyone: Racial Equity and Prosperity,” Center for Social Inclusion

We Need A New Paradigm Targeted policies alone are not desirable

because they appear to show favoritism toward a certain group, thus stigmatizing them.

Universal policies alone are not truly universal. They fail to account for the fact that people are

situated differently in the economic and social landscape

“Universal” policies are often based on a non-universal standard

• Ex: Social Security: able-bodied white males working outside the home full-time for pay

Thus… Targeted Universalism

Targeted UniversalismThis approach supports needs of the particular while

reminding us we are all part of the same social fabric.• Universal, yet captures how people are differently situated • Inclusive, yet targets those who are most marginalized

Targeted Universalism recognizes racial disparities, while acknowledging their presence within a larger inequitable, institutional framework

Targeted universalism is a common framework through which to pursue justice. A model which recognizes our linked fate A model where we all grow together A model where we embrace collective solutions

Our Linked Fates Targeted universalism recognizes that

problems faced by particular segments of American society are not isolated circumstances, but problems that could spill over into the lives of everyone.

Targeting the Stimulus Investments Stimulus investments should strategically and

deliberately transform cities and communities.

Example: transportation funds

If these funds are widespread to different road proposals across states, they may produce jobs in the short-term, but they will not produce sustainable or equitable growth.

Instead, we need to direct funds to investment-deprived communities

Applying Targeted Universalism to the Stimulus 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

All stimulus projects should require local resident hiring goals and create a link to community-based groups as 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.

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Questions or Comments? For More Information, Visit Us Online:

www.KirwanInstitute.org

Appendix AAppendix A

Additional InformationAdditional Information

The Social Security Act of 1935

Social Security Act The provisions of the act had enormous

potential to help African Americans.

African Americans worked longer into old age, were more likely to be laid off, and were often relegated to the lower rungs of the social and economic hierarchy.

However, this so-called quintessential universal policy was universal only in terms of able-bodied white males working outside the home full-time for pay.

Two Tiers of Social Security

Social security separated aid into two “tiers”:

Tier 1 – Social Insurance Programs

Tier 2 – Public Assistance Programs

Uneven Impact Social Security benefits accounted for prior

wages, which reflected African Americans’ disadvantaged position in society.

Farm workers and domestics – jobs which many African Americans held – were excluded from receiving benefits. This exclusion from Tier 1 forced many blacks into

Tier 2 public assistance programs.

The definition of work excluded women. Unpaid household labor and child-rearing were not

counted toward Social Security.

Long-term Consequences Tier 1 social insurance programs excluded 65%

of the working Black population. Because of continuing discrimination and

unequal education opportunities, many people lack Tier 1 economic security.

By separating out benefits for the employed (like retirement and unemployment insurance programs) from those for the unemployed, people in Tier 2 public assistance programs are often stigmatized.

Dona Cooper Hamilton and Charles V. Hamilton, The Dual Agenda: the African-American struggle for civil and economic equality. New York: Columbia University Press, 1997.

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Money AllocationMoney Allocation

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Assessing the Stimulus PackageAssessing the Stimulus Package

Projections indicate that the stimulus package will not impact Projections indicate that the stimulus package will not impact all groups to the same degree.all groups to the same degree.

People are not only spatially segregated, but segregation also People are not only spatially segregated, but segregation also occurs by sector.occurs by sector.

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Stimulus: Projected Distribution of Jobs by RaceStimulus: Projected Distribution of Jobs by Race

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Projected Percent Share of Stimulus-Created Jobs by Race

White or Other 69.6%

African American

10.1%Hispanic or Latino

15.9%

Asian 4.4%

African Americans are underrepresented relative to their presence in the African Americans are underrepresented relative to their presence in the U.S. population (13%). Hispanics/Latinos, also at 13% of the U.S. U.S. population (13%). Hispanics/Latinos, also at 13% of the U.S.

population, are overrepresented.population, are overrepresented.

Concluding ThoughtsConcluding Thoughts

The economic stimulus provides an opportunity to grow the The economic stimulus provides an opportunity to grow the economy for all.economy for all.

Foundations can play a vital role in reducing existing Foundations can play a vital role in reducing existing disparities.disparities.

We need to embrace transformative change.We need to embrace transformative change. CollaborateCollaborate Invest in learning modelsInvest in learning models Invest in communications models and capacitiesInvest in communications models and capacities