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Bridging the Divide: Building an Economy That Works for All

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This is Report no. 117-619, Union Calendar no. 447, titled Bridging the Divide: Building an Economy That Works for All, a report of the House Select Committee on Economic Disparity & Fairness in Growth, dated December 12, 2022. The Committee Work section says the Select Committee was established by Speaker Nancy Pelosi and created by House Resolution 8 to investigate and develop recommendations on policies to make the economy work for everyone, led by Chairman Jim Himes and Ranking Member Bryan Steil. It lists the hearings, roundtables, field hearings, and tours the Select Committee convened from July 1, 2021 onward, including field hearings in Lorain, Ohio, Kenosha and Milwaukee, Wisconsin, and McAllen, Texas.

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“Bridging the Divide: Building an Economy That Works for All.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-117hrpt619-crpt-117hrpt619/, SHA-256 f71dd9f8190ca039c0a9bc6253f732f8d7fed3a5a89eceee164035cd8132e7c9.

Full text

                                          U.S. Government Publishing Office
                                                        Washington : 2022

                                              U.S. House of Representatives
                                                  117 st Congress, 1st Session
                                                          December 12, 2022
                                                           Report no. 117-619
                                                    Union Calendar no. 447




                    Bridging
                    the Divide
                    BUILDING AN ECONOMY
                    THAT WORKS FOR ALL




49-944_cov.indd 1                                                    12/14/22 12:03 PM
                         Committee Members




                         CHAIRMAN              RANKING MEMBER       Rep. Marcy Kaptur Rep. Warren Davidson
                      Jim Himes (D-CT)        Bryan Steil (R-WI)           (D-OH)               (R-OH)




                     Rep. Gwen Moore        Rep. Jodey Arrington   Rep. Vicente Gonzalez Rep. Stephanie Bice
                           (D-WI)                    (R-Tx)                (D-Tx)               (R-OK)




                    Rep. Pramila Jayapal     Rep. Kat Cammack        Rep. Angie Craig    Rep. Byron Donalds
                           (D-WA)                    (R-FL)               (D-MN)                (R-FL)




                                              Rep. Alexandria        Rep. Sara Jacobs
                                            Ocasio-Cortez (D-NY)           (D-CA)




                         House Select Committee on                                                             AppENDIx
                         Economic Disparity & Fairness in Growth                                               Endnotes   197


49-944_cov.indd 2                                                                                                               12/14/22 12:03 PM
Letter of Transmittal




                        1
    House Select Committee on
2   Economic Disparity & Fairness in Growth
Committee Work
Over the course of the 117th Congress, the Select Committee on Economic
Disparity and Fairness in Growth hosted numerous hearings and events in
Washington, D.C. and across the country to hear directly from local experts,
civic leaders, and community stakeholders. Established by Speaker Nancy
Pelosi and created by the 117th Congress by House Resolution 8, the
Select Committee set out “to investigate, study, make findings, and develop
recommendations on policies, strategies, and innovations to make our
economy work for everyone, empowering American economic growth while
ensuring that no one is left out or behind in the 21st Century Economy.” Led by
Chairman Jim Himes and Ranking Member Bryan Steil, the Select Committee
created the following report of its findings which highlight actionable policies
to alleviate the economic hardships Americans face and build a more vibrant
and resilient economy of shared and inclusive prosperity.

The Select Committee convened the following events:

•   July 1, 2021: Committee Meeting with Heather Boushey, Member, White
    House Council of Economic Advisers
•   July 29, 2021: Hearing: “The Nature and Consequences of American
    Economic Disparity”
•   September 21, 2021: Tour of Library of Congress: Works Progress
    Administration exhibits
•   September 21, 2021: Briefing with Kate Bahn, Ph.D., Washington
    Center for Equitable Growth and Michael Strain, Ph.D., of American
    Enterprise Institute
•   September 28, 2021: Hearing: “The Interconnected Economy: The Effects
    of Globalization on U.S. Economic Disparity”
•   October 17, 2021: Trolley Tour of Lorain, Ohio led by Mayor Jack Bradley
•   October 18, 2021: Lorain Historical Society Listening Session and Tour
•   October 18, 2021: Field Hearing in Lorain, Ohio: “Renewing Prosperity in
    the Industrial Heartland: An Economic Agenda for Forgotten Communities”
•   November 3, 2021: Hearing: “Our Changing Economy: The Economic
    Effects of Technological Innovation, Automation, and the Future of Work”
•   November 15, 2021: Roundtable with National Faith Leaders
•   November 17, 2021: Roundtable on Measuring Economic Disparity
•   December 8, 2021: Hearing: “Growing our Economy by Investing in
    Families: How Supporting Family Caregiving Expands Economic Opportunity
    and Benefits All Americans”
•   December 9, 2021: Roundtable on America’s Unbanked and Underbanked
•   January 20, 2022: Hearing: “Race, Ethnicity, and the Economy: How
    Improving Economic Opportunity Benefits All”
•   February 9, 2022: Hearing: “Connecting Americans to Prosperity: How
    Infrastructure can Bolster Inclusive Economic Growth”



                                                                                   3
    •   February 22, 2022: Roundtable discussion on Artificial Intelligence and
        Economic Disparity in San Francisco, California
    •   February 23, 2022: Visit to Anthropic in San Francisco, California
    •   February 23, 2022: Roundtables in San Francisco, California with
        Community Leaders on Family-Support Programs and Bold Ideas to
        Alleviate Economic Disparity
    •   March 1, 2022: Hearing: “Promoting Economic Prosperity and Fair Growth
        Through Access to Affordable and Stable Housing”
    •   March 3, 2022: Member briefing from the Organization for Economic
        Co-operation and Development’s Centre on Well-being, Inclusion,
        Sustainability, and Equal Opportunity
    •   March 16, 2022: Hearing: “Big Ideas for Small Businesses: Fostering
        American Entrepreneurship Through Starting, Sustaining, and Growing
        Small Businesses”
    •   April 6, 2022: Hearing: “(Im)Balance of Power: How Market Concentration
        Affects Worker Compensation and Consumer Prices”
    •   April 7, 2022: Roundtable: “Economic Empowerment for Native
        Communities: Harnessing Innovation and Self-Governance to Unlock
        Economic Potential”
    •   April 11, 2002: Listening Session with University of Wisconsin - Parkside
        Students and Local Business Leaders
    •   April 11, 2022: Field Hearing in Kenosha, Wisconsin: “Pathways to
        Opportunity: Lessons from Kenosha”
    •   April 11, 2022: Forum with Milwaukee, Wisconsin, Community Leaders
        and Housing Experts
    •   April 12, 2022: Bus Tour of Milwaukee Neighborhoods
    •   April 12, 2022: Field Hearing in Milwaukee, Wisconsin: “Addressing
        Milwaukee Housing Inequality”
    •   April 26, 2022: Member Meeting with AFL-CIO President Liz Shuler and
        AFL-CIO Executive Committee Members
    •   May 11, 2022: Hearing: “Bringing Prosperity to Left-Behind Communities:
        Using Targeted Place-based Development to Expand Economic Opportunity”
    •   June 17, 2022: Listening Session with Community Members in
        McAllen, Texas
    •   June 17, 2022: Driving and Walking Tour of Indian Hills Colonias in
        Weslaco, Texas
    •   June 17, 2022: Field Hearing in McAllen, Texas: “Infrastructure Investment:
        Building Economic Resilience in South Texas”
    •   June 22, 2022: Hearing: “Tackling the Tax Code: Evaluating Fairness,
        Efficiency, and Potential to Spur Inclusive Economic Growth"
    •   July 14, 2022: Roundtable: “Building Inclusive Prosperity for Rural America”
    •   July 28, 2022: Hearing: “Building a Modern Economic Foundation:
        Economic Security and Income Support for 21st Century America”



    House Select Committee on
4   Economic Disparity & Fairness in Growth
•   August 8, 2022: Welcome Discussion with Local Elected Officials in
    Seattle, Washington
•   August 8, 2022: Labor Roundtable in Seattle on fair pay and
    worker protections
•   August 8, 2022: Dinner with Local Business Leaders in Seattle, Washington
•   August 9, 2022: Boat Tour and Visit to Harbor Island Training Center
    Hosted by the Port of Seattle
•   August 9, 2022: Field Hearing in Seattle, Washington: “Lessons from
    Seattle: New Horizons for Workers’ Pay, Benefits, and Protections”
•   September 21, 2022: Roundtable: “Just Good Business: Private Sector
    Strategies that Promote Shared Economic Prosperity”
•   September 29, 2022: Roundtable: “Good Pay for Hard Work:
    Apprenticeships, Workforce Development, and Diverse Pathways to
    High-Quality Jobs”
•   October 3, 2022: Tour of North Atlantic States Regional Council of
    Carpenters Apprenticeship facility in Boston, Massachusetts
•   October 3, 2022: Discussion with Faculty from Harvard Kennedy School
    and Harvard Business School in Cambridge, Massachusetts
•   October 3, 2022: Discussion with Commission on Reimagining Our
    Economy hosted by the American Academy of Arts and Sciences in
    Cambridge, Massachusetts




                                                                                5
    Acknowledgments
    The Select Committee on Economic Disparity and Fairness in Growth would
    like to thank the hundreds of experts, officials, storytellers, and staff who
    enriched its work and made this report possible. Committee Members and staff
    benefited from the generous time, effort, wisdom, and hospitality provided to
    them in Washington, D.C. and around the country. The Committee would like
    to thank Speaker Nancy Pelosi for her leadership in forming the Committee,
    its colleagues on standing Committees for their collaboration, and everyone
    who took the time to share their story.

    The Committee would particularly like to thank the following individuals from
    the Select Committee staff who contributed to this report:

    Majority Staff

    •   Mark Henson – Staff Director
    •   Diane Lim – Policy Director
    •   Eric Harris – Senior Advisor and Communications Director
    •   Lisa Ransom – Director of Outreach and Engagement
    •   Mauricio Armaza – Press Secretary and Committee Clerk
    •   Ksenia Shadrina – Senior Professional Staff
    •   Ryan Zamarripa – Senior Professional Staff
    •   Megan Rivera – Policy and Outreach Advisor
    •   Andrew Cobián – Policy Advisor
    •   Michael Suchecki – Digital Director

    Minority Staff

    •   Ryan Carney – Staff Director
    •   Anne DeCesaro – Policy Director
    •   Harry Fones – Communications Director
    •   James Langnes – Director of Member Services
    •   Jack Chambers – Press Assistant
    •   Grace White – Senior Advisor




    House Select Committee on
6   Economic Disparity & Fairness in Growth
Contents
 Chapter 1
 Introduction                                               9
 Economic Disparity and the American Dream

 Chapter 2
 Economic Disparity                                        15
 What it Looks Like

 Chapter 3
 Finding Agreement                                         30
 Bipartisan Solutions We Can Do Now

 Chapter 4
 Investing in People                                       37
 Lifelong Support for Better Futures
 4.1   Early Education                                      40
 4.2   Lifelong Learning                                    47
 4.3   Caregiving                                           60
 4.4   Small Businesses                                     68

 Chapter 5
 Building Connections                                      78
 Bridging the Divide to Economic Opportunity
 5.1 Affordable and Accessible Housing                      80
 5.2 Hard Infrastructure Investments                        92

 Chapter 6
 An Unlevel Playing Field                                 101
 Structural Economic Challenges
 6.1 The Geography of Unequal Opportunity                  104
 6.2 The Balance of Power Between Employers and Workers    114
 6.3 Economic Security Programs                            125
 6.4 Tax Policy and Equal Opportunity                      133
 6.5 Market Competition Policy                             140

 Chapter 7
 Conclusion                                               144
 Where We Go from Here

 Chapter 8
 Minority Views                                           148
 Perspectives and Recommendations
 8.1 A Prosperous Economy                                  150
 8.2 Safety in American Communities                        155
 8.3 Freedom for the Future                                159
 8.4 Government Held in Check                              163
 8.5 Minority Conclusion                                   169

 Appendix: ENDNOTES                                        170


                                                                 7
    House Select Committee on
8   Economic Disparity & Fairness in Growth
Introduction
ECONOMIC DISPARITY AND THE AMERICAN DREAM                                          1
      CHAIRMAN HIMES AND COMMITTEE MEMBERS ANNOUNCE
      COMMITTEE MISSION AND MEMBERSHIP

      It’s not just a dream. From our founding centuries ago, the United States has
      been thought of as the iconic land of opportunity. The poem inscribed on the
      Statue of Liberty welcomes the homeless and “tempest-tost” immigrant
      through a “golden door” to a freedom and prosperity unimagined in the old
      world. It is the defining idea of America in the world’s imagination, and our
      history has shown that the American Dream can be a reality. Our nation has been
      the stage for a million tales of rags to riches, and home to a burgeoning middle
      class whose citizens enjoy health and wealth undreamt of by our ancestors.

      In truth, there have always been very different American stories: Langston
      Hughes spoke of the “dream deferred” for his people. H.L. Mencken wrote
      of the “forgotten men who always suffer when schemes of uplift are afoot.”
      Walker Evans hauntingly photographed the slow-burn brutality of rural poverty
      in Appalachia and the Dust Bowl.

      And yet, the American story endured. Perhaps because the wealth always grew
      and was shared, occasionally and unequally. Perhaps because, in America,
      hope always seemed to outpace abundance.

      Until today.




      CHAPTER 1
      Introduction                                                                       9
     In the middle of its third century, America is both more prosperous and still
     profoundly unequal. A once-proud middle class now struggles to educate its
     children or to retire with dignity. The lucky few launch themselves into space
     and buy global companies like baubles in a toy store, while almost 40 million
     Americans, including too many children, live in poverty.

                                               Put 100 representative Americans
                                               into a room with one big pie
                                               representing all of American wealth:
                                               One solitary person would own a third
                                               of that pie. His slice alone would be 15
                                               times bigger than the crumbs left for
                                               50 of the people in that room. That is
                                               the definition of inequality run amok.

                                               There are reasons — moral, economic,
                                               and political — for concern. Profound
                                               inequality dashes not just the dreams
                                               of individual Americans. It reduces
                                               the productivity of the economy as
                                               a whole, shrinking the size of the
                                               pie. Deeply unequal economies
                                               don’t perform as well as more
     DOROTHEA LANGE’S PHOTO
                                               equal economies.
     “MIGRANT MOTHER” 1

     Ominously, a society in which fewer and fewer people have meaningful
     economic stakes may not be compatible with democracy. A quote attributed
     to Supreme Court Justice Louis Brandeis noted that “we can have democracy
     in this country, or we can have great wealth concentrated in the hands of the
     few, but we can’t have both.” Thomas Jefferson realized in the early days of
     the Republic that enduring democracy depends upon a population of educated
     citizens capable of critical thought who see themselves as stakeholders in a free
     society. As more Americans feel left behind or unequipped to succeed, as they
     strive within a system that seems incurably rigged against them, we should
     not be surprised to see rot growing at the very foundations of our democracy.

     In 2021, House Speaker Nancy Pelosi established the House Select Committee
     on Economic Disparity and Fairness in Growth (“the Committee”) to shine a
     light on the nature of this problem, and to propose practical, analytically sound
     solutions to the Congress. Members of the Committee held hearings and
     roundtable discussions with economists, policy experts, and representatives
     from the public and private sectors to better understand the barriers
     to prosperity.

     Our Committee was determined to listen to people whose voices are not
     normally heard in Washington: in the hulking shadows of shuttered steel mills
     in Lorain, Ohio; in isolated residential “colonias” along the Texas-Mexico border;
     and in previously redlined neighborhoods in Milwaukee. The Committee traveled
     to San Francisco to consider the role of technology; heard from researchers,



     House Select Committee on
10   Economic Disparity & Fairness in Growth
union, and business leaders in Seattle; and visited the Academy of Arts and
Sciences in Cambridge, Massachusetts.

From the start, the Committee faced the challenge of defining “fairness.” We
need a concept of fairness to take the measure of today’s economy and to lay
out a roadmap for progress. There is, of course, no consensus on the nature
of a just society. For centuries, utopias have been developed in libraries and
coffee houses only to collapse in the streets, sometimes with hideous violence.
Forests are felled for innumerable tracts on utilitarianism, communitarianism,
and the nature and possibility of meritocracy.




COMMITTEE VISITS TO SAN FRANCISCO, THE RIO GRANDE VALLEY,
MILWAUKEE, AND THE PORT OF SEATTLE

Fortunately, Americans have a practical answer to the question of fairness:
Everyone who works hard and plays by the rules should be able to make a
secure and comfortable life for his or her family. This rough-and-ready definition
of fairness has its critics. There are those who argue for equality of outcome,
and those who worship unfettered capitalism. History shows that neither of
those absolutes is durable or desirable.

The pragmatic American ideal of fairness embraces the notion that freedom
from want and fear unleashes the full human potential of each and every
citizen. The next great thinkers, leaders, inventors, jurists, and creators are
growing up today. If each of them is able to reach his or her full potential, our
society as a whole will flourish.

We understand that our society falls far short of this modest standard of
fairness. Too often success in our country depends on carrying a certain
last name, being a certain gender, or being born into a certain neighborhood
or with a certain skin color, things over which an individual has no control.
There is no formal American aristocracy, but some Americans are borne by
powerful tailwinds of wealth and privilege while others face cruel headwinds
of poverty and despair.


CHAPTER 1
Introduction                                                                         11
     Of course, effort, talent, and grit matter. But they are far from all that matters
     in determining who succeeds. This Committee starts from the premise that
     those things should matter more for every American, and arbitrary factors
     should matter less. Could any principle better capture the founding spirit of
     our nation?




     SPEAKER PELOSI APPOINTS COMMITTEE MEMBERS 2

     The Committee’s hearings, research, and travels gave us a fine-grained look at
     the economic challenges faced by Americans. We also developed a profound
     appreciation for the stories of struggle and dignity, of success and failure,
     of doors opened and closed that are lost in dry statistics. We produced a
     30-minute documentary entitled “Grit and Grace” which tells the stories
     of three American families. Our hope is that our recommendations will be
     considered with those families in mind.

     The Committee recognized from the start that addressing economic disparity
     has never been the sole purview of the federal government. In fact, programs
     at the state and municipal levels often demonstrate an adaptability and
     nimbleness that federal programs find difficult to achieve. Philanthropy
     transforms lives, as well it should. At nearly $500 billion per year, American
     charitable giving approximates the size of Canada’s federal budget.3 American
     employers make a meaningful difference not just by providing jobs but by
     assisting employees to get college educations, by offering child care, and, in
     some cases, by paying minimum wages that exceed the federal minimum
     wage. The federal role should be thought of as a partnership that backstops,
     supports, and augments these efforts.

     Our recommendations are organized around the three biggest factors that
     determine an individual’s success. A free-market economy, however regulated
     or buoyed by safety nets and social insurance, is (or should be) an essentially
     competitive environment, and so we borrow a sports metaphor. Success is a
     function of the native talent, application, and training of the individual athlete.
     But no athlete succeeds in a vacuum: Support and teamwork matter. And no




     House Select Committee on
12   Economic Disparity & Fairness in Growth
matter how well an athlete or a team is trained and supported, the fairness of
the playing field matters. Our proposals, therefore, fall into the categories of
investing in individuals, building and supporting communities, and dismantling
structural barriers hindering opportunity and growth.

Investing in Americans throughout their lives — including affordable, high-
quality child care, universal pre-kindergarten, and accessible lifelong learning
options — is one of the most effective ways to help children realize their full
potential, reduce the costs and financial burdens facing families, and provide
opportunities for adults to sharpen their skills and improve their prospects.4

Underserved and left-behind communities often suffer as much from a lack
of connection as they do from a lack of capital. Crumbling or non-existent
physical infrastructure — including roads, bridges, and broadband — have
undercut the ability of various places to support local entrepreneurship and
promote consistent job growth.5 An absence of accessible and affordable
housing holds back economically vibrant locales and challenges the stability
of older communities. Federal investment in local economic development
partnerships can address these challenges.

No examination of American economic disparity can ignore the charged issue of
race. Communities of color struggled for generations with violence, prejudice,
bigotry, and economic systems which kept them down. The achievements of
the civil rights movement and the diversification of American society have
delivered some progress. But they have not silenced the echoes of generations
of discrimination and of opportunities denied, echoes which are apparent in
almost all social indicators and economic statistics.




AN UNOCCUPIED, CITY-OWNED HOME IN MILWAUKEE 6

Even as our courts and legislatures struggle with the debts that may be owed
and the remedies that might be offered for our nation’s history of prejudice
and bigotry, we must at a minimum not shrink from honest reflection on
the systemic barriers that helped turn the American Dream into a mirage for
too many.


CHAPTER 1
Introduction                                                                       13
     Finally, the Committee was comprised of Democrats and Republicans working
     in a historically polarized time. We disagreed more often than we agreed, on
     the causes and implications of economic disparity, and especially on solutions
     that might be offered by the federal government. The Committee did, however,
     dedicate itself to putting observation and analysis ahead of ideology and
     partisanship. We built unlikely personal relationships of trust and respect.

     This report and the views of the minority demonstrate the visions of the
     Committee’s members. We have made the case for those visions as well as
     we can. But we decided to highlight those measures, modest though they
     might be, that could be implemented in our divided legislature.

     Our history has shown that modest initiatives that remove barriers or expand
     opportunity have cascading effects over time. Every GI who went to college,
     every family that grew up in a beloved home that became their financial
     nest egg, every senior liberated from being a burden by Social Security and
     Medicare, every new business funded with a prudent loan guaranteed by the
     Small Business Administration created seeds of opportunity for individual
     American families.

     If we know one thing for sure it is this: Give Americans a lifeline out of
     poverty and an opportunity to flourish and they will amaze the world. We
     urge the Congress to move speedily on the passage of the modest initiatives
     chronicled here.




     House Select Committee on
14   Economic Disparity & Fairness in Growth
Economic
Disparity
WHAT IT LOOKS LIKE
                                                                                   2
       THE CHICAGO GARMENT WORKERS’ STRIKE IN 1910; AN OCCUPY
       WALL STREET PROTEST IN 2011 7

       America’s system of modified free-market capitalism was, and is, a machine
       for unprecedented and explosive wealth creation. Industrialization and the
       era of the robber barons radically transformed our economy into a coal-fired
       behemoth of mass production. Workers had new access to cheap goods but
       struggled in a Dickensian dystopia of seven-day workweeks, child labor, and
       violent catastrophes like the Triangle Shirtwaist factory fire in 1911 that killed
       146 garment workers, including 123 women and girls. Unions rose to fight
       for worker safety and dignity. Muckraking journalists like Ida Tarbell and Ray
       Stannard Baker exposed the brutal depredations of trusts like Standard Oil
       and the rank corruption in city political machines and the U.S. Senate.

       In response, the federal government, led by Presidents Roosevelt, Taft,
       and McKinley, ushered in the Progressive era, which limited the power of
       monopolies, established a federal Department of Labor, set standards for
       food and drugs, and laid the groundwork for the emergence of a national
       social safety net. States also responded. Wisconsin, led by reformers like
       Robert La Follette, innovated with progressive ideas for good governance
       and instituted the nation’s first workplace injury compensation law and the
       first state income tax.8

       By the end of World War II, national mobilization and this progressive evolution
       had helped create a massive, consumer-oriented, and optimistic middle class.
       Even those who had been historically excluded from the nation’s burgeoning
       prosperity, especially Black Americans, found opportunities in the insatiable
       demand for workers by factories throughout the Midwest, New England, and


       CHAPTER 2
       Economic Disparity                                                                   15
     in the explosive growth of California. The vast majority of Americans could
     expect to earn more than their parents.9 Prosperity was shared, if not equally,
     across American demographics. The portion of total income going to the top
     10% of earners fell from 50% in 1928 to 33% in 1944.10

     Expanded progressive taxation generated critical government revenue
     streams, allowing the expansion of the social safety net, the construction of
     the interstate highway system, and investments in education and research
     that would drive innovation for generations. Rising incomes and plentiful job
     opportunities were the norm.

     About 40 years ago, this remarkable engine of increasingly shared prosperity
     slowed, sputtered, and for many, came to a grinding halt, then began
     to reverse.11

     Globalization and the emergence of sharply competitive international labor
     markets, technology, and the decline in union membership and collective
     bargaining power12 led to stagnant wages for most workers.13 The evolution
     of the economy away from manufacturing and towards automation and
     services increased downward wage pressure even as it put huge premiums
     on high-end knowledge workers, leading to dramatic pay increases for those
     at the top of the income ladder.14

     Figure 1: Income Inequality Has Been Rising For Decades
     SHARE OF NATIONAL INCOME RECEIVED BY THE TOP DECILE (1910 – 2010)




     SOURCE: THOMAS PIKETTY (2013)15


     In the last several decades, income inequality and economic disparity across
     job sectors, geographic areas, and racial groups have grown with alarming
     speed. Today, income and wealth inequality is higher in the U.S. than
     nearly any other developed nation,16 and it’s getting worse.17 Disturbingly,
     the ability to climb the economic ladder — so central to the American
     Dream — has all but disappeared. Over this period, as wages for most
     workers stagnated, the costs of housing, health care, child care, and higher
     education have soared. Worker pay grew in tandem with rising productivity



     House Select Committee on
16   Economic Disparity & Fairness in Growth
in the postwar decades, but since 1980 productivity has risen much faster
than wages.18 The difference in average pay for CEOs and their workers
at large corporations was 20:1 in 1965. Last year, it was nearly 400:1.19


Figure 2: The United States Is One Of The Most Unequal Wealthy Nations
COUNTRIES BY GINI COEFFICIENT (2017 OR MOST RECENT YEAR)




SOURCE: ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (2017-2021)20


Inequality in America Today
Disparities in income and wealth have grown so large that the U.S. has become
the world’s most unequal wealthy country. High-wage and low-wage jobs
have proliferated, as middle-income jobs have dwindled. More than two in five
workers — 53 million people — earn less than about $16 per hour. While the
top 1% of earners had an average income of more than $820,000 in 2020,
the bottom 90% averaged about $40,000.21

Such disparities in income are much less common in Western Europe and
Japan. The Gini coefficient, a widely used measure of inequality, is significantly
higher in the United States than in other rich countries. Disparities have been
growing in Europe, but at a slower rate, as the top 10% increased their share
of the pie by four percentage points across the Atlantic, compared to 13
percentage points in the U.S.22

Importantly, wages don’t fully reflect total compensation as the top three-
fifths of the workforce get health-insurance, 401(k)s, and other employer-
provided benefits that most lower-wage workers do not. The wealthy also
benefit disproportionately from income on capital such as capital gains,
interest, and dividend income, all of which are taxed more lightly than wages.
Complicating the picture, millions of poor, middle class, and older Americans
receive government services and benefits ranging from Social Security and
unemployment insurance to the Earned Income Tax Credit and food stamps.
If the precise income picture is messy, the broader situation is clear: Income
inequality is at levels unseen since the 1920s, and it is getting worse.23




CHAPTER 2
Economic Disparity                                                                   17
     SCENES FROM THE GREAT DEPRESSION 24

     Significant economic disparity manifests in very troubling ways as poverty and
     lack of access to services deprive many families of a decent life. It correlates
     with health outcomes, as high-income Americans live an average of 10 to 15
     years longer than their low-income neighbors. Rates of diabetes, addiction and
     overdoses, hypertension, accidents, infant mortality, and crime are significantly
     higher among low- and middle-income individuals. Environmental hazards
     threaten the less well-off disproportionately.25

     The distribution of wealth — ownership of assets such as homes, investments,
     retirement plans, businesses, and other assets — is even more skewed:
     The richest 1% of households had 15 times the combined wealth of the
     bottom 50% in 2021.26 That same 1% hold about one-third of the country’s
     wealth. By contrast, the median wealth of those in the bottom quarter of the
     population was negative; they had more debt than assets. Such asset poverty
     is widespread, as more than a quarter of Americans do not have the cash to
     cover three months of expenses.27
     Figure 3: The Distribution Of Wealth In The United States
     THE WEALTHIEST QUINTILE HOLDS NEARLY 90% OF U.S. WEALTH




     SOURCE: WASHINGTON CENTER FOR EQUITABLE GROWTH (2019)28




     House Select Committee on
18   Economic Disparity & Fairness in Growth
People with even modest wealth face much less risk in life. They have the
means to pay unexpected expenses. Unemployment is less of a threat. They
are much less likely to borrow and pay the high interest rates that lenders
charge low-wealth, low-income borrowers.

Those with above-average wealth tend to live in neighborhoods where schools
are better and associate with those who know of job or business opportunities.
They have more freedom to set their own schedules and find it easier to risk a
move, a new job, or an early retirement. They pass on wealth to their children.
Opportunity, which entails far more than achieving high levels of consumption,
surrounds them and their families in ways not available to those with little
or no wealth.29
Figure 4: Income and Wealth are Increasingly Concentrated in the Top Quintile
DISTRIBUTION OF FAMILY WEALTH AND INCOME AND INCOME QUINTILES (1995 – 2019)




SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (2019)30

It is important to understand that inequality itself is not evenly distributed
among different segments of the American population, a fact that is often
obscured by aggregated economic statistics. Racial inequities are particularly
stark. Median wages for Black workers were just three-fourths those of white
workers in 2019. Because unemployment rates are higher and labor force
participation rates are lower, the earnings of Black households are only half
those of white households. The typical Black household has about one-eighth
the wealth of its white counterpart. The huge wealth differential between white
people and Black people, as well as a host of disparities ranging from education
and health to housing, cannot be understood without an understanding of
how such differences originate in a long history of racism.31

Other racial disparities are also pronounced. Hispanic household earnings
average about half that of white households, and median net worth is just
one-fifth the amount of the typical white family. Among America's indigenous
peoples, median household income is less than two-thirds that of white
households, and wealth is only one-eleventh.32




CHAPTER 2
Economic Disparity                                                                 19
     Gender matters as well. There is a nearly 2-to-1 wealth gap between male-
     and female-headed households. Women as a group earn about 80 cents for
     every dollar that men earn, a fact driven by the disproportionate numbers
     of women in low-wage jobs. The gender wage gap is even more pronounced
     among college graduates, as women with a bachelor’s degree earn just 74
     cents for every dollar that men make.33

     Dwindling Social Mobility
     Widening wealth and income inequality have been accompanied by declining
     social mobility, as children from families with low or moderate wealth are
     less able to out-earn their parents than their ancestors 50 years ago or their
     peers in other wealthy nations.34 This is disturbing for a country that has long
     considered itself the iconic land of opportunity.

     Around 90% of children born in the 1940s grew up to out-earn their parents.
     Similar numbers out-learned their parents, as college attendance rates shot
     up. Stories of upward mobility were popular in Hollywood and regularly
     featured in the news media. In contrast, American children born in the 1980s
     — millennials — could not expect the same: Only about 50% would out-earn
     their parents.35
     Figure 5: Children Out-Earning Their Parents Is Becoming Less Common
     PERCENT OF CHILDREN EARNING MORE THAN THEIR PARENTS AT AGE 30 (1970 – 2014)




     SOURCE: OPPORTUNITY INSIGHTS (2016)36

     Evidence that increasing inequality dampens mobility compounds
     the challenges to those seeking to better their circumstances. Studies
     show a strong correlation between social mobility and shared economic
     growth. According to the International Monetary Fund: “In societies where
     opportunities are unequal, including across generations, an increase in
     income inequality tends to become entrenched, which limits the potential
     and prospects of low-income earners, and stymies long-term growth.”37

     The correlation between high inequality and low mobility was dubbed “the
     Great Gatsby curve” by Alan Krueger, chairman of President Obama’s Council
     of Economic Advisers. By the late 2010s, the probability that someone in
     the bottom income quintile would remain stuck there was higher — and the
     chances of rising to the top quintile were lower in the United States than in
     Sweden, Germany, France, and Japan.38


     House Select Committee on
20   Economic Disparity & Fairness in Growth
Why Has This Happened?
So, why has inequality increased and why has upward mobility become so
much harder than in the mid-20th century?

The answer lies in a combination of factors: globalization, technological
innovation, regressive policy changes, a labor market increasingly divided
by educational attainment, and the residual effects of generations of
discrimination against certain groups.

There has always been a robust debate, particularly in American politics, about
the relative importance of these structural factors and personal choices around
work, training, and behavior, with Democratic policy makers focused on the
former and Republican ones on the latter. Personal choices do meaningfully
affect economic outcomes, but for many these choices are made in a context
that is powerfully determinative of outcome. A 2020 analysis by the National
Bureau of Economic Research concluded that about three-fifths of American
income inequality is a function of structural factors and other “circumstances
beyond people’s control.”39 It is counterintuitive to believe that the personal
choices of workers in the 1950s differed so radically from personal choices
today that they drive the shocking disparities that developed in that period.




CHAPTER 2
Economic Disparity                                                                21
     Globalization
      Stories in Context




      WATCH VIDEO: MARJORIE CHAMBERS,
      CLEVELAND, OH
      Tool and Die Maker at General Motors,
      Vice President UAW Local 1005

      “I’ve been with UAW for 47 years. I’ve been with General Motors for 43 years.
      When I started working in the early 70s, we had thousands of workers,” Marjorie
      Chambers of Cleveland, Ohio told the Committee at its hearing on Revitalizing
      the Industrial Heartland in Lorain, Ohio. “Right now, in our plant, we have under a
      thousand.”

      “I was laid off for two years with no hopes of going back and then worked again for
      a year and was laid off for another year,” she added. “We have to reinvent ourselves
      so that we can save and keep as many of the workers as we can.”
      In the years following World War II, the U.S. economy stood nearly alone
      amid the wreckage of Europe and Asia. American workers struggled to meet
      the explosion in appetite for consumer goods from American consumers. As
      Europe and Asia rebuilt, they became new markets, but also cheap competition.
      Japanese goods, which in the early postwar years were emblematic of low
      prices and poor quality, began to compete with many American products, from
      consumer electronics to the fabled production of the iconic U.S. auto industry.40

      International trade provides many benefits, from raising living standards
      around the world, reducing prices, and increasing variety for consumers,
      to expanding markets for domestic producers and farmers, and creating
      jobs in export-oriented industries. It also generates severe harm to those
      products, industries, and workers that are displaced. This is what economists
      euphemistically call “dislocation.”

      While the benefits of trade are generally diffuse, the costs were often
      concentrated in specific communities. In the last generation, dislocation has
      devastated jobs in manufacturing hubs in communities from Flint, Michigan
      and Newton, Iowa to Rochester, New York, and Baltimore, Maryland.

      House Select Committee on
22    Economic Disparity & Fairness in Growth
       Although trade has increased since the General Agreement on Tariffs and Trade
       (GATT) in 1947 began reducing tariff barriers, the 1994 North American Free
       Trade Agreement (NAFTA) and China’s entry into the World Trade Organization
       (WTO) in 2001 caused widespread job loss and reduced job quality in certain
       communities — particularly among workers in manufacturing who could
                                                no longer support their families
                                                with high-wage union jobs after
                                                offshoring. Referring to this “China
                                                shock,” economists David Autor,
                                                David Dorn, and Gordon Hanson
                                                wrote: “Employment has fallen in
                                                the U.S. industries more exposed to
                                                import competition, as expected, but
                                                offsetting employment gains in other
                                                industries have yet to materialize.”41
CHAIRMAN HIMES SPEAKS WITH AFL-CIO                The outsourcing of these jobs to
CHIEF ECONOMIST BILL SPRIGGS
                                                 countries with low-cost, sometimes
       exploited labor often raised corporate profits and share prices, resulting in an
       aggregate transfer of wealth from labor-intensive industries to capital-intensive
       ones. This dislocation often devastated towns and regions, even as financial,
       services, and consulting services thrived in different parts of the country.42

       The country’s trade deficit also totaled $13.1 trillion between 1992 and
       2021, as domestic production was displaced by imports.43 This left the U.S.
       more dependent on international energy, metals, electronics, pharmaceutical
       components, semiconductors, and even food.

       Technological Change and Automation
       Technology similarly both benefits and costs workers — particularly low and
       medium-skilled workers. This is not a new problem. Since the early days of
       the Industrial Revolution, workers have been displaced by machines that can
       do certain tasks more efficiently and quickly than humans. Routine tasks, like
       those involved in manufacturing, have been the most subject to automation,
       creating pressure on wages and employment even as knowledge jobs and
       some service jobs like cleaning are more insulated from harm.
       Automation has shifted labor market demand, not only by doing away with
       jobs but also by depressing wages for workers in affected sectors.44 As once
       well-paying, unionized manufacturing jobs that required less education
       disappeared, workers who survive are forced to accept lower wages, less secure




       TWO INDUSTRIES FACING RAPID AUTOMATION


      CHAPTER 2
      Economic Disparity                                                                   23
     jobs and less opportunity for advancement. Additional middle-skilled jobs, like
     those of nearly nine million cashiers, retail salespersons, and administrative
     assistants, are now at high risk from automation.

     The story of Marjorie Chambers at General Motors illustrates how trade and
     technology have decimated well-paid U.S. auto industry employment. One
     study estimated that the differential exposure to automation among American
     workers may be the cause of as much as half the increase in inequality during
     the last 40 years.45

     Looking ahead, it is hard to imagine this pressure moderating. Artificial
     intelligence (AI) is boosting productivity and raising overall living standards,
     but, because of its ability to closely mimic sophisticated human skills, may
     cause “much more worker displacement and inequality than older generations
     of inequality,” according to labor economist Harry Holzer. Whereas robotics
     and software have replaced repetitive and predictable tasks, AI is threatening
     higher-wage white-collar occupations like accounting, editing, and even some
     medical fields.46

     An Increasingly Bifurcated Labor Market
     As trade and technology eliminated millions of semi-skilled middle-class
     jobs, America’s workforce has become increasingly divided between high-
     wage occupations requiring at least a college degree and low-wage jobs
     largely held by those with less than four years of college. Jobs that require
     highly specialized knowledge, associated with manipulating information
     and technology, have commanded a wage premium. Conversely, “since the
     1970s, low-wage jobs have undergone marked growth as a proportion of the
     U.S. labor market,” according to the Bureau of Labor Statistics. “These jobs
     include food service; housekeeping; low-level healthcare positions, such as
     nursing assistants; and low-level retail positions, such as cashiers. Women
     tend to be disproportionately represented in these occupations.”47

     Figure 6: Estimated Median Household Income by Congressional District in 2019
     MAP DISTRIBUTED AT 2021 COMMITTEE FIELD HEARING IN LORAIN, OHIO




     PREPARED BY THE CONGRESSIONAL RESEARCH SERVICE (2021)48



     House Select Committee on
24   Economic Disparity & Fairness in Growth
The typical weekly earnings of Americans with a professional or doctoral degree
in 2021 was around $1,900, compared to about $800 for those whose highest
credential was a high school diploma, and $900 for people with some college.
Economic status does not always correlate with educational attainment, but
median net worth for those with a college degree was about four times that
of those without in 2019.49

This growing divide between well-educated, higher-paid workers and lower-paid
workers with less education has been increasingly correlated with geographical
disparities between thriving urban and suburban areas, particularly in the
Northeast and on the West Coast, and rural, inner-city, and exurban areas
left behind. America is increasingly segmented into prosperous, at-risk, and
distressed communities. While knowledge workers are concentrated in the
former, the latter have become home to distressed populations including
disproportionate numbers of people of color, immigrants, the less educated,
and those disconnected from the labor force.50

Racism, Bigotry, and Anti-Immigrant Sentiment
For generations, de jure and then de facto racism excluded Black Americans
from the prosperity enjoyed by many whites. From the early 17th century in
the New World until the American Civil War, most Black people were brutally
enslaved and denied even the basic concept of personhood. For another
century, Jim Crow laws codified racial discrimination. Bias was and, despite
progress, still is pervasive — in our laws and law enforcement, our culture,
our educational institutions, and among employers.

Those laws designed to protect or boost the prospects of white workers,
veterans, and homeowners — ranging from the 1935 National Labor
Relations Act and the 1938 Fair Labor Standards Act to the Home Owners’
Loan Corporation in the 1930s and the GI Bill in 1944 — effectively excluded
people of color. The 1964 Civil Rights Act outlawed discrimination, but
racial inequities persist in education, employment, and homeownership,
shortchanging opportunities for people of color to build wealth.51

Native Americans were massacred, decimated by diseases brought by European
settlers, and forcibly resettled, keeping them on the sidelines of American
abundance. Today, Native American reservations have some of the most
endemic deep poverty in the country.

America has long considered itself a melting pot, yet that understanding
has often not extended to the actual experience of all races, ethnicities, and
cultures. The complex history of the United States reveals that not all people
have been welcomed or seen as equal under the law. For centuries, nearly
all immigrant and minority communities, especially those of non-European
descent, have experienced discrimination, hostility, and violence as a result of
xenophobia and bigotry — with detrimental outcomes that often persist today.




CHAPTER 2
Economic Disparity                                                                 25
     Stories in Context




     WATCH VIDEO: SGT. JOHNNIE CHEATOM,
     KANSAS CITY, MO
     Army Sergeant First Class (Retired, 25 years)
     Awarded the Bronze Star and a Purple Heart
     Served in Germany, Korea, and Vietnam

     “I didn’t get the chance of getting the GI Bill," says Sgt. Johnnie Cheatom from
     Kansas City, MO. "I didn't receive the same benefits as the rest of the GIs, because
     they got the GI Bill and got a house with a low interest rate. Financially, it was a
     bad deal for me. I was on my way to Vietnam, and I had five kids and a wife and, if I
     got killed over there, I wanted them to have a place to stay. It was promised to you
     [when you enlisted] that you could get a GI Bill.”

     Like many servicemembers, Sgt. Cheatom tried to apply for the no-money-down,
     no-interest rate home loan guaranteed by the GI Bill. However, he believes he was
     denied a loan because of the color of his skin.

     “I think they steered me away from getting the GI loan – I felt discriminated
     against,” he explains. “And so, I put my uniform on, went over there to the FHA and
     they said, ‘Yeah, you can get the house, you can get the house.’” But there was a
     catch. “I got a 30-year loan, but I still had to pay interest on it,” he says, despite the
     zero-interest rate mortgage loan promised to him through the GI Bill. “I had to pay
     a high interest rate for 30 years.”

     Just as overall American inequality diminished in the postwar era, racial
     income and wealth gaps narrowed in the wake of the civil-rights movement
     of the late 1950s and 1960s. Wages for Black and Latino Americans began
     to catch up with those of their white counterparts, as racial segregation and
     discrimination moderated. However, some economic gaps have widened since
     the 1980s due to “retrenchment on anti-discrimination policy, in combination
     with policies and practices that fueled growing wage inequality,” according
     to Valerie Wilson of the Economic Policy Institute.52 Many of them will take
     generations to close on current trajectories.




     House Select Committee on
26   Economic Disparity & Fairness in Growth
Regressive Policy Changes
Trade and technological change have affected other rich nations, but what
distinguishes the U.S. from most of the European Union and the advanced
economies of East Asia are certain policy changes enacted since the 1980s
that have aggravated disparity.

In response to the economic stagnation and high inflation of the 1970s,
lawmakers began enacting tax cuts for wealthy Americans based on the
“supply-side” theory that these would unleash investment and economic
growth that would “trickle down” to the rest of the population and increase
overall government receipts. This did not prove to be the case. While federal
tax rates for middle-class workers remained largely unchanged, average rates
for the richest Americans plummeted. The net effect has been to increase
inequality, constrain government investments in people, and increase federal
borrowing and debt.53

The Reagan Administration paired tax cuts for the wealthy with cuts to programs
supporting job training, access to higher education, affordable housing, and
food security. The 1996 welfare-reform law ended welfare as an entitlement
program, required recipients to work after two years of benefits, and placed
a lifetime limit of five years on those benefits. These cuts to cash assistance
programs led to increases in deep poverty among families with children, even
as refundable tax credits like the Earned Income Tax Credit and the Child Tax
Credit blunted some of their effects.54
Figure 7: The Richest Americans Have Received the Largest Tax Cuts
CHANGE IN EFFECTIVE TAX RATE BY INCOME GROUP (1970 – 2004)




SOURCE: THOMAS PIKETTY, EMMANUEL SAEZ (2007)55

The Tax Cuts and Jobs Act of 2017, which in 2020 reduced the tax burden
of the richest 1% of Americans by $77.6 billion and that of the poorest
40% by just $14.3 billion, only accelerated the trend of more lightly taxing
high-income America.56

During the last 40 years, policy changes eliminated or watered-down
regulations and antitrust laws that protected homeowners, workers, and
consumers. Collective bargaining rights have been cut in many states. Federal,
state, and local governments have cut spending for education. Investments in
children and workers, as well as other “non-defense discretionary spending,”
also declined until 2021. Whereas half of federal spending growth between


CHAPTER 2
Economic Disparity                                                                27
     1945 and 1980 went to domestic discretionary initiatives, only about 20%
     of the absolute growth since then has gone to such programs.57 Meanwhile,
     accumulated inflation has caused the federal minimum wage to fall 40%, in
     real terms, below its 1968 peak.

     These policies are a dramatic break with the traditions of the Progressive era
     of Teddy Roosevelt and Woodrow Wilson, when the government countered
     inequality with a progressive income tax system, antitrust laws to limit
     monopoly power, and laws limiting worker hours and child labor. The New Deal
     cemented fair labor standards laws, protections for collective bargaining, and
     income-security programs like Social Security and unemployment insurance.
     In the postwar era, particularly during Lyndon Johnson’s Great Society,
     policies made higher education and homeownership affordable for millions,
     expanded eligibility for the minimum wage and Social Security, supported
     infrastructure and research and development, provided federal aid to help
     educate the poor through Head Start and Title I of the 1965 Elementary and
     Secondary Education Act, and took aim at racial discrimination through the
     1957 and 1964 Civil Rights Acts, the 1965 Voting Rights Act, and the 1968
     Fair Housing Act.58
     It is not hard to see which policy instincts have delivered widely shared growth
     and social mobility to the American people.




     PRESIDENT FRANKLIN DELANO ROOSEVELT; WPA POSTER 59


     Inequality is Not Inevitable
     As historical experience demonstrates, economic disparity is not inevitable. It
     ebbs and flows with cycles of economic change and is mitigated or aggravated
     by the decisions of political leaders. In short, we do not have to accept the
     current state of affairs.

     Much can be done at the state, local, and federal levels, as well as by the
     private sector, philanthropies, and faith-based institutions to change course
     and unlock prosperity for far more people. The Progressive era should inspire,
     even if the solutions to 21st century challenges will be very different than
     those of a century ago. Some policies must come from Washington because




     House Select Committee on
28   Economic Disparity & Fairness in Growth
people, goods, services, and ideas move and interact throughout the nation.
Others are better initiated and implemented by states, counties, cities,
and towns, which best understand local needs and can serve as proverbial
laboratories of democracy. Often, the most innovative ideas come from the
private and nonprofit sectors. Churches, synagogues, mosques, and other
religious institutions may be more attuned to caring for their congregations
and communities.

For too long, we have failed to make the future-oriented investments in
people and communities that made the nation great. As a result of more
than a year of research, hearings, and engagement with citizens throughout
the country, we have identified a series of policies that will catalyze shared
prosperity and promote fairness in access to opportunity. We turn to these
in the next chapters.




MEMBERS TOUR A TRAINING FACILITY IN SEATTLE




CHAPTER 2
Economic Disparity                                                               29
Finding
Agreement
BIPARTISAN SOLUTIONS WE CAN DO NOW
                                                                             3
      Over the 18 months of the Committee’s work, Democratic and Republican
      Members frequently disagreed over the causes and nature of economic
      disparity. We did agree that too many Americans are finding opportunity
      elusive and prosperity beyond reach.

      The partisan debate, and the research and philosophical differences that
      underlie that debate, have been honed over many generations. As the Chairman
      frequently reminded the Committee, we were unlikely to meaningfully expand
      on the decades of academic work produced by the world’s research institutions
      and think tanks.

      We could, however, apply our hard-earned political judgment and a feel for
      the current political moment to offer suggestions that might be achievable in
      an era of divided government. Both parties will continue working to expand
      popular support and create the legislative pathways for their ideas, but that
      process must not forestall the progress that can be made today. The ideas
      presented below have bipartisan support in one form or another, and the
      Committee recommends the 118th Congress act immediately in these areas.




      House Select Committee on
30    Economic Disparity & Fairness in Growth
REP. OCASIO-CORTEZ AND REP. DAVIDSON AT THE ROUNDTABLE ON
MEASURING ECONOMIC DISPARITY


Investment in Early Childhood Education
Every one of the four million children born in the United States each year
deserves access to opportunity. This means a good home, good health, nutrition,
care, and the intellectual and social stimulation so critical for child development.

Early childhood education has a transformative impact, as studies repeatedly
show a significant return on investment and other long-term benefits both
for individuals and the economy at large. That is why there is broad support
among business, educators, and the American people for expanding access to
early education, and why states like Oklahoma and Vermont have introduced
universal pre-K programs. A group of Republican Senators has called for
increased funding to support the public child care system and families in
need of child care assistance.60

While the Committee urges Congress to take action to expand early education,
the Committee also urges states to act now to expand access and enrollment
for early childhood education programs, including universal pre-K.

Increasing the Child Tax Credit
There is bipartisan recognition that every child should have good and fair
opportunities to thrive. That is why most Democrats and some Republicans
support the Child Tax Credit and other legislation to direct additional resources
to low-income families with children. These include the proposed Family
Security Act, introduced by Sens. Mitt Romney (R-UT), Richard Burr (R-NC),
and Steve Daines (R-MT), and the Advancing Support for Working Families
Act, co-sponsored by Sens. Bill Cassidy (R-LA) and Kyrsten Sinema (D-AZ).




CHAPTER 3
Finding Agreement                                                                      31
     The Committee believes such legislation does not sufficiently help children
     and parents in low-income families overcome barriers to upward mobility and
     success. However, the bipartisan interest demonstrates that Congress can
     work together to enhance opportunities for our nation's children and families.

     Lifelong Learning
     The Committee agrees on the challenges facing adult workers in today’s
     rapidly evolving economy. The U.S. needs more flexible, affordable, and
     accessible education and learning opportunities. The Committee agrees on
     the need for reauthorization of the Workforce Innovation and Opportunity Act
     to address administrative and regulatory barriers that inhibit the success of a
     workforce development system and support apprenticeship expansions for
     non-traditional occupations.

     The Committee also finds bipartisan support for expanding Pell Grant eligibility
     to students enrolled or seeking enrollment in short-term technical training
     programs — at community colleges or other technical training schools — and
     reducing the 600-clock hour length requirement to allow students in programs
     of less length to be eligible for Pell Grants.

     Expanding Access to Paid Family and
     Medical Leave
     As a country that believes in the importance of strong families, we know how
     precious and critical it is for parents to be with a newborn baby or young child,
     and for family members to care for a sick or elderly relative. This caregiving
     often conflicts with responsibilities on the job, forcing many Americans to
     choose between family and work. While those who are more affluent are
     better equipped to handle both, for low- and moderate-income Americans, the
     choice may jeopardize the safety and health of a relative or endanger income
     or employment.

     The Committee agrees that working Americans with young children or family
     caregiving responsibilities need time off for these purposes. Republican and
     Democrats both supported expanding 12 paid weeks of leave to nearly all
     civilian and military federal employees through the passage of the National
     Defense Authorization Act for Fiscal Year 2020 (S.1790 and Public Law 116-92).
     Similarly, the bipartisan Strong Families Act provides a tax credit to employers
     that offer employees paid leave.

     While the Committee Majority is committed to the principle that every worker
     should have access to 12 weeks of paid family and medical leave, the Committee
     believes that bipartisan action to expand access to paid leave is possible in the
     118th Congress.




     House Select Committee on
32   Economic Disparity & Fairness in Growth
Small Businesses
The Committee believes that small businesses and entrepreneurs face obstacles
to reaching their full competitive and economic potential.

The Committee supports increasing the provision of technical assistance for
small businesses to improve competitiveness. The bipartisan SCORE for Small
Business Act (H.R. 6450), sponsored by Representatives Young Kim (R-CA) and
Angie Craig (D-MN), would reauthorize the Service Corps of Retired Executives
(SCORE) program under the oversight of the Small Business Administration.
The SCORE program would enable volunteers participating in the program to
provide free personalized business expertise and facilitate educational workshops
for small businesses. The bill’s emphasis on recruiting diverse volunteers and
providing services in rural and underserved communities will support those
who need it most.

Occupational Licensing Reform
The Committee believes variations in state licensing laws are an obstacle for
active duty servicemembers, veterans, and military spouses, who may be unable
to work where they are stationed due to local regulations. The Committee
recommends the bipartisan Military Spouse Licensing Relief Act of 2021 (H.R.
2650 and S.1084), sponsored by Rep. Mike Garcia (R-CA) and Sen. Mike Lee
(R-UT), to allow the portability of professional licenses of servicemembers and
their spouses who are relocated outside of the jurisdiction issuing the license.

The Committee believes states should consider occupational licensing reform as
a pathway to alleviate acute labor shortages in certain occupations. Bipartisan
support exists at the state level, evidenced by Arizona’s 2019 enactment of
reciprocity of occupational licensing with all out-of-state occupational and
professional licenses.

Housing
A safe and stable home is fundamental to economic opportunity. Affordable
housing can make a vital difference in securing the American Dream. The costs
to build, buy, or rent a home are far too high. The housing supply imbalance
of millions of housing units is threatening the nation’s economic growth and
denying opportunity to aspiring Americans.

The Committee believes Congress can take steps to encourage localities to
reduce restrictive zoning and prioritize housing affordability. The Committee
supports the bipartisan Yes In My Back Yard (YIMBY) Act (H.R. 3198), sponsored
by Reps. Derek Kilmer (D-WA) and Trey Hollingsworth (R-IN) and Sens. Brian
Schatz (D-HI) and Todd Young (R-IN), requiring Community Development Block
Grant program recipients to report on their local zoning, so that localities are
encouraged to remove barriers to the production of new housing units. The
Committee further encourages states and local governments to proactively
take more steps to embrace inclusive zoning measures and reduce restrictive
zoning measures to increase affordable housing.




CHAPTER 3
Finding Agreement                                                                   33
     The Committee also recommends increasing the total amount of federal Low
     Income Housing Tax Credits (LIHTC) offered by the federal government and
     simplifying their use. The full Committee supports passage of the bipartisan
     Affordable Housing Credit Improvement Act (H.R. 2573 and S. 1136), sponsored
     by Reps. Suzan DelBene (D-WA), Donald Beyer (D-VA), the late Jackie Walorski
     (R-IN) and Brad Wenstrup (R-OH) and Sens. Maria Cantwell (D-WA), Todd Young
     (R-IN), Rob Portman (R-OH) and Ron Wyden (D-OR). It would increase Low
     Income Housing Tax Credit allocations by 50% over current levels and make the
     tax credit more responsive to local needs. The bill would support the production
     of 1.5 million new affordable housing units over the next decade.

     Support for Local Economic and Community
     Development Efforts
     One of the many divides in contemporary America is between communities
     and neighborhoods brimming with opportunity and those mired in decline.

     There is bipartisan agreement that geographical disparities hurt the American
     people and economy. States, localities, and the private sector need the financial
     and technical support of the federal government to rehabilitate and revitalize
     these communities. Congressional proposals to increase targeted regional
     investments have found bipartisan support.

     The Rebuilding Economies and Creating Opportunities for More People
     Everywhere to Excel Act (RECOMPETE) Act led by Rep. Derek Kilmer (D-WA),
     includes block grants to provide direct, long-term assistance to distressed
     labor markets, helping them to avoid navigating the maze of different federal
     grant programs. A pilot version of the program passed into law as part of the
     bipartisan CHIPS Act in August 2022.

     The Restoring Communities Left Behind Act (H.R.816), introduced by Rep.
     Marcy Kaptur (D-OH), has bipartisan support and “directs the Department
     of Housing and Urban Development to establish a grant program for local
     partnerships to carry out neighborhood revitalization support activities in
     economically distressed areas.”

     The Committee recommends Congress act to deliver more targeted resources
     to support local economic development.

     Addressing Administrative Burdens
     The Committee finds that it is often complicated and time consuming for
     people to access economic security programs for which they are eligible.
     Since individuals with the least resources often face the biggest barriers to
     accessing benefits, administrative burden can widen economic disparity.

     Members of Congress have expressed bipartisan support for a whole-of-
     government approach to make it easier for people to access government
     benefits and services, and the White House has issued an executive order
     with similar goals




     House Select Committee on
34   Economic Disparity & Fairness in Growth
The Committee recommends additional policies to make it easier for people
to access benefits administered at the state level, including additional funding
for states to modernize technology and simplify application processes.
Additionally, the Committee recommends revising certain eligibility and
certification requirements that make it difficult for people to access benefits
they need. For instance, the bipartisan Modern WIC Act, introduced by Sens.
Kirsten Gillibrand (D-NY) and Roger Marshall (R-KS), would permanently revise
in-person application requirements for WIC by allowing remote certifications
begun during COVID-19.

Limiting Non-Compete Agreements
Noncompete agreements, which bar employees from switching to a similar
position with a competing firm, may make sense for workers with proprietary
knowledge, but they are harmful to fast-food, retail, and other low-wage
workers. The Minneapolis Federal Reserve found that “more than one in 10
lower-wage workers have non-compete contracts.” The Committee finds
bipartisan support to limit the use of non-compete agreements in the Workforce
Mobility Act (S.483 and H.R. 1367), sponsored by Reps. Scott Peters (D-CA),
Mike Gallagher (R-WI), Anna Eshoo (D-CA) and Peter Meijer (R-MI) and Sens.
Chris Murphy (D-CT), Todd Young (R-IN), Tim Kaine (D-VA) and Kevin Cramer
(R-ND). This legislation would prohibit companies from entering, enforcing or
threatening to enforce most non-compete agreements.

Supporting Free School Meals
Although adequate nutrition is essential for students to learn and succeed
at school, one in eight children faced hunger in 2021 and many more do not
get the healthy meals they need.61 These disparities add to other social and
economic inequalities that threaten the well-being of low- and moderate-
income children. The free and reduced-price school lunch and breakfast
programs help millions of children, but millions more fall through the cracks
for reasons ranging from eligibility, food shortages, and school buses that
arrive too late for breakfast.

During the pandemic, when the number of hungry children at risk of starvation
rose, Congress and the Administration recognized the need to keep children
fed by providing regulatory waivers. Bipartisan support for expanding access
to free school meals is evident by the introduction of Rep. Abigail Spanberger’s
(D-VA) Keeping School Meals Flexible Act (H.R.6613) — cosponsored by several
Republican Members — to grant the Department of Agriculture the authority
to establish, grant, or extend child nutrition waivers.

At the state level, action by Republican and Democratic governors like Charlie
Baker (R-MA), Phil Scott (R-VT), Tom Wolf (D-PA), and Steve Beshear (D-KY)
has expanded access to free school meals for public school children. In the
absence of federal action, the Committee recommends other states and
localities follow their lead.




CHAPTER 3
Finding Agreement                                                                  35
     Employee Stock Ownership
     Americans should have more tools to accumulate wealth. The Committee
     believes more workers should have a stake in business profits through Employee
     Stock Ownership Plans (ESOPs).

     The bipartisan Securing a Strong Retirement Act (H.R.2954) — sponsored
     by Ways and Means Committee Chairman Richard Neal (D-MA) and Ranking
     Member Kevin Brady (R-TX) — includes provisions to create a tax deferral on
     contributions to an ESOP by owners of S Corporations and clarify rules for
     ESOP eligibility.

     Measuring Economic Well-Being and Disparity
     Members of the Committee are concerned that statistical measures produced
     by government sources do not provide the necessary information to make
     timely and accurate policy decisions. Advancements in technology offer
     opportunities to more easily and frequently collect data, including leveraging
     methods and data collection by the private sector. Computing power and
     statistical methods now exist to process larger data sets and identify smaller
     trends in shorter periods of time. Policy makers should have access to this
     real-time, more granular data. Agencies should receive adequate funding to
     produce better statistics and data.




     House Select Committee on
36   Economic Disparity & Fairness in Growth
Investing in
People
LIFELONG SUPPORT FOR BETTER FUTURES
                                                                                    4
      WATCH VIDEO: JANNA RODRIGUEZ, FREEPORT, NY
      President & CEO, Innovative Daycare Corp

      “I founded the Innovative Daycare Corp four years ago, motivated by a goal to
      expand opportunities for very young children,” says Janna Rodriguez, the President
      and CEO of a small business in Freeport, NY.

      “The resources available are just not accessible to everyone, especially Black and
      Brown people and women. Many of the children that I serve do look like me, so I
      know firsthand the importance of inclusivity and diversity.

      "When representation is at the core of your business philosophy, as it is with mine,
      you are encouraging children to be astronauts, doctors, lawyers, teachers, even
      advocates such as myself.” She explains, “You can get there — I believe that I am
      living the American Dream.”

      The most essential investment for the growth of the American economy is in
      human potential — people’s skills, knowledge, and education. Investments
      in people enhance productivity, increase labor force participation, and spur
      economic growth.



      CHAPTER 4
      Investing in People                                                                    37
     But what does it mean to invest in people? And how can such investment
     reduce disparities and increase opportunity while boosting our nation’s output
     and competitiveness?

     Education and training are critical. Early education, K-12 education, post-
     secondary education, and job training and retraining are all vital, high-yield
     investments. These investments in children, youth, and adults are made by the
     federal government, states and localities, the private sector, faith institutions,
     and nonprofits.

     America’s public schools, established in the 19th century, and its public
     institutions of higher education are two of our nation’s greatest successes.
     The GI Bill, enacted in 1944, enabled millions of veterans to get a college
     education and financing for homeownership. Andrew Carnegie financed libraries
     that helped millions read and learn. The 1962 Manpower Development and
     Training Act pioneered federal investments in retraining workers dislocated by
     automation. Community colleges, mostly funded by cities and states, have
     provided career and technical education to millions.




     LEFT TO RIGHT DESCENDING: SKILLS TRAINING PROGRAMS; BLACK
     SERVICEMEMBERS LEARNING ABOUT THE GI BILL; A PRE-K
     CLASSROOM; AND THE CARNEGIE LIBRARY IN WASHINGTON, D.C. 62

     Despite our past successes, there are many ways in which we are not doing as
     well as we could be, or as well as competitors. Fewer than one in six children
     eligible for child care subsidies receives them and, in over half of states,
     child care for infants costs more than tuition at a public university.63 Half of
     American three- and four-year-olds, mostly from low-income families, are
     not in preschool because it is not free and universal (as it is in France). For
     the majority of American youth who do not get bachelor’s degrees, we do not
     provide career-oriented skills or apprenticeships, as Germany does. Community




     House Select Committee on
38   Economic Disparity & Fairness in Growth
college enrollment has fallen as these institutions, many of which were once
tuition-free, have become too pricey for low-income students.64

At every stage of life, the U.S. under-invests in education and training relative
to our economic competitors. In a world in which innovation and high-end
services — the products of the human mind — produce significant wealth,
we cannot expect to win the economic race if we underinvest in those minds.

In today’s lightning-fast, knowledge-based economy, a high school diploma
is just a start. To keep up with the changing economy and the demands of
employers, Americans need an education system that starts earlier and
supports them throughout their lives.

Educational investments cannot stop after high school or post-secondary
education; in order to help Americans learn, change and adapt, they must
continue right to the point of retirement.

“It is not enough to think about this strictly in terms of training
for adults or retraining for adults … We need to be thinking
about the formation of human capital from the beginning of
life, including among young children.”
BRENT ORRELL, SENIOR FELLOW AT THE AMERICAN
ENTERPRISE INSTITUTE




CHAPTER 4
Investing in People                                                                 39
     Early Education




      WATCH VIDEO: MARC E. JAFFE, STAMFORD, CT
      CEO, Children’s Learning Centers of Fairfield County

      “Investing more early will have dramatic savings later in a whole range of ways …
      both economic and social,” Marc E. Jaffe, the CEO of Children’s Learning Centers of
      Fairfield County, CT, testified. “90% of the brain is developed by the time a child is
      five years old.”

      “Unlike the public schools that are open nine months a year and six hours a day,
      we are open and available not only to educate children and prepare them for
      kindergarten, but to enable parents to work,” he added. “The population that we
      typically serve are working class and lower income, about 95% of our families are
      minority. About 70% of our families are immigrant, and they are the workforce
      economy for Stamford and the surrounding communities.”

      The first five years of a child’s life are the most consequential for enabling
      success in school and adulthood, and “the benefits of a functional early care
      and education system are difficult to overstate,” Elliot Haspel of the Robins
      Foundation testified.65

      “Earlier this year, we got the results of a natural experiment from Boston, where
      a lottery determined which students got into a public preschool program,” he
      added. “Comparing demographically similar lottery winners to lottery losers,
      winners were 6% more likely to graduate high school, significantly less likely
      to be suspended or incarcerated, and significantly more likely to take the
      S.A.T. and to attend and graduate college.”

      The Boston experiment, the first randomized control study of the long-term
      effects of a large-scale preschool program, found other positive outcomes
      across racial and income groups.66

      High-quality, birth-to-age-five programs can provide a 13% return on
      investment when offered to children from disadvantaged socio-economic




      House Select Committee on
40    Economic Disparity & Fairness in Growth
backgrounds. That return is based on reduced costs in special education and
criminal justice expenditures, increased income, and tax payments across
children’s lives, and increased parental earnings — which is discussed later
in this chapter.67

The market for child care, however, displays the signs of market failure, in which
the aggregate value of the services exceeds what is charged or paid for the
services. In the case of child care, the costs of care are already unaffordable to
many, while the wages of care workers are too low to attract enough providers,
which leads to chronic shortages and continuing high prices.68

One estimate suggests families will spend an average of $10,000 on care per
child in 2022 — and in large cities, closer to $20,000 a year per child. Some
low-income families are spending up to 35% of their income on child care.69

Not surprisingly, enrollment in early childhood education and pre-K appears
to correlate with family income. Nearly half (48%) of children in households
making over $150,000 a year were enrolled in pre-K, while just over a third
(36%) from families making $20,000 to $50,000 were.70 These data suggest
that not everyone has access to the same opportunities for high-quality early
childhood education.

Beyond the issue of affordability, the majority of people in half the states
are living in a child care desert, defined as any geographic area where child
care supply meets less than one-third of the potential demand. Montana,
a rural state with several urban centers, illustrates this point: The Montana
Department of Labor and Industry has found that 60% of Montanans live in
a child care desert.71

Expanding the supply of licensed facilities and child care workers could reduce
prices, but the labor-intensive child care industry offers low pay. The median
child care worker earned an annual income of just over $27,000 (and an hourly
wage of just over $13) in 2021.72

The COVID-19 pandemic also had a lasting impact on child care workers,
as many left the industry or the workforce and have not returned. As of July
2022, there were at least 88,000 fewer child care workers than there were
pre-pandemic, exacerbating the pre-existing shortages.73

To attract more workers, child care providers could raise the pay for workers to
compete with higher wages elsewhere in the economy, but without sustained
public investment, the costs to families would likely go up.

Current federal support already falls short of reaching most eligible children:
The primary federal support for child care to states, territories, and tribes — the
Child Care and Development Block Grant — reaches less than 15% of eligible
children, and Head Start reaches less than one in five children.74

The lack of funding at the federal and state level decreases access to early
childhood education, including pre-K programs. It also lowers the quality of
existing programs, particularly for lower-income communities.75




CHAPTER 4
Investing in People                                                                   41
     Figure 8: The United States Invests Relatively Little in Children Under 5
     SPENDING PER CHILD ON CHILD CARE AND EARLY ED. (2017 OR NEWEST DATA AVAILABLE)




     SOURCE: ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (2022)76

     Despite the importance of high-quality early childhood investments and the
     significant growth in enrollment in such programs over the past century,
     particularly for lower income communities, data from 2017 indicate that the
     U.S. ranks below other industrialized nations on this metric, with a pre-primary
     school enrollment exceeding only that of Turkey.77

     “The fact that we as a nation are almost dead last in investing
     in our youngest children amongst industrialized countries
     should sound alarms, inasmuch as that is a threat to our global
     competitiveness”
     CHAIRMAN JIM HIMES


     Only 40% of U.S. three- and four-year-olds attend pre-K, one form of early
     childhood education. Of those, 60% were in a public program (enrollment
     in early childhood education is lower for children under age three). However,
     this level of enrollment has increased over the last half century, largely due to
     the federal Head Start program — which provides children from low-income
     families with early childhood education and their parents with daycare
     services.78 Nonetheless, only 36% of eligible children are enrolled in Head
     Start programs. Early Head Start, which serves children from birth to three
     years of age, serves only 11% of eligible children.79

     In the states, insufficient funding levels and income eligibility requirements
     reduce children’s access to public pre-K programs. While every state
     participates in federal Head Start, six states do not offer state-funded pre-K .80
     Another 31 states offer some programs, but they are not available to every
     three- and four-year old due to lack of funding, insufficient facilities, teacher
     shortages, and geographic barriers.

     Currently, 13 states have passed laws to offer universal pre-K to eligible four-
     year-olds, but only six states — Florida, Iowa, Oklahoma, Vermont, West Virginia,
     and Wisconsin have at least 70% of eligible children enrolled. Another four
     — Georgia, Maine, New York, and California — lack the funding and available


     House Select Committee on
42   Economic Disparity & Fairness in Growth
spots to fully enroll all eligible children. The final three — Alabama, New Jersey,
and New Mexico — offer limited, public pre-K due to inadequate funding.81

Research shows that universal systems tend to be better funded, promote
more socioeconomically integrated classrooms, and have higher classroom
quality. They also provide relief to middle-class families who struggle to afford
private market preschool.82

In states where resources are limited and pre-K is targeted to the most
disadvantaged children instead of being universal, states spend their
scarce dollars only on the highest need children.83 This is how children from
families with limited resources can end up concentrated together in severely
underfunded pre-K classrooms, which is a problem because children make
greater educational gains in classes with children of mixed income households.

Figure 9: Funding of Pre-K Across States
PRE-K PROGRAM ACCESSIBILITY BY STATE




SOURCE: THE NATIONAL INSTITUTE FOR EARLY EDUCATION RESEARCH (2022)84

Providing universal pre-K is expensive, but estimates suggest that every
dollar spent on preschool programs returns six dollars in benefits. Providing
less than universal preschool reduces impact and is less cost-effective.
Moving closer to universal pre-K provides the broadest benefit. This is why
the U.S. public education system is universal as opposed to targeted, and
why education scholars are concerned by economic and racial segregation
within public schools.85

Oklahoma has seen significant benefit from universal pre-K, for over 20 years,
including increased cognitive scores and test results for students.




CHAPTER 4
Investing in People                                                                   43
     Universal Pre-K Program in Oklahoma




     EARLY CHILDHOOD CENTER IN MUSKOGEE, OK 86

     In 1998, Oklahoma expanded its successful pre-K program for
     disadvantaged children to make it universal and high-quality. The state
     began providing full funding to each of the state’s 543 public school
     districts without a required match. A key requirement of the program was
     that all teachers have a college degree and a certificate in early childhood
     education. Group sizes were set at 20 students and child-to-staff ratios at
     10-to-1.

     A 2005 study of the program’s impact in Tulsa showed tangible benefits
     to children, especially those from low-income and minority communities.
     The researchers found an increase in cognitive and knowledge scores,
     language, and motor skills among the program’s participants starting
     kindergarten.87

     A 2017 Georgetown University study showed lasting effects on test
     scores, increased enrollment in honors courses, and grade retention for
     students through middle school.88



     The benefits of providing high-quality preschool to low-income children are
     further illustrated by the Abbott preschool program, which was developed
     after the New Jersey Supreme Court required the state to provide high-quality
     preschool in 31 school districts with high concentrations of economically
     disadvantaged and minority children.89

     The program is considered the most successful example of a large-scale,
     publicly funded initiative in closing gaps in educational outcomes between
     low-income and high-income children. According to researchers, the reason
     for its effectiveness was ample funding — $13,000 per child per year — as
     well as requirements for highly qualified, well-paid teachers, and an ongoing
     improvement and assessment system of curricula and standards.




     House Select Committee on
44   Economic Disparity & Fairness in Growth
Importantly, investments in preschool should be paired with holistic
investments across the early care and education system. Researchers in
states that have expanded only publicly funded pre-K have found that some
providers may drop their infant and toddler programs to focus on providing
care to the larger pool of pre-K children due to the high labor costs associated
with providing infant care.90 Additionally, early childhood programs must
address the needs of working families. Pre-K programs typically run for a
limited number of hours during the day, but families often require access to
care outside of these hours.

Early childhood education delivered through a variety of programs — including
family and center-based child care providers, community-based organizations,
federal Head Start and Early Head Start, state programs, and public schools
— allows parents to choose a program that works best for their needs.91

Committee Findings and Recommendations
Investments in early childhood education yield enormous intellectual,
psychosocial, and economic returns throughout an individual’s lifetime,
increasing productivity and the nation’s economic growth. Because enrolling
young children in early education is critical to fostering their opportunities
and expanding our national economic potential, the Committee recommends
significant expansion of public investment in children.




CHAPTER 4
Investing in People                                                                45
     Increase federal funding for early childhood education.

     Congress should increase funding for states to help them offer high-quality,
     early childhood education, including universal pre-K for all three- and four-
     year-olds. Funding should focus first on expanding access for low- and
     middle-income children, for whom the gains from early childhood education
     are greatest.

     Congress should support funding to ensure families — especially low-income
     and middle-class families ­— can afford high-quality child care that costs no
     more than 7% of their income.92

     Proposals for federal investment to support early childhood education from
     birth to age five range from $40 billion to $70 billion annually and would direct
     funding through the Department of Health and Human Services.93




     House Select Committee on
46   Economic Disparity & Fairness in Growth
Lifelong Learning




 WATCH VIDEO: CHARNELE EVANS, RACINE, WI
 Electrician at Current Electric, WRTP | BIG STEP Tradeswoman

 “When I first started out, I was in the medical field and I just wasn’t getting ahead,”
 said Charnele Evans, an electrician at Current Electric in Racine, Wisconsin. “So, I
 went to my community workforce training site, but I didn’t even know what trade I
 wanted to do. The teacher was telling me that I should come try electrician training.

 “Now, I knew nothing about [being an] electrician. I didn’t know nothing about no
 screwdriver, no drill, none of that,” she added. “But she told me to apply, and I
 applied and I got the job. And Current Electric gave me hands-on training, helped
 me get an apprenticeship. So, every day since I’ve been there, I’m just learning.

 “I love being an electrician,” she said. “Being an electrician has brought me so
 much stability to my life and so much discipline for me and my daughters. And I
 enjoy what I do. I wake up and I look forward to going to work and I love to see the
 finished project.”

 In a rapidly evolving economy, globalization, automation, and other economic
 factors can eliminate the need for workers in one industry and swiftly create
 new jobs in another. The ability to learn new, in-demand skills is critical to
 maintaining stable employment and income, especially for workers in the
 most economically precarious situations.

 Workers, particularly those whose jobs have been displaced by technology,
 must be able to adapt. The Government Accountability Office (GAO) found
 that “technological advancement has caused the skills required for common
 job postings to change up to 40% in the last decade,” while other research
 finds nearly half of U.S. workers will find their jobs changed or completely
 eliminated by automation.94 These changes have not fallen uniformly on
 workers: scholars anticipate that many labor-intensive and cognitive tasks
 are easily replaceable by machines.95




 CHAPTER 4
 Investing in People                                                                       47
     CHARNELE EVANS SHARING HOW HER TRAINING AS AN ELECTRICIAN
     CHANGED HER LIFE

     Those with postgraduate degrees and certifications have seen their real wages
     increase substantially since 1980, while those without college degrees have
     experienced stagnant wages.96 Some of the least educated workers — those
     without high-school diplomas — have seen real wages fall since 1980.

     More occupations and tasks will soon be subject to automation, threatening the
     ability of an increasingly large share of workers, including those in professional
     services, to maintain stable employment and wage growth.

     Technological change generally creates jobs even as it alters or eliminates
     others. Many of yesterday’s jobs requiring strength or repetition are being
     replaced by others that require adaptable thinking and specialized skills.

     Occupations that will be most in demand in the future — those in healthcare,
     caregiving, food service, clean energy, building and repairing infrastructure,
     and highly competitive science, technology, engineering, and mathematics
     (STEM) fields — already face shortages of adequately trained workers.97

     Lifelong learning, the continuous process of acquiring in-demand skills
     throughout one’s life, is required for workers to stay competitive in a rapidly
     evolving economy. Lifelong learning can be done through a range of workforce
     development and post-secondary educational programs for working adults
     and new job seekers, including: career and technical education (CTE) in high
     school; on-the-job apprenticeship programs; community college courses;
     four-year universities; and public-private workforce training initiatives.

     These programs are not necessarily sequential or mutually exclusive; rather,
     workers must be able to easily access whichever ones help them adapt to
     changing conditions.




     House Select Committee on
48   Economic Disparity & Fairness in Growth
Underinvestment in lifelong learning programs has inhibited their accessibility,
coordination, and effectiveness, and many existing programs either fail to
address individuals’ or employers’ needs, for programs and curricula that
match available jobs.98 Furthermore, these programs are often siloed or in
competition, rather than coordinated effectively.99

The private sector generally recognizes the need for additional investment, and
some employers provide effective education and training to their employees.
But often that training goes
to the best-educated, well-
paid, and long-tenured
employees, exacerbating
existing disparities.100

In order to ensure workers
can adapt and compete in an
evolving economy, Congress
must ensure America’s core
educational and workforce
development programs
                                     A HEAVILY-AUTOMATED U.S.
are well-funded and align            CAR MANUFACTURING PLANT
with the needs of workers
and employers.

Career and Technical Education in High School
and Beyond
There is a broad range of career-specific learning opportunities available to
high school students. The first exposure that many people have to lifelong
learning is through high school Career and Technical Education (CTE) programs,
which increase their post-high school earning potential and connect them to
post-secondary education or full-time employment.

In CTE programs, students study in both traditional classrooms and in practical
settings. CTE covers 10 areas, including engineering, healthcare, and business
communication technologies.101

CTE programs are widely accessible. The National Center for Education
Statistics (NCES) finds that 98% of public school districts offer students CTE
coursework, and 12.3 million students were enrolled in CTE in 2022. The
Department of Education provided $1.3 billion in funding to these programs
under the Perkins V Act of 2019, enabling schools to provide CTE programs
at no cost.102

CTE programs can lead students to immediate post-graduation employment
or act as a stepping stone to other programs — including post-secondary
degrees, certificates, or apprenticeships.103 More than a third of all school
districts report that CTE programs align with post-secondary programs, and
73% of districts provide courses that can earn high school and post-secondary
credit. The financial benefits to students in CTE programs are clear: They make
more money after graduation than their non-CTE peers.104


CHAPTER 4
Investing in People                                                                49
     Funding challenges in CTE programs can hurt teachers’ ability to do
     their jobs. Language barriers and a lack of supportive services, including
     transportation to offsite work-based learning, child care for student
     parents, or other financial support, can also inhibit students’ success.
     Moreover, some studies have found that CTE occupational segregation
     — the sorting of students into different career paths based on race,
     gender, or family income — has led to disparate outcomes in earnings.105




     The Power of Apprenticeships
     After high school, registered apprenticeships can provide workers with paid,
     on-the-job training for in-demand and high-wage occupations. High earning
     potential in fields with apprenticeships, as well as the opportunities for full-
     time employment following program completion, make them a key avenue
     for upward mobility. The Department of Labor estimates that 93% of people
     who complete an apprenticeship get jobs, and the average annual salary of
     those who do is $77,000.106

     Unfortunately, apprenticeships have not yet been widely adopted beyond
     construction and other trade occupations.107

     There is growth potential for apprenticeships in multiple industries, including
     energy, finance, and technology. One study identified three million current
     job openings that could be filled through apprenticeship programs, including
     in construction and advanced manufacturing. The healthcare industry faces
     complex and fast-growing workforce needs and is turning to the registered
     apprenticeship model for “apprenticeable” occupations including medical
     assistants, pharmacy technicians, and certified nursing assistants.108

     Some researchers estimate that the 27 occupations in which apprenticeships
     now operate could be expanded to 74 occupations — comprising up to 3.2
     million jobs.109

     The number of registered apprenticeships has, in fact, risen 64% over the last
     10 years, with over 636,000 apprentices and 26,000 registered apprenticeship
     programs across the nation in 2020. In addition, 3,143 new apprenticeship
     programs were established nationwide in 2020, and almost a quarter million
     people will begin an apprenticeship this year.110




     House Select Committee on
50   Economic Disparity & Fairness in Growth
NORTH ATLANTIC STATES REGIONAL COUNCIL OF CARPENTERS
APPRENTICESHIP TRAINING FACILITY IN BOSTON, MA


The Link Between Community College and
Career Mobility
Community colleges are another important component of lifelong learning:
Their open enrollment and low-cost education options provide students an
accessible and affordable path towards economic opportunity and mobility
at any point in a career.

Public two-year colleges generally offer open enrollment for a range of
academic and technical programs, from associate’s degrees to short-term
technical certificate programs. Those with a community college degree
earn more over the course of their lives than those without post-secondary
education. One study estimated that workers with associate’s degrees earn
$2 million over their lifetimes, compared to $1.6 million for those with only
a high school diploma.111

Community colleges are also an affordable pathway: The average in-state
tuition for public two-year colleges is $3,770 annually, compared to $10,560
for public four-year colleges. Many states, including Arkansas, California,
Nevada, New York, and Oklahoma, offer tuition-free community college.112

Though community college are affordable, completion rates are lagging, with
fewer than 40% of students earning a certificate or degree within six years
of enrolling.113




CHAPTER 4
Investing in People                                                             51
     A variety of factors contribute to this low completion rate, including: academic
     under-preparation in high school; institutional barriers and bureaucracy;
     personal non-academic barriers, including health issues, financial shocks,
     familial obligations, and mental health struggles; and the inability to
     pay tuition.114

     Many community college students take on debt to cover costs — around
     $14,700 for certificate completers and $20,400 for associate’s degree
     completers. Worse yet, 14% of two-year college entrants default on
     their loans.115

     Research shows that community college students who receive Pell Grants are
     more likely to complete their degrees than those who do not, but there has
     been a decrease in the percentage of community college students receiving
     Pell Grants over the last decade.116

     One reason why fewer community college students are receiving Pell Grants
     is the current requirement that 600 hours of study be completed: Nearly 10%
     of Americans attend community colleges for certificate programs, which have
     been shown to increase wages by 10%, but these programs often take fewer
     than 600 hours to complete.117 This restriction puts shorter programs and
     their economic benefits out of reach for many low-income students.

     A significant reason for the high costs of some community colleges is that
     these institutions receive $8,800 less per enrolled student in revenue than
     four-year institutions — a $78 billion revenue gap — and they receive only
     18% of their funding from the federal government.118 This lack of funding can
     compound students’ inability to graduate since it can reduce the amount of
     affordable and accessible support services, including advising and counseling
     services, quality classes, child care, and transportation assistance, which help
     students complete their programs and acquire good-paying jobs.

     Still, seven million students were enrolled in public two-year colleges during
     the 2020-21 academic year — representing 33% of all undergraduates. The
     share of Black, Latino, Indigenous, and Asian American students enrolling
     in community college is increasing: They made up more than 50% of the
     community college student body in 2020, an increase from 37% in 1996.119

     A large share of working adults and parents attend community colleges as
     well. One study found that 42% of all student parents are community college
     students, while another shows adults aged 25 and over comprise 21% of all
     full-time and 37% of all part-time community college students.120

     While there is often a focus on degree-earning, studies show that the short-
     term certificates offered at many community colleges have positive impacts on
     earnings and economic mobility.121 Two-year public colleges are also credited with
     helping half of the people in the U.S. who eventually earn a bachelor’s degree.122




     House Select Committee on
52   Economic Disparity & Fairness in Growth
Enhancing College Affordability
SAN FRANCISCO KINDERGARTEN TO COLLEGE

The Committee visited with beneficiaries of the City and County of San
Francisco’s Kindergarten to College (K2C) program, the first universal
Child Savings Account program in the country. The program helps
families prepare for college by opening a college savings bank account
for every new San Francisco Unified School District student in grades
K-12 with an initial $50 deposit. Families and students can earn
incentives when they start making deposits into their K2C accounts.123
Students with dedicated college savings accounts — even with less
than $500 — are 2.5 times more likely to attend college.124

As of 2020, there were over 8,000 K2C families with savings totaling $5
million dollars. Each family that has made at least one contribution to
their children’s K2C account has saved an average of $731.50.



Benefits of the Higher Education Track
Four-year colleges and universities are another element of post-secondary
education: Among high school graduates who went to college in 2021, seven
in 10 attended four-year colleges125 and 23.5% of Americans in 2021 had a
bachelor’s degree.

To many Americans, a four-year college education is seen as a prerequisite for
economic mobility, especially in a rapidly changing world — and some of the
data bear this out. Research by Raj Chetty shows college education increases
earnings and supports intergenerational upward mobility.126 In 2020, workers
aged 18 and older with bachelor’s degrees made approximately $73,000 a
year, while high school graduates and GED recipients made about $39,000
a year.127

College provides students with more than just a skills-based education: Most
who enter college develop broad analytical and communication skills that are
transferable across occupations.128

However, gaining a bachelor’s degree doesn’t guarantee access to the middle-
class, and there is evidence of recent shrinking income and wealth premiums
to college education — especially for people born after 1980.129 Preston
Cooper, a senior fellow at the Foundation for Research on Equal Opportunity,
testified that the lack of a clear return on investment for four-year college
attendance suggests the need to consider other approaches like community
college or specialized programs. His research finds an associate’s degree in
nursing will provide a better return than most four-year degrees at a fraction
of the cost.

The cost of pursuing a four-year degree is a barrier and a source of risk. The
average net price of attendance for a four-year degree was $14,200 at a
public school and $28,100 at a private college in 2019, sharply higher than



CHAPTER 4
Investing in People                                                              53
     community colleges, which cost students $7,600.130 Partly as a result, the
     average student loan held by a bachelor’s degree recipient was $27,800.

     The cost of tuition can lead to students dropping out before completion,
     sacrificing the college wage premium and sometimes leaving the student
     stuck with debt. On average, only 62% of students who enroll in a four-year
     school complete their bachelor’s degree in six years.131




     STUDENT BODY PRESIDENT ALISSON ANGUIANO SALAS WELCOMES
     ATTENDEES TO THE UNIVERSITY OF WISCONSIN PARKSIDE CAMPUS


     Setting Workers Up for Success in the 21st
     Century Economy
     Whether helping individuals grow in their current jobs or assisting them in
     learning new skills to change careers, workforce development is critical to
     workers and companies in a rapidly changing economy.

     The Workforce Innovation and Opportunity Act, last reauthorized in 2014,
     is the primary federal workforce development program. It was designed
     to increase coordination, prepare workers for in-demand occupations, and
     provide student support and career services.

     Though comprehensive in its approach to workforce development, research
     shows mixed results from WIOA. The Department of Labor reports a 58%–68%
     employment rate following the completion of a WIOA program (Youth, Adult,
     and Dislocated Worker), and WIOA-funded programs served around 3.5 million
     people in FY 2019.132

     Other research, however, found WIOA programs had little impact on some
     participants’ long-term earnings or employment.




     House Select Committee on
54   Economic Disparity & Fairness in Growth
Some studies further indicate more must be done to improve earnings
potential and job prospects for jobseekers, including combating preexisting
occupational segregation for Black and Latino workers and providing more
support services for low-income participants to better facilitate training.133




MEMBERS VISIT WITH APPRENTICES AT THE PORT OF SEATTLE

The development of state and local workforce development boards was core
to the WIOA reauthorization and intended to identify skills that are in demand
by employers. The boards are charged with developing strategies to meet
the needs of job seekers and employers searching for skilled workers and to
conduct outreach to employers and workers that would benefit from WIOA
programs and services.

Of course, the most important funders of workforce training are the most
direct beneficiaries of it: private sector employers. According to the Center for
American Progress, employers are “responsible for funding a large share of the
worker training across the country.” Estimates vary widely across studies, but
the Georgetown University Center on Education and the Workforce estimates
employer-provided training costs to be $177 billion, with another $413 billion
going to informal training.134

Dane Linn from the Business Roundtable (BRT) testified that “BRT member
companies also understand the importance of focusing on workforce
issues to fill the millions of open jobs and address their emerging workforce
needs.”135 Linn highlighted the Business Roundtable CEOs' work with the
Chicago Apprenticeship Network to scale its programs and create over 10,000
apprenticeships across the country by 2030, as well as the efforts of their
Multiple Pathways Initiative, in which “member companies are focused on
recruitment, retention and reskilling practices that create opportunities for
individuals to work and advance.”




CHAPTER 4
Investing in People                                                                 55
     MR. DANE LINN FROM THE BUSINESS ROUNDTABLE DISCUSSES
     WORKFORCE DEVELOPMENT

     During its field hearing in Kenosha, Wisconsin, the Committee also heard
     about a program that helps local workers gain new employment skills.

     Sherry Carrion — a 56-year-old Racine native — had been a cook at the Racine
     County Jail for nearly three decades. After her father became ill and passed
     away, she vowed to care for others the way she had wanted her father to be
     cared for, but, without additional education, her options were limited. Then
     she heard about SC Johnson’s Hope Scholars program, which provided the
     funding she needed to become a Certified Nursing Assistant.

     SC Johnson Foundation announced a donation to the Gateway Technical College
     in Kenosha for the Highly Skilled Occupations for Professional Employment
     (Hope) program in May 2020. SC Johnson’s donation supported Gateway in
     providing the training for students to earn a workforce certificate for jobs in
     construction, advanced manufacturing, information technology, and health
     sciences. The initial investment of $500,000 was expected to have an annual
     economic impact of $5 million on Racine County.

     Other companies make similar investments in their workforce. Chipotle offers
     employees $5,250 per year for college tuition and offers to fully cover workers’
     eligible degrees through their Guild Education program. To date, 85% of their
     “crew members” have utilized these programs, and those who do are 7.5
     times more likely to move into management within the company.

     Disney likewise provides 100% tuition-free education to all part-time and full-
     time employees through its Disney Aspire network schools, whether or not
     they relate to their job at Disney. Microsoft offers student loan refinancing and
     consolidation programs for employees and financial assistance for pertinent




     House Select Committee on
56   Economic Disparity & Fairness in Growth
GATEWAY TECHNICAL COLLEGE GRADUATE MS. SHERRY
CARRION SPEAKS TO THE COMMITTEE IN KENOSHA


coursework taken at accredited colleges, as well as apprenticeships and
career transition programs at community colleges and through the Microsoft
Datacenter Academy.

Many other companies also offer robust on-the-job workforce training and
development courses and programs to their employees. AT&T partners
with Georgia Tech University and the online education website Udacity to
offer executive-led professional development courses like web and mobile
development, data analytics, and tech entrepreneurship.

These efforts are admirable, but policymakers should not consider them
alternatives to more broadly available education and training programs. One
study found that businesses often concentrate their training investment
among their highly-educated and well-paid employees, while workers with
short-term contracts and tenures have less access to these opportunities.136

Committee Findings and Recommendations
Education and training can no longer be confined to the first 18, 22, or 25 years
of life. Higher education and advanced credentials are generally routes to
better-paying, more secure jobs, but continual ongoing education, training,
and re-training are increasingly necessary, as many workers end up having
to find new jobs that demand new knowledge and skills.




CHAPTER 4
Investing in People                                                                 57
     It is imperative that we improve, expand, and better coordinate educational
     and training opportunities. Although states, localities, and the private sector
     have significant roles to play, Congress should invest more in each part of
     America’s post-secondary and workforce development ecosystem. These
     include initiatives with a proven track record, whether or not they rely on
     traditional credentialing and promising new programs.

     Provide free community college and fund programs that assist students
     with child care and transportation needs.

     Given community colleges’ central role in providing affordable education and
     skills training, the Committee strongly supports making public community
     college free throughout the U.S. In the past, many institutions of higher
     education offered tuition-free enrollment, and states and localities are
     currently leading the way.137

     Connecticut has taken steps to make community college free, establishing
     the Pledge to Advance Connecticut (PACT) in 2019 to cover the gap between
     the federal and state grants that students receive and community college
     tuition and mandatory fees. The Seattle Promise program offers tuition-free
     access to all of the city’s public universities and scholarships to help with
     related expenses. Georgetown University estimates that state and federal
     funding of $14.3 billion a year can provide tuition and fee-free community
     college, significantly expanding economic opportunity.138




     REP. GONZALEZ AT THE ROUNDTABLE ON PRIVATE SECTOR EFFORTS
     THAT BENEFIT WORKERS

     Student support services are vitally important to ensure the success of
     community college students. The federal government should award grants
     to community colleges and consortiums of those institutions to help offer
     services like child care, transportation, and case management for students.




     House Select Committee on
58   Economic Disparity & Fairness in Growth
Expand Pell Grant eligibility.

The Committee recommends expanding Pell Grant eligibility to students
enrolled or seeking enrollment in short-term technical training programs
at community colleges or other technical training schools and reducing the
600-hour requirement. Removing that restriction would put shorter-term
programs and their economic benefits in reach for many low-income students.

Increase federal investment in career and technical education and
apprenticeship programs.

The Committee recommends that Congress award federal grants to fund
existing high school career and technical education programs, to improve
program quality and increase career and supportive services.

The Committee further recommends that Congress support the expansion of
federally recognized registered apprenticeship programs, pre-apprenticeship
programs, and youth apprenticeship programs. New apprenticeships should
expand into jobs and industries demonstrating growth. Congress should
also encourage participation and alignment of employers and educational
institutions.

The bipartisan National Apprenticeship Act of 2021 would invest $3.5 billion to
expand federally registered apprenticeship programs, youth apprenticeships,
and pre-apprenticeships, creating one million new apprenticeship opportunities.

Strengthen the public workforce development system.

Lastly, in order to strengthen the public workforce development system,
Congress must reauthorize the Workforce Innovation and Opportunity Act to
increase supportive services like transportation and child care for workers in
training, reduce occupational segregation, and better enhance coordination.
The changes to WIOA and increased support services would reduce barriers
to employment and improve outcomes for program participants. The 2021
House-passed reauthorization of the Workforce Innovation and Opportunity
Act makes these important changes while also creating training paths for
previously incarcerated people.139




COMMITTEE MEMBERS DURING THEIR VISIT TO SOUTHEAST WISCONSIN




CHAPTER 4
Investing in People                                                               59
     Caregiving




      WATCH VIDEO: CLAUDIA MORRELL
      BALTIMORE COUNTY, MARLYAND
      Family and Community Caregivier, Founder and CEO of STEM Equity Initiative

      “[My mother] is in a facility, and the facility closed. I had three daughters and three
      grandchildren — ages three, five and seven — so I took over. My children all had to
      go to work and their child care services disappeared,” Claudia told the Committee.
      “The demand was who’s gonna take care of these kids. And because I was working
      from home, the [grandkids] came into my home.”

      “Now you’ve gotta deal with making sure that your grandkids are safe and healthy
      and staying on track and are feeling loved, and then going to work at night because
      you can’t work during the day with three small children, and you’ve gotta find time
      to go take care of your mom,” she continued. “As we take on these important jobs
      of caring for our elder adults and our children, we lose the ability to serve the very
      economy that is supposed to support us.

      “That’s middle America. Middle-class America,” finished Claudia. “I think we’re
      invisible. And we’re getting crushed. We need help. I still need help, because if you
      take me out of this equation, the whole house collapses.”


      Economic Opportunity Through Family
      Care Investments
      Most Americans need to care for children and sick or elderly family members
      at some point in their lives, but doing so typically entails either significant out-
      of-pocket costs, lost potential for career advancement and wealth-building,
      or both. Low- and middle-income families, and typically the women in those
      families, often have to choose between paying thousands of dollars for child or
      elder care or leaving the workforce to provide that care themselves, exacerbating
      disparities between those who can afford care and those who cannot.




      House Select Committee on
60    Economic Disparity & Fairness in Growth
To make matters worse, because child care and home health aides are
poorly paid and, in the case of elder care, the job is physically demanding,
there are significant worker shortages. If a person cannot find a caregiver
(or is effectively bidding against others who can pay more), the choice of
whether to work or provide care disappears. Given a rapidly aging population,
these worker shortages will only grow more acute in the absence of policy
interventions.

The millions of women (and some men) who don’t work to provide necessary
care for their families also represent lost productive potential for the economy
at large. During the COVID-19 pandemic, the increased need for child care
coincided with women’s labor force participation hitting a 33-year low
in 2021.140

Public policy has often left American families in the lurch. The Child Care
and Development Block Grant and Head Start programs only have funding
to support care for a small proportion of the nation’s children. Government-
guaranteed paid family leave — which is offered in virtually every other rich
country — is unavailable in most of the United States, making it much harder
for mostly women to balance their jobs and caring for their families.

Making child and elder care more affordable, boosting the pay of workers in
these industries, and providing paid family leave would all increase individual
opportunity, reduce disparities, expand workforce participation, benefit
businesses, and enhance economic growth.

Without a resilient and affordable care system, our economy risks lagging
behind for generations to come. As Dr. Michelle Holder of the Washington
Center for Equitable Growth told the Committee, “As a mother of two young
children and the daughter of a mother experiencing a health crisis, I can tell you
that families are desperately in need of support when it comes to the provision
of care. This is about increasing labor force participation, developing human
capital, increasing productivity. It is about building a more vibrant economy.”141

“To lower the cost of child care for a family like my son and
daughter-in-law — who are just starting out here in this world
as a young couple — will give them the freedom to pursue the
American dream."
REP. ANGIE CRAIG


Accessible and Affordable Child Care
The long-term benefits to children of high-quality early childhood education,
as previously discussed in this chapter, are not the only reason to invest in
child care. The market failures that lead to high costs for and limited supply
of child care also affect their parents’ — and particularly their mothers’ —
ability to work.




CHAPTER 4
Investing in People                                                                  61
     The average child care expenditures per household had reached a record high
     of $7,602 in 2019 — before the pandemic — with cost increases outpacing
     other household expenses (as seen in the chart below). In 2022, families
     reported spending an average of $10,000 on child care for the year.142

     Figure 10: Daycare and Preschool Have Become Increasingly Expensive
     PERCENT GROWTH FOR CONSUMER PRICE INDEX FOR VARIOUS GOODS (1991 – 2021)




     SOURCE: BUREAU OF LABOR STATISTICS (2022)143

     But the cost alone obscures the fact that in order to pay those rates, many
     lower- and middle-income families would spend a potentially prohibitive
     percentage of their salary for child care — often even outpacing one parent’s
     earnings. These expenses are a particularly large financial strain on the
     household budgets of low-income families who spent up to an average of
     35% of their incomes on child care even before the pandemic.144

     Moreover, it is often young parents, many also at a critical point of their
     working lives, who can least afford these costs.145 All of this makes the
     balancing act between caregiving and working even tougher, particularly for
     middle- and low-income families.

     “Our broken child care infrastructure is holding back kids,
     working parents, and our economy. In my district in San Diego,
     child care is 40% of the budget for a family of four – nearly six
     times what’s considered affordable. And that’s only for families
     lucky enough to find a spot. In the wealthiest country in the
     world, every single family should have access to affordable and
     high-quality early care and education. Universal child care isn’t
     only the right thing to do, but also the responsible thing to do.
     Because when we invest in high-quality care, it saves us $6
     long-term for every $1 invested.”
     REP. SARA JACOBS




     House Select Committee on
62   Economic Disparity & Fairness in Growth
       Improving child care availability and affordability, on the other hand, is
       strongly associated with increases in employment among women, and
       particularly among low-income women with young children.146

       Dr. Holder testified that, “when the supply of child care in a community
       increases, so too does that community’s parental labor supply.” Specifically,
       she said, “a 10% reduction in child care costs increases maternal employment
       by between 0.5% and 2.5%.”

                                                “In a state such as West Virginia —
                                                where about 136,000 women have
                                                children at home and participate
                                                in the civilian labor force — a 10%
                                                reduction in child care costs would
                                                lead to around 3,400 women
                                                entering the labor force,” she
                                                explained. “That’s 3,400 more
                                                productive workers, and more
                                                dollars in the pockets of consumers
DR. HOLDER AT THE HEARING                       to support local businesses.”
ON FAMILY CARE
                                               The lack of accessible, affordable
                                               child care has massive spillover
       effects in the economy. The U.S. Chamber of Commerce Foundation estimates
       that employers pay between $375 and $500 per working-aged adult due to
       child care-related absences and employee turnover — cumulatively totaling
       about $3 billion in costs per year.147

       The long-term economic benefits of expanding access to affordable and
       high-quality child care are significant in terms of boosting overall labor
       force participation and increasing the productivity of current and future
       workers.148 But making it affordable and accessible would require a higher
       level of government support.

       Rising Adult Care Costs
       The costs of care for elderly Americans or those with special needs have also
       ballooned over the past decades, leading more working people to take on
       these responsibilities themselves.149

       A nursing home room can cost over $9,000 per month, while home health
       aide services cost over $5,000 per month, much of which is not covered by
       health insurance. About 48 million Americans provide unpaid care to an adult
       family member or friend, and almost 80% of these caregivers report spending
       an average of $7,242 per year out of pocket.150

       For low- and middle-income workers, especially those without generational
       wealth, the need to take care of aging parents or family members with
       disabilities in their homes can come at a significant expense in their working
       lives. Unpaid care costs caretakers on average $300,000 of earnings over
       their lifetimes, and often holds people back from participating more fully in
       the labor force or further training and education.151


       CHAPTER 4
       Investing in People                                                              63
           “The majority of working family caregivers report having to make changes to
           their work status due to caregiving responsibilities, like reducing work hours,
           changing jobs, or leaving the workforce altogether,” Ai-Jen Poo, president of
           the National Domestic Workers Alliance, testified to the Committee. “The
           burden is especially acute for 'sandwich generation' family caregivers, who
           are the 11 million Americans providing care for an aging or disabled loved one
           while also raising and managing caring for children.”152

           The situation is not likely to improve without some sort of intervention. By
           2060, 94.7 million Americans will be over 65, and 70% of them will require
           long-term care at some point in their lives.153

                                                     In 2021, however, over 820,000
                                                     people were on waitlists for long-
                                                     term in-home care services, a
                                                     preferred and more economical form
                                                     of long-term care. At the same time,
                                                     the median annual pay for home
                                                     health and personal care aides is
                                                     $29,430 — almost 40% lower than
                                                     the median pay for all workers — and
                                                     nearly 18% of such workers are living
                                                     in poverty. As with child care workers,
     AI-JEN POO FROM NATIONAL                        the pandemic considerably increased
     DOMESTIC WORKERS                                turnover among these workers.154
     ALLIANCE TESTIFIES
                                                    This suggests that the supply and
           demand for care workers are currently moving in opposite directions, and
           points to potentially even greater disparities in the future.155

           Investments in elder care — specifically in home-based care — can help
           strengthen the economy by creating jobs, reducing costs by shifting
           people out of nursing homes, and improving care outcomes for the elderly.
           Already, investments in home and community-based services are projected
           to accelerate economic recovery, increase GDP, and create hundreds of
           thousands of jobs in the long-term.156

           Paid Leave: Balancing Work and Family Support
           One way to help workers balance their family responsibilities (and their own
           health) without sacrificing their jobs or their income is to provide workers with
           paid family and medical leave.

           As Dr. Michelle Holder testified, “Paid family and medical leave provides wage
           replacement to workers who take time off from work to attend to the needs
           of a loved one or their own serious medical condition,” she explained.

           A mother’s access to paid family leave at the time of a birth increases labor
           market participation by 5% — but, in its absence, 30% of those women leave
           the labor market. The women who receive paid leave have higher earnings and
           are 40% less likely to receive public assistance in the year after giving birth
           than women who keep working and have none.157


           House Select Committee on
64         Economic Disparity & Fairness in Growth
Despite the evidence that paid family leave benefits parents, employers
and Americans at large, only 11 states offer paid leave programs.158 Each
programs’ eligibility and benefits vary, and each program is funded through
employee- or employer-paid payroll taxes. Without a federal program,
California’s first-in-the-nation paid leave program is an example of how states
can provide access to paid leave for all workers, as seen in the box below.



California’s Paid Family Leave Program
THE CALIFORNIA STATE CAPITOL IN SACRAMENTO, CA 159




The first paid family leave (PFL) program was enacted in California in
2004 as a component of an existing benefit program known as State
Disability Insurance (SDI). It provides wage replacement benefits to
workers who need to take time off from work for child or ill family
member care. The program provides up to eight weeks of paid leave
to care for a seriously ill child, spouse, parent, or registered domestic
partner, or to bond with a new child.160

Since 2004, nearly 14.2 million claims have been paid, nearly one-third of
which went for family caregiving or child bonding. In 2020, about 6.7% of
covered workers used the program, an increase from the average 5%
per year.161 One study found that the program is associated with higher
work and employment probabilities for mothers nine to 12 months after
birth and with increased hours and weeks of work during their child’s
second year of life.162

A survey of California businesses from 2009 and 2010 showed that
about 60% of businesses coordinate their sponsored benefits with PFL,
resulting in cost savings for some of these businesses. Another economic
study on the effects of the program from 2004-2018 concluded that PFL
increased employment among new mothers and reduced labor costs of
14% per worker for small businesses.163




CHAPTER 4
Investing in People                                                               65
     Since October 2020, most military and civilian federal employees have 12
     weeks of paid parental leave per year, and many states offer paid parental
     leave for their employees.164

     “Just one in five workers has access to paid family leave through their
     employers,” Dr. Holder testified. “The figure is closer to one in 20 for workers
     in the lowest-paid workers, who are disproportionately workers of color and
     especially women of color.”

     Compared to Asian American and white workers, Black and Latino workers
     are overrepresented in low-income jobs, where paid leave is less likely to be
     offered. This disparity in access compounds for families in which parents
     are less educated or unmarried, who are even less likely to have paid leave
     regardless of race or ethnicity.165

     Access to paid leave ensures workers have money in their pockets so they can
     buy food and pay rent. Without paid leave, workers lose out on income for
     daily survival and are hindered from moving up the economic ladder.

     “I am the daughter of a domestic worker. And I grew up doing
     my homework in strangers’ houses while my mom vacuumed,
     and cleaned, and did what needed to be done… The United
     States is the only country in the OECD that does not guarantee
     any paid family and medical leave to its citizens. And yet,
     we come in here every day and people act as though it is
     impossible.”
     REP. ALEXANDRIA OCASIO-CORTEZ



     Committee Findings and Recommendations
     Caring for young children, elderly relatives, or others with special needs are
     responsibilities that most Americans assume at different points in their lives,
     but these should neither be unaffordable nor create irreconcilable conflicts
     with people’s abilities to hold down jobs and earn their livings. The high
     cost of paying for caregivers or sacrificing pay to provide care — a task that
     disproportionately falls to women — causes economic and psychological
     hardship for lower- and middle-income households. This hinders individual
     opportunities for economic and career advancement and, hence,
     economic growth.

     In addition, care workers are generally underpaid and have little job security,
     resulting in shortages of these workers at a time when demand for their
     services is increasing.




     House Select Committee on
66   Economic Disparity & Fairness in Growth
The Committee therefore urges Congress to ensure that affordable and high-
quality child care and elder care are available for every American family that
needs it. We also believe that workers should be able to take limited paid leave
to care for young children and respond to family health crises throughout
the lifecycle.

Provide increased funding for child care.

As recommended in the previous section on Early Childhood Education, the
Committee calls on Congress to ensure families — especially low-income and
middle-class families — can afford high-quality child care that costs no more
than 7% of their income. As discussed, these investments not only improve
children's outcomes, they also boost parents' labor force participation and
strengthen our economy.166

Establish a national standard for paid family leave.

The Committee recommends establishing a national standard of 12 weeks
for paid family and medical leave. The Family and Medical Insurance Leave
(FAMILY) Act (H.R. 804)167 would establish the first national leave insurance
program within the Social Security Administration. It would create a new
payroll tax on employers and employees to fund the program. The insurance
would provide 66% of an employee’s regular pay for up to 12 weeks of family
leave. The Congressional Budget Office estimates the FAMILY Act would cost
$547 billion over a 10-year budget window, while the taxes to fund it would
raise $319 billion in tax revenues.




SPEAKER PELOSI ADDRESSING THE NEED TO MAKE CHILD
CARE MORE AFFORDABLE




CHAPTER 4
Investing in People                                                                67
     Small Businesses




      WATCH VIDEO: MOLLY MOON NEITZEL, SEATTLE, WA
      Founder and CEO of Molly Moon's Homemade Ice Cream

      “I opened my first shop in the spring of 2008 with seven employees,” testified
      Molly Moon, owner and founder of Molly Moon’s Ice Cream, during a Committee
      field hearing in Seattle, WA. “You can start in our company with no experience and
      get management training, and leadership training to move up in our company and,
      you know, make a job at Molly Moon’s your career, and be able to have a family if
      you want to or buy a house.”

      “It’s all a very interconnected web when you’re doing good in the community and
      you’re running a business,” she continued. “Those things go well together … it’s
      been really wonderful and amazing and fulfilling that it is profitable.”

      Many Americans dream of pursuing an idea, being one’s own boss, and
      creating a business. Whether it’s a neighborhood restaurant or a global tech
      firm, nothing can be more exhilarating to those with the entrepreneurial spirit.

      Starting a business, while demanding and speculative, can also be liberating
      and lucrative, providing a path to upward mobility for people with low or
      moderate incomes. This has been especially true for immigrants.168

      People who start businesses on average earn higher lifetime incomes,
      enabling small business owners to accumulate wealth and, for family-owned
      businesses, transfer wealth to children.169

      Small businesses have other benefits for communities and the country. While
      about 96% of small businesses have fewer than 10 employees, they create
      two-thirds of all new jobs and employ 61.7 million people — almost half of all
      private sector employees.170 They also cultivate social capital, increase local
      tax revenues, and are engines of economic growth.171

      When small businesses succeed, American workers benefit.




      House Select Committee on
68    Economic Disparity & Fairness in Growth
Until the COVID-19 pandemic led to an uptick in small-business formation,
entrepreneurship in the United States had been in decline for about 40
years. Financing constraints, complex and costly licensing requirements and
regulations, and the greater appeal of more secure, high-paying jobs may all
have played a part. Because of continued discrimination, capital — a requisite
for many budding businesses — has been particularly hard for minority
entrepreneurs to obtain.172

Since small businesses can do so much to increase opportunity and
reduce disparities, policies need to redress existing barriers to successful
entrepreneurship.173 Expanding access to capital, increasing technical
assistance, reducing regulatory red tape, and facilitating better options for
family-friendly policies for businesses would all be beneficial.

“Entrepreneurship and small businesses are at the very
core of the concept of the American Dream. It is also true,
obviously, that it is extraordinarily difficult to start a business
and to succeed. The market economy can be unforgiving.
And, of course — at least in my own anecdotal experience —
entrepreneurs who have identified a need often have extreme
difficulty in finding the capital to actually start the business and
grow that business successfully.”
CHAIRMAN JIM HIMES


Starting a business is an inherently risky venture shaped by a variety of factors
— including the quality of the business model, the industry, the presence of
local competition, access to financing, and macroeconomic conditions —
some of which are not in an entrepreneur’s control. Between 1994 and 2019,
about one-third of new firms with employees closed within two years of
opening, and half closed within the first five years.174

That is not inherently a problem: Not every business venture is well-conceived,
has a natural market, or should succeed. And serial entrepreneurs often learn
more from failure than initial success.175

There is evidence, however, of market failures and barriers that keep even the
most innovative entrepreneurs from starting, sustaining, and scaling a venture.

The economic justification for any government intervention in markets rests
on a failure of the free market to allocate resources efficiently.176 When it
comes to access to capital for small businesses, market failure stems in part
from lenders or investors who are unwilling to provide capital to firms due to
perceived risks — whether true or driven by gaps in information — associated
with localities, business development stages, or industries. Other studies
revealed that racial and gender bias can affect the decisions of lenders
and investors.




CHAPTER 4
Investing in People                                                                 69
     Smaller firms, particularly in low-income communities, may have fewer
     resources to navigate the complexity of the federal and state regulatory
     systems which tend to be disproportionately burdensome on small
     businesses. On average, small businesses pay $11,700 per year per employee
     in regulatory costs, and the costs to smaller businesses — those with 50 or
     fewer employees — of complying with regulation are nearly 20% higher than
     they are for the average-sized firm.177

     Low- and middle-income entrepreneurs often lack access to business
     networks that can provide technical assistance and support business-building
     activities like mentorship, business skills development, market expansion,
     and business skills training.178

     Removing barriers like these to successful entrepreneurship will bolster
     national competitiveness and help chart a path to inclusive and sustained
     economic growth.

     Expanding access to capital, targeting technical assistance, reducing
     redundant licensing requirements and regulations, and providing better
     access to child care are the primary strategies for the government to
     strengthen the competitiveness of small businesses.179

     Access To Capital: Starting, Growing, and
     Sustaining a Business
     One of the steps to starting a business is securing the necessary capital
     — whether via one’s own money or external financing, like loans or equity.
     There are significant differences in access to capital across geography, race,
     ethnicity, and gender.180

     “Thankfully there is broad bipartisan support for small
     businesses in the United States. But oftentimes we see that
     we don’t treat all small businesses equally, depending on who
     starts them or what kind of business you are, you don’t often
     get access to policies, you don’t get access to capital. And
     sometimes you are just not even treated favorably, whether it is
     by your municipal government or your federal government."
     REP. ALEXANDRIA OCASIO-CORTEZ


     Studies have found that there is less small business lending in poor
     neighborhoods and in neighborhoods where a majority of residents are Black
     or Latino, even when controlling for factors like the number of employees.
     This limits the potential of would-be entrepreneurs in those communities.181

     A substantial body of research shows that racial bias plays a role in the
     ability of minority-owned businesses to access start-up and growth capital,
     hindering the potential of these businesses to succeed. Some studies showed
     that minority borrowers were charged higher interest rates on bank loans


     House Select Committee on
70   Economic Disparity & Fairness in Growth
than similar white borrowers. A “mystery shopping” study on bank lending
practices showed Black testers were asked to provide more information
about the business than white testers, including information that was not
related to the business.182

And, Black small business owners with high credit scores “are more than
twice as likely to report a fear of denial than white founders with below
median credit scores.”183

Research does show that minority-owned businesses are more likely to have
higher credit risks, limiting their ability to secure affordable capital. But the
Federal Reserve has found that minority-owned companies are less likely
to be approved for financing than companies with white owners, even after
controlling for credit risk.184
Figure 11: Minority-Owned Businesses Receive Funding They Seek Less Often.
SHARE OF FIRMS RECEIVING TOTAL FUNDING SOUGHT BY RACE/ETHNICITY & CREDIT RISK (2021)




SOURCE: UNITED STATES FEDERAL RESERVE SYSTEM (2021)185

All of these factors — combined with lower levels of inherited wealth, as
discussed in previous chapters — probably contribute to the fact that minority
entrepreneurs use less external funding and start their ventures with less
capital on average.186

In rural areas, the volume of small loans to rural businesses declined by more
than half between 2004 and 2017. The decrease coincided with regional and
community banks disappearing as the industry consolidated in the wake of
the Great Recession (2007-09).187

Women business owners are more likely to use their personal savings and
less likely to use bank loans compared to men — which may put their firms
at a disadvantage later, because an early relationship with a bank may be key
for future business financing.188

“I started my small business from scratch and was able to create my own
economic opportunities,” LaJuanna Russell, a small business owner of 20
years and chair of the board at Small Business Majority, testified to the
Committee. “Accessing capital as a woman of color isn’t a small task, but I
benefited from a community bank in the early stages of my business, which
helped set our trajectory.”189


CHAPTER 4
Investing in People                                                                    71
     There are organizations that seek to bridge these gaps. Community banks
     and financial institutions (CFIs) — including Community Development Credit
     Unions, Community Development Financial Institutions (CDFIs), Community
     Development Banks, SBA microlenders, and Certified Development
     Corporations — play a critical role in providing access to capital and technical
     assistance to small businesses, especially in underserved communities.190

     Community banks are generally defined as organizations with less than
     $10 billion in assets. They often have a strong presence in rural areas, local
     community ties, and, in many cases, local ownership. Community banks often
     rely heavily on interpersonal relationships instead of on financial statements
     and data-driven models for making lending decisions.191

                                                        As of 2019, community
                                                        banks accounted for 15%
                                                        of total industry loans but
                                                        held 36% of the banking
                                                        industry’s small business
                                                        loans. Yet, the number of
                                                        community banks has
                                                        shrunk considerably over
                                                        the past 30 years, and,
                                                        should this trend continue,
                                                        it could threaten the role
     MS. LAJUANNA RUSSELL FROM SMALL                    community banks play in
     BUSINESS MAJORITY                                  small business lending.192

     “Community banks are essential to the small business ecosystem, as they
     are able to provide critical funding to entrepreneurs with better terms and/
     or lower fees and interest rates compared to more established financial
     institutions,” Ms. Russell testified.

     “They also offer more guidance and support in ways larger banks do not,” she
     added. “Building and establishing my relationship with a community bank
     not only opened the doors for me to build a network, but it also afforded me
     the financial understanding and long-term support necessary to capitalize
     on programs quickly.”193

     Though it is less common, some small businesses — particularly in the services
     industry — have been able to use equity to start or grow their businesses.

     Numerous studies confirm that investors tend to concentrate their offers
     with companies that are already close in proximity, generating a geographic
     disadvantage for new small businesses in small towns and rural areas outside
     of California’s Bay Area and Silicon Valley, New York and the Boston area.
     Women are also less likely to receive funding in early-stage decisions from
     angel investors, even when controlling for the content of the pitch.194




     House Select Committee on
72   Economic Disparity & Fairness in Growth
Federal Government Support for Small Business
The Small Business Administration (SBA), created in 1953, supports
access to capital for small businesses through a variety of programs,
such as SBA's 7(a) loan guarantee program, CDC/504, and the Microloan
Lending Program. SBA also funds technical assistance to businesses
through 14,000 resource partners, including 62 Small Business
Development Centers, 136 Women’s Business Development Centers,
22 Veterans Business Outreach Centers, and more than 250 chapters
of the Service Corps of Retired Executives (SCORE).195




U.S. SMALL BUSINESS ADMINISTRATION HEADQUARTERS AND THE
DEPARTMENT OF COMMERCE BUILDING IN WASHINGTON, D.C. 196

SCORE is the nation's largest network of volunteer, expert business
mentors that has served more than eleven million small business
owners. SCORE recently created the Small Business Resilience Hub,
mentoring more than 700,000 clients online on topics like funding
and finance, recovery and growth, and startup business plans.197

The Minority Business Development Agency (MBDA) promotes the
growth and competitiveness of minority-owned businesses through
a national network of MBDA business centers, including Federal
Procurement and Export Centers.

The Department of the Treasury established the Community
Development Financial Institutions Fund (CDFI) in 1994 to address
persistent barriers to capital access among disadvantaged
communities and populations, with the goal of expanding economic
opportunity for underserved people and communities.198



Technical Assistance and Administrative Burdens
To gain access to capital or grow, small businesses may also require technical
assistance to persuade lenders of their capacity to repay debt. Other needs
may include targeted technical assistance for expanding a business, including
writing a business plan, helping overcome language or cultural barriers199 and
more effectively engaging in e-commerce.200


CHAPTER 4
Investing in People                                                              73
     “Years ago, when I ran a loan fund that was geared towards
     small businesses with public health projects, we didn’t require
     collateral. We had extensive technical assistance, which I
     heard mentioned today from the witnesses. We cut down
     the bureaucratic application process, and we had a specific
     outreach strategy to reach the right kinds of businesses.
     And guess what? We had a 99% repayment rate, even
     with all of that.”
     REP. PRAMILA JAYAPAL


     “Entrepreneurs across America can benefit from free and low-cost business
     assistance support to help them manage and pivot their businesses in times
     of crises,” Ms. Russell testified. “The COVID-19 pandemic has shown that
     the Small Business Administration (SBA) and its different mentoring and
     technical assistance providers require more funding and resources in order
     to better assist the growing influx of new and current entrepreneurs.”201

     Small businesses face difficulties understanding, complying with, and
     affording federal, state and local regulations — burdens which fall
     disproportionately hard on them compared to larger companies, and which
     may be much more difficult for new entrepreneurs to navigate.

     For example, as Ms. Russell testified, “My business operates in 11 different
     states, which means I need to become familiar with each state’s regulations and
     processes. My annual tax return can be up to 200 pages. As you can imagine,
     this takes a lot of time away from maintaining and expanding my operations.”

     The regulatory costs of economically significant federal rules to small
     businesses amount to over $40 billion per year, according to the U.S. Chamber
     of Commerce. Increases in per capita regulatory expenditures are directly
     correlated with decreases in the number of small firms that employ between
     one and four persons, according to the Chamber’s report.202

     Occupational licensing is another barrier for some small business owners.
     While the ostensible objectives of licensing are to promote high-quality
     services and safeguard public health, researchers and policymakers
     have acknowledged the obstacles inherent in licensing and underscored
     opportunities for reform. Experts agree on the need to balance licensing
     requirements to ensure that market competition is not stifled.203




     House Select Committee on
74   Economic Disparity & Fairness in Growth
Committee Findings and Recommendations
Increased entrepreneurship can provide a way to tackle the country’s dramatic
wealth gap and secure an economic future for the next generation. Yet many
entrepreneurs and small business owners, particularly people of color and
                                                      those living in rural
                                                      areas, face barriers
                                                      that prevent them
                                                      from reaching their
                                                      full competitive and
                                                      economic potential.
                                                      Many others with good
                                                      ideas for businesses
                                                      that could serve needs
                                                      and create jobs are
                                                      unable to launch them
                                                      because they cannot
                                                      raise the capital.
WATCH VIDEO: PAMELA AND
MONTINIQUE CAGER DISCUSS                             The federal government
CHALLENGES FOR THEIR CAKE                            should level the playing
SHOP IN NORTH CAROLINA                               field by expanding
                                                     access to capital,
increasing support for and improving the quality of technical assistance,
easing administrative burdens, and collecting more granular and timely
data on small businesses and federal program performance. These efforts
should be targeted to those facing barriers because of their economic status,
geography, race, or gender.

Update and expand existing Small Business Administration programs.

The Small Business Administration’s loan guaranty programs encourage
lenders to provide loans to small businesses “that might not otherwise
obtain financing on reasonable terms and conditions.”204 The Committee
recommends that Congress continue to support, monitor, and update the
SBA flagship 7(a) and 504 loan guaranty and Microlending programs.

In particular, the Committee recommends that Congress provide permanent
statutory authorization for SBA’s Community Advantage (CA) Loan Program.
Part of the 7(a) loan guaranty program, the CA Loan initiative is designed to
increase access to capital for small businesses located in low- and moderate-
income communities by allowing nontraditional, mission-oriented lenders,
including CDFIs, to participate in the 7(a) program, and by providing technical
assistance to small businesses located in underserved communities.205 SBA
data show the program reached underserved business owners but it remains
in a pilot status, limiting lenders’ willingness to participate.206

The Committee also recommends that the Administration improve small
businesses’ access to equity capital by amending SBA’s Small Business
Investment Company (SBIC) Program regulations to reduce barriers to
program participation for new private fund managers and private funds
focused on equity and long-term debt investments, particularly those in


CHAPTER 4
Investing in People                                                               75
     underserved communities and geographies. Through this public-sector
     equity-finance program, qualified investment funds are licensed to operate
     as SBICs, which allows them to leverage government-guaranteed debt
     and capital raised from private investors. Some research shows that SBIC
     financing is comparatively more diverse than private venture capital, but
     important gaps remain in serving minority-owned and other disadvantaged
     businesses that persist within the program.207

     Further, the Small Business Administration should take additional measures
     to reach neighborhoods in need of entrepreneurial advancement by expanding
     the SBA Community Navigator program, including through the potential use
     of mobile units to reach underserved communities in person.

     Scale federal support for community and mission lenders.

     The Committee repeatedly heard that community banks and other mission
     lenders, notably Community Development Financial Institutions (CDFIs) and
     Minority Deposit Institutions (MDIs), play a key role in bridging lending gaps,
     particularly for small rural and underserved businesses. However, CDFIs and
     other mission lenders are a small part of small business lending and are not
     present in all communities.208 A Federal Reserve survey further indicated
     that CDFIs experience capital and capacity gaps, limiting their ability to serve
     clients effectively.209

     The federal government can address some of the bottlenecks
     to the ability of CDFIs to raise capital through a combination of
     administrative and legislative actions. The Committee recommends
     that Congress increase funding for the U.S. Treasury CDFI Fund to build
     capacity and pilot a loan loss reserve pool for small business lending.
     The Committee recommends the Administration increase Community
     Reinvestment Act (CRA) credits for banks that invest into CDFIs for community
     enhancing projects.

     In a positive step, the Treasury Department recently has directed more than
     $15 billion in investments and tax credits to community lenders and other
     mission capital providers to expand inclusive entrepreneurship.210

     Enhance technical assistance programs for small businesses, especially
     underserved and rural businesses.

     The Committee supports increasing the provision of technical assistance
     for small businesses through refining and expanding high-quality, online
     training programs. The federal government should increase its support of
     public-private partnerships and local organizations that increase awareness
     of technical assistance and CDFI products in smaller neighborhoods.

     The Committee recommends passing the SCORE for Small Business Act of
     2022, sponsored by Reps. Young Kim (R-CA) and Angie Craig (D-MN).




     House Select Committee on
76   Economic Disparity & Fairness in Growth
Ease administrative burdens for new entrepreneurs.

The Committee recommends taking steps to help would-be entrepreneurs
get better information about state level licensing requirements, which can be
burdensome and redundant. The One Stop Shop for Small Business Licensing
Act of 2022 (S.5012), introduced by Sens. Shelley Moore Capito (R-W.V.) and
Jacky Rosen (D-NV), would “require the Small Business Administration (SBA)
to create a centralized website for licensing and business permit information
and materials for small businesses.”

Collect and publish more granular data on small business lending and
investments.

The Committee supports the collection of more timely and robust data
on small business lending. Section 1071 of the Dodd-Frank Act directs the
Consumer Financial Protection Bureau to collect data on lending to small
businesses in order to understand credit availability for small businesses
operated by minorities and women.211




CHAPTER 4
Investing in People                                                             77
Building
Connections
BRIDGING THE DIVIDE TO ECONOMIC OPPORTUNITY
                                                                                      5
      WATCH VIDEO: SHARON VOGEL,
      RIVER SIOUX RESERVATION, SD
      Executive Director of the Cheyenne River Housing Authority

      “One of the things happening throughout Indian Country is overcrowding and a
      lack of housing,” said Sharon Vogel, a member of South Dakota’s Cheyenne River
      Sioux tribe and an employee at the Cheyenne River Housing Authority. “Families
      living in poverty just have some really tough conditions, and when they lack stable
      housing, it just becomes tougher.

      “And if they were working, a lot of their money was being spent on transportation,”
      she added. “It was taking away disposable income because they’re traveling on
      unmaintained gravel roads, so they were having car repairs and of course the cost
      of gasoline to get to and from work.”

      Broadband, roads, and transit — the physical connections between our
      homes, jobs, and schools — connect us to economic opportunity. Often, how
      well you are physically or virtually connected to others strongly influences
      your ability to achieve the American Dream.




      House Select Committee on
78    Economic Disparity & Fairness in Growth
Ms. Nikitra Bailey, the senior vice president of public policy at the National
Fair Housing Alliance, put it in stark terms: “One’s ZIP code is often life-
impacting,” she testified.212 “Where people live determines their access
to home ownership, the type of credit they use, their ability to attend a
well-resourced school, their exposure to toxins and pollutants, and their
employment opportunities — all of which are consequential to their economic
status and level of wealth.”

“We sometimes talk about a whole-of-government effort. The
problems we address today are whole-of-society. And so,
the solutions lie — as they always have — partly with the
government, but also in our neighborhoods, our businesses, our
families, our houses of worship.”
CHAIRMAN JIM HIMES


When housing, roads, transit, and broadband are designed with the needs of
all Americans in mind, people are connected to economic opportunities and
critical services. When those connections fail, aspiring Americans can’t make
headway, and communities wither.




CHAPTER 5
Building Connections                                                             79
     Affordable and Accessible Housing




      WATCH VIDEO: RAE JOHNSON, MILWAUKEE, WI
      Writer at Esri, Homeowner Supported by Acts Housing

      Homeownership and the American Dream
      Rae Johnson, a first-time Milwaukee homeowner, explained during a field hearing
      in Milwaukee what home ownership means: “If you understand where you’re going
      to lay your head down at night, that’s one less thing that you have to worry about
      when you’re trying to work or get your kids to school or daycare,” said Johnson.
      “Having that security of knowing that I have a place to stay, that I have a place to
      sleep tonight, can really alleviate a lot of burdens for a lot of people.”

      “In 2019, I decided that I wanted to buy a house,” they added. “I was renting a
      small apartment on the South Side with my son, who kept asking me if we could
      get a dog. And I said, ‘No, we just don’t have space but once I buy a house, you can
      get a dog.’ So, I worked really hard in 2019 to pay off my debt and save money in
      order to be creditworthy, to buy a home.”

      “When I finally got the call that I qualified, I was so overwhelmed with pride and
      joy. My coworkers could hear in my voice that I was crying.”

      A safe, stable, affordable place to live immeasurably improves quality of life
      and the possibility of accumulating assets. Homeownership, in particular,
      provides a clear pathway to upward mobility through home equity, improved
      credit, and asset-building. Homeownership is by far the most critical wealth-
      building mechanism for Americans, as it provides better long-term financial
      security than renting and accounts for the majority of financial assets held
      by lower- and middle-income people.213

      While loan terms, location of home, and time of purchase all affect equity
      gains, there are clear financial benefits to homeownership compared to
      renting. The typical single-family home sold recently provided the seller
      with an equity gain of $146,000 if purchased five years prior, $229,000 if




      House Select Committee on
80    Economic Disparity & Fairness in Growth
purchased 10 years prior, and $352,000 if purchased 30 years prior.214 For the
vast majority of Americans, these are life-changing sums.

Unfortunately, these benefits are becoming increasingly inaccessible to a
growing share of the American population and, in the process, constricting
opportunities for economic mobility.

Over the past 30 years, increases in home prices and rent have significantly
outpaced increases in wages.215 As homes become more expensive, higher
incomes or outside financial resources will be prerequisites for buyers.

Consequently, the once widely available path of intergenerational wealth-
building that helped shape the American middle class is eroding one of the
most critical elements of the American Dream.

Signs of this erosion are showing in the data, despite the fact that, in 2017,
more than nine in 10 Americans believed that owning a home was either
“essential” or “important” to achieving the American Dream. The National
Association of Realtors found that first-time homebuyers recently accounted
for just barely one-quarter of all home purchases — the lowest share on
record. The age of the typical first-time homebuyer reached an all-time high
of 36 years, up from 29 in 1981 and 24-25 in 1960.216

Public sentiment reflects these statistics. Roughly seven in 10 Americans
believe that young adults today have a harder time saving for the future and
buying a home than their parents’ generation. Prospective homebuyers cite
a lack of affordable homes and saving for a down payment as the biggest
challenges associated with purchasing a home.217

The decrease in affordability largely reflects a lack of supply. The U.S. had a
deficit of 3.8 million housing units in 2020.218 As more Americans compete
to buy and rent — particularly in high-demand areas — a lack of sufficient
housing units drives up costs, limiting prospects for those with the lowest
incomes and least wealth.




CHAPTER 5
Building Connections                                                              81
     The relatively low rate of new housing construction in the U.S. in the last decade
     is largely to blame for this shortage. In the 1990s and 2000s, construction
     began annually on an average of 52 housing units per 1,000 Americans. In the
     2010s, construction started on an average of just 31 housing units for every
     1,000 Americans per year — 60% of the rate in the previous two decades.219

     This low rate of construction is largely due to a lack of workers in the
     construction industry and the state and local restrictions on home density
     in places where people want to live.

     “The lack of supply of new homes is also driving up price —
     and we are seeing this in communities all over the country. We
     have seen a number of instances where the government has
     imposed unnecessary burdens on developers, which further
     reduces supply of housing and drives up prices.”
     RANKING MEMBER BRYAN STEIL


     There are relatively few people willing and able to work in the construction
     industry — especially compared to 20 years ago. After the Great Recession,
     overall employment took 58 months to return to its pre-recession level.220
     Construction employment, on the other hand, had still not fully recovered
     by March 2020, even amid the tight labor market prior to the COVID-19
     pandemic. Given the high labor intensity of the construction industry, fewer
     workers means less output.

     The supply shortage of labor in construction is unlikely to end soon, as
     construction workers have been aging out of the workforce. In 2021, the median
     construction worker was 42 years old, compared to 36 in 1985.221 Efforts
     to attract younger workers have proved insufficient due to both the limited
     pathways into construction as well as the cyclical nature of this employment.

     The high cost of building new homes — particularly in areas where people
     want to live — is often inflated by restrictive zoning, regulation, and land-use
     laws. There are important reasons for governments to use zoning restrictions,
     but Dr. Salim Furth, a senior research fellow at the Mercatus Center at George
     Mason University, testified that the “primary driver of high housing costs is
     strict local land use regulations.”

     Research shows that restrictive land-use and zoning regulation tend to
     increase home prices and limit economic mobility, curb productivity, and
     contribute to segregation and poverty.222

     Some of the most detrimental zoning requirements prohibit multifamily
     development. In 2017, three-quarters of most American cities were zoned for
     single-family detached homes, meaning that building apartments, condos,
     or townhouses was simply illegal.223 While there may have been a time when
     these zoning requirements did not prevent the supply of housing from
     meeting demand, they now directly constrain how many units can be built.



     House Select Committee on
82   Economic Disparity & Fairness in Growth
In high-demand, high-opportunity areas, single-family zoning requirements
are often accompanied by minimum lot size requirements, parking
requirements, and building height limits, all of which reduce housing density
and increase prices. A 2022 study concluded that more than 40% of the
costs associated with building multifamily developments were attributed to
regulatory costs at the local, state, and federal level.224

These constraints, coupled with continued long-term migration out of rural
areas, will put more pressure on regional housing markets.225

Zoning and regulation are associated with physical characteristics of
neighborhoods, but they were also commonly used to shape and control
the demographics by limiting racial and ethnic minorities’ access to certain
homes (or home ownership), a practice which has long term effects on who
owns, or can afford to own, a home today.

Roughly seven in 10 white households own their own homes, compared
to just four in 10 Black households, five in 10 Hispanic households, and
six in 10 Asian households. Research from the Brookings Institution
suggests these homeownership gaps are “byproducts of systemic racism,
including the legacies of slavery, Jim Crow segregation, redlining, and other
anti-Black policies.”226

Jacqueline Waggoner of Enterprise Community Partners testified about the
intergenerational effects of these actions. “Children of homeowners are more
likely to become homeowners themselves, and at earlier ages,” she explained.

The federal, state, and local actions that systematically denied homeownership
opportunities to minority communities still contribute to racialized economic
disparities today. The now-defunct Home Owners’ Loan Corporation (HOLC)
— established as part of the New Deal — is one such example. It created maps
for over 200 American cities to rate the “riskiness” of lending in different
neighborhoods using a color scale. This gave rise to the term redlining, as the
color red indicated that a neighborhood was “hazardous” for lending.




MS. NIKITRA BAILEY AT THE HEARING ON AFFORDABLE HOUSING




CHAPTER 5
Building Connections                                                              83
     In addition to characteristics such as proximity to industrial pollutant sources
     and high flood risks, large non-white and immigrant populations were
     considered by the HOLC to be “hazardous.” These areas subsequently suffered
     from lower levels of investment and mortgage lending than neighborhoods
     that were not redlined.227

                                                        Redlining was outlawed
                                                        more than 50 years ago
                                                        by the Fair Housing Act
                                                        of 1968, but its legacy
                                                        continues to shape and
                                                        harm urban neighborhoods
                                                        to this day.228

                                                       Nearly three-quarters of
                                                       neighborhoods that were
                                                       redlined nine decades ago
                                                       remain low-to-moderate
     MS. JACQUELINE WAGGONER AT THE
     HOUSING HEARING                                   income today, and more
                                                       than three in five are
                                                       minority enclaves. Dr.
     Anne Bonds, professor of geography and urban studies at the University of
     Wisconsin-Milwaukee, testified that “racial covenants and other discriminatory
     housing policies and practices continue to inform contemporary racial wealth
     gaps and patterns of racial and housing segregation.”229

     See the next page for more.




     PANEL OF WITNESSES AT THE ACCESSIBLE HOUSING HEARING
     IN MILWAUKEE, WI




     House Select Committee on
84   Economic Disparity & Fairness in Growth
CRITICAL CONTEXT

The Legacy of Redlining in Milwaukee
                                              Milwaukee has been particularly
                                              affected by redlining: In the 1930s,
                                              nearly half of central Milwaukee
                                              neighborhoods     received    yellow
                                              grades, while nearly a quarter
                                              received red grades on the scale
                                              established by the HOLC. Meanwhile
                                              the green grade was reserved for a
                                              select 8% of elite neighborhoods in
                                              the suburban and lakefront areas
                                              — which tended to be the areas
                                              with then-new housing supported
                                              by federal mortgage programs as
                                              well as race restrictions prohibiting
                                              non-white residents (other than
                                              domestic workers) and homeowners.


 SOURCE: UW APPLIED POPULATION LAB230




Because of redlining, residents of
Milwaukee who weren’t considered white
— its Black residents and members of
ethnic minorities who were then considered
“undesirable” by the majority culture
— faced increasingly inadequate living
conditions and poorly funded education
systems; a stronger likelihood of being in
closer proximity to environmental hazards;
and a greater probability of isolation from
adequate shopping, medical, and other
social services.231

By the 1950s, Milwaukee was among the
most racially segregated cities in America.
Despite the general decline in segregation
in the United States since 2000, in 2018
Milwaukee had the highest level of Black-
white segregation among metro areas with
populations over one million.232




            CHAPTER 5
            Building Connections                                                85
     As many Committee witnesses explained, continued racial segregation in
     underserved and impoverished areas fosters intense physical, social, and
     financial inequalities.

     Former Secretary of Housing and Urban Development Shaun Donovan
     testified that “the pandemic-fueled dramatic increases in rents and home
     prices have fallen particularly hard on the lowest-income Americans, [which]
     only compounds a chronic crisis of unaffordable and unstable housing that
     had been growing for decades in our country.”233

     “Low incomes, not high rental prices, are the primary driver of
     Milwaukee’s affordability gap. More than half of the households
     are rent-burdened, meaning that they spent more than 30% of
     their income on rent.”
     REP. GWEN MOORE


     Many renters are prevented from moving into home ownership by a lack
     of capital for a down payment. In a 2017 survey, nearly seven in 10 renters
     cited saving for a down payment as an obstacle to their homeownership.234
     But because rents are increasing faster than wages, saving has become
     increasingly difficult.

     This is particularly true for lower-income renters. The share of rent-burdened
     households — those that spend more than 30% of their income on rent and
     have little, if any, income left for savings after meeting basic needs — rose
     from 41% to 47% between 2001 and 2017.235

     From 1998 to 2021, typical rents increased by 255%, while earnings have
     increased only 159%. The average minimum-wage worker had to work 79
     hours per week — nearly two full-time jobs — in 2020 to afford a one-bedroom
     rental home without being rent-burdened. When sales and rental prices
     outpace earnings, average Americans have to save more or wait longer to
     achieve homeownership.236

     Figure 12: Rent and Housing Price Increases Have Significantly Outpaced Wages
     U.S. NOMINAL MEDIAN ASKING SALES PRICE, ASKING RENTAL PRICES, EARNINGS (1988- 2021)




     SOURCE: U.S. CENSUS BUREAU AND THE BUREAU OF LABOR STATISTICS (2022)237



     House Select Committee on
86   Economic Disparity & Fairness in Growth
Even if the many factors contributing to the lack of affordable housing were
to be resolved, there have always been Americans who earned too little
to afford market-rate housing. For decades, the federal government has
provided assistance.

The Housing Act of 1949 significantly increased construction of federally-
owned public housing stock. Owned by HUD and administered by local
housing agencies, public housing is available to low-income families, as well
as the elderly and the disabled. Rent is set based on the tenant’s income
and is typically no more than 30% of their monthly adjusted income. The
program currently serves about 970,000 households through roughly 3,300
local housing authorities.238

Due to negative perceptions of public housing in the middle of the 20th
century, however, the federal government largely abandoned it: The Nixon
Administration declared public housing a failure in 1973 and placed a
moratorium on further spending; there has not been a significant expansion
of the stock of public housing since.239

As a result, much of the current stock of public housing is in disrepair. The
Public Housing Capital Fund, which pays for repairs, is underfunded to the
extent that roughly 10,000 public housing units become unavailable to the
people who need them each year because they become uninhabitable. As of
2019, the cost to repair all public housing stood at $70 billion.240

More recent federal efforts to create affordable housing have incorporated
the private sector. The Low-Income Housing Tax Credit (LIHTC), established
in bipartisan fashion under President Reagan, awards federal tax credits to
developers in exchange for building rent-restricted units for low-income tenants.

State housing agencies administer LIHTC funding through a competitive
application process and distribute tax credits to investors who provide upfront
funding for projects over a period of 10 years. Since the 1990s, the LIHTC
program has received substantial bipartisan backing and has supported the
construction or rehabilitation of over two million affordable rental units.241

To encourage landlords to rent to low-income households, the federal
government also administers the Housing Choice Voucher Program via the
states. It provides money both to public housing authorities and to low-income
households via portable vouchers to help them rent from private landlords.
Tenant contributions to rent payments are capped at 30% of household
income, with the remainder covered by the federal government. Studies
have found that housing vouchers are effective at reducing homelessness,
housing instability, and overcrowded living conditions. They also lead to more
positive educational, developmental, and health outcomes for children. Due
to funding limitations, however, only one in four families eligible for vouchers
actually receive them, and waitlists in some parts of the country keep eligible
families waiting for years.242

Though critical, these programs are modest in scale compared to the totality
of the American housing stock. In 2021, there were approximately 142 million




CHAPTER 5
Building Connections                                                                87
     housing units in the United States — meaning that the Low-Income Housing
     Tax Credit is responsible for less than 2% of them. Housing vouchers were
     used by fewer than two million households in 2020, out of a total of 128
     million, partially due to funding constraints.243




     SECRETARY SHAUN DONOVAN AT THE HOUSING HEARING


     Committee Findings and Recommendations
     Access to affordable housing in high-demand areas is a substantial contributor
     to economic disparity. As lower- and moderate-income Americans are faced
     with fewer options for affordable housing in the areas they want to live, they
     are denied access to good schools, public amenities, and well-paying jobs.
     High housing costs also weaken economic security by preventing savings and
     wealth accumulation.

     When talented, hard-working, or entrepreneurial people are effectively
     kept out of places with opportunity, they face barriers to achieving their
     economic potential.

     Because much of the nation’s housing crisis is a function of shortages of
     affordable homes, supply must be increased to meet current demand.
     The Select Committee recommends that the federal government provide
     incentives for the construction and rehabilitation of affordable and market-
     rate homes in areas of the most acute shortages.

     Discourage overly restrictive zoning and encourage inclusive zoning.

     Restrictive zoning severely curtails the construction of market-rate housing,
     driving up prices in precisely those areas where Americans want to live. The
     Select Committee believes that Congress should explore ways to incentivize
     states and localities to eliminate unnecessarily restrictive zoning laws and to
     encourage more inclusive zoning policies.

     Inclusionary zoning programs vary in structure but often provide incentives
     — such as density bonuses, expedited approval timelines, and fee waivers



     House Select Committee on
88   Economic Disparity & Fairness in Growth
— to developers in exchange for providing affordable housing for low-and
moderate-income families. A study by the RAND Corporation of inclusionary
zoning programs notes that they successfully provide low-income families
with access to low-poverty neighborhoods and better performing schools.244




COMMISSIONER EILEEN HIGGINS AND REP. DONALDS DISCUSS
LAND USE PERMITTING AT THE INFRASTRUCTURE HEARING

The Committee believes Congress should encourage localities to roll back
restrictive zoning through the YIMBY Act (H.R. 3198), which would require
Community Development Block Grant program recipients to report on
policies for expanding high-density single-family and multifamily zoning.

The Unlocking Possibilities Program, which was included in the Biden
Administration’s Housing Supply Action Plan, would encourage states and
localities to eliminate barriers to housing production through $1.75 billion in
new competitive grants to state, local, and tribal governments to incentivize
the elimination of exclusionary and restrictive zoning and land uses to advance
fair housing and support the creation of affordable housing.245

Further, communities should plan to repair existing structures and add
infill housing to increase density in high-demand areas, creating a plan with
engaged residents and building trade leaders from impacted neighborhoods
needing revitalization.

Encourage the private sector to build additional affordable
housing units.

The private sector also needs better, more efficient incentives to build
affordable housing units. The Committee recommends increasing the
total amount of funding for federal Low-Income Housing Tax Credit (LIHTC)
offered and simplifying its access and use by passing the Affordable Housing
Credit Improvement Act (H.R. 2573 and S. 1136), sponsored by Reps. Suzan
DelBene (D-WA), Donald Beyer (D-VA), the late Jackie Walorski (R-IN) and Brad
Wenstrup (R-OH) in the House and Sens. Maria Cantwell (D-WA), Todd Young
(R-IN), Rob Portman (R-OH) and Ron Wyden (D-OR) in the Senate.

This legislation would raise LIHTC allocations by 50%, increasing LIHTC
investment by approximately $5.5 billion per year, enable the credits to better
reach underserved communities, and simplify rules to preserve existing
affordable housing. According to the National Council of State Housing
Agencies, it would result in the creation of over 1.5 million additional affordable
homes over the next decade.246


CHAPTER 5
Building Connections                                                                  89
     To support affordable housing in rural areas where the Low-Income Housing
     Tax Credit may not work effectively, the Committee recommends passing
     the Strategy and Investment in Rural Housing Preservation Act (H.R.1728),
     sponsored by Rep. Cynthia Axne (D-IA), which would provide assistance to
     rural, multifamily rental-housing projects, and to tenants. It would restructure
     the Department of Agriculture’s Section 515 loans, extend incentives for
     owners to remain in the program, and provide properties with resources to
     repair homes. The Section 515 program serves hundreds of thousands of low-
     income families and elderly households and, in many rural areas, provides the
     only affordable rental housing.

     Enact down payment assistance for first-generation homebuyers.

     A down payment assistance program, aimed at helping those from less
     economically secure backgrounds to make a down payment on home
     ownership, would expand wealth-building opportunities to a greater share
     of the population.
     The benefit of down payment assistance would be particularly valuable to
     Black Americans and other racial and ethnic minorities, given the historically
     discriminatory homeownership policies at the federal, state, and local levels,
     as well as ongoing systemic discrimination in appraisals and lending.247 All are
     significant contributors to racial gaps in home ownership.

     Congress should consider legislation like the Down Payment Toward Equity
     Act of 2021 — sponsored by House Financial Services Committee Chair Maxine
     Waters (D-CA) — requiring that HUD establish a grant program for first-
     time, first-generation homebuyers for up to $25,000 for down payments.




     PUBLIC HOUSING UNITS OUTSIDE NEW YORK CITY




     House Select Committee on
90   Economic Disparity & Fairness in Growth
Increase support to low- and moderate-income renters.

Increasing housing supply is vital but will take years. Renters need relief now.
The Committee therefore recommends increasing subsidies to low- and
moderate-income renters. Housing vouchers are a highly effective policy
tool to reduce homelessness and housing instability, with significant positive
spillover effects, especially for children, yet roughly 75% of eligible families do
not receive them due to funding limitations.248 The Committee recommends
that Congress pass the Ending Homelessness Act of 2021, which would
create and fund an entitlement for Housing Choice Vouchers for low-income
families, ensuring that all eligible renters receive the support they need.

Public housing also provides economically vulnerable populations with access
to stable and affordable shelter, but funding limitations continue to render
much of the current stock unlivable. To prevent the condemnation of more
affordable housing units and ensure that current public housing residents
do not live in unsafe conditions, the federal government should support the
rehabilitation and repair of public housing.

Increase the construction workforce.

The Committee believes that increased focus on Career and Technical
Education (CTE), apprenticeship, and workforce development programs could
help ease the construction worker shortage.




CHAPTER 5
Building Connections                                                                  91
     Hard Infrastructure Investments




      WATCH VIDEO: RHONDA DIAZ, PROGRESO, TX
      University of Texas Rio Grande Valley Student

      JOINED BY: SERGIO CONTRERAS
      CEO of Atlas Hall & Rodriguez LLP, Member of the Texas
      Broadband Development Office Board of Advisors

      “Starting with COVID, most of our classes were over Zoom,” Rhonda Diaz, a Texas
      college student and VIDA program mentee, testified at the Committee’s field
      hearing in McAllen, Texas. “The little town where I live, we have satellite internet
      and the high speed we’ll get is probably 12 megabytes — so it’s very slow. My
      Zoom meetings were always getting disconnected.

      “Now whenever I had to do homework, I had to download a program to download
      a program,” she adds. “So, I have to go to town somewhere where I have access
      to free WiFi, because I’m not able to download that large an attachment with just
      satellite internet.”

      “With the gas being what it is — and I do have a small car — but even then, I still
      spend about $70 a week because I have to drive from one town to the other, just
      so I could go to Starbucks,” she says. “Sometimes I even spend extra time at the
      campus just so I could be able to take advantage of using the WiFi there, ‘cause I
      know once I get home, I’m really not gonna be able to do anything online.”

      We need better ways for people to connect to the American Dream in the
      21st century. Safe roads and bridges, reliable public transportation, and high-
      speed internet all connect people to economic opportunities and contribute
      to economic growth.

      The passage of the Infrastructure Investment and Jobs Act (IIJA), a once-in-
      generation bipartisan infrastructure bill, will not only create millions of well-
      paying jobs that can’t be outsourced; it will transform the government's most
      significant investments in passenger and freight rail, roads, bridges, ports,
      airports, and public transit.



      House Select Committee on
92    Economic Disparity & Fairness in Growth
Reliable public transit and roads are particularly important to Americans’
ability to get jobs and stay employed.249

“We should be making investments in our nation’s
infrastructure that can meaningfully improve people’s
lives. Strong infrastructure can provide individuals a safe road
to drive on, it can help lower gas prices, and it can make it
affordable for people to heat their homes on cold winter days.”
RANKING MEMBER BRYAN STEIL


“My residents would say they need affordable housing near public transit
so they can get more quickly towards economic opportunity,” Miami-Dade
County Commissioner Eileen Higgins testified. “And that is because transit
infrastructure is housing infrastructure: Affordable housing is even more
affordable when it is located near reliable transit.”250

The gap between where jobs are and where people live, considered a “spatial
mismatch problem,” is correlated with both overall unemployment and longer
durations of unemployment for low-income populations. Commute times
are likewise a strong predictor of upward mobility, according to research by
Raj Chetty and others.251




“I grew up poor in a rural textile town in South Carolina, and I
actually remember the days when the school bus had to travel
down dirt roads to pick up students ... We have made progress.
But for many communities, whether minority, Appalachian,
Tribal, urban, or rural, the dream of an inclusive economic
infrastructure is still not yet a reality.”
RICK WADE, SENIOR VICE PRESIDENT, U.S. CHAMBER OF COMMERCE




CHAPTER 5
Building Connections                                                           93
     The quality of local bridges, roads, mass transit, and broadband also factors
     into where businesses decide to open, how accessible they are to their
     suppliers, workforce, and customers, and whether they earn enough to stay
     open and continue employing staff.252

     According to the Business Roundtable, “a modern infrastructure system is
     key to unleashing the full productive potential of the U.S. economy. In recent
     years, however, public-sector investment in infrastructure has dwindled,
     leaving many critical systems in disrepair and hampering U.S. competitiveness
     and productivity.”253

     “Texas is the gateway for U.S.-Mexico trade,” Cameron County Commissioner
     David A. Garza testified.254 “In 2020, 65% of all the goods coming in from
     Mexico to the U.S. went through Texas.”

     “Recognizing the importance of high-quality transportation is a necessity
     for our area to compete nationally for industry and jobs,” he added. “And
     interstate highways are at the top of the site-selection factors to attract new
     industry to an area.”

     Similarly, the economic and social returns on broadband expansion and
     adoption are significant: Increasing access and use of broadband in rural areas
     results in increased job and population growth, higher rates of new business
     formation, and lower unemployment rates.255

     Finally, public investments in physical infrastructure systems are associated
     with well-paid, long-term job opportunities, including everything from bus
     drivers to telecommunication line installers.256

                                                           Neal       Crabtree,     a
                                                           foreman and pipeline
                                                           welder from Arkansas,
                                                           explained to the
                                                           Committee:          “With
                                                           entry-level positions in
                                                           this field, $50,000 to
                                                           $70,000 is not unheard
                                                           of,” for a yearly wage, he
                                                           said. “It all depends on
                                                           how often you want to
                                                           work. It is like any field:
                                                           The more effort you put
     WATCH VIDEO: DAVID GARZA                               into it, the more you
     FROM THE TEXAS HEARING                                 are compensated.”257

     But, as Dr. Carlos Martín, an engineer and architect, testified, “The needs of
     both a growing population and the maintenance of past investments” in the
     connections between communities have not aligned with available funding
     for decades.258




     House Select Committee on
94   Economic Disparity & Fairness in Growth
From Here to There: Roads and Public Transit
The federal government has a long history of investing in physical infrastructure
— the means by which people, goods, and services get from one place
to another.

The creation of the Interstate Highway System (IHS) after WWII spurred
significant national economic gains, including approximately one quarter of
the nation’s productivity gains between 1950 and 1989.259

But the undertaking spurred economic disparity, particularly in minority
communities.



The Interstate Highway System and Inequality
Building the IHS divided and, in some cases, destroyed urban
neighborhoods, especially in historically Black and immigrant
neighborhoods in places like Milwaukee, Wisconsin, Chattanooga,
Tennessee, Cincinnati, Ohio, Miami, Florida and St. Paul, Minnesota.




THE CONSTRUCTION AND RAMIFICATIONS OF THE IHS 260

Estimates suggest that “more than 475,000 households and more than
a million people were displaced nationwide because of federal roadway
construction between 1957 and 1977.” As communities lost churches,
parks, and homes to the construction of the highways, they also lost
small businesses that created jobs locally and kept those local economies
afloat, economies that were already struggling from zoning policies,
disinvestment and white flight.261




CHAPTER 5
Building Connections                                                                95
     As government investments in infrastructure decreased as a percentage of
     GDP over the last half century, the number of collapsed bridges, dilapidated
     roads, and other structures has increased.262

     In early 2021, the American Society of Civil Engineers (ASCE) found that 43%
     of public roadways are in poor or mediocre condition, and 7.5% of the nation’s
     bridges — a total of 46,154 — are considered structurally deficient.263 An
     earlier report by the Government Accountability Office (GAO) found that in
     2014, nearly a quarter of all bridges were deficient.264

     Dilapidated roads impact mass transit and individual commuters. The
     largest group of public transportation commuters — 46.3% of all public
     transportation commuters, or about 3.6 million people — reported that buses
     were their primary commuting mode, which are dependent on sound roads
     and bridges.265

     Public transit alleviates congestion and pollution in large metropolitan areas.
     In 2019, about 5% of workers in the United States used public transportation
     to get to their jobs, primarily in urban areas like New York, where over two
     million people commuted by public transportation, and San Francisco, where
     over one third of workers did so.266

     The availability of public transportation provides a critical option for people who
     cannot afford to purchase a car and particularly those who work late shifts. The
     American Automobile Association estimated that on average in 2015, owning
     a modest car cost close to $9,000 annually, while the average annual income
     for a household living in federally assisted housing was roughly $14,000.267

     One in four adults regularly found it difficult to get from place to place in 2018,
     regardless of mode of transit.268

     Without access to high-quality, reliable, and accessible transportation, as
     Commissioner Higgins described in her testimony, a resident from Florida City
     — where the poverty level exceeds 40% — “can spend over an hour to simply
     connect to the Metrorail system” to get to a job located in the urban core.269

     "Robust public infrastructure is a prerequisite for prosperity.
     But it is more than an obligation; it is actually an opportunity to
     make lasting and transformational change to our economy and
     shift it from an extractive one to a resilient one, an equitable
     one to one that benefits everyone, white, Black, and brown.”
     REP. PRAMILA JAYAPAL


     As new residents choose to live closer to downtown business districts,
     economic and demographic shifts can lead to displacement of low-income,
     Black, immigrant, and Latino families. Those displaced are often left
     disconnected from job centers and experience increased commute times,
     as suburban areas are less served by frequent and reliable transit.270




     House Select Committee on
96   Economic Disparity & Fairness in Growth
As the Chamber of Commerce noted, it can also have effects on employers:
“Inefficient public transit in America leads to longer travel times, as well as
a slowdown in workers’ economic output … [and thus has] a major negative
impact on business revenue.”271

All over America, access to safe transportation is essential to realizing
economic gains at the individual, family, community and national levels.

Mr. Ray Allen, former Secretary of the Wisconsin Department of Workforce
Development, told the Committee about the need for more partnership
between government, the private sector, and nonprofits in creating
infrastructure.272 “We’ve got to be more creative in how we think about
solutions to address” the mismatch between where people live and where
employers have facilities, he explained.

Bridging the Broadband Digital Divide
The increased availability and adoption of broadband is associated with
improved local economic conditions in the form of local economic growth,
increased median household incomes, increased employment and earnings
for low-income individuals, and the decisions of business about where to
locate — particularly in rural areas.273

High speed digital connectivity facilitates remote work, job searches,
e-recruiting, and increased productivity. The COVID-19 pandemic further
amplified the role of digital connectivity as a critical tool for health care,
distance learning, and remote work, among other uses.274

But affordability keeps broadband out of reach for millions of households
and businesses in rural and urban areas.275 This “ digital divide” exacerbates
other disparities.

“The COVID-19 pandemic exposed some of the ramifications of
underdeveloped broadband infrastructure. Without access to
reliable broadband, our young people cannot receive the quality
education they deserve, and our workforce could not meet the
21st Century needs.”
REP. VICENTE GONZÁLEZ


The COVID-19 pandemic exposed the uncomfortable fact that 15 million
students are without broadband internet. This resulted in a “homework gap”
between school age children with and without high-speed internet at home.
In a 2021 Pew survey, most respondents cited a lack of home broadband as a
major disadvantage for getting schoolwork done, a significant issue for some
children even prior to the pandemic.276

This lack of connectivity has also hurt college students’ progress and success.
Andrew Seibel, the former state secretary of the Virginia Future Farmers



CHAPTER 5
Building Connections                                                              97
     of America (FFA), testified about how the lack of broadband infrastructure
     impacts what young people study and how they view their future prospects.277

                                                     “I feel like if I want to go into
                                                     a technical field, I can’t stay
                                                     in a rural community right
                                                     now,” he said. “I have many
                                                     friends who are going to Virginia
                                                     Tech engineering, who went
                                                     through high school with me
                                                     but are going all different
                                                     ways in their lives because
                                                     they feel like they can’t come
                                                     back to Roanoke County if
     MR. ANDREW SEIBEL AT THE
                                                     they’re doing something that’s
     ROUNDTABLE ON RURAL AMERICA
                                                     more technical.”

     “We’re expecting those students to be able to put themselves through college
     — in addition to covering those travel costs — and get the training and then
     come back to a community that doesn’t have the infrastructure to provide
     those technical positions,” he added.

     There are different approaches to measuring availability and adoption, so
     estimates of how many people cannot access broadband vary. The Federal
     Communications Commission (FCC) estimated that census blocks containing
     14.5 million households lack access, but a Minority-led letter from the House
     Committee on Oversight and Reform noted recent research put the total
     number of households lacking broadband access at 42 million.278

     Dr. Nicol Turner Lee, the director of the Center for Technology Innovation
     at the Brookings Institution, testified that 11.3 million to 17.6 million rural
     residents do not have access to broadband — somewhere between 17% and
     27% of Americans living in rural areas. Ms. Jessica Fulton of the Joint Center
     for Political and Economic Studies testified that there are significant racial
     disparities in broadband access in rural America: 38% of Black people and
     23% of white people who live in rural areas lack home internet access.279

     There is strong correlation between household income and home broadband
     across both rural and urban communities: 43% of adults with incomes below
     $30,000 report not having broadband services at home, compared to only
     7% of those earning $100,000 or more.280

     “Digital inclusion is economic inclusion,” Ms. Jordana Barton-Garcia, the
     principal at Barton-Garcia Advisors and a senior fellow at Connect Humanity,
     testified.281 “A lot of the young people [in the Texas colonias] go away currently
     — we call it the brain-drain — to start their business.”

     “Like a young woman from the Las Milpas Colonia in Pharr who went away
     and started her business in the Silicon Valley,” she explained. “It is a telehealth
     business, and she could run it here, but we just don’t have the broadband
     infrastructure to be able to have those kinds of businesses.”




     House Select Committee on
98   Economic Disparity & Fairness in Growth
“By having broadband networks, you will be supporting entrepreneurship,
workforce opportunities, hands-on experience for learning for young people
in the assets of the digital economy, and you will be creating an environment
for entrepreneurship,” she added. “If you don’t have that connectivity, you
are less likely to be able to start the business here and create those jobs and
opportunities here.”

Committee Findings and Recommendations
Since the nation has taken a historic first step in addressing many of our
infrastructure needs with the passage of the bipartisan Infrastructure
Investment and Jobs Act (IIJA) in 2021, communities will be able to get federal
assistance to “begin addressing long-term, systemic shortcomings that have
hindered economic prosperity and economic growth,” as Commissioner Higgins
testified.282 The legislation, which provides $550 billion over five years for bold,
targeted investments, including $110 billion for roads, bridges, and major
projects, $66 billion for passenger and freight rail, $65 billion for broadband,
$39 billion for public transit, $11 billion for transportation safety, and $1 billion
to remove barriers to opportunity created by past infrastructure projects.283

Figure 13: U.S. Household Broadband Adoption
HOUSEHOLD BROADBAND ADOPTION RATES BY COUNTY (2019)




SOURCE: BROOKINGS INSTITUTION (2021)284

Establish criteria for infrastructure projects to prioritize equity and
maximize impact.

The Committee recommends establishing monitoring and evaluation criteria
for infrastructure projects to ensure investments prioritize left-behind
communities. Clear, measurable objectives will help ensure targeted, holistic,
and transformative investments.

Strengthen local administrative capacity and prioritize engagement.

The Committee recommends implementation of the IIJA to prioritize
local engagement and building community capacity, targeting funding
for under-resourced communities through partnerships between
federal agencies and local governments. The federal government


CHAPTER 5
Building Connections                                                                    99
      should focus on investing in capacity building and technical assistance.
      Without such investments, Dr. Martín testified “the states and localities
      with extensive pre-existing resources for conducting analysis, outreach, and
      innovation will continue to be more competitive in discretionary federal fund
      applications and in being able to advocate for state formula allotments.”285




      MS. BARTON-GARCIA, DR. TURNER LEE, AND MS. FULTON ALL
      STRESSED THE IMPORTANCE OF BROADBAND INVESTMENTS
      IN ADDRESSING ECONOMIC DISPARITY

      Simplify and streamline regulatory and permitting processes on
      infrastructure projects.

      The Committee found that it is important to simplify the regulatory and
      permitting processes in order to expedite critical projects. The current federal
      permitting process for projects can be prohibitively slow, and the federal
      government needs to ensure that the communities and workers can benefit
      from the investments quickly while maintaining high environmental standards.

       IIJA will lessen regulatory and permitting burdens on communities through,
      among other provisions, codifying “One Federal Decision,” based on an
      Executive Order from the Trump Administration. The legislation requires that
      a single lead agency bear responsibility for shepherding projects through
      multi agency reviews, limits National Environmental Policy Act (NEPA) reviews
      to two years, and limits most environmental impact statements for major
      projects to 200 pages.286 In addition, it expedites operational rights-of-way
      evaluations to 45 days, and opens up project schedules, descriptions, and
      other details to public review.

      Invest in a talent pipeline for the infrastructure workforce.

      The Committee recommends using IJJA funds to build a talent pipeline for
      the infrastructure workforce. Nearly a quarter of all existing infrastructure
      workers are expected to retire over the next decade, according to Brookings.
      And, as Dr. Turner Lee testified, “having quality broadband infrastructure
      relies upon an established training pipeline and workforce,” and “over four
      million jobs will be 5G or related technology opportunities … [with] higher
      than average wages.”287

      The bipartisan IIJA allows states to allocate funds for workforce development,
      including for pre-apprenticeship, apprenticeship, and on-the-job training. It
      also provides expanded funds for engagement with workforce development
      boards and additional new funding for digital upskilling.288


      House Select Committee on
100   Economic Disparity & Fairness in Growth
An Unlevel
Playing Field
STRUCTURAL ECONOMIC CHALLENGES
                                                                                   6
      WPA WORKER IN 1939; ACTIVISTS ORGANIZE IN SUPPORT OF DISABILITY
      RIGHTS LEGISLATION IN 1977 289

      Our discussion so far has focused on the need for adequate investments in
      people and communities that maximize individual potential, opportunity and
      mobility, and on the need to invest in the infrastructure that opens doors to
      learning, connection, and the entrepreneurship that allows individuals and
      communities to thrive. But these investments alone are insufficient as long
      as individuals continue to face structural inequities that drag them down.

      The metaphors collide: level or unlevel playing fields; headwinds or tailwinds.
      However framed, the fact is that individual Americans are meaningfully
      helped or hurt by factors beyond their control: race, gender, and geographic
      location. Distressed rural and urban areas suffer from disinvestment, poverty,
      crime, poor schools, low tax revenues, and outmigration, leaving those who
      are left behind at a distinct disadvantage compared to those in thriving,
      highly educated centers of the knowledge economy. The more these arbitrary
      factors matter, the further the nation strays from the idea that a fair outcome
      is the product of working hard and playing by the rules.

      Leveling the playing field has been the work of generations of activists,
      faith leaders, philanthropists and political leaders. But in this critical work,
      government has played a central role. The New Deal created programs to
      address poverty, exclusion, and social inequities. The 1935 National Labor
      Relations Act gave workers a fairer balance of power with employers. Title I
      of the 1965 Elementary and Secondary Education Act gave schools in poorer



      CHAPTER 6
      An Unlevel Playing Field                                                           101
      neighborhoods more equal funding. The 1990 Americans with Disabilities Act
      sought to equalize opportunities for disabled Americans. Monumentally, the
      Civil Rights Acts and interventions of the mid-20th century accelerated the
      perennial quest for justice and equality for Black Americans.

      Today, a survey of the “playing field” suggests five areas in which thoughtful
      government intervention might shift our nation towards better equality of
      opportunity: place-based policies, worker protections, economic security,
      tax policy, and market competition.

                                                      In the nation’s poorest ZIP
                                                      codes, median household
                                                      income hovers around
                                                      $10,000 a year, a fraction of
                                                      the poverty level. A typical
                                                      household in America’s
                                                      wealthiest ZIP codes makes
                                                      more than $1 million. These
                                                      disparities are extreme, yet
                                                      the United States is divided
                                                      economically by geography,
      DR. GALE, PROF. BROWN, AND MR. HANLON
      AT THE HEARING ON THE TAX CODE                  with the well-to-do clustered
                                                      in particular neighborhoods
      and communities, moderate-income families in other areas, and the poor
      in still others. Federal, state, and local governments have attempted to
      address these disparities with place-based policies focusing on economic
      development, jobs, education, housing, and education. Some have worked,
      some have not.

      Over time, workers’ rights to organize and collectively bargain for fair pay,
      benefits, and decent working conditions have been rolled back at the federal
      and state levels. Coupled with labor market trends that have eroded the
      relative power of working people, this roll-back has contributed to a decline
      in worker prosperity and security. Support like the minimum wage has also
      eroded. Although many states and localities have raised their minimum
      wages, the federal minimum wage is half of what it was in 1968 in real terms.

      Income security programs, sometimes called the “safety net,” consist
      of a patchwork of social-insurance programs like Social Security and
      unemployment insurance (UI) and means-tested benefits like food stamps,
      rental assistance, housing vouchers, and refundable tax credits like the
      Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Because of
      complexity and isolation, many Americans fail to access these programs at
      critical moments.

      Tax policy that disproportionately benefited the wealthy in the last 40 years
      has also contributed to the explosion in inequality. Capital income, which is
      earned mostly by the wealthy, is taxed less than the wages of middle-income
      workers, and most tax expenditures — subsidies in the tax code — are skewed
      to the well-to-do.




      House Select Committee on
102   Economic Disparity & Fairness in Growth
Finally, as the trust-busting Teddy Roosevelt understood, a free market
economy depends on truly fair competition to deliver equal opportunity to
workers, consumers, and entrepreneurs. Today many large companies have
inordinate market power that has hurt innovators, workers, and in some
cases, employees.

As it has for centuries, the government can address these structural
challenges. The Committee believes that government rules and
tools can give Americans a fighting chance by investing more in
specific places; helping give workers stronger ground to bargain for
a good wage; modernizing the social safety net to help people in crisis;
rewarding work as much as wealth; and ensuring fair competition.




MS. SHARON PARROTT, MR. MARC MORIAL, MS. MICHELE
EVERMORE, AND MR. INDIVAR DUTTA-GUPTA AT THE HEARING
ON ECONOMIC SECURITY PROGRAMS




CHAPTER 6
An Unlevel Playing Field                                                    103
      The Geography of Unequal Opportunity




       WATCH VIDEO: LEAH HALL, ROCHESTER, MN
       Affordable Housing Development Director, 3 Rivers
       Community Action

       “I can say that for a fact … I know what the small towns need, and I know what the
       communities and the folks that are in those communities are looking for,” Leah
       Hall, the director of affordable housing development at 3 Rivers Community Action
       in Rochester, Minnesota explained.

       Lorain, Ohio, like a lot of places in America, has seen more than its share of
       economic struggle as the American economy shifted.

       “Minus five years in the early 80s, I have been lucky to not spend a lot of time
       unemployed,” testified Rick Cain, Vice President of United Steelworkers Local
       1104 in Lorain, Ohio.290 “But unfortunately for too many of my union brothers
       and sisters, they have been on the front line of deindustrialization from
       globalization and a lack of domestic investment in our manufacturing sector.”

       “In Lorain, we have seen this decline firsthand: When I first started in the steel
       industry, there were over 10,000 workers maintaining and operating the mill,”
       he added. “This number has steadily decreased over time until, today, I am
       one of 60 employees working at Republic Steel’s bar mill.”

       “The U.S. has suffered a net loss of more than 91,000 manufacturing plants
       and nearly 5 million manufacturing jobs since 1997,” he went on. “These lost
       jobs have led to systemic, long-term displacement in communities like my
       own, and lack of attention by lawmakers has only made economic disparity
       worse and undermined the American Dream.”291

       Mr. Cain’s story — and the story of Lorain, Ohio — is not a unique one in
       America.292 From the lumber mills of the northeast to the manufacturing
       centers of the mid-Atlantic and Midwest, from the mines of Appalachia to
       the textile mills of the South, the company towns and jobs in which many
       Americans once built their lives have disappeared, and very little has come
       along to replace them.


       House Select Committee on
104    Economic Disparity & Fairness in Growth
“The history of America’s workers and farmers in our industrial
and agricultural heartland has been a rugged one, but one
that also inspires. We must bolster their potential to meet the
future. What America makes and grows makes and grows
America.”
REP. MARCY KAPTUR

While the solution voiced by some political leaders in the last few years has
been to tell residents to “go to another state where they can get a great job,”
the reality is that many Americans have neither the ability nor the desire to
move across the country for a job.293

Upward mobility in America is increasingly shaped by where people live, and
living in economically distressed areas is associated with lower economic
mobility, productivity, lower employment probability, and diminished
opportunities for innovation and entrepreneurship.294




AN ABANDONED STEEL MILL IN DOWNTOWN LORAIN, OHIO

Remarkably, the location of a person’s childhood is predictive of differences
in those children’s earnings as mid-career adults.295

This research suggests that “a child from a low-income family raised in
San Jose or Salt Lake City has a much greater chance of reaching the top
than a low-income child raised in Baltimore or Charlotte,” and that, even
within these cities, different neighborhoods may lead to different levels of
economic mobility.296

Patterns of local economic distress have persisted or widened both between
and within regions across the country over the past four decades. Since 1980,
a fraction of primarily coastal metropolitan areas have become some of the
most economically prosperous regions in history, while other places have
seen a precipitous economic decline.297

Outside of cities, labor force participation among people between the ages of
25 and 54 years old has not rebounded to levels before the Great Recession
(2007-09), while urban areas have seen a 9% increase in prime-age labor
force participation.298



CHAPTER 6
An Unlevel Playing Field                                                          105
      Despite the economic gains in metropolitan areas, two-thirds of urban
      neighborhoods continue to suffer from disinvestment and have experienced
      persistent or growing poverty rates. In 2018, poverty rates exceeded 30% in
      nearly 4,300 urban neighborhoods — home to 16 million Americans.299

      To address geographic inequalities like these, economists and policymakers
      traditionally recommended targeting relief to people, rather than places,
      because for most of the 20th century people simply moved to places with
      more opportunities.300 Americans today, however, are not moving to higher-
      income regions in pursuit of better economic opportunities, because of high
      moving costs, lack of affordable housing, and existing local social ties, making
      policies tied to location more important.301

      As Dr. Timothy Bartik, a senior economist at the Upjohn Institute, testified,
      encouraging people to move to other areas “removes young workers and
      entrepreneurs, depresses property values, weakens local tax bases, and
      lowers local demand for goods and services and hence local jobs,” hurting
      both the areas and people left behind.302

      The positive effects of encouraging people to move to different neighborhoods
      are limited even within cities, as demonstrated by the Moving to Opportunity
      program, a federal initiative in which low-income families were given housing
      vouchers to move to less economically distressed communities. While
      moving to lower-poverty neighborhoods led to positive long-term economic
      outcomes for young children — supporting the importance of neighborhoods
      early in life — there were no detectable short- or long-term impacts on adult
      economic or educational outcomes.303

      Experts now increasingly recognize that bringing economic opportunities to
      underserved and left-behind communities requires both direct aid to people
      and complementary “place-based” policies — i.e., ones that are geographically
      targeted to support community and economic development.304
      Figure 14: Household Income at Age 35 for Adult Children of Low-Income Parents
      LOW-INCOME CHILDREN’S HOUSEHOLD INCOMES AT AGE 35 BY COMMUTING ZONE




      SOURCE: OPPORTUNITY INSIGHTS (2022)305



      House Select Committee on
106   Economic Disparity & Fairness in Growth
Economic Empowerment for
Native Communities




Fostering economic opportunities in place is essential for Native Americans
residing on tribal lands. Despite significant economic progress resulting from
increased sovereignty over the past 30 years, tribal governments continue
to face hurdles in fully realizing economic opportunities for their citizens, as
a result of the federal government failing to recognize tribal sovereignty and
its obligations to Native peoples.

                                                   The Committee, joined by
                                                   Native American Caucus
                                                   Co-Chair Rep. Sharice
                                                   Davids (D-KS), subject
                                                   matter experts, and Native
                                                   American leaders, held a
                                                   roundtable to examine
                                                   barriers and pathways
                                                   for Native American
                                                   communities to cultivate
                                                   sustainable economic
                                                   development and growth.

Experts and leaders provided key recommendations, foremost among them to
respect and expand self-governance of Tribal governments, emphasizing that
they are best positioned to
serve their communities
and should directly receive
and administer federal
funding.306 The leaders
also proposed strategies
to tailor current federal
policies for facilitating
flow of capital, economic
diversification, and data
collection on tribal lands.307




CHAPTER 6
An Unlevel Playing Field                                                           107
      Federal Place-Based Policies
      The federal government has a long history of supporting place-based policies
      to help address persistent geographic disparities.308 These policies are
      generally implemented in partnership with state and local governments —
      and sometimes with other community partners.

      Though the definitions and objectives of place-based policies vary across
      agencies, annual federal spending on the most common type of place-
      based policies — targeted local economic development and job creation
      — is between $10 and $20 billion.309 This funding is split across many
      agencies and distributed to states and localities through competitive grants
      or statutory formulas.

      The federal government supports these communities for two main reasons.
      First, many state and local governments look for federal assistance after their
      communities have become economically distressed following the departure
      of industries like manufacturing.310 As a result of the loss of both jobs and tax
      revenues, it is challenging for localities themselves to fully fund key economic
      development and diversification efforts.

      Second, the legacies of past federal discriminatory policies — discussed
      earlier in this report — still resonate in concentrations of urban poverty today.
      “America’s separate and unequal neighborhoods did not evolve naturally or
      result from unfettered market forces,” the Urban Institute notes. “Rather,
      they resulted from plans, policies, and practices of racial exclusion and
      disinvestment that primarily targeted Black people and laid the foundation
      for the segregation of other people of color.”311




      MILWAUKEE, WISCONSIN AS A MANUFACTURING HUB312

      Lagging rural towns, former industrial hubs, and persistently disinvested
      neighborhoods, however, require different policy approaches.

      “In designing place-based policies, federal policymakers should recognize
      that one size does not fit all,“ Dr. Bartik testified. “Urban areas have different
      needs from rural areas and each area has different industrial bases, amenities,
      or proximity to markets which dictate different strategies.”




      House Select Committee on
108   Economic Disparity & Fairness in Growth
The Community Development Block Grant (CDBG) program, a dedicated fund
administered by the U.S. Department of Housing and Urban Development
(HUD), has been the most sizable, flexible, and holistic source of support for
local community and economic development since the 1970s.313

The economic development portion of CDBG is, on average, $1.1 billion of
its roughly $3 billion in federal funding, but the program has remained
funded at that level since its inception and has not kept pace with inflation
or the increase in eligible communities. This reduced its ability to support
transformative projects.314

A recent University of Maryland study found an increase of 13% in jobs
among low-income workers living in or near a community where large CDBG
investments occurred. However, these grants may not sufficiently target
the most distressed members of a community, as more jobs were created in
comparatively less-disadvantaged neighborhoods.315

Experts agree that much more could be done to reform the program to help
it reach the most distressed neighborhoods.

The U.S. Economic Development Administration (EDA) — a sub-agency of
the Commerce Department — was created in 1965 to lead the economic
development agenda, investing in physical infrastructure, regional economic
planning, and technical assistance projects.316 The Brookings Institution
suggests that the EDA is under-resourced and tasked to do “too much with
too little” with pre-pandemic annual funding of only $300 million.317

The fragmentation of funding at the federal level poses difficulties for
distressed communities looking for transformative development despite
the EDA’s and other agencies’ work. As Jay Williams, the president of the
Hartford Foundation for Public Giving and a former Assistant Secretary of EDA,
testified, “While each agency’s funding and programs address community
needs per the agency’s subject matter expertise, mission focus, and statutory
authorities, this too often results in 'stove-piped' program execution.”318




CHAPTER 6
An Unlevel Playing Field                                                         109
      Federal Empowerment Zones
      The federal Empowerment Zone (EZ) program is one of the most
      prominent federal place-based policies. Jointly administered by HUD,
      HHS, the USDA, and the Internal Revenue Service (IRS), the program
      provided a combination of tax credits, grants, bonding authority, and
      other benefits in distressed urban and rural communities.319

      The first round of EZ designations in Atlanta, Baltimore, Chicago, Detroit,
      New York , and Philadelphia “resulted in substantial increases in zone
      employment along with increases in the wages of zone residents” and
      “appeared to have successfully transferred income to a small spatially
      concentrated labor force.”320




      MAP OF FEDERAL EMPOWERMENT ZONES
      IN DETROIT, MICHIGAN321

      At a Committee hearing, Dr. Bartik noted that the success of the first
      round of the program was largely due to the fact that, in addition to tax
      incentives, it “also gave a large block grant to each neighborhood that was
      used in practice for job training; it was used for small business job creation;
      it was used for nurturing the growth of small businesses.”



      In addition to grant programs, the federal government also created a system
      of place-based tax incentives. But experts say that without more targeted
      complementary funding for programs, tax cuts alone have yielded mixed
      results in economic development.

      The Opportunity Zones (OZ) program, for example, was recently created
      as part of the Tax Cuts and Jobs Act of 2017 (TCJA) to spur investment in
      economically distressed neighborhoods by reducing capital gains taxes for
      individuals and businesses who invest in qualified OZ funds.322


      House Select Committee on
110   Economic Disparity & Fairness in Growth
Early evidence suggests that the program facilitated the flow of funds into
some communities, but that communities most in need of these investments
are not receiving them, as more investment has been made in neighborhoods
with relatively higher incomes, home values, educational attainment, and
population growth.323 The incentives also overwhelmingly funded real estate
projects, rather than investments in ongoing businesses, limiting their
effectiveness for long-term development in these communities.

Dr. Tracy Hadden Loh, a Brookings Metro fellow, testified that one issue with
the program is that it was designed “without any mechanism to commit this
capital to increasing wages, creating new job opportunities for residents, or
offering entry points for residents to ownership of properties or businesses.”324

In contrast, the New Markets Tax Credit (NMTC), enacted in 2000 and operated
through Community Development Entities (CDEs), works to attract private
capital into communities by permitting individual and corporate investors
to receive tax credits for making equity investments into projects and non-
profits served by the CDEs.

A recent Urban Institute study found that 52% of NMTC funding went to local
manufacturing, food processing, retail, health care, schools, and child care
facilities projects.325

“It’s clear to me that we can and must do more to promote
economic growth in rural areas, because if we don’t, the small
towns and communities that make this country such a special
place to call home could be left behind.”
REP. ANGIE CRAIG

The fragmented nature of federal development funds makes access difficult
— especially for competitive grants, as many distressed communities lack
the funding and/or the technical capacity to secure such grants compared
to better-resourced areas. “Many under-resourced communities do not have
the capacity or funds to prepare these complex reports and must rely on
engineering firms for assistance,” Cheryal Hills, the executive director of the
Region Five Development Commission in Minnesota, testified.326

Dr. Loh further stressed in her testimony that, “Without high-capacity local
partners and implementation, program targets may not know about, trust,
or be in a position to take advantage of program tools.”

Committee Findings and Recommendations
Geography is clearly linked to economic status and opportunity: Some
communities offer abundant high-paying jobs in expanding industries, while
others are home to declining industries and primarily low-wage service
jobs. Some places have high-quality schools, good housing stock, excellent
transportation, and an appealing environment, while others have few of these
attributes. These differences may be stark in different regions of the country
or in different neighborhoods within a metropolitan area.


CHAPTER 6
An Unlevel Playing Field                                                            111
      PANELISTS AT THE HEARING ON LOCAL ECONOMIC DEVELOPMENT

      Rather than allow such differences to perpetuate disparities among
      Americans, the Committee believes that the federal government can more
      effectively and efficiently stimulate local economic activity in less advantaged
      areas. We offer several policy recommendations to increase funding to hard-
      hit areas, improve coordination among federal, state, and local economic
      development efforts, and better target and evaluate federal programs like
      Opportunity Zones.

      Support, monitor, and evaluate the most recently enacted place-based
      programs.

      Congress should appropriate full funding at authorized levels and monitor
      and evaluate requirements that are set up for the pilot RECOMPETE and
      Regional Technology Hubs place-based programs as enacted through the
      CHIPS and Science Act of 2022.

      With $11 billion of funding over five years, the two programs represent the
      most significant and comprehensive investment in place-based economic
      development since the Tennessee Valley Authority (TVA). The programs will
      be administered by EDA as flexible funding for a wide variety of infrastructure
      and services, including workforce development and entrepreneurial
      programs. The Hubs program will focus on technology development,
      whereas RECOMPETE is a grant program that will provide direct long-
      term help to distressed labor markets, helping them navigate the maze of
      different federal grant programs.

      Reauthorize the U.S. Economic Development Administration (EDA).
      The Committee recommends reauthorizing the U.S. Economic Development
      Administration (EDA) to expand economic planning and federal resource
      integration efforts. As part of reauthorization, we recommend expanding the
      EDA planning coordination program and increasing pre-development funding
      to support local capacity building.

      Enhance coordination of regional, rural, and urban economic
      development resources.
      Congress should also consider and pass the Great Lakes Authority Act of
      2022 H.R.7131, introduced by Rep. Marcy Kaptur (D-OH), an example of a
      holistic place-based strategy that coordinates across the federal agencies.
      Communities in the Great Lakes region were devastated by the loss of American


      House Select Committee on
112   Economic Disparity & Fairness in Growth
manufacturing jobs. Rep. Kaptur’s legislation seeks to restore economic
vibrancy in the region by building on existing regional strengths. Supported
by local stakeholders, the Great Lakes Authority aims to spur local economic
growth by making critical investments to finance green and clean energy,
broadband, and water infrastructure projects, while also investing in local
workforce education and training.

The Committee also recommends that federal agencies standardize economic
development plans, measures of economic distress, and evaluation criteria.
Now, at least three federal agencies — HUD, Labor, and Transportation
— in addition to EDA, require communities to produce detailed economic
development plans to apply for federal funding related to community or
local economic development. Integrated plans and objectives could help
communities pursue more holistic and inclusive place-based development
strategies, incorporating workforce, land use, transportation goals, and more
traditional economic development goals.327 Another complicating factor in
coordinating, implementing, and evaluating current place-based efforts is that
separate agencies have different definitions of economic distress, including
varying standards of unemployment rate, poverty rate, and others. In order
to tailor strategies to local economic needs, the Committee recommends that
federal agencies harmonize definitions of local economic distress.328

Further, we support the creation of a commission to document the "Impact of
Deindustrialization of U.S. Industries and Communities and Recommendations
for Reinvestment and Revitalization" that will report back to Congress in 2024.

Reform Opportunity Zones.

The Committee suggests that Congress reform the Opportunity Zones program
to narrow the targeting of eligible areas; require that OZ funds be paired with
flexible grants for local capacity building to help prepare, place, and keep
OZ residents in jobs and invest in small businesses; and increase reporting
and independent evaluation requirements to ensure that the program is
incentivizing investment that benefits existing residents.

Proposals include the “Opportunity Zones Transparency, Extension, and
Improvement Act of 2022,” sponsored by Sens. Tim Scott (R-SC) and Cory
Booker (D-NJ), which would narrow the eligibility for higher-income tracts and
increase reporting requirements on investment. Other legislative efforts, like
Rep. James Clyburn’s (D-SC) “Opportunity Zone Reform Act,” would tighten
eligibility both for zone designation and acceptable investment projects.

Better coordinate assistance for rural areas.

To enhance coordination of federal resources in rural areas, the
Committee recommends enacting the bipartisan Rural Prosperity
Act H.R. 7018 introduced by Rep. Angie Craig (D-MN). This bill would
establish the Office of Rural Prosperity within the Executive Office of the
President and charge it with developing a strategy for rural development,
standardizing metrics to measure the effectiveness of federal programs
on rural areas and setting up a council to coordinate federal efforts.




CHAPTER 6
An Unlevel Playing Field                                                          113
      The Balance of Power Between
      Employers and Workers




       WATCH VIDEO: EMILY WILDER, STANDISH, ME
       Registered Nurse in the Cardiac Intensive Care Unit at
       Maine Medical Center; Member of National Nurses United

       “I got into nursing, fell in love with it, fell in love with the patients and specifically
       with the ICU,” Emily Wilder, a registered nurse in Portland, Maine and a member of
       National Nurses United, said “It was the fall of 2019 — before COVID hit — when
       we first started saying: We don’t have enough bodies on the floor. We don’t have
       enough staff to safely care for these patients — not even enough for me to walk off
       the floor for 15 minutes to pump.”

       “Year after year, we’re told, ‘Sorry, it’s not in the budget, we don’t have the money
       for staffing,’” she added. “The driving force behind unionization was never about
       the money. It was never about being able to take extravagant vacations and time
       off. The number one priority, when people were surveyed at the beginning of
       the union drive, was that we could not provide safe care because we didn’t have
       enough people.”

       “Once the hospital got wind of our unionization efforts, they hired consultants
       from an out-of-state company to come in for something called captive audience
       meetings, to speak with us about the ‘dangers of unionization,’” she explained.
       “But they were coming into the hospital to hold these meetings at a time when,
       because of COVID, we were completely shutting out visitors. I was holding my
       personal phone up to patients’ family members so they could say their last
       goodbyes. And it was just such a punch in the gut.”

       “It was definitely the straw that broke the camel’s back,” she said. “We won our
       union election.”

       In the wake of the economic disparities of the Gilded Age and 1920s and the
       widespread suffering of the Great Depression, New Deal-era legislation was,
       in part, driven by the idea that economic growth should be shared among
       all who contribute to it. President Franklin Delano Roosevelt explained that
       “the test of our progress is not whether we add more to the abundance of


       House Select Committee on
114    Economic Disparity & Fairness in Growth
those who have much; it is whether we provide enough for those who have
too little.”329

For more than 30 years after the conclusion of World War II, worker
compensation largely reflected overall economic productivity. Private-sector
wages grew 102% between 1948 and 1980, while total economic productivity
grew 112%.330 Worker power — the ability of workers to command wages
commensurate with their productivity — not only helps solid wage growth, it
also reinforces competitive market dynamics, which increase both economic
efficiency and economic growth.

Research shows unions were instrumental in keeping economic disparity
in check in this period: The “wage premium [for union members] was larger
at the bottom of the income distribution than at the middle or higher” and
“unions substantially narrowed urban wage inequality at mid-century.”331

Between 1980 and 2021, however, the relationship between economic
productivity and worker compensation began to unravel. The former
increased 65%, while the latter grew by just 17% — barely a quarter of
economic productivity.332

While external forces, such as globalization, automation, and a shift in
labor demand from production-oriented jobs to services, contributed to
the decoupling of wages and productivity, stagnant income growth for the
average American is also a result of the decline in union membership.333
Figure 15: Wage and Productivity Growth Have Been Diverging Since the 1970s
PERCENT GROWTH IN WORKER COMPENSATION & TOTAL ECONOMIC PRODUCTIVITY (1948–2019)




SOURCE: ECONOMIC POLICY INSTITUTE (2021)334


Unions Under Siege: Declines in Organized Labor
This reduction in unionization began with the passage of the Taft-Hartley Act
of 1947, which led to a series of rulings by the National Labor Relations Board
(NLRB) that weakened unions, including through the prohibition of secondary
boycotts and decreased bargaining power regarding contracting and plant
closings.335 It also allowed states to pass right-to-work laws — which through
banning union shops and making union dues optional for employees lower
rates of unionization and in turn wages.336



CHAPTER 6
An Unlevel Playing Field                                                          115
      As states began to pass such laws, the South became generally less friendly to
      unions than the Northeast and Midwest, and highly-unionized manufacturing
      industries in the latter two regions began to move production to Southern,
      right-to-work states in an effort to reduce labor costs.337

      Vastly increased foreign competition starting in the late 1970s — which coincided
      with the establishment of the General Agreement on Tariffs and Trade (GATT)
      and the culmination of Japan’s economic rebound following World War II — put
      sustained pressure on the highly unionized domestic manufacturing industry.
      Newly competitive imports from Japan, coupled with the lowering of trade
      barriers with developing countries and large swings in the value of the United
      States dollar, led to widespread, permanent job losses in manufacturing.338

      The Supreme Court further weakened union power in its 1974 ruling in Linden
      Lumber Division v. NLRB, which ruled that employers could deny recognition of
      then-standard “card checks” and instead insist on an official NLRB-supervised
      election.339 Critics of card checks state that elections should be conducted in
      secret and organized by the NLRB, yet the time it takes to organize an official
      election often allows employers to engage in aggressive — and sometimes
      illegal — anti-union campaigns.340




      AMAZON WORKERS IN NEW YORK CITY PROTEST IN FAVOR OF
      UNIONIZING 341

      Deregulation in the 1970s and 1980s in the trucking, railroad, airline, and
      telecommunications industries — through legislation such as the Airline
      Deregulation Act of 1978, the Staggers Rail Act of 1980, and the Motor Carrier
      Act of 1980 — increased cost- and wage-cutting pressures. Though these
      established more robust competition in those sectors and thus increased
      choices and lowered prices for consumers, unions experienced increased
      difficulty in matching organizing efforts with the rate of firm creation, which
      led to decreased unionization and lower real wages for workers.342

      Then, in what was perhaps one of the most critical shifts in public perception
      of organized labor, in 1981 President Reagan fired more than 11,000 striking air
      traffic controllers who were organized by the Professional Air Traffic Controllers
      Organization (PATCO).343 Previously, public sentiment opposed the firing of
      striking workers, despite its legality.344




      House Select Committee on
116   Economic Disparity & Fairness in Growth
SEARS ROEBUCK EMPLOYEES ON STRIKE AGAINST UNFAIR LABOR
PRACTICES, MARCH 15, 1967 345

The Reagan Administration’s decision ultimately normalized what was seen
as a direct attack on workers and weakened the power of the strike as a
bargaining tool. The data on strike frequency since reflect this: In the decades
prior to the air traffic controller strike, major strikes occurred roughly 300
times each year. There are fewer than 30 per year today.

The dual recessions at the beginning of the 1980s had yet further negative
effects on employment in the manufacturing and mining industries
— both of which had large union membership.346 While output in these
industries eventually recovered, employment did not: Over that decade
alone, 6% of workers shifted from goods-producing industries to service-
producing ones.347

Domestic manufacturing employment fell — and with it unionization rates
— even more after the implementation of the North American Free Trade
Agreement (NAFTA) in 1994 and the entry of China into the World Trade
Organization in 2001.348

Increased global connectivity, meanwhile, allowed firms to transfer elements
of their operations to foreign nations with lower labor costs, dislocating
domestic workers in the process. What became known as foreign outsourcing
tended to first displace workers with low levels of education in occupations
that require less training. This offshoring accelerated with ever-improving
transportation and communication technology.

The growing import competition and the movement of manufacturing
capacity to lower-cost countries contributed to job loss and depressed
regional economic activity, particularly in New England, the Southeast, and
the Midwest.

Between 1970 and 2021, goods-producing employment as a share of
total nonfarm employment fell from 31% to 14%, while service-providing
employment grew from 69% to 86%.349 And, in the same period, the number
of private-sector workers belonging to a union had dropped from one in three
to about one in 20.350 The advancement of labor-reducing or -augmenting
technology has presented employers with similar competitive pressures.



CHAPTER 6
An Unlevel Playing Field                                                           117
      Technology offers lower costs and increased efficiency but drives out those
      workers whose skills are most easily replaced by automation.

      Strong Protections Demand Strong Enforcement
      Despite unions’ importance in providing workers with a means to collectively
      bargain for fair compensation and safe workplaces, the decline in union
      density alone does not completely capture the entirety of the recent decline
      in worker power.

      Laws such as the National Industrial Recovery Act of 1933, the Fair Labor
      Standards Act of 1938, the Equal Pay Act of 1963, and Title VII of the Civil
      Rights Act of 1964 were crucial to curbing extreme income inequality, in part
      by establishing many of the rights and workplace protections that workers
      enjoy today, including collective bargaining, the federal minimum wage,
      overtime pay rules, and pay equity laws–all of which help keep economic
      inequality at bay.




      IN 1981, MEMBERS OF THE PROFESSIONAL AIR TRAFFIC CONTROL-
      LERS ORGANIZATION HELD NATIONWIDE STRIKES FOR BETTER
      WAGES AND WORKING CONDITIONS 351

      Yet laws are only effective when enforced … and enforcement has decreased
      since the 1980s.

      The Wage and Hour Division (WHD) of the Department of Labor — which
      is responsible for enforcing the Fair Labor Standards Act — has gone from
      allocating about 82,000 workers per investigator in 1979 to roughly 190,000 per
      investigator in 2019, an enormous increase in workload, due to Congressional
      appropriations to the Division not keeping pace with the growing workforce.352

      The resulting decrease in enforcement has drastic impacts for workers;
      between 2017 and 2020, WHD recovered just $3 billion in stolen wages for
      workers. In 2019 alone, more than $9 billion was estimated stolen from
      workers earning below $13 per hour.353

      The Occupational Safety and Health Administration (OSHA), which is
      responsible for ensuring the “safe and healthful working conditions for
      workers by setting and enforcing standards” that prevent workplace-related


      House Select Committee on
118   Economic Disparity & Fairness in Growth
sickness and injury, is likewise less equipped to inspect workplaces for
violations than four decades ago.354 In 1979, there were roughly 62,000
workers for each OSHA inspector; by 2019, there were about 199,000–a more
than threefold increase.355

With weakened enforcement mechanisms, many firms may find that the risk
of being fined by OSHA or the WHD — or the fines themselves — are not large
enough to warrant compliance with existing laws. A study from the Peterson
Institute for International Economics notes that “neither the FLSA nor the
NLRA penalty and enforcement regimes create sufficient incentive to comply
for many firms,” adding that given such weak enforcement, “the substantial
evidence of minimum wage and overtime violations, and of illegal employer
behavior towards unions, is not surprising.”356

Looking Back and Moving Forward: The History
and Future of Unions
“On average, a worker covered by a union earns 10.2% more in wages than a
peer with similar education, occupation, and experience in a nonunionized
workplace in the same sector,” Dr. Heidi Shierholz, the president of the
Economic Policy Institute, testified.357 “Union workers are far more likely to
be covered by employer-provided health insurance … [and] more likely to
have paid vacation and holidays, more input into the number of hours they
work, and more predictable schedules.”

Unions also provide beneficial spillover effects to non-unionized workers.358

According to an August 2022 Gallup poll, some 71% of Americans are supportive
of unions — the highest approval rating since 1965.359 Yet nationally, only 9%
of all American adults actually belong to a union.360

“The large gap between the share of workers who want a union and the share
of workers who are in a union underscores that our system of labor laws is
not working,” Dr. Shierholz testified.

Studies note that “public policies that make it harder for unions to organize
and represent workers lead to lower bargaining power and wages.”361 Other
research has shown that union decline starting in the 1970s explains between
one-fifth and one-third of the increase in wage inequality between 1973
and 2007.362

Today, evidence points to decreased economic gaps between racial and ethnic
groups for unionized workers compared to those who are not unionized.363
However, not all workers were granted the right to organize and bargain
collectively or were initially welcomed into unions. Despite the benefits
to many workers from the passage of the National Labor Relations Act
(NLRA), agricultural and domestic workers were not — and to this day still
are not — classified as employees and are therefore not covered under the
NLRA’s guarantees.364




CHAPTER 6
An Unlevel Playing Field                                                         119
      PRESIDENT FRANKLIN D. ROOSEVELT SIGNING THE WAGNER
      UNEMPLOYMENT BILL ON JUNE 6, 1933 WITH REP. THEODORE A.
      PEYSER (D-NY), SECRETARY OF LABOR FRANCES PERKINS, AND SEN.
      ROBERT WAGNER (D-NY) 365

      Today, Latinos make up a majority of agricultural workers, and more than
      half of all domestic workers are women of Black, Hispanic, Asian American,
      or Pacific Islander descent.366 None are covered by the NLRA.

      Despite the pervasive racism present in many unions prior to the Civil Rights
      Era, organized labor became a crucial ally in the fight to pass many of the
      protections against discrimination that workers enjoy today.367 Unions today
      are far more representative of the overall working population.368

      When Employers Respond to Changing Workforce
      Dynamics
      Changes in the ways employers view their relationships with their employees
      have also contributed to the decline in worker power. Shareholder primacy
      — a form of corporate governance that proposes that the maximization
      of profit and shareholder wealth should be the objective of public firms —
      served to reinforce the decline of American labor.

      During most of the post-World War II era, large corporations often saw
      themselves in service to a variety of stakeholders, including customers,
      suppliers, workers, stockholders, and the communities in which they operated.
      Financial sector deregulation in the middle of the 20th century — which led
      the share of corporate stock held by institutional investors to rise from
      10% in the early 1950s to more than 60% in the early 2000s — led to more
      shareholder interventions pushing for increased shareholder payments.369
      Mergers, downsizings, and anti-union activity were increasingly seen as
      channels through which stock buybacks and dividends could be increased,
      despite their unproven effects on firm profitability.370



      House Select Committee on
120   Economic Disparity & Fairness in Growth
Compounding the negative effects of shareholder primacy on workers is
employee misclassification, which occurs when companies hire someone who
is an employee as defined by the Fair Labor Standards Act as an independent
contractor, thereby avoiding the costs associated with employing workers.371

Misclassification can impose costs on workers, including the addition of taxes
that traditional employees do not pay. Moreover, misclassified workers are
often denied basic workforce protections such as access to the minimum
wage, overtime pay, unemployment insurance, and workers’ compensation.372
Various state-level analyses estimate that 10 to 30% of employers engage
in misclassification.373

Though the popular idea is that misclassified workers are largely employed
in the gig economy, the construction industry is the major field in which
misclassification has historically been endemic.374 Construction workers
— who represent one in five independent contractors — are among the
lowest paid and least-protected workers, and are generally not provided the
flexibility and opportunity that comes from being an independent contractor.

There are employment relationships in which misclassification is challenging
to determine. The gig economy, for instance, provides workers with flexibility
in exchange for more traditional employment benefits. While some workers
appreciate the flexibility to earn extra income, other people who work full-
time at a single gig economy job are denied the benefits that traditional
employment relationships provide.375




REP. KAPTUR, REP. JAYAPAL, AFL-CIO SECRETARY-TREASURER FRED
REDMOND, AFL-CIO PRESIDENT LIZ SHULER, AND CHAIRMAN HIMES

Non-compete contracts, which prohibit workers from starting in a similar
position at a competing firm, are another tool that can be abused by employers
to suppress worker power. Traditionally reserved for employees who have
proprietary knowledge and could carry that knowledge to a competing firm,
low-wage workers without access to such knowledge — such as hourly-paid
fast-food workers or retail workers — have been subjected to non-competes
with detrimental effects.




CHAPTER 6
An Unlevel Playing Field                                                         121
      By constraining their ability to find alternative employment and reducing
      competition for labor between employers, non-competes serve to suppress
      wages for some of the most economically vulnerable workers. According
      to the Federal Reserve Bank of Minneapolis, more than one in 10 low-wage
      workers report having a non-compete contract.376

      According to the same study, “when Oregon ended the enforcement of non-
      competes for hourly paid workers, wages for those workers rose by 2-3%,
      with larger effects in occupations where non-competes are more common.”

      Committee Findings and Recommendations
      Individual workers rarely, if ever, have the power that their employers do to
      determine their pay, benefits, working conditions, or job security. Labor laws
      and regulations play a key role in protecting employees’ rights, safety, and
      opportunity. Such laws are especially important in ensuring that workers have
      the rights to collectively bargain, receive a fair paycheck, and are treated with
      dignity on the job.

      Therefore, the Committee recommends a set of specific policies that support
      unions, increase the minimum wage, and fully fund those government
      agencies entrusted with looking after the welfare of the 160 million Americans
      who work for a wage or salary.

      Support unions and collective bargaining.

      The Committee recommends that Congress make it easier for workers to
      bargain collectively by passing the Protecting the Right to Organize Act (PRO
      Act), which would expand the scope of workers covered by NLRA standards,
                                                         ban state-level right-to-
                                                         work laws, and make it
                                                         easier to organize a union,
                                                         among other policies.

                                                           The Committee also
                                                           recommends that Congress
                                                           pass the Public Service
                                                           Freedom to Negotiate Act
                                                           (PSFNA). Currently, states
                                                           have wide discretion over
      MS. STERLING HARDERS, MX.                            public-sector collective
      MAELSTROM PULLMAN, AND MR. TRENT                     bargaining procedures.
      WU AT THE ROUNDTABLE ON WORKER
                                                           If signed into law, the
      RIGHTS IN SEATTLE, WASHINGTON
                                                           PSFNA would empower the
      Federal Labor Relations Authority to determine whether each state provides
      a minimum level of rights, including the right of public-sector employees to
      self-organize, form or join a union, or collectively bargain.




      House Select Committee on
122   Economic Disparity & Fairness in Growth
RIDESHARE DRIVER IN NEW YORK SUPPORTING THE PASSAGE OF
THE PRO ACT 377

Raise the federal minimum wage.

The Committee recommends raising the federal minimum wage — which is
currently in its longest streak of nominal stagnation since its implementation
in 1938 — pegging it to inflation, and broadening the scope of workers who are
covered. Increasing the minimum wage and ensuring it will go up over time
without continual Congressional intervention would provide workers greater
bargaining power in wage negotiations with employers.378

According to an analysis by the Congressional Budget Office (CBO) “increasing
the federal minimum wage would raise the earnings and family income of
most low-wage workers, lifting some families out of poverty.”379 The CBO
estimates that raising the federal minimum wage to $15 would lift 300,000
people out of poverty and increase the total annual income of all families
earning below three times the official poverty rate by $4.5 billion.

Moreover, a higher wage floor increases bargaining power of low-wage
workers earning above the minimum wage, as outside employment options
with comparable pay become more plentiful and provide workers with
credible threats to find new employment if their current employers do not
meet their needs.

In the 117th Congress, the House passed legislation, the Raise the Wage Act,
that would increase the federal minimum wage to $15 over a five-year period,
index it to inflation, and eliminate the separate minimum wage requirements
for tipped and disabled employees.




CHAPTER 6
An Unlevel Playing Field                                                         123
      Critics claim that raising the minimum wage in this way could reduce overall
      employment and hours for low-income workers — but the gains for the most
      economically vulnerable are clear. Moreover, many studies point to the fact that
      there are few, if any, aggregate job losses when the minimum wage is raised.380

      Figure 16: The Real Minimum Wage is at its Lowest Point Since 1949
      REAL HOURLY FEDERAL MINIMUM WAGE (1947 – 2022)




      SOURCE: DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS (2022)381

      Strengthen the agencies that protect worker rights.

      The Committee recommends increasing funding to federal agencies protecting
      worker rights, including the National Labor Relations Board, the Wage and
      Hour Division, and the Occupational Safety and Health Administration.

      Dr. Kate Bahn, the chief economist at the Washington Center for Equitable
      Growth, suggested in her testimony the NLRB should be better equipped to
      enforce current worker protections.382 Congressional appropriations for the
      agency have remained the same for the last nine consecutive years despite a
      rise in union election petitions and unfair labor practice charges.383 Compared
      to fiscal year 2010 levels, this is equivalent to a 25% budget cut, which delays
      the adjudication of claims.

      Ms. Danielle Alvarado, the executive director of Working Washington & Fair
      Work Center, testified at the Seattle field hearing about the importance
      of enforcing worker protection laws, suggesting that Congress should be
      “committing dedicated funding for federal agencies to community-based
      enforcement partnerships, particularly the NLRB, DOL, and EEOC.”384




      House Select Committee on
124   Economic Disparity & Fairness in Growth
Economic Security Programs




 WATCH VIDEO: ANGELA HILL, ANDERSON, SC
 Founder of Journey Changers Scholarship Solutions

 “Just because my mother was on welfare does not mean that I had to be on
 welfare,” Angela Hill told the Committee. “But I had to use the resources that were
 available for me.”

 “At the time, I had two younger boys, and it allowed me to be able to afford the
 benefit of going to the grocery store,” she explained. “And then once I landed a job,
 I was able to say, ‘OK, I don’t need the SNAP benefits anymore, I don’t need the
 unemployment benefits because I have a full-time job.’”

 “It was a building block for me. It is a resource to use to help make yourself and
 make your life better,” she said. “I had an incentive of going to college, becoming a
 business owner, and being able to show people how I can pay it forward.”

 Angela Hill is one of the millions of Americans who have experienced
 the challenges of poverty and relied on an economic security program.
 Government benefits gave her the tools to keep going and to eventually be
 able to contribute and give back to her community. She has since founded
 Journey Changers Scholarship Solutions — an organization that provides
 financial aid for people to realize their career goals and find economic success.
 Nearly every American will, like Angela, access economic security programs
 at some point over the course of their lives.

 According to the White House Council of Economic Advisers (CEA), 70% of
 Americans have benefited from economic security programs.385 The CEA
 also found that between 1978 and 2010, more than one-third of all people
 received support from either SNAP, TANF, or Supplemental Security Income
 (SSI). Including Social Security, an economic security program for elderly,
 disabled, orphaned and widowed people, nearly every American will obtain
 federal economic benefits.386




 CHAPTER 6
 An Unlevel Playing Field                                                                125
      These programs are important because many Americans are unable to
      withstand even small financial disruptions: 40% of Americans are not able
      to cover a $400 emergency expense, and 17% of adults couldn’t pay some
      or all their bills in the month they were surveyed.387 Whether an economic
      crisis affects the entire country or an individual, without sufficient support,
      seemingly temporary economic episodes can permanently widen disparities.

      The United States provides support through a variety of programs to help
      individuals and families. Some, like Social Security, are universal programs
      to insure people against loss of income due to old age, sickness, and
      disability, while others are means-tested. Economic security programs
      play an important role in reducing inequities among the American people.



      A History of Economic Security Programs
      Meaningful federal social welfare programs began with the New Deal
      to combat the poverty and unemployment of the Great Depression.
      The Social Security Act of 1935 provided retirement security for the
      elderly and support for other disadvantaged people and established the
      unemployment insurance (UI) system and the Aid to Dependent Children
      (ADC) program, which provided cash assistance to low-income families.
      The temporary Food Stamp Program of 1939 was the first iteration of
      federal nutrition assistance to combat hunger and is now known as the
      Supplemental Nutrition Assistance Program (SNAP).388

      President Johnson’s Great Society initiative established Medicaid and
      Medicare389 — health-insurance coverage for the poor and elderly. The
      Nixon Administration established the Supplemental Security Income
      (SSI) program to benefit low-income people with disabilities and the
      Women Infants and Children (WIC) program to provide food assistance to
      pregnant women and young children.

      The idea of using the tax code to bolster the economic security of
      lower-income Americans became law under President Ford, with the
      establishment of the Earned Income Tax Credit (EITC) and expanded
      through the Child Tax Credit (CTC), a refundable tax credit created in 1997.


      Since the 1960s, the poverty rate in the U.S. has declined but remains high,
      especially compared to other developed countries: In 2021, it was 11.6%,
      meaning that 37.9 million people lived in households with incomes below the
      Census Bureau’s official poverty threshold.390 This is among the highest of
      all OECD countries — higher than Germany, Australia, the U.K., and France.391

      Millions of Americans struggle with incomes just above the official poverty
      threshold, which does not take into account the cost of housing, transportation,
      child care, health care, or geographical differences.392

      More middle-income families are receiving benefits to address their needs.
      Research shows that government benefits are an increasing proportion of



      House Select Committee on
126   Economic Disparity & Fairness in Growth
middle-income households’ finances. But the most deleterious effects of
poverty and near-poverty fall on children — and can last a lifetime.

Poverty rates are higher among the youngest Americans than among the
oldest: The child poverty rate in 2021 was 16.9%, while the poverty rate for
people over age 65 was 10.3%.393

Childhood poverty damages children as well as the U.S. economy. Research
measuring the loss of human potential that childhood poverty imposes on
society — including on health costs, reduced earnings, increases in crime,
the social costs of incarceration, child homelessness, and increased child
maltreatment costs — concludes that the annual aggregate cost of child-
poverty is over $1 trillion, or 5.4% of GDP.394
Figure 17: The United States Spends Relatively Little on Benefits for Families
GOVERNMENT EXPENDITURES ON FAMILY BENEFIT PROGRAMS AS A SHARE OF GDP




SOURCE: ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (2021)395

In the face of these costs, the United States spends less of its GDP to mitigate
or alleviate childhood poverty than other developed countries do.396

There are many long-term benefits for both society and poor children when
their families have access to economic security programs. These programs,
which immediately increase parents’ disposable income, improve not only
children’s health, but also their educational and career outcomes.397 The
effects last into adulthood.398

Ms. Sharon Parrott, the president of the Center on Budget and Policy Priorities,
testified that “Studies link additional income with better outcomes for children
in families with low incomes, including better educational performance and
attainment, higher earnings in adulthood, and better health, which can yield
benefits for children and their communities over the course of their lives.”399

Federal, state, and local governments, the private sector, and charitable
organizations all have roles in protecting and enhancing Americans’ economic
well-being. Philanthropy plays a significant role in alleviating poverty,
improving opportunity, and exploring new approaches to social problems.
America’s nonprofit sector is much larger than in other rich nations, making
up for at least some of the shortfall in U.S. government spending on economic
security relative to Western European countries.400




CHAPTER 6
An Unlevel Playing Field                                                           127
      However, according to the National Philanthropic Trust, less than one-fourth
      of total private giving went to “public-society benefit” and “human
      services” combined.401

      “While the philanthropic community has always played an essential role in
      supporting the well-being of our communities, philanthropy should not —
      and cannot — fill the resource gaps created by lack of government support,”
      the Chicago Community Trust, a large community foundation, declared.
      “Government funding for human services is essential because no other entity
      can provide the capacity of support that government does.”402

      Economic Security for All
      The CTC and the EITC reach the largest number of people of any current
      economic security programs besides SNAP and have the biggest impacts on
      poverty reduction.

      The CTC benefits Americans with children in married households earning up
      to $150,000 per year or for individuals earning up to $75,000 per year. It lifted
      an estimated 9.8 million people out of poverty in 2018.403

      In 2021, the CTC was temporarily expanded from $2,000 to $3,600 and
      made fully refundable under the American Rescue Plan Act (ARPA) to help
      more families weather the economic shocks of the COVID-19 pandemic. The
      families of some 61 million children received the CTC, which brought 5.3
      million people out of poverty, including 2.9 million children. It also reduced
      the Black child poverty rate from 14.5% to 8.1%.

      The EITC is a refundable tax credit targeted at families with children. Established
      in the 1970s and subsequently expanded, it provides support to low- and
      moderate-income workers and families. ARPA broadened EITC eligibility to
      include people aged 19 to 24 and over 64 and tripled the maximum credit for
      childless workers to $1,502 in 2021. As a result, in 2021, about 25 million
      workers and their families received the EITC, further reducing poverty. However,
      despite overwhelming support in both Democratic chambers of Congress for
      extension, the expanded CTC and EITC expired at the end of 2021.404

      A 2019 National Academies of Sciences report concluded that “out of 10 policy
      options, a child allowance similar to the expanded Child Tax Credit would be
      the single most effective policy for reducing child poverty.”405

      In addition to the tax credits, another broad-based economic security program
      is the UI system, which provides cash benefits to those who lose their jobs.406

      Unemployment insurance plays a critical role alleviating poverty, most
      recently during the COVID-19 pandemic.407 The CBPP found that around five
      million more people would have fallen into poverty in 2020 — and potentially
      another six million in 2021 — without expansions provided through pandemic
      relief programs. Close to 46 million individuals received unemployment
      benefits in 2020 — and Black workers’ poverty levels declined by 2.5%,
      compared with 1.4% over all.




      House Select Committee on
128   Economic Disparity & Fairness in Growth
Programs like these are designed to expand automatically during recessions
to address unemployment and income loss, and not only provide short-term
relief, but reduce the macroeconomic severity of a recession.408

Unemployment benefits thus provide some countercyclical stabilization to
the economy — more than other economic assistance programs do — but
are not as responsive or effective as they could be.

The UI system is handicapped by its dependence on state-level funding — and
state funds are routinely exhausted during downturns.409 The pandemic also
highlighted challenges with the current UI system’s outdated information
technology, which resulted in delayed payment of benefits to workers.

Programs That Target Poverty
Other economic security assistance programs, such as Temporary Assistance
for Needy Families (TANF) or SNAP, are targeted at households that fall below
the poverty threshold and thus serve a smaller number of people — four
million in the case of TANF. Their total cost is smaller than the broad-based
programs, but they also have less impact on poverty reduction.410 Still, the
Urban Institute has found that in a typical month, nearly one in five people
receive support through SNAP, SSI, TANF, public or subsidized housing, the
WIC program, or the Child Care and Development Fund.411

Outside of the tax credits, SNAP is one of the largest economic security
programs, in terms of both cost and reach: More than 41 million people
(estimated) received SNAP benefits in July 2021, which cost $111 billion. Food
assistance through SNAP has one of the largest anti-poverty impacts for low-
income working families, older adults, and people living with disabilities on fixed
incomes. Over two-thirds of SNAP participants are families with children, while
the rest are households with older adults or people living with disabilities.412

The CBPP found that households below the poverty line received 92% of
SNAP benefits and that the program kept nearly eight million people out of
poverty every year before the pandemic.413

However, the Department of Health and Human Services (HHS) found in
2018 that 64.4 million people were eligible for SNAP benefits, yet benefits
reached only 40.9 million people — a 63.4% participation rate.414 Standards
for eligibility for both SNAP (as well as UI) recipients have not kept pace with
the modern workforce.

A number of other direct-benefit programs are operated by federal, state, and
local governments, including TANF, which provides cash assistance.

In 2019 and 2020, $5.4 billion in TANF benefits were distributed to states,
helping over a million families. However, TANF’s design allows its funds to be
used by states for reasons other than cash assistance and, since it replaced
the Aid for Families with Dependent Children (AFDC) program, the number of
people served has declined by 76% due in part to that flexibility.415

In 2020, an estimated 2.38 million families who would have been eligible for
AFDC failed to qualify for TANF.416


CHAPTER 6
An Unlevel Playing Field                                                              129
      MR. MARC MORIAL AT THE HEARING ON ECONOMIC SECURITY


      Accessibility
      Much of the challenge with economic security programs is a result of coverage
      gaps stemming from outdated benefit levels, eligibility, and duration. Beyond
      these gaps, the administration of these programs poses a significant
      challenge to people applying for and accessing these program benefits. This
      is due partly to administrative burdens, lack of easily available information
      for potential beneficiaries, and compliance costs.417

      Furthermore, outdated technology at the federal and state levels hampers
      access and delivery of many benefits, according to the House Budget
      Committee. UI capacity also varies by state. Without updated and resilient
      technology, economic security programs cannot function at an optimal level.418



      The Impact of Work Requirements On Poverty
      The Clinton-era Personal Responsibility and Work Opportunity
      Reconciliation Act of 1996 ended AFDC, replacing it with the TANF program,
      which provided time-limited benefits and required recipients to work.

      The Congressional Budget Office has found that, while TANF’s work
      requirements increased participants’ employment, it did not increase their
      income — especially because some people lost benefits when they began
      to work, exacerbating the poverty the program was intended to alleviate.419

      Subsequent work requirements added to SNAP and Medicaid benefits
      similarly reduced people’s access to poverty alleviation programs but did
      not increase their employment rates or take-home pay. Instead the declines
      in people’s access to cash assistance programs led to increases in deep
      poverty420 among families with children, even as the welfare rolls shrank.421




      House Select Committee on
130   Economic Disparity & Fairness in Growth
The Future of Economic Security Programs?
Broader programs to support Americans’ economic security exist.

Dr. Darrick Hamilton testified about Baby Bonds, which would create
a savings account for every newborn and provide annual deposits
                           based on family income. At age 18, recipients
                           could use the money to purchase a home,
                           start a business, or pay for higher education.
                           "The accounts could go a long way towards
                           establishing a more moral and decent
                           economy that facilitates assets, economic
                           security, and social mobility for all its
                           citizens," he stated.422

The American Opportunity Accounts Act, by Sen. Cory Booker (D-NJ)
and Rep. Ayanna Pressley (D-MA), would enact this program on the
federal level.

Some scholars recommended establishing universal income programs
to provide Americans with a base level of income security. San
Francisco's Abundant Birth Project, for example, aims to support
maternal health and economic security of Black and Pacific Islander
women through a universal cash assistance program offered monthly
through their pregnancies and postpartum periods.423

A related proposal is the sovereign wealth fund, a mechanism designed
to share government profits created from a state’s natural resources.

While not widespread now, these programs could provide the basis of
more expansive economic security programs in the future.


Committee Findings and Recommendations
Marc Morial, President of the National Urban League, testified that “We must
invest in economic security programs, but in addition to simply investing in
the number of people served — which is of paramount importance — it is just
as important to ensure each program has the resources needed to reach the
people they aim to serve, those who need it most.”424

The Committee believes that the federal government should do more to
ensure economic security for all Americans — especially our youngest. This
would reduce disparities early in children’s lives and grow the productive
capacity of our economy.

The Committee supports strengthening, expanding, and modernizing existing
programs like SNAP, UI, the CTC, and the EITC to deliver more effective support
to more Americans, enabling them to achieve lasting self-sufficiency and
preventing economic downturns from sabotaging future economic opportunity.




CHAPTER 6
An Unlevel Playing Field                                                          131
      Restore the expanded Child Tax Credit and Earned Income Tax Credit and
      make the expansions permanent.

      Because a person’s starting point is so critical to economic prosperity — and
      because child poverty is unconscionable in a wealthy nation — the Committee
      recommends restoring the CTC provisions enacted under ARPA, increasing it
      to $3,000 for each child ages 6 to 17, and up to $3,600 for younger children.

      The Committee also recommends restoring the “childless” EITC provisions
      that were enacted under ARPA, including increasing the credit to $1,502;
      increasing the phase-in and phase-out rates; reducing the ages of eligibility
      for workers; and eliminating the upper age limit.

      Increase the responsiveness of economic security programs.

      The Committee believes that economic security programs like UI and SNAP
      must be more nimble and responsive during economic crises. Unemployment
      Insurance must be reformed to address gaps in eligibility, duration, and level
      of benefits. Congress should expand eligibility for UI benefits for workers
      currently ineligible, including part-time, gig, and seasonal workers, among
      others.425 The Committee also recommends tying increases and decreases
      in federal benefits to objective economic indicators in order to reduce the
      legislative uncertainty associated with unpredictable economic developments.

      Legislation should be considered to target unemployment and maintain
      workers’ paychecks during recessions. Consideration should include such
      measures as permanently extending the Employee Retention Tax Credit,
      originally passed under the CARES Act. This credit is designed to encourage
      employers to keep workers on payroll if they are forced to suspend or limit
      operations due to recession or a government order.

      Other legislation to consider includes a version of the Paycheck Recovery
      Act, introduced by Rep. Pramila Jayapal (D-WA) in the 116th Congress, which
      would provide grants to eligible small businesses that lost revenue due to the
      COVID-19 pandemic to help pay employees’ wages, rent, utilities, and other
      expenses, but could be adapted to future economic crises.   ,




      House Select Committee on
132   Economic Disparity & Fairness in Growth
Tax Policy and Equal Opportunity




 DR. WILLIAM GALE, PROF. DOROTHY BROWN, MR. SETH HANLON,
 MS. AMY MATSUI, AND DR. ANGELA RACHIDI TESTIFY AT THE
 HEARING ON TAX POLICY FOR INCLUSIVE ECONOMIC GROWTH

 For millennia, nations have taxed their citizens to achieve a variety of purposes.
 Every society makes decisions about whom and what to tax, and how much.
 In the United States, particularly in the post-World War II era, individual and
 corporate income taxes, along with payroll taxes that finance Social Security
 and (since 1965) part of Medicare, have been the primary sources of federal
 revenue. These federal taxes affect American income distribution in two primary
 ways: through direct redistribution achieved by taxing higher-income earners
 and passing the revenue collected to lower-income earners, and through the
 funding of programs intended to increase the current and potential prosperity
 of the population as a whole.

 Whereas the primary role of taxes is to fund government, the United States is
 unusual among rich countries in the degree to which it uses tax policy, more
 than economic security programs, to redistribute income and subsidize certain
 activities. Today these elements of tax policy, known as “tax expenditures,”
 overwhelmingly benefit higher income Americans.

 While the income tax is progressive and reduces inequality, recent changes
 to the nation’s tax system have increasingly aggravated income inequality.
 First, most tax cuts since the 1980s — regardless of arguments that they
 stimulate demand during downturns or propel investment — mostly benefit
 the wealthy. Second, the federal tax code treats capital income, which comes
 from returns on assets like financial investments or real estate, more favorably
 than income earned by labor. Third, the average effective corporate tax rate
 has fallen dramatically. And fourth, tax subsidies, or “tax expenditures,” largely
 benefit the well-to-do.426




 CHAPTER 6
 An Unlevel Playing Field                                                             133
      Addressing the Theoretical Tradeoff between
      Progressivity and Growth
      In theory, tax policy presents trade-offs between the goals of more fairly
      distributed income and the growth of the overall economy. Higher tax rates
      on the wealthy and corporations may raise revenues for economic-security
      programs to help low- and moderate-income Americans, but there may be
      a point at which too-high tax rates may disincentivize work and growth-
      producing investments. While tax cuts during recessions can stimulate
      demand for goods and services, tax cuts on those with very high incomes
      are often justified as being economically stimulative in a way that will
      “trickle down” to lower income Americans and provide higher tax revenues,
      growing the economy so much that everyone benefits and overall tax
      revenues rise.

      In reality, most evidence shows that such “supply side” tax cuts increase
      inequality and reduce government revenues with little discernible effect on
      growth. The 2017 Tax Cuts and Jobs Act (TCJA) provides a good recent test of
      supply side tax theory. According to William Gale and Claire Haldeman of the
      Brookings Institution, the TCJA cuts, which reduced tax rates on new investment,
      produced neither increased investment nor new business creation.427

      Supply siders’ predictions that Clinton-era tax increases would lead to
      recession were confounded by the strong economic growth of the late 1990s,
      as Nobel laureate economist and New York Times columnist Paul Krugman
      has noted.428 America had some of its most robust, sustained growth during
      the 1950s and 1960s when tax rates were much higher than they are today.429

      Long-Term Decline of Taxes on the Rich
      Taxes have been cut repeatedly since the 1980s. Despite periodic increases,
      the long-term trajectory of “effective tax rates” has been downward for those
      at the top and the bottom of the income distribution.

      Between 1980 and 2020, the list of tax cuts favoring the wealthy is long:
      The top marginal tax rate ­­— or the amount paid on each additional dollar
      of income — has been cut from 70% to 37%.430 The top rate on qualified
      dividends has gone from 70% to 25%, and the top rate on long-term capital
      gains has been cut from 35% to 25%.431 In addition, the estate tax has been
      cut from 70% to 40%, and estates of less than $11.5 million are now excluded
      from any tax. The top marginal corporate tax rate has gone from 46% to 21%,
      and the top rate on “pass-through income” — business income reported on
      the owner’s individual tax return– went from 79% to 35%432

      The payroll tax, which finances Social Security and Medicare, is also regressive
      in that it applies the same tax rate regardless of income, and it does not tax
      wage income above $147,000. Because of this limit, the payroll tax burden on
      the top 1% declined from 3.1% in the mid-1990s to 2.7% in 2018.433

      The evolution of the federal income tax has also led to a byzantine system that
      is not neutral in how it treats different sources and levels of income, types


      House Select Committee on
134   Economic Disparity & Fairness in Growth
                                                    of employment, household
                                                    structures, and different
                                                    forms of consumption,
                                                    making an already unlevel
                                                    economic playing field
                                                    even more so. The tax
                                                    code therefore affects
                                                    all kinds of household
                                                    decisions–including where
                                                    to live and work, saving for
                                                    retirement, buying a home,
PROF. DOROTHY BROWN AT THE                          even whether to marry.
COMMITTEE’S HEARING ON TAX POLICY


How the Tax System Favors Capital Income over
Labor Income
One of the main reasons for regressivity in the tax code is the fact that capital
income, or income from assets like stocks or real estate, is taxed at a lower
marginal rate than income from wages and salaries. Although the primary
source of income for the vast majority of households is from wages and
salaries, the top 1% of households, and particularly the top 0.01%, receive
most of their income from capital.434

Because capital income is taxed at lower rates, the effective tax rate of the
very highest-income households is actually lower than the rate on the next-
highest-income households. The top 0.5% of tax returns, which were subject
to the 37% top marginal rate, paid that rate on less than half of their income
because most of their earnings were from capital gains and dividends.435

The 2017 tax cut further reduced effective tax rates on capital by cutting
capital gains, dividend, and corporate tax rates. As a result, in 2018, labor
income was taxed at a higher average rate than capital income for the first
time in modern U.S. history, according to Berkeley economists Emmanuel
Saez and Gabriel Zucman: “From the 1940s to the 1980s, the average tax
rate on capital exceeded 40%, while labor paid less than 25% ... Since its
peak of the 1950s, however, the average capital tax rate has been cut by 20
percentage points. At the same time, labor taxation has risen more than 10
points, driven by the upsurge in payroll taxes.”436

The favorable tax treatment of capital also encourages “firms to substitute
machines for workers, even when workers may be more productive,” as MIT
economist Daron Acemoglu told the Committee.437

Due to this preferential tax treatment and the fact that capital owners have
more capital income today than in the 1980s because of appreciation in stock
market and property values, the after-tax incomes of the richest households
have grown more than the after-tax incomes of everyone else. Since capital
income accumulates over time to become wealth, and since wealth is largely
untaxed, this has been a contributor to the fact that wealth inequality is
greater and has grown more than income inequality.


CHAPTER 6
An Unlevel Playing Field                                                            135
      Figure 18: The Wealthiest Americans Experienced The Most Income Growth
      AVERAGE ANNUAL POST-TAX INCOME GROWTH BY INCOME PERCENTILE (1980 – 2014)




      SOURCE: GABRIEL ZUCMAN (2018)438


      How Tax Policy Subsidizes Mostly the Activities of
      the Rich
      Tax expenditures represent a shadow budget, as they are invisible in accounts
      of federal spending. These exclusions, deductions, credits, and preferential
      rates in the federal tax system resulted in $1.2 trillion in foregone tax revenue
      in 2019 — close to the cost of all discretionary federal spending actually
      appropriated by Congress. These tax subsidies are economically equivalent to
      spending and must be paid for by higher taxes or, recently, more borrowing.
      They generally do not go through the regular review that is part of the annual
      appropriations process but increase the size and scope of government. They
      are also inefficient and distort the tax system, because decisions are made
      on the basis of tax treatment rather than on market or social benefits.439

      Tax expenditures are skewed, both in absolute terms and relative to income,
      to the wealthy, increasing economic disparities. A CBO analysis found that
      about half of the benefits from income-tax expenditures and one-third of
      those from payroll-tax expenditures accrued to households in the highest
      income quintile, compared to 9% and 4% in the bottom quintile. The top 1%
      of households receive a larger aggregate benefit from all the tax expenditures
      for which they qualify — $188 billion in 2019 — than the middle 20% of
      households do — $173 billion in 2019.440

      The biggest tax expenditures, the exclusions for employment-based health
      insurance and for pensions and retirement savings accounts, account for
      nearly half the total cost of all tax expenditures combined. By definition, they
      do not benefit lower-income workers whose employers do not provide health
      insurance or retirement plans or people who do not owe federal income taxes.
      Similarly, homeowners, who generally have greater wealth than renters,
      benefit from the mortgage interest deduction and the exclusion of capital
      gains on the sale of a primary residence.




      House Select Committee on
136   Economic Disparity & Fairness in Growth
Only two of the 13 largest tax expenditures, the Earned Income Tax Credit
and the Child Tax Credit (CTC) are refundable credits that supplement the
incomes of lower-wage workers and therefore reduce disparities. The cost of
these refundable tax credits is small relative to the cost of the tax expenditures
that benefit the wealthy. CBO analysis shows that the entire cost of the CTC
in 2019, $118 billion, was barely more than the value of the preferential tax
treatment of capital gains and dividend income to the top 1%, which was
$113 billion.441

Figure 19: Comparing the Child Tax Credit to Capital Income Tax Preferences
COST OF SELECT TAX EXPENDITURES AND WHERE THOSE BENEFITS GO (2019)




SOURCE: CONGRESSIONAL BUDGET OFFICE (2021)442


How Tax Policy Favors Traditional Relationships
American tax policy was originally designed for traditional household and
employment relationships — married, single-earner families and full-time
jobs with benefits rather than part-time or contract work. Despite more
recent reforms, since the joint tax return was established in 1948, the income
tax system has created marriage penalties on two-earner couples with similar
earnings and marriage bonuses for single or primary breadwinner couples.

The tax system also favors those in full-time, conventional employment. Most
part-time and contract workers do not benefit from two big tax expenditures–
employer-provided health insurance and retirement savings plans. These
workers have to purchase health insurance and save for their retirement
on their own and without the benefit of the tax subsidy. They also pay both
employer and employee portions of the payroll tax.




CHAPTER 6
An Unlevel Playing Field                                                             137
      Committee Findings and Recommendations
      America’s tax code, intended to raise sufficient government revenue to fund
      spending and to redistribute national income more fairly, fails to achieve
      either of these goals. Outlays in excess of revenues requires the federal
      government to borrow to pay for its programs and operations. Meanwhile,
      the structure of the tax code makes the distribution of income and wealth
      more unequal than it might otherwise be.

      Harmonize the effective taxation of capital.

      Since capital income is taxed more lightly than labor income, the Committee
      recommends bringing effective tax rates on capital gains, carried interest,
      and dividends more in line with rates on wages and salaries, making the tax
      code more progressive overall.

      The estate tax is the only federal tax on wealth. However, the exemption level
      was doubled under the TCJA, and current law exempts accumulated but
      unrealized capital gains at death through the step-up in basis provision, such
      that most wealth is never taxed at all. The Committee therefore recommends
      eliminating step-up in basis in a way that takes into account the effects
      these changes would have on passing family farms or businesses from one
      generation to the next. Because taxing estates does not take into account
      the income or wealth of individual heirs or how much of an estate they each
      receive, Dr. William Gale of the Brookings Institution recommends converting
      the estate tax on decedents’ estates to an inheritance tax on heirs’ inherited
      wealth.443

      Reduce tax subsidies that benefit mostly the rich.

      There are several ways tax policy could be changed to reduce the regressive
      nature of tax subsidies that deliver the highest benefits to the highest income
      earners. One comprehensive strategy would be to convert deductions or
      exemptions, which all convey higher percentage subsidies to higher-bracket
      households, to credits. Credits subtract the benefit from the tax liability after,
      rather than before, marginal tax rates are applied.

      Another approach focuses on itemized deductions and would cap the rate
      of itemized deductions for the highest-income households at the same rate
      as for middle-income households at 22-24%.444 This would reduce but not
      eliminate the benefit for high-income taxpayers, and would not reduce the
      benefit for middle- and lower-income taxpayers.




      House Select Committee on
138   Economic Disparity & Fairness in Growth
Raise more revenue.

For a generation at least, the federal government has run substantial deficits,
in periods of economic growth and in periods of stagnation, under Democratic
and Republican governments. Washington argues endlessly and fruitlessly
over whether the cause is overspending or under-taxing. The fact is, Americans
are accustomed to the social insurance programs, the national defense, and
the investments in infrastructure and education offered by their federal
government. They are much less comfortable with the taxes required to pay
for it all. This tension has led to deficits, and to dishonest political solutions
involving “waste, fraud and abuse” or cuts to obscure programs that are
meaningless in the context of the budget challenges.

Most honest treatments of the federal government’s long-term debt, deficit
and unfunded liability issues recognize that sustainability will come from a
combination of increased revenues and targeted reductions in spending in
appropriated accounts or tax expenditures.

Since the fundamental role of taxes is to raise revenue to pay for public
goods and services, including investments vital to equitable growth, effective
individual rates could be raised on the nation’s highest earners without
damaging economic growth or breaking with precedents set in previous
generations. If the nation does not find ways to increase revenues and move
away from deficit spending, it will contribute to intergenerational inequality
by shifting the burden of paying for current spending to future generations
of taxpayers or will result in lower government benefits to them.445




CHAPTER 6
An Unlevel Playing Field                                                             139
      Market Competition Policy




       “Corporate concentration has a direct impact on widening
       economic disparities, making workers, consumers, and small
       businesses unable to bargain for fair wages, lower prices, or a
       sustainable market share … To make matters worse, the abuse
       of power is more prevalent in industries that disproportionately
       employ marginalized groups — and I think that is important –
       such as rural communities, women, and people of color.”
       REP. PRAMILA JAYAPAL


       Competitive markets are essential to innovation, entrepreneurship, and the
       reduction of economic inequality. When free markets and competition are
       compromised, consumers, workers, and innovation suffer.446 As just one or
       a very few companies control products, services, or labor markets, they can
       set prices above or wages below competitive levels, benefiting themselves
       at the expense of workers and consumers.

       History shows that economic concentration can be a driver of inequality,447
       and recent scholarship indicates that concentration can contribute to
       disparities.448 A study by the OECD’s Competition Division concluded that
       “the welfare losses due to the exercise of monopoly power are not only
       significant but also regressive.”449 In the late 19th century through the early
       20th century, the growth of monopolies in many U.S. industries widened social
       and economic disparities between industrial titans and workers, permitted
       harsh working conditions, and limited opportunities for entrepreneurs to
       enter the market.




       House Select Committee on
140    Economic Disparity & Fairness in Growth
In response, Congress passed the Sherman Antitrust Act in 1890, under which
federal cases were brought against giant industrial trusts like Standard Oil. In
1914, Congress passed the 1914 Federal Trade Commission Act and the Clayton
Antitrust Act.450 President Franklin D. Roosevelt, who fought monopolies
ranging from railroads to tobacco and signed the 1936 Robinson-Patman
Act, observed:

"Throughout the nation, opportunity was limited by monopoly.
Individual initiative was right in the cogs of a great machine.
The field open for free business was more and more restrictive.
Private enterprise, indeed, became too private. It became
privileged enterprise, not free enterprise. . . The political
equality we once had won was meaningless in the face of
economic inequality.”451
PRESIDENT FRANKLIN D. ROOSEVELT


Enforcement of these laws during the middle years of the 20th century helped
foster greater competition and a sustained period of inclusive economic
growth during which the middle class vastly expanded.452 However, reduced
enforcement since the 1970s has resulted in increased consolidation in a
number of industries.

Concentration Hurts Consumers and Workers
It is important to distinguish between the harms caused by monopolies and
oligopolies, on the one hand, and monopsonies. In monopolies, markets are
dominated by a single seller, and oligopolies, which are more common, are
characterized by a handful of dominant firms.453 In monopsonies, markets
are dominated by a single buyer.454
As the Council of Economic Advisers noted in a 2016 issue brief, firms
with monopoly power are able to charge higher prices without losing
customers due to a lack of competition, whereas firms with monopsony
power can pay lower prices for what they buy. The latter is important in labor
markets, where employers can pay lower wages than they would in a more
competitive market.455

The Effect of Market Concentration on Worker Pay
Although the increasing power imbalance between workers and employers can
be explained, in part, by increased globalization and automation and decreased
unionization, market concentration in specific labor markets may also be at play.
Monopsony can occur where workers have limited employment alternatives.
The classic example is a factory town where an employer could pay workers
less than what would be expected under competitive market conditions.




CHAPTER 6
An Unlevel Playing Field                                                            141
      When there are only a few employers in a community or sector, workers have
      less opportunity to bargain for higher wages and better conditions. One study
      of geographically defined labor markets during the Great Recession found that
      industry consolidation decreased advertised wages by as much as 17%.456

      Occupations in sectors of growing concentration, such as health care and private
      security, appear to have had sluggish wage growth.457 “One recent survey finds
                                                         that, on average, employers
                                                         have the power to keep
                                                         wages more than one-third
                                                         lower than they would be
                                                         in a perfectly competitive
                                                         market,” according to
                                                         Kate Bahn, director of
                                                         labor market policy at the
                                                         Washington Center for
                                                         Equitable Growth.458

                                                           Although direct causal
                                                           links between market
      REP. ALEXANDRIA OCASIO-CORTEZ AT
                                                           concentration and broad-
      THE HEARING ON CORPORATE POWER
                                                           based wage stagnation or
      decline is still a matter of some debate, the Economic Innovation Group argues
      that when employers’ power in a labor market is substantial, this allows firms
      “to exert downward pressure on wages.”459 Other studies have found that
      labor market concentration may contribute to “declining job-to-job mobility,”
      “rising inequality of earnings for workers in different firms,”460 and unsafe or
      hazardous working environments.461

      The Effect of Market Concentration on Prices
      The ability of companies in uncompetitive sectors to set higher product
      prices disproportionately hurts low- and moderate-income households,
      deepening economic disparity. Higher prices for necessities like health care,
      housing, energy, phone and internet service, and food cut more deeply into
      limited incomes, increasing economic insecurity and reducing these families’
      ability to build wealth.

      A study of eight OECD countries, including the United States, found that
      “market power increases the wealth of the richest 10% by between 12%
      and 21% . . . while it reduces the income of the poorest 20% by between
      14% and 19%.”462 America’s high racial wealth disparities are also likely to be
      impacted.463 In addition, the OECD found that decreased competition and
      increased consumer expenses may slow U.S. productivity growth.464

      The Effect of Market Concentration on
      Small Business
      Small businesses are clearly affected by corporate consolidation. “Sixty-five
      percent of small businesses said that a top challenge was big competitors
      strong-arming suppliers and receiving special discounts from them, which


      House Select Committee on
142   Economic Disparity & Fairness in Growth
then delays shipments to small businesses and forces suppliers to charge
them more," Michael Mitchell, the Groundwork Collaborative’s director of
policy and research, said, reporting the findings of a 2022 survey.465

Dominant companies can exert such pressure on suppliers and drive
out smaller businesses by lowering consumer prices below cost with the
expectation that they will be able to raise prices later. Mom-and-pop stores
often disappear when a chain superstore enters the market.466

Corporate consolidation risks driving out smaller competitors for essential
goods in underserved rural and urban areas. Mega-chains, which lack the
community ties that small businesses have, may be quick to leave if they are
unprofitable, even after draining communities of resources and opportunity
and forcing small businesses that cannot match their prices to fail.

Committee Findings and Recommendations
Increasing concentration and reduced competition in several sectors in recent
years exacerbate disparities between wage- and price-setting businesses and
most Americans. The Committee believes that antitrust policy has not kept
up with changes in the economy.

There is broad, bipartisan concern that current antitrust law is inadequate to
protect and promote competition. In 2021, the House Judiciary Committee
passed five bipartisan bills to rein in the abuses of big tech monopolies, and
Sens. Jon Tester (D-MT), Chuck Grassley (R-IA), and Mike Rounds (R-SD)
introduced legislation to address anticompetitive practices in the meat and
poultry industries. As Senator Rounds observed: “Congress knew in 1921 what
we know today – anticompetitive behavior in the meatpacking industry hurts
both consumers and producers.”467

There is also bipartisan agreement that federal antitrust enforcers do not have
sufficient funding to adequately enforce existing antitrust laws. Former FTC
Chair Joe Simons testified in 2019 that “[t]he largest obstacle to enforcement
remains resources.”468

Current FTC Chair Lina Khan told the Senate Judiciary Committee’s
Subcommittee on Antitrust, Competition Policy, and Consumer Rights in
2022: “Despite the increased appropriations Congress has provided in recent
years, we continue to lack sufficient funding.”469

The Committee urges Congress to provide the FTC and the Justice
Department’s Antitrust Division with more resources. The Committee
also recommends amending federal antitrust laws to make it easier for
government enforcers and private plaintiffs to prove that firms have entered
into anti-competitive agreements, engaged in anticompetitive behavior, or
proposed anticompetitive mergers—and to secure prompt and effective relief
from courts against those illegal behaviors.




CHAPTER 6
An Unlevel Playing Field                                                          143
Conclusion
WHERE WE GO FROM HERE                                                              7
       SELECT COMMITTEE MEMBERS ENGAGE WITH PANELISTS AT OUR
       INFRASTRUCTURE AND CORPORATE POWER HEARINGS

       Economic disparity and lack of opportunity are critical national problems.
       Nine years ago, President Obama called inequality “the defining issue of our
       time.” It still is. Inequality can be found in every corner of the country. While
       people of color, women, those with less education, and other subsets of our
       population are disproportionately affected, disparity does not discriminate
       based on partisan affiliation or political philosophy. It holds too many
       Americans back from living their best possible lives. And it holds our nation
       back from having the most dynamic and productive economy possible, one
       that stands heads and shoulders above the rest of the world.

       The mission of the Committee — closing the prosperity gap and reshaping
       the economy to work for all Americans — is one of the most audacious and
       consequential objectives in American history. Policy proposals discussed
       throughout this report recognize past oversights and look to a future
       where the American Dream can be achieved, regardless of any American’s
       race, gender, age, background, or birthplace. No simple panacea exists for
       the disparities that pervade the U.S. economy and American society. Our
       legislative proposals exemplify the practical, analytically sound approaches
       needed to change course and build economic resilience. As we look ahead to
       the 118th Congress and beyond, we see a moral and democratic imperative
       to support the common goal of ensuring that all Americans have equal
       opportunities to thrive in a time of rapid economic change.




       House Select Committee on
144    Economic Disparity & Fairness in Growth
With the country facing levels of inequality not seen for generations, the
Committee — in consultation with many of the country’s preeminent scholars,
economists, and policy analysts — has identified targets where enhanced
and well-designed federal investments can help rebalance the economy
and close widening gaps in wealth, income, and broad socioeconomic
well-being. That is why we call for initiatives to invest in people and
communities, strengthen economic security programs, address inequities in
the tax code, and tackle power imbalances between employers and workers.
Federal, state, and local lawmakers — together with the private sector, faith
communities, and philanthropy — can help turn the page on economic
disparity in America by taking action to provide hope to struggling families and
individuals. The investments we propose also take into account racism and
discriminatory policies and practices in our nation’s history that contributed
to today’s inequities.

The extent and impact of the problems associated with inequality and
diminished social mobility demand a national response devoid of the tribalism
and partisan entrenchment that have divided communities and turned
neighbors against each other. They demand a spirit of compromise and
mutual understanding. Compromise is possible, as seen by the passage of
bipartisan legislation like the infrastructure law, the CHIPS and Science Act,
and the PACT Act expanding veterans’ health care.

Despite the different perspectives and policies offered by Committee
Democrats and Republicans, many proposals reflect the Committee’s
decision to leave the confines of the Capitol and listen to Americans where
they live. All too often, policy debates lack a visceral sense of the struggles
and hopes of our nation’s more than 330 million people. As both Chairman
Himes and Ranking Member Steil have acknowledged, “there is immense
power and wisdom in personal stories. Only so much can be learned from the
dense jargon and obscure statistics inundating Capitol Hill.” And we believe
that by truly listening to Americans from diverse backgrounds, we can lower
the temperature of our polarized politics.

 With this in mind, the Committee chose to build its report and work from the
moving stories of everyday Americans presented at hearings and captured
in the groundbreaking documentary film detailing three different, arduous
paths taken to economic security and mobility.

Entrepreneurs like Janna Rodriguez of New York shared her perspective that,
despite small businesses being the backbone of America’s economy, would-
be entrepreneurs struggle to access necessary resources to make their dreams
a reality. Rural residents like Michelle Schroeder of Minnesota discussed the
daily challenges that she and her neighbors face because limited broadband
connectivity hampers their ability to work, access telemedicine, and stay in
touch with friends and family.

Homeowner Rae Johnson of Wisconsin told of their journey navigating the
housing market as a first-time home buyer, as they saved money and built
their credit. Early education specialist Marc Jaffe of Connecticut spoke
passionately about how important it is to invest in young children, including
those with disabilities, as well as their teachers.


CHAPTER 7
Conclusion                                                                         145
      These stories shed light on the barriers Americans face in their shared pursuit
      for prosperity that statistics alone cannot. They also illuminate ways that
      lawmakers can develop policies to level the playing field and make the
      economy more inclusive.

      Economic disparity and the lack of good opportunities for all Americans are
      challenges that have an impact on nearly every facet of our society. If we
      don’t take action, these problems will further hinder the nation’s potential
      for innovation and growth. They will erode our democratic institutions and,
      most tragically, they will make the American Dream impossible for too many
      of our people. That is why every elected representative must work together
      to help every American achieve the bright and prosperous future that they
      so richly deserve.




      House Select Committee on
146   Economic Disparity & Fairness in Growth
CHAPTER 7
Conclusion   147
Minority
Views
PERSPECTIVES AND RECOMMENDATIONS
                                                                                8
             American workers and families are struggling. Over the last two years, costs
             have gone up, families cannot afford the same life they previously lived,
             and constructive leadership in Washington, D.C. has been absent. In fact,
                                          the ruling party continued to double down on
                                          reckless spending policies and ended up making
                                          things worse. Republican Members of the Select
                                          Committee on the Economy have taken the
                                          last year to hear from American workers and
                                          families on how bad things have gotten and,
                                          more importantly, what steps they can take to
                                          open more doors to opportunity. The common
      RANKING MEMBER                      theme across all the hearings, roundtables, and
      BRYAN STEIL
                                          field trips the committee has undertaken is that
             the cost of one-party rule in Washington, D.C. is far too high. Americans need
             policies focused on bringing down costs, growing the economy, creating more
             opportunities, and holding leaders in Washington, D.C. accountable to the
             people they serve.

               The Select Committee on the Economy, formally named “The Select Committee
               on Economic Disparity and Fairness in Growth” by Speaker Nancy Pelosi (CA-11),
               was formed at the Speaker’s direct order to justify her ineffective, out-of-touch,
               and inflationary policies that have pushed America
               into a recession when the economy should have
               been roaring back to life after the pandemic ended.
               Republican members, under the leadership of
               Ranking Member Bryan Steil (WI-01), included Rep.
               Warren Davidson (OH-08), Rep. Jodey Arrington
               (TX-19), Rep. Stephanie Bice (OK-05), Rep. Kat
               Cammack (FL-03), and Rep. Byron Donalds (FL-19).
               Members took the opportunity to highlight the                 REP. WARREN DAVIDSON
               failures of Speaker Pelosi’s agenda and the financial
               and everyday toll it placed on Americans. Republican Members believe every
               American should have the opportunity to experience the freedom and prosperity
               that America can offer.


               House Select Committee on
148            Economic Disparity & Fairness in Growth
       America was built on a strong foundation of families and communities, which
       leads to a strong economy. Making sure people have family-sustaining jobs in a
                                  strong economy is the foundation of growth.

                                    Back in the economy of 2018-2019, real wages
                                    increased by 6.8%.470 Rising wages were visible at
                                    levels unseen in recent memory among a variety
                                    of groups including women, blacks, Hispanics,
                                    and veterans. Families were getting ahead.
                                    Unfortunately, two years of one-party Democrat
                                    control in Washington has erased that prosperity.
REP. JODEY ARRINGTON
                                    From September 2021-2022, real wages declined
                                    by 3.8% while inflation increased to a peak of 9.1%
                                    in June 2022. Workers are struggling today to afford
                                    the same life they could live just a year ago. Food
                                    prices are through the roof.471 The cost of eggs is over
                                    30% more expensive than last year and milk is 28%
                                    more in the same time period. Gasoline and diesel
                                    are almost double what they were in January 2021
                                    after hitting all-time record highs at $5.01/gallon and
REP. STEPHANIE BICE
                                    $5.82/gallon, respectively, in the summer of 2022.

       Families are struggling to afford everyday essentials, and their communities
       are becoming less safe. Across America, violent crime is rising. America’s
       biggest cities are shattering homicide records and liberal politicians are letting
       criminals back out on the streets. That crime wave has spilled over into smaller
       communities, which are seeing burglaries and aggravated assaults spike as well.

       Safety at the Southern Border has been neglected
       as well. The controlling party in Washington, DC has
       ignored the worsening conditions at our nation’s
       Southern Border, where cartels are trafficking
       criminals and deadly drugs into the country every
       day. In 2022, 98 people from the terrorist watch
       list were caught crossing the Southern Border,
       more than 5 times higher than the previous 5
       years combined.472                                             REP. KAT CAMMACK

       And while Border Patrol is dealing with migrants
       coming over the border, cartels smuggle dangerous
       drugs like fentanyl into the country to poison our
       communities. Last year, there were more than
       100,000 drug deaths in America fueled by a rise in
       deadly fentanyl that can kill someone on his or her
       first use.473 Opioid overdoses are now the leading
       cause of death for ages 18-45 and affect every
                                                                      REP. BYRON DONALDS
       community from coast to coast.474

       After dozens of hearings, roundtables, and field trips across America, Republican
       Members of the Select Committee on the Economy are prepared to offer a new
       vision for America where life is affordable, safe, and free.



       CHAPTER 8
       Minority Views                                                                          149
      A Prosperous Economy

       “American small business
       creation is one of the
       most powerful economic
       forces in the world. In no
       other country is it as easy
       and rewarding to go on to
       pursue entrepreneurship
       as here. Americans have
       an unparalleled privilege to
       improve our living standards
       through entrepreneurship,
       which provides employment
       opportunities and enormous value to our communities… I fear that I would not
       have been able to start my own business if I were beginning today. One of the
       biggest problems American small businesses face right now is high inflation.
       It must be addressed in order to turbocharge creation and growth. Officially,
       American businesses are approximately 10 percent inflation in their inputs.
       But in my restaurant experience, our supply costs are rising even faster. For
       instance, a box of limes that I used to be able to find for $30 now costs me
       $90. I have been forced to raise prices just to stay profitable, alienating my
       loyal customers on a fixed income who do not understand my predicament.”

       Name: Ms. Dina Rubio, Owner of Don Ramon Restaurant in West Palm
       Beach, Florida

       Hearing: Big Ideas for Small Businesses

       Location: Washington, D.C.

       Date: March 16, 2022

       Inflation at Time of Hearing: 8.5%



       Unfortunately, stories like Ms. Rubio’s are not uncommon across America
       right now. But it should not stay that way. A strong economy is the backbone
       of opportunities for workers to prosper and families to get ahead. Economic
       opportunity allows for growth, including family-sustaining wages and the
       ability for Americans to live the kind of life they want for their families. That
       was the economy America had leading up to the Covid pandemic.

       The pandemic is over, but that prosperity has not returned. Inflation is
       clobbering workers’ paychecks and families are falling behind. This inflation
       stems from two years of excessive federal spending with nothing to show for
       it but economic headwinds, higher prices, and workers continuing to remain
       out of the labor force.475




       House Select Committee on
150    Economic Disparity & Fairness in Growth
         Figure 20: The Cost of the Biden Agenda




         In roundtables, Members heard how the federal government spent over $1.9
         trillion in three partisan actions. That is more than the entirety of the private
         sector payroll for almost a year.

         In the hearing centered around simplifying the tax code on June 22, Members
         heard from Dr. Angela Rachidi, Rowe Scholar at
         the American Enterprise Institute, about workers
         who are staying on the sidelines or have left
         the workforce altogether. Because of excessive
         government spending, these people are achieving
         a similar standard of living with little to no work
         rather than working full time. In fact, potential
         low-income workers have accumulated, on average,
         $5,500 in savings. This comes from excessive
         Covid-era government benefits that have been               DR. ANGELA RACHIDI
         handed out for far too long. And according to the
         Census Bureau, these excessive benefits have kept over 20 million workers
         out of the workforce altogether.476 Work is the most effective tool against
                                     poverty, for upward economic mobility, and
                                     for the well-being of children and families. The
                                     federal government should be encouraging, not
                                     discouraging, opportunities for more Americans to
                                     have a better life than what government benefits
                                     can offer.

                                 What were the repercussions of these disastrous
                                 policies? First, America saw inflation skyrocket,
MR. SHAY HAWKINS                 reaching 9.1% in June 2022, the highest in 40
                                 years.477 Inflation is insidious because it hurts
       everyone. However, high inflation like the country has seen since January
       2021 hits seniors and those living on fixed incomes the hardest. The red-hot


        CHAPTER 8
        Minority Views                                                                       151
      inflation that clobbered American workers has effectively stolen a month of
      pay. When work only pays 11 months for 12 months of labor, families cannot
      grow and prosper. In the committee’s first field hearing in Lorain, Ohio on
      October 18th, 2021, Mr. Shay Hawkins, President of the Opportunity Funds
      Association, described inflation as “a tax on everybody.” Record inflation is
      regressive, hurting the poorest Americans the hardest.

      In fact, the 2022 holiday season is poised to be the most expensive on record,
      with food costs up 21% on average. Turkey costs 20% more than last year,
      which was already 25% more expensive than the year before. Butter and
      margarine are up 27% and 44%, respectively. Potatoes are almost 18% more
      expensive than last year and fresh vegetables round it off at 9.2% higher.
      This translates to less money for families when they have to pay more for the
      same amount of food.

      Figure 21: Consumer Price Index, 12 Month Inflation Change




      SOURCE: BUREAU OF LABOR STATISTICS, HTTPS://WWW.BLS.GOV/CPI/


      Food is not the only necessity hitting record-high costs for families stocking
      their pantries. The cost of energy, including gasoline and diesel, is hitting
      record highs too. American families are dreading every trip to the gas pump. In
      January 2021, before one party rule took control of Washington, gasoline cost
      $2.38/gallon. In June 2022, gas prices peaked at $5.01/gallon, a more than
      100% increase. In the same interval, diesel fuel prices climbed from $2.68/
      gallon to $5.82/gallon. American workers and families cannot thrive if the
      fuel that moves their cars, produces their goods, and powers their machines
      is 100% more expensive.

      With record-high energy prices, it is imperative that lawmakers focus on
      unleashing American energy. There is an enormous domestic supply of natural
      resources that cannot be accessed because of liberal government policies.
      If the nation were to reverse course and allow that supply into the market,
      utility bills and prices at the pump would fall.




      House Select Committee on
152   Economic Disparity & Fairness in Growth
Figure 22: Weekly U.S. Regular Retail Gasoline Prices (LEFT) and Weekly U.S.
Retail Diesel Prices (RIGHT)




SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION, GASOLINE AND DIESEL FUEL UPDATE

One example of bad policy was canceling the construction of the Keystone
XL Pipeline. Not only would the pipeline have increased access and supply
to consumers, but it would also negate reliance on foreign energy, improve
national security, and open up thousands of new jobs for American workers.
The committee heard from Mr. Neal Crabtree, a foreman on the Keystone
XL pipeline whose job, along with hundreds of others, was eliminated by
the stroke of a pen on January 20, 2021 by President Biden. The proposed
pipeline was a privately funded project to connect American consumers with
domestically and Canadian produced energy, and provide skilled workers with
family sustaining jobs. The XL pipeline would have produced 830,000 barrels
a day reducing reliance on sources outside North
America. Following the cancellation of the pipeline’s
construction, gas and energy costs for American
consumers began to skyrocket as the country was
forced to import more foreign energy. Thousands
of American workers had their jobs eliminated.
Today, American consumers are dealing with the
consequences of that loss.

In a hearing centered around American infrastructure       MR. NEIL CRABTREE
on February 9, 2022, Members discussed the
skyrocketing cost of roads and public transit thanks to excessive government
regulation. For example, Ranking Member Steil referenced the cost to build one
mile of a subway in New York City was about $5 billion, seven times the global
average for similar projects because of excessive red tape forced on builders
by the government at all levels.

The economic hardship workers and families across the country are facing
has a direct link to bad policy decisions in Washington, D.C. Workers have
been on the sidelines for too long and need to go back to work. Two years of
excessive federal spending has sent inflation to record highs. Higher costs
mean less money for families to afford everyday items.

Members of the committee have put forward several solutions to get the
economy back on track. There is no greater economic threat to workers’
abilities to live the kind of lives they want than the current record-high inflation.


CHAPTER 8
Minority Views                                                                          153
      The soaring prices for food, transportation, energy, and virtually everything
      else means families cannot afford the lives they lived a year ago, and it also
      means they cannot save for the future. The solution to getting inflation under
      control is getting spending under control and unleashing American energy. To
      get spending under control, lawmakers need to exercise fiscal discipline and
      prioritize spending on projects most effective in helping American workers
      and families.



      Select Committee Member Led Solutions
      H.R. 3448: “The Helping Startups Continue to Grow Act,” Rep. Bryan Steil (WI-
      01):

      This bill reduces the regulatory burden on startups and allows them to focus
      on creating valuable products instead of navigating a maze of regulations.

      H.R.6217: “The Expanding Access to Affordable Credit for Small Businesses
      Act,” Rep. Byron Donalds (FL-19):

      This bill expands the pool of potential lenders to get small businesses up and
      running and provides more competition for better interest rates.

      Additional Actions
      HR 8913: “The TCJA Permanency Act”

      This bill makes the key provisions of the 2017 Tax Cuts and Jobs Act permanent.
      Certainty against tax increases helps workers plan for the future and keep
      more of their hard-earned money.




      House Select Committee on
154   Economic Disparity & Fairness in Growth
Safety in American Communities

 “Illicitly manufactured fentanyl has
 zero medicinal purpose. It is distributed
 through illegal drug markets for its
 heroin-like effect and is often added to
 drugs because of its extreme potency
 which makes drugs cheaper, more
 powerful, more addictive, and thus
 much more dangerous… Fentanyl is 50
 to 100 times stronger than morphine
 and is only slightly less deadly than
 nerve gas and just as deadly as ricin,
 both of which are considered weapons of mass destruction. An amount
 equivalent to a grain of salt can cause death. Fentanyl is almost always
 consumed accidentally. Most do not seek out to use or abuse fentanyl. Fentanyl
 and other synthetic opioids are efficient and cost-effective for drug producers
 and traffickers, and often deadly for those who consume them. Unless you
 overdose in an emergency room, your chances of survival are slim. Even if
 someone with the opioid reversal med Narcan finds you overdosed and uses
 it on you, the chances you survive are still not great.”

 Name: Dr. Katherine Pannel, Medical Director of Right Track Group

 Hearing: Substance Abuse and Addiction: Destroying Families, Communities,
 and the Opportunity for Prosperity

 Location: Washington, D.C.

 Date: March 2, 2022

 Inflation at the Time of Hearing: 8.2%


 The increasing flow of deadly drugs into communities across America threatens
 the safety of every community. Every American has the right to feel safe. Whether
 someone is leaving their house to get groceries or traveling to a different state,
 Americans should feel safe in their communities.

 Unfortunately, this is increasingly not the case. Across the country, both smaller
 communities and big cities alike are becoming less safe. Nationally, robberies
 are up 12% and aggravated assault is up 3%. It is worse in America’s biggest
 cities. Compared to 2019, aggravated assaults are up 36% and murder is
 up 50% in 2022. Nine major cities are on track to set new homicide records.
 The combined population of these nine metro areas is over 65 million people,
 roughly 20% of the national population. Because of the safety issues in cities,
 many established businesses are relocating to safer communities and taking
 workers with them. When jobs dry up and workers leave, the fabric that holds
 communities together falls apart.



 CHAPTER 8
 Minority Views                                                                       155
             This rise in crime is further fueled by lawlessness at the country’s Southern
             Border where cartels are going unchecked in smuggling dangerous drugs,
             including fentanyl, to sell across our country. The lucrative drug trafficking
             business is a multi-billion dollar operation for criminal cartels.

             The influx of drugs, specifically fentanyl, at the border has had a devastating
             effect on communities across the country. Since January 2021, 20,000
             pounds of fentanyl have been seized at the Southern Border by federal,
                                                        state, and local law enforcement.
                                                        That comprises enough potentially
                                                        fatal doses to kill every American
                                                        13 times over.

                                                       Members of this committee have
                                                       seen the dangers this country faces
                                                       firsthand. During a field hearing in
                                                       McAllen, Texas, members heard from
                                                       local leaders about illegal migrants
                                                       flooding into their communities,
      RECORD 1 MILLION PILLS WITH FEN-                 overflowing jails, and creating
      TANYL SEIZED BY THE U.S. DRUG EN-                massive court backlogs and stacks
      FORCEMENT AGENCY, JULY 2022 478                  of paperwork.


             They are also diverting local services like police officers and ambulances
             during emergencies. The committee heard the story of a long-time community
             resident who was unable to get the emergency medical care he needed during
             a heart attack because the town’s single ambulance was helping a struggling
             migrant who also needed care. The man ultimately died when he could have
             been saved with timely medical care. The Members also saw Texas Public
             Safety (TPS) officers apprehending illegal migrants trafficked across the border
             by cartel members lacking enough food and water for the desert conditions.
             The open border has created a humanitarian crisis.

             Members also heard Ms. Susan Kibbe, President of the South Texas Property
             Rights Association and a local rancher herself, talk about the hardships she and
             other ranchers face because of the border crisis. Many ranchers are too afraid
             to leave their homes at night, especially unarmed.
             Regularly, dangerous armed cartel members
             trespass while trafficking migrants, often leaving
             behind some who go on to suffer heat stroke and
             die. Landowners discover these tragedies, along
             with piles of trash and drugs. Ms. Kibbe explained
             that TPS does its best to apprehend cartel members
             and stem the flow of illegal migrants, but that they
             are simply too understaffed and underfunded to               MS. SUSAN KIBBE
             be effective everywhere at all times, which is a
             weakness the cartels exploit. While state-funded TPS works around the clock
             to stem the tide of illegal activity on the border, federal Border Patrol Agents
             are forced to stand down by an Executive Branch that has abandoned its duty
             to protect communities and farmers at the Southern Border.


             House Select Committee on
156          Economic Disparity & Fairness in Growth
       Scenes from South Texas, Broken Fences and a
       Truck that Ran into a Storage Shed




IMAGES COURTESY OF THE SOUTH TEXAS PROPERTY RIGHTS ASSOCIATION


       In 2021, more than 100,000 Americans died of an opioid overdose, a new
       record fueled by the rising prevalence of fentanyl. That figure is up 300%
       since 2012. One key detail is that many of these deaths are poisonings
       thanks to fentanyl disguised as other drugs like Xanax or Adderall. Fentanyl
       is 50 times more potent than heroin and 100 times more potent than
       morphine. This dangerous substance has become a nefarious presence in
       communities across America. Because fentanyl is so potent and dangerous,
       it is killing thousands of Americans on their first use. Fentanyl is not just
       contributing to a crisis of addiction; it is creating an entirely new crisis of
       poisoning that immediately results in death.

       Substance abuse has changed.                 Figure 23: US Overdose Deaths,
       Death now comes to someone with              by Substance, 1999-2021
       no behavioral indicators towards
       substance abuse because just one
       pill can kill. “Opioid deaths have
       become so commonplace, they are
       equivalent to a fully booked 747 jet
       crashing every day,” said Mr. Michael
       Gray, a panelist at the committee’s
       substance abuse roundtable, who
       lost his daughter Amanda to fentanyl
       poisoning at just 24 years old. The
       same night Amanda died, six other
       people in her city died as well due
       to fentanyl poisoning, likely from
                                                    SOURCE: KEATING, DAN AND BERNSTEIN, LENNY.
                                                    “100,000 AMERICANS DIED OF DRUG OVERDOSES IN
                                                    12 MONTHS DURING THE PANDEMIC.” WASHINGTON
                                                    POST, NOVEMBER 17, 2021.




       CHAPTER 8
       Minority Views                                                                              157
      the same batch of drugs from a single dealer. The
      presence of this deadly narcotic is a threat to the
      safety of all Americans when left unaddressed.
      This crisis is putting Americans in danger, as opioid
      overdoses are now the leading cause of death for
      Americans aged 18-45.

                                                                     MR. MICHAEL GRAY



      Select Committee Member Led Solutions
      HR 378 “The David Dorn Act,” Rep Jodey Arrington (TX-19):
      This bill increases the criminal penalties for inciting and participating in a riot,
      doubling the maximum potential prison time from five to 10 years and setting the
      minimum fine at $1,000.

      HR 377 “The Patrick Underwood Act,” Rep. Jodey Arrington (TX-19):
      This bill increases the penalties for assaulting, resisting, or impeding law enforcement
      officers in the line of duty.

      HR 5831 “The Protect Our Communities from a Porous Border Act,”
      Rep. Jodey Arrington (TX-19):
      This bill prohibits the federal government from relocating illegal migrants to a state
      without a state’s consent and compels the Department of Homeland Security to
      check if a migrant has a criminal history and notify a state before relocating the
      migrant there. Empowering states to take control will force transparency out of
      the executive branch in issues of immigration.

      HR 8561 “The Stop the Cartels Act,” Rep. Warren Davidson (OH-08):
      This bill includes common-sense reforms to reduce human trafficking, increase
      bilateral efforts to stop crime at the southern border, and reduce illegal immigration

      Additional Actions
      HR 2070 “The POWER Act”
      This bill gives the Department of Justice the authority to issue grants to local
      police departments to screen for fentanyl and other dangerous drugs to keep law
      enforcement officers equipped for dangerous situations and more effective in the
      line of duty.

      HR 6184, “The HALT Fentanyl Act”; HR 2041, “The SIFT Act”; HR 2209,
      “The Stopping Overdoses of Fentanyl Analogues Act”:
      These bills classify fentanyl and five of its deadly analogs as Schedule I Substances,
      meaning they have almost no practical medical or everyday use and pose a high
      threat to users. Schedule I status also means criminals found distributing this
      poison to communities face larger punishments for distributing it to communities.




      House Select Committee on
158   Economic Disparity & Fairness in Growth
Freedom for the Future

 “Kids are our future. We have failed
 them by neglecting to educate them
 during school closures and isolating
 them and their friends. And now we
 have a whole generation that is not
 equipped with the education they
 deserve and the tools they need to
 thrive… I decided to homeschool [my
 6-year-old son] rather than do school
 virtually. During the school closures, I
 struggled to keep my children inspired
 to learn and to stay motivated and learn the importance of tailoring each
 individual child’s education to his and her learning needs… I know I’m not
 alone, nor are my children or the children that come through my center. There
 are thousands, maybe millions, of parents and children with similar stories like
 mine. Even though schools are open again, I am still homeschooling [my 6-year-
 old]. I remain concerned that the masking, social distancing requirements, and
 the school’s overuse of iPads would be unhealthy for his young development
 stage… My teenage daughter and her peers have struggled with their return
 to school during the mobile learning. My daughter’s school did not provide
 lessons. They just gave them a bunch of assignments online. As a result, the
 high school kids did not learn. Unfortunately, even though schools are open
 now, the kids are still primarily on iPads.”

 Name: Mrs. Denise Ladson Johnson, Mother from South Carolina

 Hearing: Investing in American Families

 Location: Washington, D.C.

 Date: December 8, 2021

 Inflation at Time of Hearing: 7.0%


 Sadly, Mrs. Johnson’s story is not unique and is the result of limited freedom
 for parents to do what is best for their children and families. When the nation’s
 report card was released earlier this year, results showed that months and
 even years of closed schools resulted in the loss of 20 years of progress in
 math and reading scores.479 The severe learning loss resulting from excessive
 school closures is set to cost students $17 trillion in lost potential wages,
 according to a World Bank estimate.480 The OECD also estimates global GDP
 will reduce by 1.5% per year for the rest of the century due to government-
 mandated school closures and its resulting learning loss.481

 Reversing these losses will be complicated and take a lifelong learning approach
 to overcome. From the earliest days as a three-year old in a quality pre-school
 setting through to a worker’s mid-career change to a high-growth industry,


 CHAPTER 8
 Minority Views                                                                      159
               education combined with the economic opportunities this nation has to offer
               will be required to overcome the consequences of the disastrous decisions
               to close our schools.

               At the committee’s field hearing in Kenosha, Wisconsin, in Ranking Member
               Steil’s home district, Members heard from Ms. Sherry Carrion, a recent graduate
               of Gateway Technical College. Ms. Carrion first graduated from Gateway in
               1987, but with the changing economy and a different desire for her career, she
                                           returned to Gateway to pursue a degree as a nursing
                                           assistant, inspired by the passing of her father the
                                           year before. She now has a career she is proud of,
                                           that is fulfilling, and she earns more than she had
                                           previously. Sherry personifies lifelong learning.

                                            On the same trip to Wisconsin, Members traveled
                                            to Milwaukee to discuss housing discrimination. In
                                            the hearing, Ranking Member Steil reinforced the
      MS. SHERRY CARRION
                                            necessity of a good education, and by extension
             school choice for parents, as a driver of overcoming past discrimination.
             Milwaukee pioneered school choice by using funds for students and not school
             systems. By doing so, education dollars follow students to schools that parents
             believe are the best fit for their children rather than locking them into a failing
             school because of their ZIP code, providing more opportunities for students
             and families. The one-track system of a ZIP code determining where a child
             goes to school, and the quality of education they receive, is antiquated. It
             limits future opportunities and wages for today’s students.

               Opportunity also means that workers have control of how and when they
               work, not the government. In a field hearing in Seattle, Washington, Members
               heard about the detrimental effects that excessive government mandates
               have had on gig workers. The one-size-fits-all mandates in Seattle hurt gig
               workers’ opportunities to work and earn as best fits their situation. According
               to research at the Harvard Business School, gig workers place significant value
               on flexibility.482 For many, the freedom to use their time as they see fit, including
               for child care or personal time is the highest priority. The simple fact is that gig
               jobs mean freedom for workers. Mandating structure and controls from the
               government removes the freedom that makes gig work so attractive for 16%
               of the nation’s workforce.483

               Freedom is a central value to who we are as Americans. It is what propels
               individuals and families from the bottom rungs of the economic ladder to
               the top. The success freedom breeds is the reason millions of people want
               to come to the United States. But to remain a leader in an ever-changing
               global economy, America needs workers who are ready to fill the jobs of today
               and be prepared to take on the challenges of tomorrow. The importance of
               education starts as early as Mrs. Johnson’s six-year-old in front of an iPad,
               and continues throughout a worker’s entire career, as told by Ms. Carrion. .
               Freedom allows gig workers to thrive in a way that best suits the needs of
               their family. A competitive, skilled worker has the opportunity to command
               a competitive wage with decreased risk for unemployment – a true recipe
               for economic success.



               House Select Committee on
160            Economic Disparity & Fairness in Growth
Figure 24: Real Median Household Income by Race and Ethnicity,
2000-2019




Before 2020, there were enormous opportunities for employment and family-
sustaining wages across America. Real wages were rising across the board.484
In 2022, that progress has been lost and families are falling farther behind.
Real wages are falling and opportunities for a family-sustaining wage are drying
up as America weathers the effects of a pending recession and record-high
inflation. Under one-party rule, the federal government spent too much money,
too fast, while keeping workers at home and on the sidelines. The continued
federal designation of the pandemic emergency has kept the spigot of federal
benefits needlessly flowing. As a result, today there are nearly 11 million open
jobs in the US waiting to be filled while 20 million workers continue to stay
out of the labor force, all while prices continue to rise.485

The solution to these problems is to maximize educational and economic
opportunities for current and future workers in America. It is a recognition that
learning should start early and be lifelong so America’s workforce remains the
most competitive in the world. Government should not be standing in the way
of students and workers pursuing their own path to family-sustaining wages
for the economic gains of their families, their communities, and the nation.




CHAPTER 8
Minority Views                                                                      161
      Select Committee Member Led Solutions
      HR 6436 “The Workforce and Education Partnership Act,” Rep. Stephanie
      Bice (OK-5):

      This bill connects employers to educational institutions to give workers opportunities
      upon graduation for a family-sustaining wage.

      HR 7860 “The Financial Freedom Act of 2022,” Rep. Byron Donalds (FL-19):

      This bill prevents the Department of Labor from deciding where workers can invest
      their 401(k) earnings and instead returns that choice to the worker earning the
      money, opening more doors for opportunity and investment.

      Additional Actions
      HR 2954 “The Securing a Strong Retirement Act of 2022 (SECURE 2.0)”:

      This bill makes various changes with respect to employer-sponsored retirement
      plans, including providing for the automatic enrollment of employees in certain
      plans and increasing the age at which participants are required to begin receiving
      mandatory distributions.

      HR 2990 “The Gig Worker Equity Compensation Act”:

      This bill prevents state governments from infringing on a worker’s freedom. Instead,
      it gives workers the opportunity to choose for themselves by preventing states
      from classifying them only as employees instead of independent contractors. This
      gives the choice to workers and keeps state governments from forcing mandates.




      House Select Committee on
162   Economic Disparity & Fairness in Growth
Government Held in Check

 “While we appreciate the attention of
 the theater of political campaigns, we
 also believe that there is a purposeful
 and intentional speed of government
 and a speed of business. In [Elkhart]
 county when addressing challenges,
 we choose to move at the speed of
 business. Too often the weight in any
 other way is tiresome and frustrating.
 In 2008 during the recession when our
 unemployment rate was over 20%
 National projections indicated it will take Elkhart 20 years if ever to recover.
 By 2012 We had mostly righted the ship. This was done through the support
 of local and regional entities that believed in and understood Elkhart County
 Business communities, and our resilience has prepared us for times like this,
 and we waited on outside solutions.”

 Name: Mr. Levon Johnson, President of the Elkhart, Indiana Chamber
 of Commerce

 Hearing: How Targeted Place-Based Development Can Expand
 Economic Opportunity

 Location: Washington, D.C.

 Date: May 11, 2022

 Inflation at Time of Hearing: 8.6%


 There can be no strong economy, no safe communities, and no true freedom
 if the government is not accountable to the citizens it serves. Mr. Johnson’s
 story of Elkhart, Indiana is a prime example. During the 2007 financial crisis,
 Elkhart was a one-track economy with the majority of its value coming from the
 RV industry. The federal government,
 thinking it knew best, tried to come
 in with a massive stimulus from
 Washington, D.C. It was a colossal
 failure that pushed Elkhart and the
 surrounding areas into an even deeper
 economic hole when the electric
 truck manufacturing plant failed.
 Yet, history is again repeating itself
 with the $1.2 trillion infrastructure
 package focused on green energy
 because of a lack of discipline in
                                               RV MANUFACTURING FLOOR IN
                                               ELKHART, INDIANA


 CHAPTER 8
 Minority Views                                                                     163
      Washington, D.C. to have the federal government hold itself accountable
      both then and now.

      What ultimately brought economic opportunity to Northwest Indiana was
      not federal government bureaucracy. As Mr. Johnson shared, it was the local
      leaders and residents. These leaders are accountable through elections, but
      also their community relationship among one another. Community leaders
      and residents know the strengths of their hometowns and what it has to offer.

      Today, the federal government is again taking sweeping actions to impose
      its will on local communities. Unilateral actions by the President combined
      with bloated partisan bills mean trillions in taxpayer and borrowed dollars are
      being administered by D.C. bureaucrats hundreds of miles away. The primary
      means of government interference is through federal regulations. Red tape is
      estimated to cost the American economy as much as $1.9 trillion per year in
      direct costs, lost productivity, and higher prices.486 Costs to regulations are
      only growing. Between 2000 and 2016, the federal government budget for
      regulators, the agency staff responsible for drafting regulations, increased by
      nearly 93%, and spending on economic regulation increased by 108%. During
      that same period, however, the U.S. economy grew by only 32%, meaning
      the regulatory infrastructure grew faster than the underlying subject matter
      opening the door to new areas of regulation. Regulatory costs from rules issued
      under the Biden administration thus far have cost the economy about $309
      billion, a 50% jump compared to regulatory costs in the first two years of the
      Obama administration when the federal government tried to “save” Elkhart.


      Figure 25: Federal Means-Tested Benefit Programs and Spending in FY2018




      SOURCE: RACHIDI, ANGELA, MATT WEIDINGER, AND SCOTT WINSHIP. “A SAFETY NET FOR THE FU-
      TURE: OVERCOMING THE ROOT CAUSES OF POVERTY.”487




      House Select Committee on
164   Economic Disparity & Fairness in Growth
Accountability should be at the core of every action undertaken by policymakers.
During the Committee’s hearing on the social safety net, which is a maze of state
and federal programs intended to help families, there was much discussion
about this lack of accountability. Decades of experience have shown that more
money and more government programs does not lead to economic mobility
for those who most need it.488 Programs often trap families rather than help
them experience the economic opportunity the nation has to offer. There is
a lack of accountability to the families receiving benefits and the taxpayers
who fund them.

Figure 26: Federal Outlays on Safety-Net Programs, Excluding Health-
Related Spening in Constant (Fiscal Year 2012) Dollars; 1962-2019




Ms. Heather Reynolds, Managing Director of the University of Notre Dame
University’s Lab for Economic Opportunity (LEO) encouraged policymakers
at the hearing to shift from short-term solutions to long-term solutions. This
meant that while the focus on stable housing, affordable food, and valuable
credentials is a worthwhile endeavor, policymakers should prioritize longer-
term metrics like employment, job retention, and earnings. She advocated
in the hearing for achieving these economic outcomes by using evidence-
based programs. This means federal policymakers
should prioritize programs that have a rigorous
evidence base, and they should apply rigorous
evaluations to current funded programs to keep
what works and modify what does not. This
approach results in the biggest strides toward
improving economic outcomes for families, and
restoring their accountability.

There are policies and approaches that are proven        MS. HEATHER REYNOLDS
to be effective, yet they are ignored. Take the
Success Sequence as an example. It involves three steps: graduate from high
school, work full time, and get married before having a child. The research
says “that among Millennials who followed this sequence, 97% are not poor



CHAPTER 8
Minority Views                                                                      165
      when they reach adulthood.”489 These are the outcomes that policy should
      be driven toward.

      Instead, teachers’ unions were prioritized over students in the closing of
      schools. The results released in 2022 from the National Assessment of
      Educational Progress, better known as the “Nation’s Report Card,” shows
      a lack of accountability. Students experienced steep declines in math and
      reading scores among U.S. fourth- and eighth-graders. The nation’s average
      math score for fourth-graders fell by five points since 2019 (from 241 to 236,
      out of a possible 500). Eighth-graders’ national average math score dropped
      by eight points (from 282 to 274, out of a possible 500). Average reading
      scores for both grades fell by three points. Scores in a group of large urban
      school districts fell by similar margins.490

      Figure 27: Mathematics Scores Declined Most for Those Already Behind




      SOURCE: HTTPS://WWW.NATIONSREPORTCARD.GOV/HIGHLIGHTS/MATHEMATICS/2022/

      Accountability is a two-way street. States are sitting on billions in COVID funds
      intended to address the learning losses experienced by students. States that
      receive infrastructure funds should be held accountable for maximizing their
      use for projects and not overhead. Schools that received COVID stimulus
      funds should be using them to provide tutoring and extra academic help
      to students who have fallen behind, but not all that has gone to improving
      education outcomes.491 Work or preparation for work should be expected
      from workless, able-bodied households who receive welfare benefits.

      Without action to reinstate accountability on the trillions of dollars already
      committed by Democrat-controlled Congress, families will suffer the economic
      consequences. Mr. Johnson, who led his community from hard times to
      prosperity, emphasized the need for governments to help communities thrive,
      not dictate how they should operate. Government programs intended to
      promote economic mobility for families should be accountable for achieving
      desired outcomes and truly helping the families they serve. State governments,
      local governments, and individuals should be accountable when entrusted
      with taxpayer funds. Together, this is a more accountable structure that helps
      families, communities, and the nation to grow and prosper economically.


      House Select Committee on
166   Economic Disparity & Fairness in Growth
Select Committee Member Led Solutions
HR 7602 “The Fiscal Transparency Act,” Ranking Member Rep. Bryan Steil (WI-
01):

This bill compels government agencies to r`eport their annual spending and
allows Americans to see where and how these agencies spend taxpayer money.

HR 5688 “The People Care Act,” Rep. Warren Davidson (OH-08):

This bill simplifies and streamlines benefit systems, ensuring workers will
have more time to focus on finding a family-sustaining wage and less time
worried about paperwork and approaching “benefit cliffs.”

HR 4132 “The Unnecessary Agency Regulations Reduction Act of 2021,” Rep.
Byron Donalds (FL-19):

This bill aims to cut unnecessary regulations so that workers and businesses
can focus more on earning money and less time navigating government red
tape by creating a report of overbearing and duplicative regulations that
increase costs and make it harder for businesses to operate.

HR 1776 “The Regulations from the Executive in Need of Scrutiny (REINS) Act
of 2021,” Rep. Kat Cammack (FL-03):

This bill reforms the congressional rulemaking process so multi-million dollar
provisions can no longer be passed without scrutiny.

HR 4513 “The Small Business Advanced Cybersecurity Enhancements Act of
2021,” Rep. Byron Donalds (FL-19):

This bill creates a federal resource center to help prevent cyber attacks on
small businesses and aid businesses that fall victim to cyber criminals.

HR 8157 “The Clarity Act,” Rep. Byron Donalds (FL-19):

This bill outlines required public transparency from the federal government
in its procurement of food during supply chain crises.

HR 8562 “The Defense Production Oversight Act of 2022,” Rep. Byron Donalds
(FL-19):

This bill prohibits the executive branch from skirting Congress in pursuit
of partisan agenda items by activating the Defense Production Act, an
emergency bill that has been used to justify partisan projects without full
congressional approval.




CHAPTER 8
Minority Views                                                                   167
      HR 9032 “The Controlling America’s Perilous Spending (CAPS) Act,” Rep. Jodey
      Arrington (TX-19):

      This bill gradually caps the amount the federal government is allowed to spend
      as the national debt grows far beyond the value of annual GDP, forcing the
      federal government to be more prudent with taxpayer dollars and the loans
      lawmakers take out in taxpayers’ names.




      House Select Committee on
168   Economic Disparity & Fairness in Growth
Minority Conclusion

 America has experienced a rocky two years under one-party rule. While this
 committee was created by Democrat leaders to justify their inflation-inducing
 policies, Republican Members of the Select Committee on the Economy focused
 on the issues affecting American workers and families. Costs have gone up,
 groceries are unaffordable, trips to the gas pump are emptying wallets, home
 heating costs are set to soar this winter, kids are not learning in school, and
 layoffs are happening at major companies.

 However, the struggles forced on Americans across the country from poor
 leadership in Washington, D.C. do not have to continue. Members of this
 committee have taken the time to hear from workers and families across the
 country. They have listened to learn what has been successful and what has
 not. Members have often thrown out Washington, D.C. formalities and hosted
 roundtable discussions where more dynamic exchanges of ideas happened.
 Members have flown across America to meet workers and families in their
 own communities. This unique opportunity has yielded critical insights.

 This committee discovered that when the government makes policies driven
 towards proven success indicators like the Success Sequence, poverty is
 dramatically reduced. When the government advances an agenda that gives
 workers and families more freedom, Americans experience record wage
 gains. When the government removes red tape and lets localities move at
 the speed of business instead of the speed of government, communities
 thrive. When the workers are gainfully employed instead of relying on the
 government, the economy grows and incomes rise. When schools are open
 and kids go to class in-person instead
 of online, kids thrive and have brighter
 economic futures.

 Members have reimagined this
 committee into a positive action
 plan for the next Congress, hearing
 what hurt workers and families under
 one-party rule and how the country
 can improve. The bills highlighted in
 this report represent an agenda that
 Members are committed to pursuing
 in the next Congress. This is not just
 a philosophy, but an action plan.




 CHAPTER 8
 Minority Views                                                                    169
              Endnotes
           Chapter 1: Introduction
   1       Dorothea Lange, “Migrant Mother, Nipoma, California”
           1     Dorothea Lange, “Migrant Mother, Nipoma, California”
   2       House Speaker Nancy Pelosi announces the creation of the Select Committee on Economic Disparity and Fairness in Growth to
           studyHouse
           2             Speaker
                  inequality  and Nancy     Pelosi
                                    disparities    announces
                                                in the economy the  creation
                                                                  and        ofat
                                                                       society, the Select
                                                                                  the       Committee
                                                                                       Capitol in         on Economic
                                                                                                  Washington,    Wednesday,    Juneand
                                                                                                                         Disparity             (APinPhoto/J.
                                                                                                                                         Fairness
                                                                                                                                     16, 2021,
           ScottGrowth    to study inequality and disparities in the economy and society, at the Capitol in Washington, Wednesday, June
                  Applewhite)
                 16, 2021, (AP Photo/J. Scott Applewhite)
   3       Giving USA 2022: The Annual Report on Philanthropy for the Year 2021," Giving USA Foundation. June 21, 2022, https://givingusa.
           3     “Giving USA 2022: The Annual        Report on Philanthropy for the Year 2021," Giving USA Foundation. June 21, 2022, https://
           org/wp-content/uploads/2022/06/GivingUSA2022_Infographic.pdf
                 givingusa.org/wp-content/uploads/2022/06/GivingUSA2022_Infographic.pdf
   4       Mary King, "A Strong Economic Case for Federal Investment in Universal Preschool," Dec. 8, 2021, https://inequality.org/research/
           4     Mary King, "A   Strong Economic Case for
           build-back-better-universal-preschool/;             Federal
                                                          Andres S.     InvestmentEric
                                                                     Bustamante,     in Dearing,
                                                                                        UniversalHenrik
                                                                                                   Preschool,"
                                                                                                           Daae Dec. 8,  2021,Deborah
                                                                                                                 Zachrisson,   https://inequality.
                                                                                                                                         Lowe Vandell,
                 org/research/build-back-better-universal-preschool/;
           Kathy Hirsh-Pasek, “High-quality                                   Andres
                                                  early child care and education:     S. gift that
                                                                                    The  Bustamante,     Eric
                                                                                                   lasts a    Dearing, Henrik
                                                                                                           lifetime,” BrookingsDaae   Zachrisson,
                                                                                                                                  Institution. Nov. 4, 2021,
                 Deborah Lowe Vandell, Kathy Hirsh-Pasek, “High-quality early child care and education: The gift that lasts a lifetime,”
           https://www.brookings.edu/blog/education-plus-development/2021/11/04/high-quality-early-child-care-and-education-the-gift-
                 Brookings   Institution.
           that-lasts-a-lifetime/;   OECD,Nov.   4, 2021,
                                             “OECD        https://www.brookings.edu/blog/education-plus-development/2021/11/04/high-
                                                      Skills Outlook 2021: Learning for Life,” June   15, 2021, https://doi.org/10.1787/0ae365b4-en
                 quality-early-child-care-and-education-the-gift-that-lasts-a-lifetime/; OECD, “OECD Skills Outlook 2021: Learning for
   5       Josh Bivens,   “The
                 Life,” June 15,potential   macroeconomic benefits from increasing infrastructure investment,” Economic Policy Institute. July
                                 2021, https://doi.org/10.1787/0ae365b4-en
           18, 2017. https://www.epi.org/publication/the-potential-macroeconomic-benefits-from-increasing-infrastructure-investment
           5     Josh Bivens, “The potential macroeconomic benefits from increasing infrastructure investment,” Economic Policy
   6       Jeramey    Jennene,
                 Institute. July"City  Housing
                                  18, 2017,      Program Targets Emerging Developers," Urban Milwaukee. Apr. 12, 2020. https://urbanmilwau-
                                            https://www.epi.org/publication/the-potential-macroeconomic-benefits-from-increasing-infra-
           kee.com/2020/04/12/plats-and-parcels-city-housing-program-targets-emerging-developers/
                 structure-investment                                                                                (Photo by Jeremey Jennene)
   7       6The 1910  Chicago  Garment     Workers'  Strike, Wikimedia   Comons    https://en.wikipedia.org/wiki/1910_Chicago_garment_work-
                 Jeramey Jennene, "City Housing Program Targets Emerging Developers," Urban Milwaukee. Apr. 12, 2020. https://
           ers%27_strike#/media/File:Chicago_garment_workers%27_strike.jpg.;              Alan Taylor, “Occupy Wall Street Spreads Beyond
                 urbanmilwaukee.com/2020/04/12/plats-and-parcels-city-housing-program-targets-emerging-developers/                        (Photo NYC,”
                                                                                                                                                  by
           The Atlantic.  Oct. 7,
                 Jeremey Jennene) 2011, https://www.theatlantic.com/photo/2011/10/occupy-wall-street-spreads-beyond-nyc/100165/                 (AP Photo,
           Idaho Statesman/Darin Oswald)
   8       Chapter
           “The           2: Era to
                Progressive  Economic         Disparity
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           ry-primary-source-timeline/progressive-era-to-new-era-1900-1929/overview/
           7     Photo 1: The 1910 Chicago Garment Workers' Strike, Wikimedia Commons https://en.wikipedia.org/wiki/1910_Chica-
   9       Raj Chetty, Nathaniel Hendren, Maggie R Jones, Sonya R Porter, “Race and Economic Opportunity
                go_garment_workers%27_strike#/media/File:Chicago_garment_workers%27_strike.jpg.;    Photoin
                                                                                                          2:the United Idaho
                                                                                                             AP Photo, States: an Inter-
           generational Perspective,”
                Statesman/Darin       NBER Working Paper 24441, Mar. 2018. https://www.nber.org/papers/w24441
                                  Oswald
  10       Drew “The
           8     Desilver, “U.S. Income
                      Progressive        Inequality,
                                   Era to New Era, on rise for Library
                                                   1900-1929.”decades,ofis now highest since 1928,” Pew
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                                                                                    https://www.loc.gov/classroom-materials/unit-
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                ed-states-history-primary-source-timeline/progressive-era-to-new-era-1900-1929/overview/
   11      Emmanuel
           9           Saez, Thomas
                Raj Chetty, NathanielPiketty,
                                      Hendren,Gabriel Zucman,
                                                 Maggie R        “Economic
                                                            Jones,          growth in
                                                                   Sonya R Porter,    the and
                                                                                   "Race  United States: A tale
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                                                                                                                of two in the       Washington
                                                                                                                              United States:
           Center
                anfor Equitable Growth, Dec.
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           10 Drew Desilver, “U.S. Income Inequality, on rise for decades, is now highest since 1928,” Pew Research Center, Decem-
   12      Megan   Dunn,
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                           https://www.pewresearch.org/fact-tank/2013/12/05/u-s-income-inequality-on-rise-for-decades-is-now-high-
           bls.gov/spotlight/2016/union-membership-in-the-united-states/home.htm
                 est-since-1928/
   13      11Lawrence Mishel,Saez,
                 Emmanuel     EliseThomas
                                    Gould, and JoshGabriel
                                           Piketty,  Bivens,Zucman,
                                                              “Wage Stagnation
                                                                     “Economicingrowth
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                                                                                        Charts,”Economic  Policy
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   14            states-a-tale-of-two-countries/
           “Company    Pay Ratios,” AFL-CIO, https://aflcio.org/paywatch/company-pay-ratios
   15      12
           Thomas Megan   Dunn,
                     Piketty,    JamesinWalker,
                              “Capital    the 21st“Union membership
                                                   Century,” Septemberin 2013,
                                                                         the United  States,” Bureau of Labor Statistics, September 2016,
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   16       Gini Index, World Bank, Poverty and Inequality Platform. https://data.worldbank.org/indicator/SI.POV.GINI?end=2021&most_re-
           13     Lawrence Mishel, Elise Gould, and Josh Bivens, “Wage Stagnation in Nine Charts,”Economic Policy Institute, Jan. 6,
           cent_value_desc=false&start=2021&view=map&year=2017
                  2015, https://www.epi.org/publication/charting-wage-stagnation/
      17    Juliana Menasce Horowitz, Ruth Igielnik, Rakesh Kochhar, “Trends in income and wealth inequality,” Pew Research Center, Jan.
           14     “Company
           9, 2020.           Pay Ratios,” AFL-CIO, https://aflcio.org/paywatch/company-pay-ratios
                     https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/
   18      15     Thomas   Piketty,
           Thomas Piketty, “Capital Capital in21st
                                       in the the Century,”
                                                   21st Century, September
                                                             September      2013,
                                                                         2013,    http://piketty.pse.ens.fr/fr/capital21c
                                                                               http://piketty.pse.ens.fr/fr/capital21c
   19      16
            “CEO“Gini Index,”
                 pay has      World Bank,
                         skyrocketed      Poverty
                                      1,460% sinceand Inequality
                                                   1978,”        Platform,
                                                          Economic         https://data.worldbank.org/indicator/SI.POV.
                                                                    Policy Institute, Oct. 4, 2022, https://www.epi.org/publication/ceo-pay-
                GINI?end=2021&most_recent_value_desc=false&start2021&view=map&year=2017
           in-2021/.
   20      17    Juliana
           “Income       MenasceOrganization
                     Inequality,,” Horowitz, Ruth     Igielnik, Rakesh
                                                  for Economic          Kochhar,
                                                                  Cooperation    “Trends
                                                                               and         in income
                                                                                    Development.       and- wealth
                                                                                                      2017          inequality,” Pew Research
                                                                                                             2021. ttps://data.oecd.org/inequality/
                 Center, Jan. 9, 2020, https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequali-
           income-inequality.htm.
                 ty/
   21      The $16 is a national average that is adjusted for cost of living; thus low-wage workers are paid more in higher-cost areas and less
           18    Thomas areas.
           in lower-cost  Piketty, Capital
                                 Martha    in the
                                          Ross     21st
                                                 and    Century,
                                                     Nicole       Harvard
                                                             Bateman,       University
                                                                        “Meet          Press. March
                                                                               the Low-Wage            2014. Data
                                                                                                 Workforce,”       available
                                                                                                               Brookings     at http://piketty.pse.
                                                                                                                          Institution, Nov. 7, 2019; Elise
                 ens.fr/en/capital21c2
           Gould, Economic Policy Institute, “Decades of Rising Economic Inequality in the U.S.: Testimony before the U.S. House of Repre-
           sentatives
           19          Wayshas
                 “CEO pay    and Means    Committee,”
                                skyrocketed               March
                                               1,460% since       27, 2019;
                                                               1978,”       Lawrence
                                                                      Economic  PolicyMishel,   JoriOct.
                                                                                        Institute,   Kandra,  “Wage Inequality
                                                                                                         4, 2022,                Continued to Increase
                                                                                                                  https://www.epi.org/publica-
           in 2020,” Economic    Policy Institute, Dec. 13, 2021,
                 tion/ceo-pay-in-2021/.
   22       OECD“Income
           20       (2022), Income   inequality
                             Inequality,”        (indicator).
                                          Organization   for doi:  10.1787/459aa7f1-en
                                                             Economic    Cooperation and  (Accessed   on 19 2017
                                                                                            Development.     November
                                                                                                                  - 2021,2022)  https://data.oecd.org/in-
                                                                                                                           https://data.oecd.org/
           equality/income-inequality.htm;       Martha Ross and Nicole Bateman, “Meet the Low-Wage Workforce,” Brookings Institution, Nov.
                  inequality/income-inequality.htm.
           7, 2019;
           21     Theand
                       $16Elise Gould, Economic
                           is a national            Policy
                                          average that     Institute,for
                                                        is adjusted   “Decades   of Rising
                                                                         cost of living;    Economic
                                                                                         thus  low-wage Inequality
                                                                                                           workers in
                                                                                                                    arethe U.S.:
                                                                                                                         paid    Testimony
                                                                                                                              more          before the U.S.
                                                                                                                                    in higher-cost
           Houseareas
                    of Representatives    Ways   and  Means   Committee,”   March    27, 2019.  The $16 is a national average
                         and less in lower-cost areas. Martha Ross and Nicole Bateman, “Meet the Low-Wage Workforce,” Brookings that is adjusted for cost of
           living;Institution,
                   thus low-wageNov. workers   are paid more in higher-cost areas and less in lower-cost areas.
                                     7, 2019, https://www.brookings.edu/research/meet-the-low-wage-workforce;                 Lawrence Mishel, Jori
      23   Martha  Ross and
               Kandra,   “WageNicole Bateman,
                                 Inequality    “Meet to
                                            Continued theIncrease
                                                          Low-Wage    Workforce,”
                                                                  in 2020,”         Brookings
                                                                              Economic         Institution,Dec.
                                                                                         Policy Institute,  Nov.13,7,2021,
                                                                                                                      2019; and Elise Gould, Eco-
                                                                                                                           https://www.epi.org/
           nomic Policy Institute, “Decades of Rising Economic Inequality    in the U.S.: Testimony before the U.S. House of Representatives
               blog/wage-inequality-continued-to-increase-in-2020-top-1-0-of-earners-see-wages-up-179-since-1979-while-share-
           Ways and Means Committee,”      March 27, 2019. The $16 is a national average that is adjusted for cost of living; thus low-wage
               of-wages-for-bottom-90-hits-new-low
           workers are paid more in higher-cost areas and less in lower-cost areas.




                   House Select Committee on
170                Economic Disparity & Fairness in Growth
22   “IncomePhoto
         24    inequality
                      1: “Great
                            (indicator),”
                                 Depression
                                          Organization
                                             Timeline: for
                                                       1929–1941,”
                                                           Economic The Balance,
                                                                       CooperationApril
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                                                                                        Development,
                                                                                              (PHOTO BYlast ccessed
                                                                                                           PHOTOQUEST/GETTY
                                                                                                                    Nov. 19, 2022,IMAGES). The
     https://data.oecd.org/inequality/income-inequality.htm;
              caption reads, "A line   of men wait outside a soupElise
                                                                     kitchen
                                                                          Gould,
                                                                             opened
                                                                                 Economic
                                                                                     by mobster
                                                                                           PolicyAl
                                                                                                 Institute,
                                                                                                    Capone,“Decades
                                                                                                              Chicago, of
                                                                                                                       Illinois,
                                                                                                                           RisingFebruary
                                                                                                                                   Econom-1931."
     ic Inequality
              Photoin 2:
                       the U.S.:
                          “Toward Los
                                 Testimony
                                       Angeles,
                                             before the
                                                 California,”
                                                        U.S. House
                                                              Libraryof
                                                                      of Congress,
                                                                        Representatives
                                                                                   Mar. 1937
                                                                                         WaysLOC
                                                                                              and Means
                                                                                                 3549663710.jpg
                                                                                                           Committee,”
                                                                                                                   (Wikimedia
                                                                                                                          March 27,
                                                                                                                                  Commons)
                                                                                                                                     2019,
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     representatives-ways-and-means-committee.
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23   Lawrence Mishel,
        26               Jori of
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                                 Household    Inequality   Continued
                                                      in the U.S. sinceto1989,”
                                                                           Increase  in 2020,”
                                                                                 Federal        Economic Policy Institute,
                                                                                          Reserve                               Dec. 13, 2021,
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              aviz/dfa/distribute/chart/
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24   Photo 1: the
              “Great  Depression
                  Survey           Timeline:
                           of Consumer       1929–1941,”
                                         Finances          The Balance,
                                                    to Characterize   the April 7, 2022
                                                                           Full U.S.     (PHOTO
                                                                                     Wealth        BY PHOTOQUEST/GETTY
                                                                                              Distribution,” and “InequalitiesIMAGES).
                                                                                                                                  In HouseholdThe Wealth
     caption reads,  "A line of
              And Financial     men waitofoutside
                              Insecurity            a soup OECD,
                                            Households,”    kitchen2021;
                                                                     opened    by mobster
                                                                          Bankrate,          Al Capone,
                                                                                      “Survey:           Chicago,
                                                                                                 More than   half ofIllinois, February
                                                                                                                      Americans          1931";
                                                                                                                                   couldn’t   cover three
     Photo 2:months
               “TowardofLos  Angeles,
                          expenses     California,”
                                     with           Libraryfund,”
                                          an emergency       of Congress,   Mar. 1937
                                                                   July 21, 2021;      LOCReserve,
                                                                                  Federal    3549663710.jpg
                                                                                                     “Report on(Wikimedia
                                                                                                                   the EconomicCommons)
                                                                                                                                    Well-Being of U.S.
25   Dhruv Khullar
              Households
                     Dave A.in 2020,”
                              Chokshi,May
                                        “Health,
                                           2021; and
                                                 Income,
                                                       Kent&and
                                                              Poverty:
                                                                  Ricketts,
                                                                        Where“HasWeWealth
                                                                                      Are & What
                                                                                            Inequality
                                                                                                    Could
                                                                                                       in Help,”
                                                                                                          America Health
                                                                                                                     Changed
                                                                                                                           Affairs,
                                                                                                                                 overOct.
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26   “Distribution
        28    Greg of
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                                    McGrew,in the
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                                                  U.S. since
                                                       Kopparam,
                                                             1989,”“The
                                                                     Federal
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                                                                               Bureauisofthe
                                                                                          theLand
                                                                                               Census,
                                                                                                   of “Among
                                                                                                      Opportunity?
                                                                                                                 the The
                                                                                                                     Educated,
                                                                                                                         Geography
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        35 Raj Chetty, David Grusky, Maximilian Hell, Nathaniel Hendren, Robert Manduca, and Jimmy
34   “Distribution
               Narang,of “The
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                                       American
                                             in the
                                                  Dream:
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                                                                                             of the
                                                                                                  Since
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                                                                                                                NBER System,
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35   Raj Chetty,   David
               Bank’s     Grusky,
                        Global     Maximilian
                                Database        Hell, Nathaniel Hendren,
                                           on Intergenerational  Mobility, Robert   Manduca,the
                                                                            which computes     andcorrelation
                                                                                                    Jimmy Narang,
                                                                                                               between “Thefathers’
                                                                                                                             Fading and
                                                                                                                                    American
                                                                                                                                         sons’ incomes
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36   Raj Chetty,   DavidRemarks,
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                                                                                              Opportunity   for aIncome
                                                                                                                   measure   from the World
                                                                                                                          in Denmark    and the
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          APPENDIX
          Endnotes                                                                                                                            171
40   Joseph M.
       38    Alan B.
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41   David J.pdf; Alberto
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                                              H. Hanson.and    Edoardo
                                                            “The         Teso, “Intergenerational
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42   Joseph M. Juran. “What Japan Taught Us About Quality.” Washington Post. August 15, 1993. https://www.washingtonpost.
       39    Pablo A. Mitnik, Anne-Line Helso, and Victoria L. Bryant, “Inequality of Opportunity for Income in Denmark and the
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43   Joseph chapters/measuring-distribution-and-mobility-income-and-wealth/inequality-opportunity-income-denmark-and-unit-
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44   Harry
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45    Daron Acemoglu,
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46    Harry
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68   Meredith Johnson Harbach, "Childcare Market Failure," Utah Law Review: Vol. 2015: No. 3, Article 3, 2015,https://dc.law.utah.
         72   “Occupational “The
     edu/ulr/vol2015/iss3/3;   Outlook  Handbook:
                                     Economics      ChildcareSupply
                                                of Childcare   Workers,    “U.S.
                                                                       in the    Bureau of
                                                                              United       Labor
                                                                                     States,” U.S.Statistics,” https://www.bls.gov/ooh/person-
                                                                                                   Department of the Treasury,     Sept.
              al-care-and-service/childcare-workers.htm; A joint study by Columbia University, New York University, and the National
     2021. https://home.treasury.gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf
              Women’s Law Center noted that, even pre-pandemic, 16% of child care workers lived in poverty, many of which were wom-
69   Care.com 2022 Cost of Care Survey, June 2022 https://www.care.com/c/how-much-does-child-care-cost/; Grover J. “Russ”
              en often struggling to afford care for their own children while they provide care for others. Hartley, Robert Paul, Chaudry,
     Whitehurst, “Why the federal government should subsidize childcare and how to pay for it,” Brookings Institution, Mar 9,
              Ajay, Boteach, Melissa, Mitchell, Estelle, and Menefee, Kathryn, “A Lifetime’s Worth of Benefits: The Effects of Affordable,
     2017, https://www.brookings.edu/research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-
              High-Quality Child Care on Family Income, the Gender Earnings Gap, and Women’s Retirement Security.” March 2021. Avail-
     it/; Rasheed Malik, “Working Families Are Spending Big Money on Child Care” Brookings Institution, June 20, 2019, https://
              able at: https://nwlc.org/wp-content/uploads/2021/04/A-Lifetimes-Worth-of-Benefits-_FD.pdf
     www.americanprogress.org/article/working-families-spending-big-money-child-care/
         73 Maureen Coffey, Rose Khattar, “The Child Care Sector Will Continue To Struggle Hiring Staff Unless It Creates Good
70   “Percentage of 3- to 5-year-old children enrolled in school, by age and selected child and family characteristics:
              Jobs”Center for American Progress. Sep. 2, 2022: https://www.americanprogress.org/article/the-child-care-sector-will-con-
     2010 through 2020,” National Center for Education Statistics. https://nces.ed.gov/programs/coe/indicator/cfa/enroll-
              tinue-to-struggle-hiring-staff-unless-it-creates-good-jobs/; An October 2022 New York Times article reports that Bureau
     ment-of-young-children
              of Labor Statistics data suggest the industry shrunk by 100,000 workers. Dana Goldstein, “Why You Can’t Find Child Care:
71   Rasheed100,000
                Malik, Katie Hamm,
                        Workers  Are Leila Schochet,
                                      Missing,”        “America’s Child Care Deserts in 2018,” Center
                                                Oct. 13, 2022:                                           for American Progress, Dec.
                                                               https://www.nytimes.com/2022/10/13/us/child-care-worker-shortage.html
     6, 2018:, https://www.americanprogress.org/article/americas-child-care-deserts-2018/; Amy Watson, "Child Care Deserts
         74 The Child Care Development Block Grant was $6.2 billion in the fiscal year 2022 and is the Department of Health and
     An Analysis of Child Care Supply and Demand Gaps in Montana," Montana Department of Labor and Industry, Aug. 2021,
              Human Services’ main program to support low-income families with childcare. The GAO has found that of the 13.5 million
     https://lmi.mt.gov/_docs/Publications/LMI-Pubs/Special-Reports-and-Studies/ChildCareDesertsWhitePaper-FINAL.pdf
              children eligible for federal subsidies, only 1.9 million children received them. “Child Care: Subsidy Eligibility and Receipt, and
              Wait Lists,” U.S. Government Accountability Office. Feb. 18, 2021. https://www.gao.gov/products/gao-21-245r; Jane Fillion,
           APPENDIX
           Endnotes                                                                                                                         173
     “50-State
         72   A joint
                 Analysis
                      study by
                            Shows Columbia
                                    Impact of
                                            University,
                                               Insufficient
                                                          NewChild   University,
                                                                YorkCare Funding,”
                                                                                 andFirst
                                                                                     the Five
                                                                                          National
                                                                                              Years Fund.
                                                                                                   Women’s Aug.
                                                                                                             Law2, 2022.
                                                                                                                   Center noted
                                                                                                                          https://www.ffyf.
                                                                                                                                  that, even pre-pan-
     org/50-state-analysis-shows-impact-of-insufficient-child-care-funding/
              demic, 16% of child care    workers lived in poverty, many of which were women often struggling to afford care for their own
75            children
      One study   from while
                        Georgia they
                                   — provide  careeligibility
                                     a universal   for others.   “Occupational
                                                              pre-K              Outlook
                                                                    state — showed        Handbook:
                                                                                      preschool       Childcare
                                                                                                 classrooms     Workers, “U.S. Bureau
                                                                                                             in state-sponsored            of Labor
                                                                                                                                   facilities
              Statistics,”  https://www.bls.gov/ooh/personal-care-and-service/childcare-workers.htm;            Robert
     in low-income and minority communities were of significantly lower quality. Daphna Bassok, Eva Galdo, “Inequality inPaul Hartley, Ajay   Chau-
     Preschooldry, MelissaCommunity-Level
                 Quality?     Boteach, Estelle Mitchell,
                                                Disparities and
                                                              inKathryn  Menefee,
                                                                 Access to         “A Lifetime’s
                                                                           High-Quality   LearningWorth  of Benefits:Early
                                                                                                    Environments,”    The Education
                                                                                                                           Effects of Affordable,
                                                                                                                                      and
              High-Quality
     Development,              Child Care on Family Income, the Gender Earnings Gap, and Women’s Retirement
                      27:1, 128-144,https://www.tandfonline.com/doi/full/10.1080/10409289.2015.1057463;                 Security,”
                                                                                                                   “Economic        National
                                                                                                                               Report   of theWomen’s
     PresidentLaw
                and Center,   MarchReport
                     the Annual      2021, https://nwlc.org/wp-content/uploads/2021/04/A-Lifetimes-Worth-of-Benefits-_FD.pdf
                                           of the Council of Economic Advisors,” April 2022. https://www.whitehouse.gov/wp-con-
     tent/uploads/2022/04/2022-ERP-Book-wCover-final.pdf
         73 An October 2022 New              York Times article reports that Bureau of Labor Statistics data suggest the industry shrunk by
76             100,000      workers.    Dana
      “OECD Family Database,” Organization     Goldstein, for"Why    You Can’t
                                                              Economic             Find Child
                                                                            Cooperation       andCare:  100,000 Workers
                                                                                                    Development,             Are Missing," New York Times, Oct. 13,
                                                                                                                     https://www.oecd.org/els/family/data-
     base.htm  2022, https://www.nytimes.com/2022/10/13/us/child-care-worker-shortage.html; Maureen Coffey, Rose Khattar, “The Child
               Care Sector Will Continue To Struggle Hiring Staff Unless It Creates Good Jobs,” Center for American Progress. Sep. 2, 2022,
77    Enrollment     rates of 5-year-olds have grown to over 85% in recent years, while for 4- and 3-year-old children, enrollment
               https://www.americanprogress.org/article/the-child-care-sector-will-continue-to-struggle-hiring-staff-unless-it-creates-
     remained     relatively low at 61% and 34%, respectively. Elizabeth U. Cascio, “Early Childhood Education in the United States:
               good-jobs/;
     What, When, Where, Who, How, and Why.” NBER working paper 28722. April 2021. https://www.nber.org/system/files/work-
         74 The Child Care Development
     ing_papers/w28722/w28722.pdf;                    Block Grant
                                                 Jonathan             was $6.2
                                                              Borowsky,      Jessicabillion  in the fiscal
                                                                                        H. Brown,          year E.
                                                                                                     Elizabeth   2022   andChloe
                                                                                                                   Davis,     is theGibbs,
                                                                                                                                     Department
                                                                                                                                            Chris M.ofHerbst,
                                                                                                                                                       Health and
               Human Services’
     Aaron Sojourner,                  main
                             Erdal Tekin,     program
                                            and  Matthew  to support
                                                              J. Wiswall,low-income       families
                                                                             “An Equilibrium         with of
                                                                                                   Model   childcare.  The of
                                                                                                              the Impact     GAO   has found
                                                                                                                                Increased      thatInvestment
                                                                                                                                            Public   of the 13.5 million
               children eligible
     in Early Childhood               for federal
                               Education,”   NBER   subsidies,
                                                      Working onlyPaper1.9No.
                                                                            million
                                                                                30140,children    received
                                                                                         June 2022.         them. “Child Care: Subsidy Eligibility and Receipt, and
                                                                                                        https://www.nber.org/system/files/working_pa-
               Wait    Lists,”
     pers/w30140/w30140.pdf     U.S.  Government      Accountability       Office,   Feb.  18, 2021,  https://www.gao.gov/products/gao-21-245r;            Jane Fillion,
               "50-State Analysis Shows Impact of Insufficient Child Care Funding," First Five Years Fund, Aug. 2, 2022, https://www.ffyf.
78   Nationalorg/50-state-analysis-shows-impact-of-insufficient-child-care-funding/
                Center for Education Statistics, “COE: Enrollment Rates of Young Children,” May 2022. https://nces.ed.gov/
     programs/coe/indicator/cfa/enrollment-of-young-children; “Fast Facts: Child care,” National Center for Education Statis-
     tics75https://nces.ed.gov/fastfacts/display.asp?id=4
               One study from Georgia — a universal eligibility         Sincepre-K      state — was
                                                                                 the program       showed    preschool
                                                                                                        established       classrooms
                                                                                                                      in 1965,          in state-sponsored
                                                                                                                                 research   has found Head facilities
               in low-income
     Start children     more likely andtominority
                                           graduatecommunities
                                                       high school, were
                                                                       attend  of college
                                                                                  significantly    lower
                                                                                            and earn      quality. Lauren
                                                                                                       a degree.   DaphnaBauer Bassok,
                                                                                                                                    andEva    Galdo,
                                                                                                                                          Diane       “Inequality in
                                                                                                                                                 Whitmore
               Preschool       Quality?   Community-Level         Disparities    in Access    to  High-Quality   Learning
     Schanzenbach, “The Long-Term Impact of the Head Start Program,” The Hamilton Project, Aug. 2016. https://www.hamil-     Environments,”     Early  Education and
               Development, 27:1, 128-144, https://www.tandfonline.com/doi/full/10.1080/10409289.2015.1057463;
     tonproject.org/assets/files/long_term_impact_of_head_start_program.pdf;                           “Head Start: Background and Funding,”   “Economic     Report of the
                                                                                                                                                        Congres-
               President and
     sional Research       Service, the Annual
                                      Jan.        Report of the Council of Economic
                                            2, 2014.                                             Advisors,” April 2022. https://www.whitehouse.gov/wp-con-
                                                      https://www.everycrsreport.com/reports/RL30952.html
               tent/uploads/2022/04/2022-ERP-Book-wCover-final.pdf
79   Jonathan Borowsky, Jessica H. Brown, Elizabeth E. Davis, Chloe Gibbs, Chris M. Herbst, Aaron Sojourner, Erdal Tekin, and
     Matthew“OECD
         76               Family
                 J. Wiswall     “AnDatabase,”
                                      Equilibrium Organization
                                                     Model of the  forImpact
                                                                        Economic       Cooperation
                                                                                 of Increased          andInvestment
                                                                                                   Public   Development,       https://www.oecd.org/els/family/data-
                                                                                                                         in Early  Childhood Education”
               base.htm
     NBER Working Paper No. 30140. June 2022. https://www.nber.org/system/files/working_papers/w30140/w30140.pdf
80       77 Indiana,
      Idaho,   Enrollment       rates of
                          Montana,        5-year-olds
                                        New   Hampshire,  have   grown
                                                              South       to over
                                                                      Dakota     and85%    in recent years, while for 4- and 3-year-old children, enrollment
                                                                                       Wyoming.
               remained relatively low at 61% and 34%, respectively. Elizabeth U. Cascio, “Early Childhood Education in the United States:
81    Allison Friedman-Krauss,
               What, When, Where,       W. Steven
                                            Who, How,Barnett,    Karin Garver,
                                                           and Why.”                Katherine
                                                                          NBER working           Hodges,
                                                                                              paper   28722.G.G. Weisenfeld,
                                                                                                               April              Beth Ann Gardiner, Tracy
                                                                                                                     2021, https://www.nber.org/system/files/work-
     Merriman Jost, “The State           of Preschool 2021,” National Institute for Early Education Research, Rutgers Graduate School of
               ing_papers/w28722/w28722.pdf
     Education, 2022. https://nieer.org/wp-content/uploads/2022/09/YB2021_Full_Report.pdf
         78 Since the program was established in 1965, research has found Head Start children more likely to graduate high school,
82   Christinaattend
                 Weiland,      Hirokazu
                          college          Yoshikawa,
                                     and earn   a degree. “Does
                                                            “COE: higher    peer socio-economic
                                                                     Enrollment      Rates of Youngstatus       predict
                                                                                                         Children,”       children's
                                                                                                                     National         language
                                                                                                                                  Center          and executive
                                                                                                                                          for Education   Statistics, May
     function2022,
                skills gains in prekindergarten?” Journal of              Applied Developmental Psychology, Volume
                        https://nces.ed.gov/programs/coe/indicator/cfa/enrollment-of-young-children;                               35,Facts:
                                                                                                                               “Fast   Issue 5,  Sep-Oct
                                                                                                                                              Child care,” 2014.
                                                                                                                                                            National Cen-
     https://www.sciencedirect.com/science/article/abs/pii/S0193397314000707;
               ter for Education Statistics, https://nces.ed.gov/fastfacts/display.asp?id=4;              CarlotaLauren
                                                                                                                   Schechter,
                                                                                                                            Bauer,Beth  Bye,
                                                                                                                                    Diane     “Preliminary
                                                                                                                                            Whitmore     Schanzenbach,
     evidence“Thefor the    impact of
                       Long-Term         mixed-income
                                      Impact    of the Head preschools     on low-income
                                                                Start Program,”                  children's
                                                                                      The Hamilton           language
                                                                                                        Project,        growth,”
                                                                                                                 Aug. 2016,         Early Childhood Research
                                                                                                                               https://www.hamiltonproject.org/
     Quarterly, 22(1).     https://psycnet.apa.org/record/2007-02875-010; Elizabeth
               assets/files/long_term_impact_of_head_start_program.pdf;                        “Head U.    Cascio,
                                                                                                       Start:       “Does and
                                                                                                               Background    Universal   Preschool Hit
                                                                                                                                    Funding,”            the Research
                                                                                                                                                Congressional
     Target? Program
               Service, Jan. Access   and Preschool
                                  2, 2014,               Impacts,” NBER Working Paper 23215, March 2017. https://www.nber.org/papers/
                                            https://www.everycrsreport.com/reports/RL30952.html
     w23215; U.S. Department of the Treasury, “The Economics of Childcare Supply in the United States,” Sep. 2021. https://home.
         79 Jonathan Borowsky, Jessica H. Brown, Elizabeth E. Davis, Chloe Gibbs, Chris M. Herbst, Aaron Sojourner, Erdal Tekin, and
     treasury.gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf
               Matthew J. Wiswall, “An Equilibrium Model of the Impact of Increased Public Investment in Early Childhood Education,”
83   ReasonsNBERchildren      are considered
                        Working      Paper No.at-risk
                                                 30140,include:
                                                           June 2022,children    from families that are homeless or housing unstable; children in
                                                                          https://www.nber.org/system/files/working_papers/w30140/w30140.pdf
     foster care; children from families in poverty or deep poverty; non-English speaking children; children that have teen par-
         80and
     ents;     Idaho,    Indiana,
                  children     with Montana,     New Hampshire,
                                     developmental      disabilities. South Dakota and Wyoming. "The State of Preschool Yearbook 2021," National
               Institute for Early Education Research, 2022, https://nieer.org/state-preschool-yearbooks-yearbook2021
84   PLACEHOLDER
         81 Allison Friedman-Krauss, W. Steven Barnett, Karin Garver, Katherine Hodges, G.G. Weisenfeld, Beth Ann Gardiner, Tracy
               Merriman Jost, “The State of Preschool 2021,” National Institute for Early Education Research, Rutgers Graduate School of
85   Jorge LuisEducation,
                   Garcia, 2022.       https://nieer.org/wp-content/uploads/2022/09/YB2021_Full_Report.pdf
                              Frederik H. Bennhof, Duncan Ermini Leaf,              and James J. Heckman, “The Dynastic Benefits of Early
     Childhood     Education.”
         82 Christina               Becker
                             Weiland,        Friedman
                                         Hirokazu         Institute“Does
                                                     Yoshikawa,       Working      Paper
                                                                              higher   peer2021-77,   2021. https://www.nber.org/papers/w29004;
                                                                                              socio-economic     status predict children's language and executive
     “New function
             ‘Segregation      Index’
                             skills     shows
                                    gains  in American        schoolsJournal
                                              prekindergarten?”         remainofhighly
                                                                                     Appliedsegregated    by race, ethnicity
                                                                                                Developmental      Psychology,   and economic
                                                                                                                                   Volume         status,”
                                                                                                                                             35, Issue  5, Sep-Oct 2014,
     Stanfordhttps://www.sciencedirect.com/science/article/abs/pii/S0193397314000707;
                 Graduate School of Education, May 17, 2022. https://ed.stanford.edu/news/new-segregation-index-shows-ameri-
                                                                                                                   Carlota Schechter, Beth Bye, “Preliminary
     can-schools-remain-highly-segregated-race-ethnicity-and
               evidence for the impact          of mixed-income preschools on low-income children's language growth,” Early Childhood Research
86   Lilian Quarterly,
            Mongeau,"Why       22(1). https://psycnet.apa.org/record/2007-02875-010;
                                   Oklahoma’s public preschools           are some of the best in the Elizabeth U.   Cascio,
                                                                                                              country,”        “Does Report.
                                                                                                                          Hechinger    UniversalFeb. 2,
                                                                                                                                                   Preschool
                                                                                                                                                         2016.Hit the
     (Photo by Target?
                  LillianProgram
                           Mongeau)    Access and Preschool Impacts,” NBER Working                   Paper 23215, March 2017. https://www.nber.org/papers/
                                         https://hechingerreport.org/why-oklahomas-public-preschools-are-some-of-the-best-in-the-
     country/w23215; “The Economics of Childcare Supply in the United States,” U.S. Department of the Treasury, Sep. 2021, https://home.
               treasury.gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf
87   William T. Gormley, and Ted Gayer, “Promoting School Readiness in Oklahoma: An Evaluation of Tulsa’s Pre-K Program,” The
         83 of
     Journal   Reasons
                   Humanchildren
                               Resourcesare 40, no.
                                            considered     at-risk533–58.
                                                      3 (2005):     include: children from         families that are homeless or housing unstable; children in
                                                                              http://www.jstor.org/stable/4129551.
               foster care; children from families in poverty or deep poverty; non-English speaking children; children that have teen par-
88   William T. Gormley, Deborah Phillips, and Sara Anderson. “The Effects of Tulsa’s Pre-K Program on Middle School Student
               ents; and children with developmental disabilities.
     Performance,” Georgetown University, 2017. https://georgetown.app.box.com/s/kkv3d717lib52clh9w4t3wns50ivcaxs
         84 "The State of Preschool Yearbook 2021," National Institute for Early Education Research, 2022, https://nieer.org/state-pre-
89    Steven W. Barnett, and Ellen C. Frede, “Long-term effects of a system of high-quality universal preschool education in the
               school-yearbooks-yearbook2021
     United States” in Blossfeld, H., Kulic, N., Skopek, J., and Triventi, M. (eds) (2017).
         85 Jorge Luis Garcia, Frederik H. Bennhof, Duncan Ermini Leaf, and James J. Heckman, “The Dynastic Benefits of Early
90   Suzann Morris, Linda Smith, “Examples of Mixed-Delivery Early Care and Education Systems,” Bipartisan Policy Center,
               Childhood Education.” Becker Friedman Institute Working Paper 2021-77, 2021. https://www.nber.org/papers/w29004;
     June 17, 2021. https://bipartisanpolicy.org/blog/examples-of-mixed-delivery-early-care-and-education-systems/; Rasheed
               “New 'Segregation Index' shows American schools remain highly segregated by race, ethnicity and economic status,”
     Malik, The Effects of Universal Preschool in Washington, D.C.,” Center for American Progress, Sep. 26, 2018. https://www.
               Stanford Graduate School of Education, May 17, 2022. https://ed.stanford.edu/news/new-segregation-index-shows-ameri-
     americanprogress.org/article/effects-universal-preschool-washington-d-c/
               can-schools-remain-highly-segregated-race-ethnicity-and
91    Jessica H. Brown, “Does Public Pre-K Have Unintended Consequences on the Child Care Market for Infants and Toddlers?”
     Princeton University Industrial Relations Section Working Paper 626, Dec 18, 2018. https://papers.ssrn.com/sol3/papers.
     cfm?abstract_id=3360616; Emily Tate Sullivan, “The Unintended Consequences of Universal Preschool,” EdSurge, May 10,
     2021 https://www.edsurge.com/news/2021-05-10-the-unintended-consequences-of-universal-preschool
                    House Select Committee on
174                 Economic Disparity & Fairness in Growth
86   Lilian
         92 “U.S.
            Mongeau,"Why
                       Federal Poverty
                               Oklahoma’s Guidelines
                                              public Used
                                                     preschools
                                                             to are
                                                                Determinesome of
                                                                              Financial
                                                                                   the best in
                                                                                        Eligibility
                                                                                               the for
                                                                                                    country,”
                                                                                                        CertainHechinger
                                                                                                                 Programs,”
                                                                                                                          Report.
                                                                                                                             U.S. Feb.
                                                                                                                                   Department
                                                                                                                                        2, 2016.of
     (Photo byHealth
                 Lillianand
                          Mongeau)
                             Human Services, in effect as of Jan. 12, 2022.
                                      https://hechingerreport.org/why-oklahomas-public-preschools-are-some-of-the-best-in-the-
                                                                                   https://aspe.hhs.gov/topics/poverty-economic-mobility/pov-
     country/erty-guidelines; H.R.2886 - Universal Child Care and Early Learning Act https://www.congress.gov/bill/117th-congress/
87   William house-bill/2886/text?q=%7B%22search%22%3A%5B%22universal+preschool%22%2C%22universal%22%2C%22pre-
              T. Gormley, Ted Gayer, “Promoting School Readiness in Oklahoma: An Evaluation of Tulsa’s Pre-K Program,” The
              school%22%5D%7D&r=2&s=6;
     Journal of  Human Resources 40, no. 3 (2005):   Mark Zandi,
                                                           533–58.  Sophia    Koropeckyj, “Universal Child Care and Early Learning Act: Helping
                                                                        http://www.jstor.org/stable/4129551.
              Families and the Economy,” Moody’s Analytics, Feb. 2019: https://www.warren.senate.gov/imo/media/doc/Moody’s%20
88   William Analysis_Child_Care_Act.pdf
              T. Gormley, Deborah Phillips, Sara Anderson, “The Effects of Tulsa’s Pre-K Program on Middle School Student Per-
     formance,” Georgetown University, 2017, https://georgetown.app.box.com/s/kkv3d717lib52clh9w4t3wns50ivcaxs
         93 “Full Estimates of the House Build Back Better Act,”
89   Steven W. Barnett, Ellen C. Frede, “Long-term effects of a system of high-quality universal preschool education in the Unit-
     ed Committee      for a Responsible
         States,” Childcare,                Federal
                                Early Education     Budget,
                                                  and  Social Nov.    18, 2021.
                                                               Inequality:   Anhttps://www.crfb.org/blogs/full-estimates-house-build-back-better-
                                                                                 International Perspective, 2017, https://www.researchgate.
              act; H.R. 5376, Build Back Better Act https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-
     net/publication/328513993_Long-term_effects_of_a_system_of_high-quality_universal_preschool_education_in_the_Unit-
              RCP117-18.pdf;
     ed_States.                 Department     of Health  and   Human      Services, Administration for Children and Families, Justification for
              Estimates for Appropriations Committees FY 2022 https://www.acf.hhs.gov/sites/default/files/documents/olab/fy_2022_
90   Suzann Morris, Linda      Smith, “Examples of Mixed-Delivery Early Care and Education Systems,” Bipartisan Policy Center,
              congressional_justification.pdf
     June 17, 2021, https://bipartisanpolicy.org/blog/examples-of-mixed-delivery-early-care-and-education-systems/; Rasheed
              U.S.
         94 The
     Malik,         Government
                 Effects            Accountability
                            of Universal             Office,
                                          Preschool in        “Workforce
                                                        Washington,          Automation:
                                                                          D.C.,” Center for Insights
                                                                                            American  into Skills and
                                                                                                        Progress,     Training
                                                                                                                   Sep. 26,     Programs
                                                                                                                            2018,          for Impacted
                                                                                                                                   https://www.
              Workers,” Aug. 2022. https://www.gao.gov/assets/gao-22-105159.pdf; Frey, Carl Benedict, and Michael A. Osborne, “The
     americanprogress.org/article/effects-universal-preschool-washington-d-c/
              Future of Employment: How Susceptible are Jobs to Computerisation?” Oxford Martin School, Sep 17, 2013. https://www.
91   Jessica H.  Brown, “Does Public Pre-K Have Unintended Consequences on the Child Care Market for Infants and Toddlers?”
              oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
     Princeton University Industrial Relations Section Working Paper 626, Dec 18, 2018, https://papers.ssrn.com/sol3/papers.
         95 David Autor, Anna Salomons,
     cfm?abstract_id=3360616;         Emily Tate “Is automation
                                                  Sullivan,          labor-displacing?
                                                             “The Unintended             Productivity
                                                                                   Consequences          growth, employment,
                                                                                                    of Universal                  and theMay
                                                                                                                  Preschool,” EdSurge,    labor10,share”
              Brookings Papers on Economic Activity Conference Drafts, Mar 8-9, 2018. https://www.brookings.edu/wp-content/up-
     2021, https://www.edsurge.com/news/2021-05-10-the-unintended-consequences-of-universal-preschool
              loads/2018/03/1_autorsalomons.pdf
92   “U.S. Federal Poverty Guidelines Used to Determine Financial Eligibility for Certain Programs,” U.S. Department of
         96
     Health andDaron
                  Human Acemoglu,    Pascual
                             Services,        Restrepo.
                                        in effect         “Tasks,
                                                  as of Jan.       Automation,
                                                              12, 2022.             and the Rise in US Wage Inequality.” National Bureau of Economic
                                                                          https://aspe.hhs.gov/topics/poverty-economic-mobility/pov-
              Research. June
     erty-guidelines;     H.R.28862021. https://www.nber.org/papers/w28920.
                                     - Universal Child Care    and Early Learning Act https://www.congress.gov/bill/117th-congress/
         97 “Occupational Outlook Handbook: Healthcare                  Occupations,” U.S. Bureau of Labor Statistics, https://www.bls.gov/ooh/
     house-bill/2886/text?q=%7B%22search%22%3A%5B%22universal+preschool%22%2C%22universal%22%2C%22pre-
     school%22%5D%7D&r=2&s=6;
              healthcare/home.htm; Elisa    Mark Zandi,
                                                Arespacochaga,
                                                          Sophia Koropeckyj,
                                                                    “Apprenticeships
                                                                                   “Universal
                                                                                         Supporting
                                                                                               Child Care
                                                                                                       the and
                                                                                                           Health
                                                                                                                Early
                                                                                                                   Care
                                                                                                                      Learning
                                                                                                                        Workforce,”
                                                                                                                                 Act: Helping
                                                                                                                                       National Association
     Familiesofand the
                 WorkforceEconomy,”
                               Boards, Moody’s Analytics, Feb. 2019,
                                         https://www.nawb.org/aha-health-care-workers-apprenticeships;
                                                                           https://www.warren.senate.gov/imo/media/doc/Moody's%20
                                                                                                                      Zach Boren, Jacqueline Rayfield,
              “Three    Ways to Advance Racial Equity in the Workforce while Combating Climate Change,” Urban Institute, Mar 11, 2022,
     Analysis_Child_Care_Act.pdf
93            https://www.urban.org/urban-wire/three-ways-advance-racial-equity-workforce-while-combating-climate-change;
     “Full Estimates    of the House Build Back Better Act,” Committee for a Responsible Federal Budget, Nov. 18, 2021, https://                      “In-
              vesting    in Worker  Training  to Build the  Infrastructure    Workforce,“    Markle  Foundation,   Apr 7, 2021.
     www.crfb.org/blogs/full-estimates-house-build-back-better-act; H.R. 5376, Build Back Better Act https://rules.house.gov/   https://www.markle.org/
              publications/investing-worker-training-build-infrastructure-workforce/
     sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf;                  “Justification for Estimates for Appropriations
     Committees
        98           FY 2022,”
               The U.S.         Departmentand
                         House Education       of Labor
                                                  Health and   Humanfound
                                                          Committee      Services,    Administration
                                                                                that there    are over for   Children
                                                                                                        730,000        and Families,
                                                                                                                   unique               https://www.
                                                                                                                           credentials and     475,000 non-de-
     acf.hhs.gov/sites/default/files/documents/olab/fy_2022_congressional_justification.pdf
               gree credentials offered by many       post-secondary education programs including community colleges, career and technical
94   “Workforceeducation   programs,
                    Automation:         employer
                                   Insights        provided
                                            into Skills       on-the-job
                                                         and Training       training,
                                                                        Programs     forand  WIOA funded
                                                                                         Impacted     Workers,”workforce  development
                                                                                                                  U.S. Government          programs. “The
                                                                                                                                       Accountability
               Future   of Work:  How   Congress   Can   Support  Workers    in the   Modern     Economy,”    House  Education
     Office, Aug. 2022, https://www.gao.gov/assets/gao-22-105159.pdf; Carl Benedict Frey, Michael A. Osborne, “The Future         and   Labor  Committee,
                                                                                                                                                   of       Dec.
               2020, How
     Employment:       https://edlabor.house.gov/imo/media/doc/Future%20of%20Work%20Report%20(FINAL).pdf
                            Susceptible are Jobs to Computerisation?” Oxford Martin School, Sept. 17, 2013. https://www.oxfordmar-    ; Building America’s
               Skilled Technical Workforce,     2017, The National Academies Press. https://doi.org/10.17226/23472; “Changing the Debate on
     tin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
               Quality Assurance in Higher Education,” U.S. Chamber of Commerce Foundation, https://www.uschamberfoundation.org/
95   David Autor, Anna Salomons, “Is automation           labor-displacing? Productivity growth, Megan
               sites/default/files/media-uploads/Changing%20the%20Debate%20draft.pdf;                     employment,     and the
                                                                                                                     Evans,        labor share,”
                                                                                                                             “Inflation   Reduction Act: lim-
     Brookings    Papers
               ited fundingon for
                              Economic    Activity
                                  workforce,        Conference
                                              but not   enough,”Drafts,
                                                                  National Mar  8-9,Coalition,
                                                                              Skills   2018, https://www.brookings.edu/wp-content/up-
                                                                                                   Aug. 19, 2022, https://nationalskillscoalition.org/blog/
     loads/2018/03/1_autorsalomons.pdf
               news/inflation-reduction-act-limited-funding-for-workforce-but-not-enough/
96   Daron
        99 Acemoglu,
               Anthony P.Pascual    Restrepo,
                            Carnevale,   Artem“Tasks,    Automation,
                                                 Gulish, Kathryn        and the
                                                                   Peltier        Rise in“If
                                                                            Campbell,       USNotWage  Inequality,”
                                                                                                    Now, When?       National
                                                                                                                   The          Bureaufor
                                                                                                                       Urgent Need           Economic
                                                                                                                                          ofan All-One-System
     Research,    June 2021,
               Approach       https://www.nber.org/papers/w28920.
                           to Youth  Policy,” Washington, DC: Georgetown University Center on Education and the Workforce, 2021, cew.
97             georgetown.edu/allonesystem.
     “Occupational     Outlook Handbook: Healthcare Occupations,” U.S. Bureau of Labor Statistics, https://www.bls.gov/ooh/
     healthcare/home.htm;
        100 Marcus Casey, Elisa       Arespacochaga,
                                “Looking   towards the“Apprenticeships
                                                          future: Automation,  Supporting
                                                                                   training, the
                                                                                               andHealth   Care class,“
                                                                                                    the middle    Workforce,”   National
                                                                                                                         Brookings         Association
                                                                                                                                     Institution,  July 22, 2021.
     of Workforce     Boards, https://www.nawb.org/aha-health-care-workers-apprenticeships; Zach Boren, Jacqueline Rayfield,
               https://www.brookings.edu/blog/up-front/2020/07/22/looking-towards-the-future-automation-training-and-the-middle-
     “Three Ways
               class/to Advance Racial Equity in the Workforce while Combating Climate Change,” Urban Institute, Mar 11, 2022,
     https://www.urban.org/urban-wire/three-ways-advance-racial-equity-workforce-while-combating-climate-change; “In-
        ; Angela
     vesting       Hanks,Training
              in Worker    David Madland,     “Better
                                    to Build the       Training and
                                                  Infrastructure      Better Jobs,”
                                                                  Workforce,“          Center
                                                                                   Markle        for American
                                                                                             Foundation,         Progress,
                                                                                                            Apr 7,         Feb. 22, 2018. https://www.
                                                                                                                   2021. https://www.markle.org/
               americanprogress.org/article/better-training-better-jobs/
     publications/investing-worker-training-build-infrastructure-workforce/
98   The101U.S. CTE
                Houseprograms
                        Educationareand
                                     a sequence    of high school
                                         Labor Committee      foundcourses    to provide
                                                                      that there   are over students
                                                                                               730,000with    the knowledge
                                                                                                         unique   credentials and
                                                                                                                               and skills
                                                                                                                                    475,000 needed  to prepare
                                                                                                                                                non-de-
               for further  education   and  careers  in professions   in: agriculture    and   natural resources;   business,
     gree credentials offered by many post-secondary education programs including community colleges, career and technical      finance,    and marketing;
     education communication      and communication
                  programs, employer                      technologies;
                                          provided on-the-job    training,computer
                                                                             and WIOA   and   information
                                                                                           funded            sciences;
                                                                                                     workforce          construction;
                                                                                                                 development             consumer
                                                                                                                                 programs.    “The services;
               engineering,
     Future of Work:     How design,
                               Congressand
                                         Canproduction;   healthcare;
                                               Support Workers          mechanical
                                                                   in the  Modern repair
                                                                                      Economy,” andHouse
                                                                                                     operation;   and public
                                                                                                            Education         services.
                                                                                                                         and Labor        Lucinda Gray, Laurie
                                                                                                                                    Committee,
     Dec. 2020,Lewis,  “Career and Technical Education Programs in Public School Districts,” NCES 2018-028, AprilBuilding
                   https://edlabor.house.gov/imo/media/doc/Future%20of%20Work%20Report%20(FINAL).pdf;                               2018, https://nces.ed.gov/
                                                                                                                                              America's
               pubsearch/pubsinfo.asp?pubid=2018028;
     Skilled Technical    Workforce, The National Academies     “Public
                                                                   Press,High
                                                                            2017,School   Students’ Career and Technical
                                                                                  https://doi.org/10.17226/23472;              Education
                                                                                                                        “Changing            Coursetaking”
                                                                                                                                    the Debate     on
               National Center
     Quality Assurance            for Education
                           in Higher  Education,” Statistics, Nov. 2020,
                                                    U.S. Chamber            https://nces.ed.gov/pubs2020/2020010.pdf
                                                                     of Commerce       Foundation, https://www.uschamberfoundation.org/
     sites/default/files/media-uploads/Changing%20the%20Debate%20draft.pdf;
        102 U.S. Department of Education,     National Center for Education StatisticsMegan
                                                                                         (2018). Evans,
                                                                                                 Career and
                                                                                                        “Inflation
                                                                                                             Technical
                                                                                                                   Reduction
                                                                                                                       Education
                                                                                                                              Act: lim-
                                                                                                                                   Programs in
     ited funding
             Public
                  forSchool
                       workforce,
                            Districts:
                                  but not
                                       2016–17
                                          enough,”
                                               (NCESNational
                                                     2018-028).
                                                             Skills Coalition, Aug. 19, 2022,
                                                                  https://nces.ed.gov/fastfacts/display.asp?id=43;
                                                                                              https://nationalskillscoalition.org/blog/
                                                                                                                      “CTE In Your State,” Ad-
     news/inflation-reduction-act-limited-funding-for-workforce-but-not-enough/
             vance CTE, https://careertech.org/cte-your-state;    U.S. Government Accountability Office, “Career and Technical Education:
99   AnthonyPerspectives
              P. Carnevale,on  Program
                            Artem        Strategies
                                    Gulish, Kathrynand  Challenges,”
                                                    Peltier Campbell,Mar.   30, Now,
                                                                        “If Not 2022.When?
                                                                                      https://www.gao.gov/products/gao-22-104544
                                                                                              The Urgent Need for an All-One-System
     ApproachU.S.
       103    to Youth
                  Department
                       Policy,”ofWashington,
                                  Education, DC:
                                            “Bridging
                                                 Georgetown
                                                      the Skills Gap:
                                                              University
                                                                      Career
                                                                         Center
                                                                             andon
                                                                                 Technical
                                                                                   Education
                                                                                           Education
                                                                                             and thein High
                                                                                                     Workforce,
                                                                                                            School,”
                                                                                                                2021,Sep.
                                                                                                                      cew.2019. https://
     georgetown.edu/allonesystem.
            www2.ed.gov/datastory/cte/index.html
100 Marcus
       104 Jeff
            Casey,
                 Murray,
                    “Looking
                          “Multiple
                             towards the
                                    positive
                                          future:
                                             outcomes
                                                  Automation,
                                                        for CTEtraining,
                                                                students,“
                                                                         and the
                                                                           Thomasmiddle
                                                                                    B. Fordham
                                                                                         class,“ Brookings
                                                                                                 Institute, Sep.
                                                                                                            Institution,
                                                                                                                 15, 2022.
                                                                                                                         July 22, 2021.
                                                                                                                           https://fordhamin-
    https://www.brookings.edu/blog/up-front/2020/07/22/looking-towards-the-future-automation-training-and-the-middle-
            stitute.org/national/commentary/multiple-positive-outcomes-cte-students
    class/;
       105 Angela  Hanks, David
            U.S. Government      Madland, “Better
                              Accountability       Training
                                              Office,       and
                                                      “Career andBetter Jobs,”
                                                                  Technical    Center forPerspectives
                                                                            Education:    American Progress,   Feb. Strategies
                                                                                                       on Program    22, 2018. https://
                                                                                                                                and Chal-
    www.americanprogress.org/article/better-training-better-jobs/
            lenges,” Mar. 30, 2022. https://www.gao.gov/products/gao-22-104544; Kate Bahn, Carmen Sanchez Cumming, “Factsheet:
              U.S. occupational segregation by race, ethnicity, and gender, Washington Center for Equitable Growth, July 1, 2020. https://
              equitablegrowth.org/factsheet-u-s-occupational-segregation-by-race-ethnicity-and-gender/
        106 Apprenticeship USA Fact Sheet. https://www.apprenticeship.gov/career-seekers
          APPENDIX
          Endnotes                                                                                                                                  175
107 AnneliesCTE
       101    Goger
                  programs
                     and are
                          Chenoahsequence
                                   Sinclair, of high
                                             “Apprenticeships
                                                     school courses
                                                              are anto provide
                                                                     overlookedstudents
                                                                                  solutionwith
                                                                                           for the
                                                                                               creating
                                                                                                   knowledge
                                                                                                        more and
                                                                                                             accesskills
                                                                                                                     to quality
                                                                                                                         needed jobs,”
                                                                                                                                  to prepare
    Jan. 27, for
             2021.
                 further education and careers in professions in: agriculture
                   https://www.brookings.edu/blog/the-avenue/2021/01/27/apprenticeships-are-an-overlooked-solution-for-cre-
                                                                              and natural resources; business, finance, and marketing;
    ating-more-access-to-quality-jobs
             communication    and communication technologies; computer and information sciences; construction; consumer services;
108 Joseph B. Fuller and Matthewand
             engineering,  design,     production;
                                    Sigelman,       healthcare;
                                                “Room  to Grow:mechanical   repairFrontiers
                                                                Identifying New    and operation;  and public services.
                                                                                            for Apprenticeships,”       Lucinda
                                                                                                                  Nov. 2017.      Gray, Laurie
                                                                                                                             https://
             Lewis, “Career and Technical Education Programs in Public School Districts,”
    www.hbs.edu/managing-the-future-of-work/Documents/room-to-grow.pdf;              “DiscoverNCES  2018-028, April
                                                                                                 Apprenticeship:    2018, https://nces.ed.gov/
                                                                                                                 Healthcare,”  U.S.
             pubsearch/pubsinfo.asp?pubid=2018028;
    Department                                           “Public High School
                  of Labor, Employment and Training Administration.           Students’ Career and Technical Education Coursetaking”
                                                                       https://www.apprenticeship.gov/sites/default/files/Health-
             National Center for Education Statistics, Nov. 2020, https://nces.ed.gov/pubs2020/2020010.pdf
    care_Industry_Fact_Sheet.pdf
       102 “Career
109 Annelies          andChenoah
              Goger and    TechnicalSinclair,
                                     Education   Programs in Public
                                              “Apprenticeships        School
                                                                 are an       Districts:
                                                                        overlooked       2016–17,”
                                                                                     solution      U.S. Department
                                                                                              for creating  more access of Education,
                                                                                                                            to quality National
                                                                                                                                       jobs,” Cen-
             ter for Education  Statistics, 2018, https://nces.ed.gov/fastfacts/display.asp?id=43;     “CTE  In Your   State,”
    Jan. 27, 2021. https://www.brookings.edu/blog/the-avenue/2021/01/27/apprenticeships-are-an-overlooked-solution-for-cre-    Advance   CTE, https://
             careertech.org/cte-your-state; “Career and Technical Education: Perspectives on Program Strategies and Challenges,” U.S.
    ating-more-access-to-quality-jobs
             Government Accountability Office, Mar. 30, 2022. https://www.gao.gov/products/gao-22-104544
110 “Registered Apprenticeship National Results Fiscal Year 2021,” ​​U.S. Department of Labor. https://www.dol.gov/agencies/eta/
       103   “Bridging  the Skills Gap: Career
    apprenticeship/about/statistics/2021;       and Technical
                                              “Registered       Education inNational
                                                           Apprenticeship    High School,”  U.S.
                                                                                      Results     Department
                                                                                              Fiscal Year 2020,”of ​​U.S.
                                                                                                                   Education,   Sep. 2019.
                                                                                                                          Department    of https://
             www2.ed.gov/datastory/cte/index.html
    Labor. https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020
111    104
    CommunityJeff College
                  Murray, Resource
                           “Multiple Center.
                                      positive outcomes for CTE students,“     Thomas B. Fordham Institute, Sep. 15, 2022. https://fordhamin-
                                              https://ccrc.tc.columbia.edu/community-college-faqs.html
             stitute.org/national/commentary/multiple-positive-outcomes-cte-students
112 Jennifer Ma, Matea Pender, and CJ Libassi, Trends in College Pricing and Student Aid 2020, New York: College Board. 2020.
       105 “Career and Technical Education: Perspectives on Program Strategies and Challenges,” U.S. Government
    https://research.collegeboard.org/media/pdf/trends-college-pricing-student-aid-2020.pdf#page=17;               “Is Community Accountability
                                                                                                                                      College
    Free? (In Some States, Yes)” Coursera. June 10, 2022. https://www.coursera.org/articles/is-community-college-free “Factsheet:
             Office,  Mar. 30, 2022, https://www.gao.gov/products/gao-22-104544;         Kate Bahn,   Carmen   Sanchez     Cumming,
             U.S. occupational segregation by race, ethnicity, and gender, Washington Center for Equitable Growth, July 1, 2020. https://
113 Elizabeth Mann Levesque, “Improving Community College            Completion Rates by Addressing Structural and Motiva-
             equitablegrowth.org/factsheet-u-s-occupational-segregation-by-race-ethnicity-and-gender/
    tional Barriers,” Brookings Institution. Oct. 8, 2018. https://www.brookings.edu/research/community-college-comple-
       106 Apprenticeship USA Fact Sheet. https://www.apprenticeship.gov/career-seekers
    tion-rates-structural-and-motivational-barriers/
       107 Fulcher
114 Rachel   AnneliesDawson,
                       Goger and   Chenoah
                                Melissa       Sinclair,James
                                         S. Kearney,    “Apprenticeships  are an overlookedApproaches
                                                             X. Sullivan. “Comprehensive     solution fortocreating
                                                                                                             Increasingmore  accessComple-
                                                                                                                           Student   to quality jobs,”
             Jan. 27,
    tion in Higher    2021. https://www.brookings.edu/blog/the-avenue/2021/01/27/apprenticeships-are-an-overlooked-solution-for-cre-
                    Education:  A Survey of the Landscape.” National Bureau of Economic Research. November 2020. https://www.
             ating-more-access-to-quality-jobs
    nber.org/papers/w28046.
115     108 Joseph
      National Center B.
                       forFuller and Matthew
                           Education            Sigelman,
                                       Statistics,         “Room
                                                   “Loans for       to Grow: Identifying
                                                              Undergraduate    Students,”New Frontiers
                                                                                          Condition    for Apprenticeships,”
                                                                                                    of Education.            Nov. 2017.
                                                                                                                  U.S. Department   of https://
             www.hbs.edu/managing-the-future-of-work/Documents/room-to-grow.pdf;
      Education, Institute of Education Sciences. 2022.                                          “Discover Judith
                                                            https://nces.ed.gov/programs/coe/indicator/cub; Apprenticeship: Healthcare,” U.S.
                                                                                                                     Scott-Clayton,
             Department
      “What accounts         of Labor,
                        for gaps       Employment
                                  in student          and Training
                                             loan default,         Administration.
                                                            and what                https://www.apprenticeship.gov/sites/default/files/Health-
                                                                       happens after,” Evidence Speaks Reports, Vol 2, #57 June 21,
             care_Industry_Fact_Sheet.pdf
      Brookings Institution. 2018. https://www.brookings.edu/research/what-accounts-for-gaps-in-student-loan-default-and-
      what-happens-after/
        109  Annelies Goger and Chenoah Sinclair, “Apprenticeships are an overlooked solution for creating more access to quality jobs,”
116            Jan. 27,“Pell
      “Nick Hillman     2021.  https://www.brookings.edu/blog/the-avenue/2021/01/27/apprenticeships-are-an-overlooked-solution-for-cre-
                             Access and Completion Series Part I: Community College,” Institute for College Access and Success.
               ating-more-access-to-quality-jobs
      June 2022.   https://ticas.org/wp-content/uploads/2022/06/Pell-Access-and-Completion_community-college.pdf; Percent
      of 110   “Registered
         undergraduate        Apprenticeship
                          students            National
                                     receiving Pell     Results
                                                    grants,” U.S.Fiscal Year 2021,”
                                                                  Department   of U.S. Department
                                                                                   Education,       ofCenter
                                                                                              National Labor. for Education
                                                                                                              https://www.dol.gov/agencies/eta/
                                                                                                                            Statistics.
      https://nces.ed.gov/ipeds/TrendGenerator/app/answer/8/35?f=5%3D2%7C3
               apprenticeship/about/statistics/2021;    “Registered Apprenticeship National Results Fiscal Year 2020,” U.S. Department of
117            Labor. Harry Holzer, Grace Luetmer “Should
       Sandy Baum,     https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020
                                                               the Federal Government Fund Short-Term Postsecondary Certificate
      Programs?,”
          111  Community
                    The Urban
                            College
                                Institute,
                                      Resource
                                           Jan 2021,
                                                Center. https://ccrc.tc.columbia.edu/community-college-faqs.html
                                                     https://www.urban.org/sites/default/files/publication/103370/should-the-feder-
      al-government-fund-short-term-postsecondary-certificate-programs_0_0.pdf
          112 Jennifer Ma, Matea Pender, and CJ Libassi, “Trends in College Pricing and Student Aid 2020,” New York: College Board.
118   Victoria Yuen,
               2020. “The $78 Billion Community College Funding
                      https://research.collegeboard.org/media/pdf/trends-college-pricing-student-aid-2020.pdf#page=17;
                                                                       Shortfall,” Center for American Progress, Oct. 7, 2020. “Is
                                                                                                                              https://
                                                                                                                                   Community
      www.americanprogress.org/article/78-billion-community-college-funding-shortfall/;
               College Free? (In Some States, Yes)”   Coursera. June 10, 2022.   https://www.coursera.org/articles/is-community-college-free
                                                                                                  Nikki Edgecombe,  “Public Funding
      of Community    Colleges,”
          113 Elizabeth           Community
                         Mann Levesque,         College Resource
                                            “Improving   CommunityCenter.  Feb.Completion
                                                                      College   2022. https://ccrc.tc.columbia.edu/publications/pub-
                                                                                            Rates by Addressing Structural and Motiva-
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119 Community College Resource
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        114 Rachel  Enrollment   by race/ethnicity,”
                       Fulcher Dawson,                 Community
                                          Melissa S. Kearney,       College
                                                                James        Daily, Nov.
                                                                       X. Sullivan.      15, 2022: https://www.ccdaily.com/2022/11/dat-
                                                                                     “Comprehensive     Approaches to Increasing Student Comple-
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              tion in Higher Education: A Survey of the Landscape.” National Bureau of Economic Share of Undergraduates     Are From
                                                                                                           Research. November      2020.Poor
                                                                                                                                          https://www.
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        115 National Center for Education Statistics, “Loans for Undergraduate Students,” Condition of Education. U.S. Department of
120 “ParentsEducation,
                in College Institute
                            by the Numbers,”   Institute
                                      of Education        for Women’s
                                                     Sciences.          Policy Research. https://iwpr.org/iwpr-issues/student-par-
                                                               2022. https://nces.ed.gov/programs/coe/indicator/cub;        Judith Scott-Clayton,
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              “What accounts for gaps in student loan default, and      National   Center for
                                                                          what happens        Education
                                                                                           after,”        Statistics,
                                                                                                   Evidence  Speaks “Condition
                                                                                                                      Reports, Volof2,Educa-
                                                                                                                                       #57 June 21,
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121  Di 116
         Xu, Madeline   Trimble,
              “Nick Hillman       “What
                               “Pell      About
                                     Access andCertificates?    Evidence
                                                  Completion Series   PartonI: the Labor Market
                                                                               Community          Returns
                                                                                            College,”      to Nondegree
                                                                                                      Institute           Communi-
                                                                                                                for College Access and Success.
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122   Marcella Bombardieri, “Tapping Local Support
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                                                   To Strengthen Community Colleges,” Center for American Progress. Oct.
      2020.
        117 https://www.americanprogress.org/wp-content/uploads/2020/10/Strengthen-Community-Colleges.pdf
              Sandy Baum, Harry Holzer, Grace Luetmer “Should the Federal Government Fund Short-Term Postsecondary Certificate
123 Joseph Russo,
            Programs?,”
                   “ThreeThe
                          Reasons
                             Urbanto
                                   Institute,
                                     Save forJan
                                              College,”
                                                 2021, College Savings Plan Network. Sep. 8,
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        119 Apr. 26,
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126 BradleyFamilies,
              Hardy and  Dave Marcotte,
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                   House Select Committee on
176                Economic Disparity & Fairness in Growth
120  “ParentsU.S.
       127     in College
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                                                       forSchool.”
                                                           Women’s Policy Research.
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121 Di Xu, Madeline Trimble, “What About Certificates? Evidence on the Labor Market Returns to Nondegree Communi-
       129 “What
    ty College       is Causing
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       130 National
122 Marcella           Center for
              Bombardieri,         Education
                              “Tapping       Statistics,
                                       Local Support  To“Condition
                                                          StrengthenofCommunity
                                                                       Education: Price  of Attending
                                                                                  Colleges,”           anAmerican
                                                                                              Center for   Undergraduate    Institution,” U.S.
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       131 Russo,
123 Joseph          “ThreeCollege:
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                                                                     Savings Student  Clearinghouse
                                                                             Plan Network.            Research
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124 San132   “WIOAOffice
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125 “CollegeSummary.html
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       133   AlexData,”
    Attainment    Camardelle,   “Principles
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                                                Support  Black Workers in the Workforce Innovation
                                                     24, 2022,                                          and Opportunity Act,” Joint Center
                                                               https://www.census.gov/newsroom/press-releases/2022/education-
             for Economic and Policy Studies, October 2021, https://jointcenter.org/wp-content/uploads/2021/10/Principles-to-Sup-
    al-attainment.html
             port-Black-Workers-in-the-WIOA.pdf; Sapna Mehta and Emily Andrews, “Updating WIOA to Empower Workers and
126 Bradley Create
             Hardy and   Dave
                      Shared   Marcotte, “Education
                              Prosperity,”             andLaw
                                           The Center for   the and
                                                                Dynamics    of Middle
                                                                    Social Policy. Apr.Class
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                                                                                                                       Marina     N.
                                                                                                                               Zhavoronkova,
    Friedman,   Emmanuel    Saez,  UC-Berkeley,   Nicholas Turner,  Danny  Yagan,  Mobility  Report Cards: The Role of Colleges
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127 “Fun Facts: Back to   School,” U.S. Census Bureau, https://www2.census.gov/programs-surveys/sis/resources/back-to-
             force-development-system/
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       134 Angela Hanks, David Madland, “Better Training and Better Jobs,” Center for American Progress, Feb. 22, 2018. https://www.
128 Johann Neem, “The problem with the
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                                          push for more college degrees,”Anthony
                                                                             The P.
                                                                                 Conversation.
                                                                                     Carnevale, Jeff
                                                                                                 Sep. 12,
                                                                                                      Strohl,
                                                                                                          2019.
                                                                                                              Artem Gulish,
                                                                                                                https://theconversa-
                                                                                                                             “College Is Just
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            the Beginning: Employers’  Role in $1.1 Trillion Postsecondary Education and Training System,” Center on Education and the
129 “What isWorkforce,  Georgetown
              Causing the            University,
                          College Premium        2015, https://cewgeorgetown.wpenginepowered.com/wp-content/uploads/2015/02/Tril-
                                           to Shrink?”     Federal Reserve Bank of St. Louis. Jan. 26, 2021. https://www.stlouisfed.
            lion-Dollar-Training-System-.pdf
    org/on-the-economy/2021/january/causing-college-premium-shrink
130   135   Testimony
    “Condition of      of Dane
                  Education:    Linn,
                             Price  ofSenior Vicean
                                      Attending   President of Corporate
                                                    Undergraduate          Initiatives,
                                                                     Institution,”      Business
                                                                                    National     Roundtable,
                                                                                             Center for       U.S. House
                                                                                                        Education         Select
                                                                                                                  Statistics, U.S.Committee
            on Economic
    Department            Disparity
                 of Education,      in Fairness
                               Institute        and Growth.
                                         of Education        Sep.2022,
                                                      Sciences,   21, 2022.  https://fairgrowth.house.gov/sites/democrats.fairgrowth.
                                                                        https://nces.ed.gov/programs/coe/indicator/cua;     “Loans for
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    Undergraduate   Students,” National Center for Education Statistics, U.S. Department of Education, May 2022, https://nces.
    ed.gov/programs/coe/indicator/cub/undergrad-student-loans
      136 Angela Hanks, David     Madland, “Better Training and Better Jobs,” Center for American Progress, Feb. 22, 2018. https://www.
            americanprogress.org/article/better-training-better-jobs/
131 “Completing   College: National and State Reports,” National Student Clearinghouse Research Center. Feb. 3, 2022. https://
    nscresearchcenter.org/completing-college/
       137 Amy Sherman,     “Was college once free in United States, as Bernie Sanders says?” Politifact, Feb. 9, 2016. https://www.politi-
            fact.com/factchecks/2016/feb/09/bernie-s/was-college-once-free-united-states-and-it-oversea/
132 “WIOA Performance Results At-A-Glance,” U.S. Department of Labor. https://www.dol.gov/agencies/eta/performance/
    wioa-performance;
       138  Anthony P. “WIOA
                       Carnevale,
                               Titles I
                                   JennaandR.IIISablan,
                                                 National
                                                        Artem
                                                          Performance
                                                              Gulish, Michael
                                                                       Summary,
                                                                              C. Quinn,
                                                                                  Program
                                                                                        andYear
                                                                                            Gayle
                                                                                                2019,” U.S.
                                                                                                  Cinquegrani,
                                                                                                            Department
                                                                                                               “The Dollars
                                                                                                                       of Labor.
                                                                                                                            and Sense of
            Free College,” Georgetown University Center on      Education and the Workforce. https://cew.georgetown.edu/cew-reports/
    https://www.dol.gov/sites/dolgov/files/ETA/Performance/pdfs/PY%202019%20WIOA%20Performance%20Narrative%20
    Summary.html
            freecollegecost/
133 Alex
       139Camardelle,
              Sergio Galeano,
                         “Principles
                                  “8 Big
                                       to Support
                                          Commitments
                                                    Black to
                                                           Workers
                                                                the in
                                                                    Workforce    System in the
                                                                         the Workforce     Innovation
                                                                                                  House’s
                                                                                                        andWIOA
                                                                                                             Opportunity
                                                                                                                   Bill,” Third
                                                                                                                             Act,”
                                                                                                                                 Way.
                                                                                                                                    Joint
                                                                                                                                        May 17,
                                                                                                                                          Center2022. http://
    for Economic and Policy Studies, October 2021,
              thirdway.imgix.net/pdfs/8-big-commitments-to-the-workforce-system-in-the-houses-wioa-bill.pdf
                                                            https://jointcenter.org/wp-content/uploads/2021/10/Principles-to-Sup-
    port-Black-Workers-in-the-WIOA.pdf;
       140 “Another 275,000 Women LeftSapna                Mehta
                                                    the Labor       andinEmily
                                                                 Force          Andrews,
                                                                          January,”         “Updating
                                                                                      National   Women’sWIOALaw toCenter.
                                                                                                                   Empower  Feb.Workers
                                                                                                                                  5, 2021. and
                                                                                                                                           https://nwlc.org/
    Create Shared     Prosperity,” The Center for Law and Social Policy, April 2022, https://www.clasp.org/wp-content/up-
              resource/january-jobs-day-2021/#.
    loads/2022/04/2022__Updating-WIOA-to-Empower-Workers-and-Create-Shared-Prosperity_.pdf; Marina Zhavoronkova,
       141      theMichelle
    “Meeting​​Dr.    Moment: Holder,
                                 Equityformer  president
                                         and Job           andthe
                                                  Quality in      CEO of the
                                                                    Public    Washington
                                                                           Workforce          Center forSystem,”
                                                                                         Development                  Growth,
                                                                                                         EquitableCenter      foran  Associate
                                                                                                                                  American       Professor of
                                                                                                                                              Progress.
              Economics
    Feb. 17, 2022,          at John Jay College, City University of New York in the testimony before the Select Committee on Economic
                     https://www.americanprogress.org/article/meeting-the-moment-equity-and-job-quality-in-the-public-work-
              Disparity and Fairness in Growth https://equitablegrowth.org/house-select-committee-on-economic-disparity-and-fair-
    force-development-system/
              ness-in-growth/
134 Angela Hanks, David Madland, “Better Training and Better Jobs,” Center for American Progress, Feb. 22, 2018. https://www.
       142    “The  Economic Role of Paid Child Care in the U.S.,”Anthony
    americanprogress.org/article/better-training-better-jobs/;             The Public   Policy Center
                                                                                     P. Carnevale,  JeffofStrohl,
                                                                                                           the Conference      Board.
                                                                                                                   Artem Gulish,        Feb. 2022.
                                                                                                                                     “College       https://
                                                                                                                                               Is Just
              www.ced.org/solutions-briefs/the-economic-role-of-paid-child-care-in-the-u.s;
    the Beginning:     Employers’ Role in $1.1 Trillion Postsecondary Education and Training System,”         Care.com
                                                                                                                    Center 2022   Cost of Care
                                                                                                                             on Education    andSurvey,
                                                                                                                                                  the June
    Workforce,2022.   https://www.care.com/c/how-much-does-child-care-cost/; Grover J.
                  Georgetown University, 2015,                                                         “Russ” Whitehurst, “Why the federal govern-
                                                      https://cewgeorgetown.wpenginepowered.com/wp-content/uploads/2015/02/Tril-
              ment should subsidize childcare and how to pay for it,” Brookings Institution, Mar 9, 2017. https://www.brookings.edu/
    lion-Dollar-Training-System-.pdf
              research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/
135 Testimony of Dane Linn, Senior Vice President of Corporate Initiatives, Business Roundtable, U.S. House Select Committee
       143
    on EconomicBureau   of Labor
                     Disparity  in Statistics.
                                   Fairness and“Consumer     Price21,
                                                  Growth. Sep.      Index
                                                                      2022.forhttps://fairgrowth.house.gov/sites/democrats.fairgrowth.
                                                                               All Items, Rent of Primary Residence, and Daycare and Preschool for
              All Urban Consumers.” https://www.bls.gov/cpi/
    house.gov/files/documents/Dane%20Linn%27s%20Statement.pdf
       144 This
136 Angela   Hanks, is David
                       evidenced    by the fact
                              Madland,          that
                                          “Better      the and
                                                  Training percentage
                                                                   Betterof children
                                                                          Jobs,”       under
                                                                                   Center  forage 5  in paid
                                                                                               American       care goes
                                                                                                           Progress,  Feb. down   steadily as
                                                                                                                             22, 2018.         household
                                                                                                                                        https://www.
              income decreases, according to the Committee for Economic Development. “The Economic Role of Paid Child Care in the
    americanprogress.org/article/better-training-better-jobs/
              U.S.,” The Public Policy Center of the Conference Board. Feb. 2022. https://www.ced.org/solutions-briefs/the-economic-
137 Amy Sherman,       “Was college once free in United
              role-of-paid-child-care-in-the-u.s;       WorkingStates, as Bernie
                                                                   Families         Sanders Big
                                                                             Are Spending     says?”  Politifact,
                                                                                                  Money   on ChildFeb.  9, 2016.
                                                                                                                     Care.  (2019,https://www.politi-
                                                                                                                                    June 20). Center for
    fact.com/factchecks/2016/feb/09/bernie-s/was-college-once-free-united-states-and-it-oversea/
              American Progress, https://www.americanprogress.org/article/working-families-spending-big-money-child-care/; Then
138 Anthony P.Center
                  Carnevale,
                       for American
                               Jenna R.Progress
                                          Sablan,uses
                                                   ArtemtheGulish,
                                                            definition
                                                                     Michael“low-income”
                                                                         of C.    Quinn, and  as any
                                                                                                Gaylefamily
                                                                                                       Cinquegrani,
                                                                                                             income “The
                                                                                                                       below 200
                                                                                                                              Dollars and
                                                                                                                                      percent
                                                                                                                                            Sense
                                                                                                                                              of theoffederal
    Free College,”
              poverty level,
                      Georgetown
                               which for
                                     University
                                           a family
                                                 Center
                                                    of four
                                                          on isEducation
                                                                 $51,500 per
                                                                          andyear;
                                                                                the “2019
                                                                                     Workforce.
                                                                                            Poverty Guidelines,” Office
                                                                                                  https://cew.georgetown.edu/cew-reports/
                                                                                                                              of the Assistant Secretary for
    freecollegecost/
              Planning and Evaluation, Department of Health and Human Services, https://aspe.hhs.gov/2019-poverty-guidelines; A more
              recent analysis
139 Sergio Galeano,              by the First Five
                        “8 Big Commitments       toYears   Fund showed
                                                     the Workforce          center-based
                                                                       System                care WIOA
                                                                                 in the House’s   can cost   upThird
                                                                                                         Bill,”  to 39.9%,
                                                                                                                      Way. while
                                                                                                                              May 17,the costhttp://
                                                                                                                                       2022.  of home-based
              care is 32.3% of the state median income for a single parent in Ohio. “FFYF’s 2022 Child Care & Early Learning State Fact
    thirdway.imgix.net/pdfs/8-big-commitments-to-the-workforce-system-in-the-houses-wioa-bill.pdf
              Sheets,” Aug. 2, 2022.
140 “Another 275,000 Women Left the Labor Force in January,” National Women’s Law Center. Feb. 5, 2021. https://nwlc.org/
       https://www.ffyf.org/2022-state-fact-sheets/
    resource/january-jobs-day-2021/#.


           APPENDIX
           Endnotes                                                                                                                              177
145  U.S.
       141Dept.
            Dr. of
                Michelle
                   Treasury,
                          Holder,
                             “The former
                                  Economics
                                          president
                                              of Child
                                                    andCare
                                                          CEO of
                                                             Supply
                                                                 thein the
                                                                     Washington
                                                                           United Center
                                                                                  States,”for
                                                                                           September
                                                                                              Equitable 2021.
                                                                                                        Growth, an
                                                                                                              https://home.treasury.
                                                                                                                     Associate Professor of
    gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf
            Economics at John Jay College,    City University of New York in the testimony before the Select Committee on Economic
            Disparity
146 “The Effects       andCare
                  of Child Fairness  in Growth
                                Subsidies       https://equitablegrowth.org/house-select-committee-on-economic-disparity-and-fair-
                                           on Maternal   Labor Force Participation in the United States,” ASPE. December 20, 2016.
            ness-in-growth/
    Available at https://aspe.hhs.gov/reports/effects-child-care-subsidies-maternal-labor-force-participation-united-states;
    Alternately,
       142  "Thea Duke
                 Economic
                       University
                            Role ofstudy
                                    Paid Child
                                         foundCare
                                                thatin the
                                                     movingU.S.,"
                                                             to The   expensive
                                                                 morePublic Policychild
                                                                                   Center
                                                                                        careof the
                                                                                             statesConference
                                                                                                    decreases the
                                                                                                               Board.
                                                                                                                    odds
                                                                                                                       Feb.
                                                                                                                         of 2022.
                                                                                                                            employ-https://
    ment for married mothers by 18%, compared to
            www.ced.org/solutions-briefs/the-economic-role-of-paid-child-care-in-the-u.s;
                                                     married mothers who moved to less expensive Care.com
                                                                                                        child
                                                                                                            2022
                                                                                                              careCost
                                                                                                                   states.
                                                                                                                       of Care
                                                                                                                           https://
                                                                                                                               Survey, June
    read.dukeupress.edu/demography/article/58/2/451/169632/Are-States-Created-Equal-Moving-to-a-State-With
            2022. https://www.care.com/c/how-much-does-child-care-cost/;        Grover J. “Russ” Whitehurst, “Why the federal govern-
            mentBernard
147 Mark Zandi,   shouldYaros,
                          subsidize childcare and Consequences
                                “Macroeconomic    how to pay for it,” Brookings
                                                                  of the         Institution,
                                                                         Infrastructure       Mar 9, 2017.
                                                                                         Investment        https://www.brookings.edu/
                                                                                                      and Jobs  Act & Build Back
            research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/
    Better Framework,” Moody’s Analytics. Nov. 4, 2021. https://www.moodysanalytics.com/-/media/article/2021/macro-
      economic-consequences-of-the-infrastructure-investment-and-jobs-act-and-build-back-better-framework.pdf;
         143 Bureau of Labor Statistics. “Consumer Price Index                 for All Items, Rent of Primary Residence, and Daycare and        “The Preschool for
      Economics
              All of
                  Urban
                     EarlyConsumers.”
                             Childhood Investments,”
                                          https://www.bls.gov/cpi/
                                                             Jan. 2015. https://obamawhitehouse.archives.gov/sites/default/files/docs/
      early_childhood_report_update_final_non-embargo.pdf;
         144 This is evidenced by the fact that the percentageSam                 Abbott,under
                                                                             of children   “The Childcare   Economy,”
                                                                                                  age 5 in paid  care goesWashington     Center
                                                                                                                             down steadily         for
                                                                                                                                               as household    in-
      EconomiccomeGrowth.    Sep. 15,according
                     decreases,       2021; Elliot
                                                toHaspel      also noted
                                                    the Committee       forinEconomic
                                                                               his testimony   that, “high-quality
                                                                                          Development.    The Center early  childhoodProgress
                                                                                                                        for American     experiencesusesand
                                                                                                                                                          the defini-
      financially
              tionstable   families — both
                    of “low-income”           of which
                                         as any  familyare     deeply
                                                           income      influenced
                                                                    below     200% of  bythe
                                                                                          thefederal
                                                                                              presence   of a functional
                                                                                                      poverty  level, whichchild
                                                                                                                              for care system
                                                                                                                                  a family        — shape
                                                                                                                                            of four   is $51,500 per
      child development
              year. A more   and  showanalysis
                               recent    up in later  life First
                                                  by the    outcomes.    As the
                                                                 Five Years       National
                                                                               Fund   showed Academy    of Sciences
                                                                                               center-based    care canhascost
                                                                                                                           shown,
                                                                                                                                up tochildren’s   brainthe cost of
                                                                                                                                       39.9%, while
      architecture  develops    cumulatively,    like building   a house:    the  foundation    for academic   skills, socioemotional
              home-based care is 32.3% of the state median income for a single parent in Ohio. "The Economic Role of Paid Child Care in   skills, behavior,
      and health
              theare   all The
                   U.S.,"  set in the earliest
                                Public          years ofoflife.”
                                        Policy Center             National Academy
                                                             the Conference      Board, of   Sciences.
                                                                                          Feb.          https://thesciencebehindit.org/does-quali-
                                                                                               2022, https://www.ced.org/solutions-briefs/the-economic-
      ty-early-childhood-education-lead-to-more-successful-lives-as-adults/
              role-of-paid-child-care-in-the-u.s; “Working Families Are Spending Big Money on Child Care,” Center for American Progress,
148 Mark Zandi,
            June 20,
                  Bernard
                       2019,Yaros, “Macroeconomic Consequences of the
                               https://www.americanprogress.org/article/working-families-spending-big-money-child-care/;
                                                                                    Infrastructure Investment and Jobs Act & Build Back      “2019 Poverty
            Guidelines,” Office
    Better Framework,”     Moody’s  of the  Assistant
                                      Analytics.         Secretary
                                                    Nov. 4,   2021. for Planning and Evaluation,     Department of Health and Human Services,
                                                                    https://www.moodysanalytics.com/-/media/article/2021/macro-
            https://aspe.hhs.gov/2019-poverty-guidelines;              “FFYF’s 2022 Child Care & Early Learning State Fact Sheets,”
    economic-consequences-of-the-infrastructure-investment-and-jobs-act-and-build-back-better-framework.pdf;                               First Five Years
                                                                                                                                        “The
            Fund,
    Economics    of Aug.
                    Early 2, 2022,   https://www.ffyf.org/2022-state-fact-sheets/
                          Childhood Investments,” Jan.           2015. https://obamawhitehouse.archives.gov/sites/default/files/docs/
    early_childhood_report_update_final_non-embargo.pdf;
       145 “The Economics of Child Care Supply in the United            Sam  Abbott,
                                                                           States,”    “The
                                                                                     U.S.   Childcare Economy,”
                                                                                          Department    of Treasury,Washington
                                                                                                                      September Center     for
                                                                                                                                  2021, https://home.
    Economic Growth. Sep. 15, 2021; Elliot Haspel also            noted in his testimony that, “high-quality early childhood experiences and
            treasury.gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf
    financially stable families — both of which are deeply influenced by the presence of a functional child care system — shape
    child   Alternately, a
       146development     andDuke    University
                                show up    in laterstudy
                                                     life found
                                                         outcomes. thatAs
                                                                        moving
                                                                          the to   moreAcademy
                                                                              National    expensiveof child care has
                                                                                                      Sciences    states decreases
                                                                                                                      shown,              brainof
                                                                                                                                   the odds
                                                                                                                             children’s
            employment
    architecture  developsfor    married mothers
                              cumulatively,             by 18%,a compared
                                                like building     house: theto   married mothers
                                                                              foundation           who moved
                                                                                           for academic           to less expensive
                                                                                                          skills, socioemotional    childbehavior,
                                                                                                                                  skills,   care states.
            “The
    and health     Effects
                are all set of  Childearliest
                             in the   Care years
                                             Subsidies of on
                                                          life.”Maternal
                                                                 NationalLabor  Forceof Sciences.
                                                                          Academy      Participation in the United States,”  Assistant Secretary for
                                                                                                  https://thesciencebehindit.org/does-quali-
            Planning and Evaluation, Department of Health and Human Services, Dec. 20, 2016, https://aspe.hhs.gov/reports/ef-
    ty-early-childhood-education-lead-to-more-successful-lives-as-adults/
            fects-child-care-subsidies-maternal-labor-force-participation-united-states; https://read.dukeupress.edu/demography/
149 American   Action Forum. “The Ballooning Costs of Long Term Care”. February 28, 2020. https://www.americanactionforum.
            article/58/2/451/169632/Are-States-Created-Equal-Moving-to-a-State-With
    org/research/the-ballooning-costs-of-long-term-care/
       147 “Untapped Potential: Economic Impact of Childcare Breakdowns on U.S. States,” U.S. Chamber of Commerce Foun-
150 Cost of Long  Term
            dation,      Care by State, Cost of Care Report, Genworth. June 2,
                     2020,                                                                 2022. https://www.genworth.com/aging-and-you/
                              https://www.uschamberfoundation.org/reports/untapped-potential-economic-impact-childcare-break-
    finances/cost-of-care.html;
            downs-us-states; “The    AARP.    “Caregiving
                                         Bedrock              in the United
                                                      of American           States
                                                                     Business:  High2020”.  May
                                                                                      Quality    2020.
                                                                                              Early      https://www.aarp.org/ppi/info-2020/
                                                                                                    Childhood    Education,” U.S. Chamber of Com-
    caregiving-in-the-united-states.html
            merce Foundation, https://www.uschamberfoundation.org/early-childhood-education/the-business-case
151   Tara  O’Neill
          148       Hayes,
               Elliot HaspelSara
                              alsoKurtovic,
                                   noted in“The  Ballooningthat,
                                            his testimony    Costs of Long-Term
                                                                 “high-quality    Care,”
                                                                               early      American
                                                                                     childhood       Action Forum.
                                                                                                 experiences        Feb. 18, 2020.
                                                                                                               and financially     https://
                                                                                                                               stable families —
      www.americanactionforum.org/research/the-ballooning-costs-of-long-term-care/;
               both of which are deeply influenced by the presence of a functional child care    Karen   Shen,
                                                                                                    system  — “Who
                                                                                                               shapebenefits   from publicand show
                                                                                                                      child development
      financing  of home    care for low-income   seniors?” Harvard  University. May  12, 2021. https://scholar.harvard.edu/files/kshen/
               up in later life outcomes. As the National Academy of Sciences has shown, children’s brain architecture develops cumula-
      files/caregivers.pdf
               tively, like building a house: the foundation for academic skills, socioemotional skills, behavior, and health are all set in the
152 Statementearliest
                  of Ai-jen
                       years Poo,
                               of life.”
                                   Executive
                                         “DoesDirector,
                                                 quality early
                                                           National
                                                                childhood
                                                                     Domesticeducation
                                                                                  Workerslead to
                                                                                           Alliance
                                                                                                 moreand Caring
                                                                                                        successfulAcross
                                                                                                                     lives as
                                                                                                                           Generations,
                                                                                                                              adults?” TheHearing
                                                                                                                                             Science Behind
             It, U.S.
    before the   National
                      House Academy
                               Select of     Sciences,on
                                         Committee      updated
                                                           Economic2022,  https://thesciencebehindit.org/does-quality-early-childhood-education-
                                                                       Disparity and Fairness in Growth. Dec.      8, 2021. https://www.congress.
             lead-to-more-successful-lives-as-adults/;            Mark Zandi, Bernard Yaros, "Macroeconomic Consequences of the Infrastructure
    gov/117/meeting/house/114295/witnesses/HHRG-117-EF00-Wstate-PooA-20211208.pdf
153 “An Open Investment
                 Letter from and  Jobs Act &and
                               Economists        Build  BackPolicy
                                                    Public    Better  Framework,"
                                                                    Scholars         Moody's
                                                                               in Support       Analytics, Nov.
                                                                                           of Investments        4, 2021,
                                                                                                             in Home       https://www.moodysanalytics.
                                                                                                                         and Community Based
             com/-/media/article/2021/macroeconomic-consequences-of-the-infrastructure-investment-and-jobs-act-and-build-back
    Services,” New America. Oct. 7, 2021. https://www.newamerica.org/new-practice-lab/letters/an-open-letter-from-econo-
             -better-framework.pdf; “The Economics of Early Childhood Investments,” Executive Office of the President, January 2015,
    mists-and-public-policy-scholars-in-support-of-investments-in-home-and-community-based-services/
             https://obamawhitehouse.archives.gov/sites/default/files/docs/early_childhood_report_update_final_non-embargo.pdf;
154 “Occupational     Outlook
             Sam Abbott,        Handbook:
                              “The   ChildcareHome      HealthWashington
                                                  Economy,”     and Personal     Care for
                                                                              Center  Aides,”  U.S. Bureau
                                                                                          Economic   Growth.of Labor
                                                                                                                Sep. 15,Statistics.
                                                                                                                          2021;     https://www.bls.
    gov/ooh/healthcare/home-health-aides-and-personal-care-aides.htm; “State Survey Data: Child Care at a Time of Progress
    and149   “The
         Peril,”    Ballooning
                 National         Costs offor
                            Association       Long
                                                the Term   Care,”ofAmerican
                                                     Education                Action Forum,
                                                                    Young Children.            Feb.https://www.naeyc.org/sites/default/files/
                                                                                       Sep. 2021.   28, 2020, https://www.americanactionforum.org/
             research/the-ballooning-costs-of-long-term-care/
    wysiwyg/user-74/statedata_july2021_gf_092321.pdf
       150
155 Tara     CostHayes,
         O’Neill    of Long   Term
                           Sara      Care by“The
                                 Kurtovic,      State,  Cost of Care
                                                     Ballooning  CostsReport,   Genworth.
                                                                         of Long-Term       June
                                                                                         Care,”   2, 2022. Action
                                                                                                American    https://www.genworth.com/aging-and-you/
                                                                                                                    Forum. Feb. 18, 2020. https://
             finances/cost-of-care.html; AARP. “Caregiving in the United States 2020”. May 2020. https://www.aarp.org/ppi/info-2020/
    www.americanactionforum.org/research/the-ballooning-costs-of-long-term-care/
             caregiving-in-the-united-states.html
156 “An Open Letter from Economists and Public Policy Scholars in Support of Investments in Home and Community Based
       151   Tara
    Services,”     O’Neill
                 New        Hayes,
                      America.    Oct.Sara   Kurtovic,
                                         7, 2021.       “The Ballooning Costs of Long-Term Care,” American Action Forum. Feb. 18, 2020. https://
                                                   https://www.newamerica.org/new-practice-lab/letters/an-open-letter-from-econo-
             www.americanactionforum.org/research/the-ballooning-costs-of-long-term-care/; Karen Shen, “Who
    mists-and-public-policy-scholars-in-support-of-investments-in-home-and-community-based-services/;                             Markbenefits   from public
                                                                                                                                        Zandi, Ber-
             financing    of home    care   for low-income    seniors?”   Harvard   University.  May  12, 2021. https://scholar.harvard.edu/files/kshen/
    nard Yaros, “Macroeconomic Consequences of the Infrastructure Investment and Jobs Act & Build Back Better Framework,”
    Moody’sfiles/caregivers.pdf
               Analytics. Nov. 4, 2021. https://www.moodysanalytics.com/-/media/article/2021/macroeconomic-consequenc-
    es-of-the-infrastructure-investment-and-jobs-act-and-build-back-better-framework.pdf
       152 Statement of Ai-jen Poo, Executive             Director, National Domestic Workers Alliance and Caring Across Generations, Hearing
             before the U.S. House Select Committee on Economic Disparity and Fairness in Growth, Dec. 8, 2021, https://www.congress.
             gov/117/meeting/house/114295/witnesses/HHRG-117-EF00-Wstate-PooA-20211208.pdf
157 A Rutgers University study finds that women who use paid leave are more likely to be working within nine to 12 months of
       153 “An
    childbirth     Open
                than  womenLetter
                                whofromdoEconomists       andLinda
                                            not take leave.   PublicHouser
                                                                      Policyand
                                                                              Scholars  in Support
                                                                                   Thomas            of Investments
                                                                                            P. Vartanian,               in HomePositive
                                                                                                           “Pay Matters:The       and Community
                                                                                                                                          Eco-       Based
             Services,”
    nomic Impacts          NewFamily
                       of Paid  America,      Oct.for
                                          Leave    7, 2021, https://www.newamerica.org/new-practice-lab/letters/an-open-letter-from-econo-
                                                      Families, Businesses and the Public,” The Center for Women and Work, January
             mists-and-public-policy-scholars-in-support-of-investments-in-home-and-community-based-services/
    2012. https://1library.net/document/yj7348d2-matters-positive-economic-impacts-family-families-businesses-january.
    htmlhttps://1library.net/document/yj7348d2-matters-positive-economic-impacts-family-families-businesses-january.
       154 “Occupational Outlook Handbook: Home Health                    and Personal Care Aides,” U.S. Bureau of Labor Statistics, https://www.bls.
    html; Kelly Jones, Britni Wilcher, “Reducing
             gov/ooh/healthcare/home-health-aides-and-personal-care-aides.htm;
                                                           Maternal Labor Market Detachment: A     “State
                                                                                                       Role for
                                                                                                           SurveyPaid
                                                                                                                   Data:Family
                                                                                                                           ChildLeave,”
                                                                                                                                  Care at
                                                                                                                                        No.
                                                                                                                                          a Time
                                                                                                                                             2019-07,
                                                                                                                                                  of Progress
    Workingand Papers
                   Peril,”
                        from
                           National
                               American
                                      Association
                                             University,
                                                      for the
                                                          Department
                                                              Educationofof Young
                                                                           Economics.Children,
                                                                                          2019. Sep. 2021,
                                                                                                https://econpapers.repec.org/paper/amuw-
                                                                                                            https://www.naeyc.org/sites/default/files/
    paper/2019-07.htm; In addition to
             wysiwyg/user-74/statedata_july2021_gf_092321.pdf
                                               parental support and benefits to the economy as a whole due to increased labor force
    participation and business productivity, paid family leave results in considerable health benefits for children whose parents
    receive paid family leave, as the American Action Forum points out#. These benefits include the increased regularity of
    well-baby check-ups, greater rates of immunization, increased likelihood and duration of breastfeeding, and increased
                     House Select Committee on
178                  Economic Disparity & Fairness in Growth
155 Tara O’Neill
            parental
                 Hayes,
                      care
                        Sara
                           and
                             Kurtovic,
                               engagement.
                                       “The Ballooning
                                             Moreover, paid
                                                       Costs of Long-Term
                                                            family leave allows
                                                                            Care,”
                                                                                more
                                                                                   American
                                                                                     time for
                                                                                            Action
                                                                                              earlyForum,
                                                                                                    child-parent
                                                                                                           Feb. 18,
                                                                                                                  bonding
                                                                                                                    2020, https://
                                                                                                                           experiences.
    www.americanactionforum.org/research/the-ballooning-costs-of-long-term-care/
            Tara O’Neill Hayes, Margaret  Barnhorst, “How Children Benefit from Paid Family Leave Policies,” June 9, 2020. https://www.
156 “An Openamericanactionforum.org/research/how-children-benefit-from-paid-family-leave-policies/
               Letter from Economists and Public Policy Scholars in Support of Investments in Home and Community Based
      Services,” New
         158     California,
                          America,
                                Colorado,
                                      Oct. 7, 2021,
                                            Connecticut, Delaware, Massachusetts, Maryland,
                                                    https://www.newamerica.org/new-practice-lab/letters/an-open-letter-from-econo-
                                                                                                          New Jersey, New York, Oregon, Rhode Island, and
      mists-and-public-policy-scholars-in-support-of-investments-in-home-and-community-based-services/;
                Washington all offer state paid leave programs.            “State Family and Medical Leave Laws,” National Mark           Conference
                                                                                                                                                 Zandi,ofBer-
                                                                                                                                                            State Legis-
      nard Yaros,
                latures, Sept.
                     "Macroeconomic9, 2022:Consequences of the Infrastructure Investment and
                                             https://www.ncsl.org/research/labor-and-employment/state-family-and-medical-leave-laws.aspx
                                                                                                            Jobs Act & Build Back Better Framework,"
      Moody's    Analytics,
         159 Photo:             Nov. 4, 2021,
                          Los Angeles          https://www.moodysanalytics.com/-/media/article/2021/macroeconomic-consequenc-
                                         Airport  Peace Officers Association (laapoa.com)
      es-of-the-infrastructure-investment-and-jobs-act-and-build-back-better-framework.pdf
         160 National Conference of State Legislatures. “Family and Medical Leave Laws.” https://www.ncsl.org/research/labor-and-em-
157   A Rutgers     University study finds that women who use paid leave are more likely to be working within nine to 12 months of
                ployment/state-family-and-medical-leave-laws.aspx
      childbirth than women who do not take leave. In addition to parental support and benefits to the economy as a whole due
      to 161    Bay Area
         increased           Council Economic
                       labor force                 Institute.
                                      participation and       “Evaluation
                                                          business           of the paid
                                                                     productivity,   California
                                                                                          family Paid    Family
                                                                                                     leave       Leave
                                                                                                            results    in Program.”
                                                                                                                          considerable  July 2020.
                                                                                                                                          health     http://www.
                                                                                                                                                  benefits
                bayareaeconomy.org/report/evaluation-of-the-california-paid-family-leave-program/
      for children    whose parents receive paid family leave, as the American Action Forum points out. These benefits include the
      increased
         162 Bay   regularity    of well-baby
                      Area Council     Economic check-ups,
                                                   Institute.greater   ratesof
                                                              “Evaluation     ofthe
                                                                                 immunization,
                                                                                     California Paidincreased
                                                                                                         Family likelihood     and duration
                                                                                                                 Leave Program.”               of breast-
                                                                                                                                        July 2020.   http://www.
      feeding, and increased parental care and engagement.                Moreover,         family leave allows more time for early child-parent
                bayareaeconomy.org/report/evaluation-of-the-california-paid-family-leave-program/
      bonding experiences. Linda Houser, Thomas P. Vartanian, “Pay Matters: The Positive Economic Impacts of Paid Family Leave
         163 Charles L. Baum II, Christopher J. Ruhm, "The Effects of Paid Family Leave in California on Labor Market Outcomes," Journal
      for Families, Businesses and the Public,” The Center for Women and Work, January 2012. https://1library.net/document/
                of Policy Analysis and Management, February 2016: https://onlinelibrary.wiley.com/doi/full/10.1002/pam.21894
      yj7348d2-matters-positive-economic-impacts-family-families-businesses-january.htmlhttps://1library.net/document/
         164 The federal government provides              most federal civil service employees with 12 weeks
      yj7348d2-matters-positive-economic-impacts-family-families-businesses-january.html;                                   of paid
                                                                                                                        Kelly Jones,family
                                                                                                                                      Britniand   medical leave,
                                                                                                                                             Wilcher,
      "Reducing following
                    Maternal  passage   of the National
                                 Labor Market             Defense
                                                 Detachment:         Authorization
                                                                A Role                Act for
                                                                          for Paid Family      FiscalNo.
                                                                                            Leave,"     Year2019-07,
                                                                                                              2020 (NDAA)Working(S.1790
                                                                                                                                   Papersand  Public
                                                                                                                                            from      Law 116-92).
                                                                                                                                                   American
                Georgia,
      University,            New of
                     Department    Hampshire,    South
                                        Economics,       Carolina, and Wisconsin offer paid
                                                      2019,                                        parental leave for their state Tara
                                                            https://econpapers.repec.org/paper/amuwpaper/2019-07.htm;                    employees.    https://www.
                                                                                                                                                  O'Neill
                congress.gov/bill/116th-congress/senate-bill/1790/text
      Hayes, Margaret Barnhorst, “How            Children Benefit from Paid Family Leave Policies,” June 9, 2020, https://www.american-
      actionforum.org/research/how-children-benefit-from-paid-family-leave-policies/
         165 The Bureau of Labor Statistics           (BLS) has found that Hispanic mothers have lower rates of access to paid leave than non-His-
158             panic
      California,        white mothers.
                    Colorado,               U.S. Bureau
                                  Connecticut,   Delaware,of Labor   Statistics, “Racial
                                                              Massachusetts,              andNew
                                                                                  Maryland,     ethnic    disparities
                                                                                                      Jersey,  New York, in access
                                                                                                                              Oregon,to and
                                                                                                                                        Rhodeuse of  paidand
                                                                                                                                                Island,    family and
      Washingtonmedical     leave:
                       all offer    evidence
                                  state        fromprograms.
                                        paid leave   four nationally
                                                                 “Staterepresentative    datasets,”
                                                                          Family and Medical      Leave Jan.  2019.National
                                                                                                           Laws,”     https://www.bls.gov/opub/mlr/2019/article/
                                                                                                                                 Conference of State Legis-
                racial-and-ethnic-disparities-in-access-to-and-use-of-paid-family-and-medical-leave.htm;
      latures, Sept. 9, 2022:      https://www.ncsl.org/research/labor-and-employment/state-family-and-medical-leave-laws.aspx      Oxfam has found that one in
                five low wage workers reported losing a job due to taking leave for illness or to care for family. “Hard Work, Hard Lives: Sur-
159   Photo: Los Angeles Airport Peace Officers Association (laapoa.com)
                vey Exposes Harsh Reality Faced by Low-Wage Workers in the U.S.” OxFam America. https://s3.amazonaws.com/oxfam-us/
160   “Family and Medical Leave Laws,” National            Conference of State Legislatures, https://www.ncsl.org/research/labor-and-em-
                www/static/media/files/low-wage-worker-report-oxfam-america.pdf
      ployment/state-family-and-medical-leave-laws.aspx
         166 U.S. Department of Health and Human Services, “HHS Poverty Guidelines for 2022.” https://aspe.hhs.gov/topics/pover-
161   “Evaluation     of the California Paid Family Leave Program,”
                ty-economic-mobility/poverty-guidelines;             H.R.2886Bay- Area  Council
                                                                                   Universal      Economic
                                                                                               Child   Care and Institute,    July 2020,
                                                                                                                   Early Learning          http://www.
                                                                                                                                      Act https://www.congress.
      bayareaeconomy.org/report/evaluation-of-the-california-paid-family-leave-program/
                gov/bill/117th-congress/house-bill/2886/text?q=%7B%22search%22%3A%5B%22universal+preschool%22%2C%22uni-
162   Charles versal%22%2C%22preschool%22%5D%7D&r=2&s=6;
                L. Baum II, Christopher J. Ruhm, "The Effects of Paid Family        MarkLeave
                                                                                          Zandi,inSophia      Koropeckyj,
                                                                                                      California  on Labor“Universal       Child CareJournal
                                                                                                                                Market Outcomes,"       and Early
      of PolicyLearning
                 AnalysisAct: andHelping    Families and
                                   Management,             the2016,
                                                    February   Economy,” Moody’s Analytics, Feb.            2019, https://www.warren.senate.gov/imo/media/
                                                                      https://onlinelibrary.wiley.com/doi/full/10.1002/pam.21894
                doc/Moody’s%20Analysis_Child_Care_Act.pdf
163   Eileen Appelbaum, Ruth Milkman, “Leaves that Pay: Employer and Worker Experiences with Paid Family Leave in California,”
         167    H.R.   804, Family and Medical Insurance Leave Act or the FAMILY Act. https://www.congress.gov/bill/117th-congress/
      https://www.cepr.net/documents/publications/paid-family-leave-1-2011.pdf;
                house-bill/804#:~:text=Family%20and%20Medical%20Insurance%20Leave%20Act%20or%20the,not%20more%20
164   The federal    government provides most federal civil service employees
                than%2060%20days%20of%20qualified%20caregiving.;                       H.R.with
                                                                                             1185, 12  weeksAct
                                                                                                    FAMILY     of paid    family and medical
                                                                                                                    | Congressional              leave, Analysis, Feb.
                                                                                                                                        Budget Office
      following    passage     of the  National  Defense   Authorization
                13, 2020. https://www.cbo.gov/publication/56129             Act  for Fiscal Year  2020     (NDAA)     (S.1790  and   Public  Law  116-92).
      Georgia, New Hampshire, South Carolina, and Wisconsin offer paid parental leave for their state employees. https://www.
         168 CBO, “Federal Policies in Response to Declining Entrepreneurship,” Dec. 2020. https://www.cbo.gov/publication/56906a
      congress.gov/bill/116th-congress/senate-bill/1790/text
165   The169
           BureauGustavo     Manso,
                      of Labor         “Experimentation
                                 Statistics  (BLS) has foundandthat
                                                                 the Hispanic
                                                                      Returns to    Entrepreneurship,”
                                                                                 mothers    have lower rates 2015.;ofand   https://journals.sagepub.com/
                                                                                                                       access   to paid leave than non-His-
                doi/10.1177/0891242414535468
      panic white mothers.         Oxfam has found that one in five low wage workers reported losing a job due to taking leave for illness
      or to
         170care   for family.
                Note,    these “Racial
                                 numbersand    ethnic disparities
                                            represent   pre-pandemicin access
                                                                         levels.to and use of paid family and medical leave: evidence from
      four nationally representative datasets,” U.S. Bureau of Labor Statistics, January 2019, https://www.bls.gov/opub/mlr/2019/
                Small Business and Entrepreneurship Council. “Facts & Data on Small Business and Entrepreneurship.” https://sbecouncil.
      article/racial-and-ethnic-disparities-in-access-to-and-use-of-paid-family-and-medical-leave.htm; “Hard Work, Hard Lives:
                org/about-us/facts-and-data/; U.S. Small Business Administration Office of Advocacy. 2022 Small Business Profile. August
      Survey Exposes Harsh Reality Faced by Low-Wage Workers in the U.S,” OxFam America, https://s3.amazonaws.com/ox-
                2022. Available at: https://cdn.advocacy.sba.gov/wp-content/uploads/2022/08/30121338/Small-Business-Economic-Pro-
      fam-us/www/static/media/files/low-wage-worker-report-oxfam-america.pdf
                file-US.pdf
166   “HHS Poverty Guidelines for 2022,” U.S. Department of Health and Human Services, https://aspe.hhs.gov/topics/pover-
         171 Alina Schnake-Mahl, Jessica A. R. Williams, Barry Keppard & Mariana Arcaya (2018). A public health perspective on small
      ty-economic-mobility/poverty-guidelines; H.R.2886 - Universal Child Care and Early Learning Act https://www.congress.
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      gov/bill/117th-congress/house-bill/2886/text?q=%7B%22search%22%3A%5B%22universal+preschool%22%2C%22uni-
                Sustainability, 11:4, 387-411, DOI: 10.1080/17549175.2018.1461678 https://www.tandfonline.com/doi/full/10.1080/17549175.20
      versal%22%2C%22preschool%22%5D%7D&r=2&s=6; Mark Zandi, Sophia Koropeckyj, “Universal Child Care and Early
                18.1461678; Kobe, Kathryn, Schwinn, Richard. “Small Business GDP: 1998-2014.” December 2018. Available at: https://cdn.
      Learning Act: Helping Families and the Economy,” Moody’s Analytics, Feb. 2019, https://www.warren.senate.gov/imo/media/
                advocacy.sba.gov/wp-content/uploads/2018/12/21060437/Small-Business-GDP-1998-2014.pdf
      doc/Moody's%20Analysis_Child_Care_Act.pdf
         172 Notably, some of small-business formation might be driven by “necessity entrepreneurship.” Necessity entrepreneurs are
167   H.R. 804, Family and Medical Insurance Leave Act or the FAMILY Act. https://www.congress.gov/bill/117th-congress/house-
                defined as those who are unemployed before starting their business, according to the Kauffman Foundation. Studies show
      bill/804; H.R. 1185, FAMILY Act | Congressional Budget Office Analysis, Feb. 13, 2020. https://www.cbo.gov/publication/56129
                that Latino and Black business owners may be more likely to start their businesses out of necessity than non-Latino white
168   “FederalandPolicies
                      Asianin Response
                              entrepreneurs.to Mills.
                                               Declining  Entrepreneurship,” Congressional Budget Office,
                                                       et al (2018)                                                       Dec. 2020, https://www.cbo.
                                                                     https://www.gsb.stanford.edu/sites/default/files/publication-pdf/slei-report-
      gov/publication/56906
                2018-latino-owned-businesses-shinging-light-national-trends.pdf; Economic Innovation Group. “ The Case for Economic
169             Dynamism and
      Gustavo Manso,                 Why It Matters
                            “Experimentation      and for
                                                       thethe  American
                                                           Returns    to Worker.”      October2015,
                                                                         Entrepreneurship,”       2022.https://papers.ssrn.com/sol3/papers.
                                                                                                          https://eig.org/wp-content/uploads/2022/10/Case-
                for-Dynamism-FINAL-Web.pdf;
      cfm?abstract_id=2527034;                          CBO, “Federal
                                         William D. Bradford             Policies
                                                                “The ‘Myth’        in Black
                                                                                That  Response     to Declining Entrepreneurship,”
                                                                                              Entrepreneurship         Can Reduce the Gap    Dec.
                                                                                                                                               in 2020.
                                                                                                                                                   WealthAvailable
      Betweenat:     https://www.cbo.gov/publication/56906;
                  Black    and White Families,” Economic Development    and Sergio   Salgado,May
                                                                                  Quarterly,    Technical
                                                                                                      28, 2014Change     and Entrepreneurship,” June 2, 2020.
                                                                                                                https://journals.sagepub.com/
                Available    at SSRN: https://ssrn.com/abstract=3616568 or http://dx.doi.org/10.2139/ssrn.3616568.
      doi/10.1177/0891242414535468
       173 numbers
170 These   W.D. Bradford,
                    representThepre-pandemic
                                  “Myth” That Black
                                                 levels.Entrepreneurship
                                                         “Facts & Data onCan   Reduce
                                                                           Small        the Gap
                                                                                  Business        in Wealth Between Small
                                                                                            and Entrepreneurship,”    Black Busi-
                                                                                                                             and White Families.
    ness andEconomic   Development
             Entrepreneurship           Quarterly, 28(3), 254–269,
                                  Council,                           2014, https://doi.org/10.1177/0891242414535468;
                                           https://sbecouncil.org/about-us/facts-and-data/;       “2022 Small BusinessT.Profile,”
                                                                                                                           Kroeger, G. Wright,
            “Entrepreneurship
    U.S. Small                    and the Racial
               Business Administration     OfficeWealth    Gap: The
                                                   of Advocacy,     Impact
                                                                 August     of Entrepreneurial
                                                                         2022,                   Success or Failure on the Wealth Mobility of
                                                                               https://cdn.advocacy.sba.gov/wp-content/up-
            Black and White Families,” J Econ Race Policy 4, 183–195, 2021, https://doi.org/10.1007/s41996-021-00081-6
    loads/2022/08/30121338/Small-Business-Economic-Profile-US.pdf
       174 Botelho,
171 Alina            et al.Jessica A.
          Schnake-Mahl,     “Innovation-Driven     Entrepreneurship.”
                                       R. Williams, Barry              NBER Arcaya,
                                                           Keppard, Mariana   Working“A Paper,
                                                                                          publicJuly 2021; Ross
                                                                                                  health        Levineon&small
                                                                                                         perspective      Yona business
                                                                                                                               Rubinstein,
            "Smarta and
    development:        Illicit:
                    review       Wholiterature,”
                             of the    Becomes Journal
                                                 an Entrepreneur   and Do
                                                          of Urbanism:     They Earn Research
                                                                       International   More?," TheonQuarterly Journal
                                                                                                     Placemaking   and of Economics,
                                                                                                                        Urban Sus- Oxford
            University Press, vol. 132(2), pages 963-1018 and others; U.S. Small Business Administration Office of Advocacy. “Frequently
            Asked Questions.” December 2021, 2017,
           APPENDIX
           Endnotes                                                                                                                                        179
175  Economic  tainability,
                  Innovation   11:4,Group,
                                      387-411,    2018,
                                              “ The      https://www.tandfonline.com/doi/full/10.1080/17549175.2018.1461678;
                                                      Case for Economic Dynamism and                   Why It Matters for the American Worker,”          Kathryn     Kobe, Richard
                                                                                                                                                                October
               Schwinn,
     2022, Available      at:“Small Business GDP: 1998-2014,” U.S.                   Small Business Administration Office of Advocacy, December 2018, https://
                              https://eig.org/wp-content/uploads/2022/10/Case-for-Dynamism-FINAL-Web.pdf
176 B.R. Craig,cdn.advocacy.sba.gov/wp-content/uploads/2018/12/21060437/Small-Business-GDP-1998-2014.pdf
                   W.E. Jackson, J.B. Thomson, “Credit market failure intervention: Do government sponsored small business credit
     programs
        172    Notably,
                  enrich some
                           poorerofareas?”
                                         small-business
                                                   Small Bus Econ
                                                               formation30, might
                                                                              345–360,  be driven
                                                                                             2008, by “necessity
                                                                                                      https://doi.org/10.1007/s11187-007-9050-5;
                                                                                                                         entrepreneurship.” NecessityJan Jacob  entrepreneurs are
     Vogelaar &defined
                    Erik as
                          Stam,those“Beyond
                                         who are  market
                                                     unemployed
                                                            failure: before
                                                                      rationales      for regional
                                                                                  starting   their business,
                                                                                                      governmentalaccording
                                                                                                                          venture
                                                                                                                               to thecapital,”
                                                                                                                                         KauffmanVenture
                                                                                                                                                       Foundation.
                                                                                                                                                            Capital, 2021;
                                                                                                                                                                       Studies show
     Craig and that  Latino and
                 Thomson        (2008) Black    business
                                            describe        owners may
                                                       information             be more
                                                                         problems       aslikely  to start
                                                                                            difficulty        their businesses
                                                                                                         obtaining     sufficient out of      necessity
                                                                                                                                    information      about than   non-Latino white
                                                                                                                                                             the parties
     involvedandin aAsian     entrepreneurs.
                      transaction       that might   Claire  Kramer
                                                       prevent          Mills, Jessica
                                                                  otherwise                 Battisto,
                                                                                   creditworthy         Scott
                                                                                                     firms   fromLieberman,
                                                                                                                     obtainingMarlene
                                                                                                                                  credit and Orozco,   Iliana Perez,
                                                                                                                                                may result     in credit   ra- S. Lee,
                                                                                                                                                                        Nancy
     tioning or“Latino-Owned
                 loans being allocated Businesses:      Shining
                                                  through          a Light onother
                                                             a mechanism           National
                                                                                          thanTrends,”
                                                                                                 price. AStanford       Graduate
                                                                                                            specific case            School failure
                                                                                                                              of a market      of Business,     2018,
                                                                                                                                                        is credit      https://www.
                                                                                                                                                                   rationing
     in whichgsb.stanford.edu/sites/default/files/publication-pdf/slei-report-2018-latino-owned-businesses-shinging-light-national-
                a bank would not lend to someone offering to pay the higher interest rate because such a borrower is perceived
               trends.pdf;
     riskier than   the average “Theborrower.
                                        Case for Economic
                                                     The expected Dynamism
                                                                        return on   and   Whyto
                                                                                       a loan   It aMatters
                                                                                                      borrower  forat
                                                                                                                    the  American
                                                                                                                       the             Worker,”
                                                                                                                            higher interest        Economic
                                                                                                                                                rate             Innovation
                                                                                                                                                      may be lower       than Group,
               October
     the expected          2022,
                       return        https://eig.org/wp-content/uploads/2022/10/Case-for-Dynamism-FINAL-Web.pdf;
                                 on the loans the banks are making. An earlier                   study by Stiglitz and Weiss (1981) argued that        “Federal    Policies
                                                                                                                                                               lenders    may in Re-
     decide tosponse      to Declining
                 deny credit       to groups.Entrepreneurship,” Congressional Budget Office, Dec. 2020, https://www.cbo.gov/publication/56906;
               Sergio Salgado, “Technical Change and Entrepreneurship,” June 2, 2020, https://ssrn.com/abstract=3616568
177 U.S. Chamber of Commerce Foundation. “Understanding Small Business in America.” https://www.uschamberfoundation.
        173 W.D. Bradford, “The ‘Myth’ That Black Entrepreneurship Can Reduce the Gap in Wealth Between Black and White Families,”
     org/smallbizregs/
               Economic Development Quarterly, 28(3), 254–269, 2014, https://doi.org/10.1177/0891242414535468; Teresa Kroeger, Graham
178 Michael S.     Barr, “Minority
               Wright,                    and Women
                          “Entrepreneurship                Entrepreneurs:
                                                      and the    Racial Wealth    Building
                                                                                      Gap: TheCapital,   Networks, and
                                                                                                   Impact of                  Skills,” The
                                                                                                                  Entrepreneurial            Hamilton
                                                                                                                                       Success             Project.
                                                                                                                                                   or Failure   on theMarch
                                                                                                                                                                         Wealth Mo-
     9, 2015. https://www.hamiltonproject.org/papers/minority_and_women_entrepreneurs_building_capital_networks_and_
               bility of Black and White Families,” Journal of Economics, Race, and Policy 4, 183–195, 2021, https://doi.org/10.1007/s41996-
     skills/ 021-00081-6
179 Bipartisan
        174 TristanPolicyL. Institute.     “From Fehder,
                             Botelho, Daniel         Pandemic  YaeltoHochberg,
                                                                      Prosperity.”       March 3, 2022.: https://bipartisanpolicy.org/download/?file=/
                                                                                     “Innovation-Driven          Entrepreneurship,” NBER Working Paper, July 2021,
     wp-content/uploads/2022/03/Small-Business-Policy-Report_R01.pdf;
               https://www.nber.org/papers/w28990; Ross Levine, Yona Rubinstein,                        Small Business
                                                                                                                   "Smart andMajority.
                                                                                                                                  Illicit: “Small   businesses
                                                                                                                                           Who Becomes             struggle
                                                                                                                                                              an Entrepreneur       and
     to access Docapital,
                   They Earn harming
                                   More?," their
                                               Thefinancial
                                                     Quarterlyrecovery.”
                                                                  Journal of February      2021. Oxford University Press,
                                                                                  Economics,      https://smallbusinessmajority.org/our-research/ac-
                                                                                                                                    vol. 132(2), pages 963-1018; “Frequently
     cess-capital/small-businesses-struggling-access-capital-harming-their-financial-recovery
               Asked Questions,” U.S. Small Business Administration Office of Advocacy, December 2021, https://cdn.advocacy.sba.gov/
               wp-content/uploads/2021/12/06095731/Small-Business-FAQ-Revised-December-2021.pdf
180 Community Action Partnership. “Small Business                        Technical Assistance: Micro Business, Small Business and Business Expan-
     sion.”
        175 2018.   https://communityactionpartnership.com/wp-content/uploads/2018/06/small-business-technical-assistance.
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        176 Information problems
     uitable-recovery_0_0.pdf;                   are defined
                                          Council,              as difficulty
                                                      Y. E. Raising    Capital:obtaining
                                                                                    Debt Versus sufficient
                                                                                                     Equity.information
                                                                                                                Forbes. Aprilabout      thehttps://www.forbes.com/
                                                                                                                                 9. 2019.    parties involved in a transaction
               that might prevent otherwise               creditworthy firms from obtaining credit and
     sites/theyec/2019/04/09/raising-capital-debt-versus-equity/?sh=93ca4cbaa66c.                                         may carry
                                                                                                                        Loans   result in   credit rationing
                                                                                                                                        repayment                or loans
                                                                                                                                                       obligations;         being al-
                                                                                                                                                                       equity
               located
     investments          through
                      require          a mechanism
                                  giving    up a portionotherof thethan   price.
                                                                     firm’s         A specific case of a market failure is credit rationing, in which a bank would
                                                                               ownership.
               not lend to someone offering to pay the higher interest rate because such a borrower is perceived riskier than the average
 Urban Institute.  “Capital
               borrower.     The Flows.”
                                     expectedhttps://www.urban.org/policy-centers/metropolitan-housing-and-communities-policy-center/
                                                   return on a loan to a borrower at the higher interest rate may be lower than the expected return on
     projects/capital-flows;
               the  loans the banks   Ben are
                                            Horowitz,
                                                   making.Michou     Kokodoko,
                                                              An earlier   study by  Katherine      Lim,Weiss
                                                                                         Stiglitz and     Alene (1981)
                                                                                                                   Tchourumoff,
                                                                                                                          argued that “Despite
                                                                                                                                           lendersrecent
                                                                                                                                                     may gains,     Minne-
                                                                                                                                                            decide to    deny credit
     sota’s entrepreneurs
               to groups. Ben      ofR.
                                      color   face
                                          Craig,     persistent
                                                   William          barriers,”
                                                             E. Jackson           FederalB.Reserve
                                                                             III, James        Thomson,  Bank    of Minneapolis.
                                                                                                             “Credit    market failure intervention: Do government
May 28, 2021.sponsored small business credit programs enrich poorer                             areas?” Small Business Economics 30, 345–360, 2008, https://doi.
                https://www.minneapolisfed.org/article/2021/despite-recent-gains-minnesotas-entrepreneurs-of-color-face-per-
               org/10.1007/s11187-007-9050-5; Jan Jacob Vogelaar, Erik Stam, “Beyond market failure: rationales for regional governmental
     sistent-barriers
               venture capital,” Venture Capital, 2021.
181 Theodos, Brett. “Testimony before the Select Committee on Economic Disparity and Fairness in Growth: Small Businesses
        177 U.S.:
     in the    “Understanding
                   Strengths andSmall            Business in
                                          Opportunities       forAmerica,”
                                                                  Growth.”March U.S. 16,
                                                                                      Chamber 2021.of Commerce Foundation,              https://www.uschamberfoundation.
                                                                                                     https://www.urban.org/sites/default/files/2022-03/
               org/smallbizregs/
     small-businesses-in-the-us-strengths-and-opportunities-for-growth.                                 citing “Capital Flows,” Urban Institute available at:
     https://www.urban.org/policy-centers/metropolitan-housing-and-communities-policy-center/projects/capital-flows
        178 Michael S. Barr, “Minority and Women Entrepreneurs: Building Capital, Networks, and Skills,” The Hamilton Project, March
182 Hwang, 9,     2015,and Desai, Sameeksha and Baird, Ross, Access to Capital
               Victor     https://www.hamiltonproject.org/papers/minority_and_women_entrepreneurs_building_capital_networks_and_
                                                                                                          for Entrepreneurs: Removing Barriers (April 29,
               skills/https://ssrn.com/abstract=3389924; Bates, Timothy, Bradford, William, Seamans, Robert. “Minority entre-
     2019). SSRN:
     preneurship
        179 “From    in Pandemic
                        twenty-first     tocentury     America.”
                                             Prosperity,”            2018.Policy
                                                             Bipartisan       Journal    of SmallMarch
                                                                                      Institute,     Business      Economics;
                                                                                                             3, 2022,             Bone, Sterling and Christensen,
                                                                                                                         https://bipartisanpolicy.org/download/?file=/
     Glenn and Williams, Jerome and Adams,                     Stella and Lederer, Anneliese and Lubin,
               wp-content/uploads/2022/03/Small-Business-Policy-Report_R01.pdf;                                         Paul, Shaping
                                                                                                                    “Small   businessesSmall       Business
                                                                                                                                             struggle          Lending
                                                                                                                                                         to access         Pol-
                                                                                                                                                                      capital,
     icy Through    Matched-Paired
               harming     their financial    Mystery     Shopping
                                                 recovery,”    Small (September
                                                                        Business Majority,12, 2017).  Available
                                                                                                  February          at SSRN:
                                                                                                                 2021,          https://ssrn.com/abstract=3035972
                                                                                                                        https://smallbusinessmajority.org/our-research/
     or http://dx.doi.org/10.2139/ssrn.3035972
               access-capital/small-businesses-struggling-access-capital-harming-their-financial-recovery
183  Bipartisan
        180        Policy
                Loans       Center.
                         carry          “Credit Where
                                  repayment                  Credit Is
                                                   obligations;    equityDue: Public
                                                                             investments   Policy   and Small
                                                                                               require            Business
                                                                                                          giving up a          Financing.”
                                                                                                                          portion of           July 27. 2021.
                                                                                                                                        the firm’s   ownership. https://
                                                                                                                                                                     “Small Business
     bipartisanpolicy.org/report/credit-where-credit-is-due/
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               https://communityactionpartnership.com/wp-content/uploads/2018/06/small-business-technical-assistance.pdf;
184 Mills, Claire Kramer, Jessica Battisto, Scott Lieberman, Marlene                           Orozco, Iliana Perez, and Nancy S. Lee, “Latino-Owned                          Brett
               Theodos,
     Businesses:     Shining Jorge    Gonzales-Hermoso,
                                 a Light on      National Trends.”“Promoting
                                                                        Boston: Equity
                                                                                     Interise;Investments
                                                                                                Stanford, CA:    for an  Equitable
                                                                                                                     Stanford          Economy,”
                                                                                                                                 Graduate     School Theof Urban    Institute,
                                                                                                                                                            Business;    New
               October
     York: Federal         2021, Bank of New York, 2018.
                       Reserve      https://www.urban.org/sites/default/files/publication/104928/promoting-equity-investments-for-an-eq-
                                                                      https://www.gsb.stanford.edu/sites/default/files/publication-pdf/slei-re-
               uitable-recovery_0_0.pdf; Brett Shapiro, “Raising Capital: Debt Versus
     port-2018-latino-owned-businesses-shinging-light-national-trends.pdf;                                 Robb, Equity,”     Forbes,Mels
                                                                                                                    Alicia, Zeeuw,       Aprilde,
                                                                                                                                                9, and
                                                                                                                                                   2019,Barkeley,
                                                                                                                                                           https://www.forbes.
                                                                                                                                                                      Brett.
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     “Mind the Gap: How Do Credit Market Experiences                                                                                     “Capital Flows,” Urban Institute,
                                                                            and Borrowing Patterns Difhttps://www.urban.org/sites/default/files/
               https://www.urban.org/policy-centers/metropolitan-housing-and-communities-policy-center/projects/capital-flows;
     publication/103600/making-community-development-capital-work-in-small-and-midsize-cities.pdffer                                                 for Minority-Owned Ben
     Firms.” Horowitz,
              Community and   Michou      Kokodoko,
                                       Economic          Katherine Lim,
                                                      Development              Alene Federal
                                                                         Department     Tchourumoff,       “Despite
                                                                                                       Reserve          recent
                                                                                                                   Bank of       gains,and
                                                                                                                              Atlanta      Minnesota’s     entrepreneurs
                                                                                                                                              Federal Reserve       Bank of of color
     Cleveland.face   persistent2018.
                   September          barriers,” Federal Reserve          Bank of Minneapolis, May 28, 2021, https://www.minneapolisfed.org/article/2021/
                                             https://doi.org/10.29338/dp2018-03
               despite-recent-gains-minnesotas-entrepreneurs-of-color-face-persistent-barriers
185 The Small Business Credit Survey (SBCS) defines financing as all debt and/or equity, including both new and refinanced.
     The181results
               Brett   Theodos,
                    of the   SBCS 2021Testimony
                                              survey before
                                                       showthe      Select
                                                                similar       Committee
                                                                          success      rate on     Economic
                                                                                             patterns    for Disparity
                                                                                                              non-emergency   and Fairness
                                                                                                                                    financinginamong
                                                                                                                                                   Growth, March
                                                                                                                                                            nonemployer 16, 2021,
               https://www.urban.org/sites/default/files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth
     firms, but the sample size is small. Notably, of the 31.7 million small                         businesses, 25.7 million are nonemployer firms. And, a
     disproportionate
        182    Victor Hwang,share of andfirms     owned by
                                           Sameeksha            people
                                                            Desai,   Ross ofBaird,
                                                                              color are     nonemployer
                                                                                       “Access to              firms: 96%
                                                                                                      Capital for             and 91% of
                                                                                                                     Entrepreneurs:           Black-owned
                                                                                                                                          Removing      Barriers,”    Hispan-
                                                                                                                                                                andApril    29, 2019,
     ic- owned    firms are nonemployer firms, compared
               https://ssrn.com/abstract=3389924;                   Timothy to the    78%William
                                                                                  Bates,     and 75%      of white-
                                                                                                       Bradford,       and Asian-owned
                                                                                                                     Robert                    firms arentrepreneurship
                                                                                                                              Seamans, “Minority            nonemployer in
     firms, respectively.
               twenty-first“Small century  Business
                                              America,” Credit   Survey,”
                                                           Journal            Federal
                                                                       of Small          Reserve, Aug.
                                                                                    Business     Economics, 2, 2021,    https://www.fedsmallbusiness.org/sur-
                                                                                                                  2018; Sterling Bone, Glenn          Christensen, Jerome
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               Williams, Stella Adams, Anneliese Lederer, Paul Lubin, “Shaping Small Business Lending Policy Through Matched-Paired
186 Robert W.  Mystery     Shopping,”
                  Fairlie, Alicia     Robb,Sept.and 12,  2017,
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                                                             T. Robinson, “Black           and White: Access to Capital among Minority-Owned Start-
     ups,”
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                                                  Due: Public     Policy 2020.     https://www.nber.org/system/files/working_papers/w28154/w28154.
                                                                           and Small Business Financing,” Bipartisan                  Policy Center, July 27, 2021, https://
     pdf; Emily   Fetsch, “Including People of Color in the Promise of Entrepreneurship” Ewing Marion Kauffman Foundation.
               bipartisanpolicy.org/report/credit-where-credit-is-due/
     Dec. 2, 2016, https://www.kauffman.org/resources/entrepreneurship-policy-digest/including-people-of-color-in-the-prom-
        184 Claire Kramer Mills,
     ise-of-entrepreneurship/;               Jessica
                                          Claire       Battisto,
                                                   Kramer    Mills,Scott
                                                                     JessicaLieberman,        Marlene
                                                                                 Battisto, Scott         Orozco, Iliana
                                                                                                      Lieberman,      MarlenePerez,   and NancyPerez,
                                                                                                                                  OrozcoIliana       S. Lee,Nancy
                                                                                                                                                              “Latino-Owned
                                                                                                                                                                     S. Lee,
               Businesses:
     “Latino-Owned               Shining Shining
                          Businesses:        a Light on    National
                                                        a Light         Trends,”Trends,”
                                                                  on National        StanfordThe Graduate
                                                                                                     FederalSchool
                                                                                                                 Reserve  ofBank
                                                                                                                             Business,
                                                                                                                                   of New  2018,  https://www.gsb.stanford.
                                                                                                                                              York,  Interise, Stanford
               edu/sites/default/files/publication-pdf/slei-report-2018-latino-owned-businesses-shinging-light-national-trends.pdf;
     Latino Entrepreneurship            Initiative. November 2018. https://www.gsb.stanford.edu/sites/gsb/files/publication-pdf/slei-re-                                          Alicia
     port-2018-latino-owned-businesses-shinging-light-national-trends.pdf
                        House Select Committee on
180                     Economic Disparity & Fairness in Growth
       187 Mels
    Robb,    Belson,  Neil A. Brett
                 de Zeeuw,    “Promoting    Rural
                                     Barkeley,    Entrepreneurship
                                               “Mind  the Gap: How and      Rural Market
                                                                      Do Credit   Economic   Development,”
                                                                                          Experiences         Third Way,Patterns
                                                                                                        and Borrowing     2020, https://www.third-
                                                                                                                                  Diifer for
             way.org/report/promoting-rural-entrepreneurship-and-rural-economic-development;
    Minority-Owned Firms,” Community and Economic              Development Department Federal ReserveFikri,        Kenan,
                                                                                                              Bank of      “Restoring
                                                                                                                        Atlanta        Well-Being
                                                                                                                                and Federal
    Reserveand    Entrepreneurship
              Bank of  Cleveland, in     Rural 2018,
                                     September America,” Economic      Innovation Group. November 2021, https://eig.org/wp-content/up-
                                                       https://doi.org/10.29338/dp2018-03
             loads/2021/11/Investing-in-Rural-Prosperity_ONLINE-Version_508-Compliant_Chapter-06.pdf
185 The Small Business Credit Survey (SBCS) defines financing as all debt and/or equity, including both new and refinanced.
    The188   U.S.of
         results  Small  Business
                    the SBCS         Association
                                2021 survey  show Office of success
                                                   similar  Advocacy,rate“Small Business
                                                                           patterns for Finance     Frequently
                                                                                        non-emergency           Asked
                                                                                                          financing     Questions,”
                                                                                                                      among          Feb. 2022,
                                                                                                                             nonemployer
             https://cdn.advocacy.sba.gov/wp-content/uploads/2022/02/15122206/FinanceFAQ-Final-Feb2022.pdf
    firms, but  the sample size is small. Notably, of the 31.7 million small businesses, 25.7 million are nonemployer firms. And, a
    disproportionate
       189 LaJuannashare       of firms
                        Russell,        owned For
                                   “Statement   by people   of color
                                                    the Record       are The
                                                                 Before   nonemployer   firms: 96%
                                                                              Select Committee    Onand   91% of Disparity
                                                                                                      Economic   Black-ownedAnd and   Hispan-
                                                                                                                                 Fairness  In Growth
    ic- ownedOnfirms  are nonemployer
                 Fostering                firms, comparedThrough
                            American Entrepreneurship        to the 78%    and 75%
                                                                      Starting,     of white-
                                                                                Sustaining  Andand  Asian-owned
                                                                                                 Growing           firms are nonemployer
                                                                                                           Small Businesses”    March 2022, https://
    firms, respectively. “Small Business Credit Survey,” Federal Reserve,         Aug. 2, 2021, https://www.fedsmallbusiness.org/sur-
             smallbusinessmajority.org/small-business-majority-board-chair-testifies-us-select-house-committee-economic-dispari-
    vey/2021/2021-report-on-firms-owned-by-people-of-color
             ty-fairness-growth-barriers-entrepreneurship
186 Robert
       190 W.   Fairlie,
             U.S. SmallAlicia Robb,
                         Business     David T. Robinson,
                                    Association,   “Paycheck“Black  and White:
                                                               Protection        Access
                                                                           Program       to Capital
                                                                                      (PPP)  Reportamong    Minority-Owned
                                                                                                    Approvals                   Startups,”
                                                                                                               through 05/31/2021,”    June 2021,
    NBER Working      Paper No. 28154,   November     2020,  https://www.nber.org/system/files/working_papers/w28154/w28154.
             https://www.sba.gov/sites/default/files/2021-06/PPP_Report_Public_210531-508.pdf; Federal Reserve Bank of San Francis-
    pdf; Emily
             co.Fetsch,  “Including People
                 2021, “Understanding         of Color inDevelopment
                                          Community       the Promise Financial
                                                                       of Entrepreneurship”     Ewing
                                                                                   Institutions and   Marion
                                                                                                    their     Kauffman
                                                                                                          Impact            Foundation,
                                                                                                                  in Low- and    Moderate-Income
    Dec. 2, 2016, https://www.kauffman.org/resources/entrepreneurship-policy-digest/including-people-of-color-in-the-prom-
             Neighborhoods,” Federal Reserve Bank of San Francisco           Community Development Innovation Review 2021-1, https://doi.
    ise-of-entrepreneurship/;   Claire Kramer
             org/10.24148/cdir2021-01;            Mills, Jessica
                                          Brett Theodos,         Battisto,
                                                           “Testimony      Scottthe
                                                                        before    Lieberman,   Marlene Orozco,
                                                                                     Select Committee           Iliana Disparity
                                                                                                        on Economic     Perez, andand
                                                                                                                                    Nancy    S. in
                                                                                                                                       Fairness
    Lee, “Latino-Owned
             Growth: Small Businesses:
                              BusinessesShining    a Light
                                            in the U.S.:   on National
                                                         Strengths  and Trends,”  Stanford
                                                                        Opportunities    for Graduate School16,
                                                                                             Growth.”March    of2021,
                                                                                                                 Business,    2018, https://
                                                                                                                        https://www.urban.org/sites/
    www.gsb.stanford.edu/sites/default/files/publication-pdf/slei-report-2018-latino-owned-businesses-shinging-light-na-
             default/files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth.pdf
    tional-trends.pdf
       191 Board of Governors of the Federal Reserve System, “Supervisory Policy and Guidance Topics: Community Banking,” https://
187 Neil A. Belson, “Promoting Rural Entrepreneurship         and Rural Economic Development,”
             www.federalreserve.gov/supervisionreg/topics/community_banking.htm;                WhileThird
                                                                                                      theyWay,   2020,
                                                                                                            occupy       https://www.
                                                                                                                     a relatively small share of
    thirdway.org/report/promoting-rural-entrepreneurship-and-rural-economic-development;
             the overall small business credit market, about 84% of CDFI customers are low-income,        Kenan60%
                                                                                                                 Fikri,are
                                                                                                                        “Restoring
                                                                                                                           people ofWell-Be-
                                                                                                                                     color, 50% are
    ing and women,
             Entrepreneurship
                       and 28% inliveRural America,”
                                      in a rural area. Economic   Innovation
                                                       CDFI customers         Group.
                                                                         in this       November
                                                                                 context          2021,individuals
                                                                                          may include   https://eig.org/wp-content/up-
                                                                                                                    and organizations other than
    loads/2021/11/Investing-in-Rural-Prosperity_ONLINE-Version_508-Compliant_Chapter-06.pdf
             small businesses.
188 “Small Business    Finance Frequently
             Meco Shoulders,              Asked
                               ”CDFIs: What  Are Questions,”
                                                 They and HowU.S.
                                                               DoSmall
                                                                  TheyBusiness    Association
                                                                       Work,” Third  Way, Oct.Office of Advocacy,
                                                                                               6, 2021,           Feb. 2022,
                                                                                                        https://www.thirdway.org/memo/
    https://cdn.advocacy.sba.gov/wp-content/uploads/2022/02/15122206/FinanceFAQ-Final-Feb2022.pdf
             cdfis-what-are-they-and-how-do-they-work; Marshall Lux, Robert Greene, “The State and Fate of Community Banking,”
189 LaJuanna Harvard  Kennedy
                Russell,        School,
                         Testimony      M-RCBG
                                   before the    Associate
                                              Select       Working
                                                     Committee   On Paper No. 37,
                                                                    Economic      2015, And Fairness In Growth,
                                                                              Disparityhttps://www.hks.harvard.edu/centers/mrcbg/pub-
                                                                                                                 March 2022,
             lications/awp/awp37
    https://smallbusinessmajority.org/small-business-majority-board-chair-testifies-us-select-house-committee-econom-
    ic-disparity-fairness-growth-barriers-entrepreneurship
       192 Federal Deposit    Insurance Corporation, “FDIC Community Banking Study.” December 2020. https://www.fdic.gov/resourc-
            es/community-banking/report/2020/2020-cbi-study-full.pdf;
190 “Paycheck Protection Program (PPP)                                           The U.S.
                                               Report Approvals through 05/31/2021,”  number   of smaller
                                                                                             Small        community
                                                                                                   Business            banks
                                                                                                             Association,     with
                                                                                                                           June    less than $1
                                                                                                                                 2021,
            billion in assets fell from 17,514 to  4,704 between 1986 and 2018 while the number of
    https://www.sba.gov/sites/default/files/2021-06/PPP_Report_Public_210531-508.pdf;                   banks with more
                                                                                                  “Understanding           than $10
                                                                                                                   Community         billion in
                                                                                                                                Develop-
            assets rose
    ment Financial        from 38and
                     Institutions   to 138,
                                        theirand the share
                                              Impact       of total
                                                      in Low-       banking industry assets
                                                              and Moderate-Income             held by these
                                                                                       Neighborhoods,”      largerReserve
                                                                                                         Federal   banks increased   from 28%
                                                                                                                           Bank of San
            to 84%.
    Francisco         “Banking Policy
               Community     Development Issues in the 116th
                                              Innovation     Congress,”
                                                          Review 2021-1, Congressional  Research Service, Feb. 21,
                                                                         https://doi.org/10.24148/cdir2021-01; Brett2019, https://sgp.fas.org/crs/
                                                                                                                     Theodos, Testimony
            misc/R45518.pdf
    before the Select   Committee on Economic Disparity and Fairness in Growth, March 16, 2021, https://www.urban.org/sites/
    default/files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth.pdf
      193 LaJuanna, Russell, Small Business Owner. Statement for the record before the select committee on economic disparity
191                fairnessa in
              andoccupy
      While they                growth on
                             relatively     fostering
                                        small         American
                                               share of the      entrepreneurship
                                                            overall small          through
                                                                          business credit   starting,
                                                                                          market,     sustaining
                                                                                                   about  84% ofand
                                                                                                                 CDFIgrowing   small
                                                                                                                       customers   arebusinesses”
              March
      low-income,     16, 2022,
                    60%          https://smallbusinessmajority.org/sites/default/files/policy-docs/031622-LaJuannaRussell-SelectCommit-
                          are people   of color, 50% are women, and 28% live in a rural area. CDFI customers in this context may
              tee-EconomicDisparity-FairnessGrowth.pdf
      include individuals and   organizations other than small businesses. “Supervisory Policy and Guidance Topics: Community
      Banking,”  Board
         194 Brett      of Governors
                     Theodos,           of thebefore
                                “Testimony     Federal
                                                     theReserve  System, https://www.federalreserve.gov/supervisionreg/topics/com-
                                                         Select Committee   on Economic Disparity and Fairness in Growth: Small Businesses
      munity_banking.htm;
              in               Meco and
                 the U.S.: Strengths Shoulders,   ”CDFIs: for
                                            Opportunities What Are   They and 16,
                                                                Growth,”March  How2021,
                                                                                    Do They  Work,”
                                                                                        Available at:Third Way, Oct. 6, 2021, https://
                                                                                                      https://www.urban.org/sites/default/
      www.thirdway.org/memo/cdfis-what-are-they-and-how-do-they-work;               Marshall Lux, Robert Greene,
              files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth.pdf;                 “The Olav,
                                                                                                              Sorenson,  Stateand
                                                                                                                               andToby
                                                                                                                                    Fate Stuart,
      of Community    Banking,”
              “Syndication        Harvard
                              networks      Kennedy
                                         and the      School,
                                                  spatial      M-RCBGofAssociate
                                                          distribution            Working Paper
                                                                         venture capital          No. 37, 2015,
                                                                                         investments,”          https://www.hks.har-
                                                                                                         American Journal  of Sociology, 2001;
      vard.edu/centers/mrcbg/publications/awp/awp37
              Wong, et al. “Angel finance: The other venture capital,” Strategic Change. 2009; Love, Inessa, “Entrepreneurial Access to
192 The number     of in
             Finance       the U.S.,”
                       smaller         Working
                                community          Papers.
                                                 banks       University
                                                         with less   thanof  Hawaii in
                                                                           $1 billion  atassets
                                                                                          Manoa,fell
                                                                                                  2020;    17,514 toColin,
                                                                                                     fromMason,      4,704“Venture                 Geographical
                                                                                                                                                 A 2018
                                                                                                                                       Capital:and
                                                                                                                             between 1986
    while thePerspective,”    Handbook
                number of banks              of research
                                     with more              on billion
                                                     than $10  venture incapital.   2007;
                                                                          assets rose      Zook,
                                                                                         from  38Matthew,
                                                                                                  to 138, and “Grounded
                                                                                                                the share capital:    venture financing
                                                                                                                            of total banking    industry and
             the by
    assets held   geography     of the
                      these larger      internet
                                     banks          industry,
                                               increased       1994-2000,”
                                                           from 28%     to 84%.Journal
                                                                                   “FDICofCommunity
                                                                                            Economic Banking
                                                                                                        Geography,    2002;Federal
                                                                                                                   Study,”    Brooks, A.,   Huang,
                                                                                                                                       Deposit       L., Kearney,
                                                                                                                                                 Insur-
    ance S.,     and Murray,
          Corporation,          F. (2014)
                           December         “Investors prefer entrepreneurial ventures pitched
                                        2020,                                                             by attractive men,” Proceedings of the National
                                                  https://www.fdic.gov/resources/community-banking/report/2020/2020-cbi-study-full.
             Academy
    pdf; “Banking         of Issues
                     Policy  Sciences,   111(12):
                                      in the      4427–4431,
                                               116th            https://www.pnas.org/doi/10.1073/pnas.1321202111195
                                                      Congress,” Congressional Research         Service, Feb. 21, 2019,        SBDCs    are hosted nationwide
                                                                                                                           https://sgp.fas.org/crs/
             by leading universities, colleges, state economic development agencies, and private partners. Between 2019-20, SBDC
    misc/R45518.pdf
             helped start 18,691 new businesses. Moreover, 76% of SBDC clients report starting new businesses with the help of services
193 LaJuanna Russell, Testimony before the Select Committee On Economic Disparity And Fairness In Growth, March 2022,
             like free business consulting, accessing capital, and technology development. https://americassbdc.org/ and https://www.
    https://smallbusinessmajority.org/small-business-majority-board-chair-testifies-us-select-house-committee-econom-
             sbdcimpact.org/results
    ic-disparity-fairness-growth-barriers-entrepreneurship
       196 PLACEHOLDER
194 Brett Theodos, Testimony before the Select Committee on Economic Disparity and Fairness in Growth, March 16, 2021,
       197 U.S. Department of the Treasury, Community                   Development Financial Institutions Fund, About Us; FDIC Quarterly. “Minority
    https://www.urban.org/sites/default/files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth.
    pdf; OlavDepository     Institutions:
                Sorenson, Toby     Stuart,Structure,
                                             “Syndication Performance,
                                                              networks and andtheSocial  Impact.”
                                                                                     spatial       2014. of venture capital investments,” Ameri-
                                                                                             distribution
    can198
         Journal  of  Sociology,   2001,  https://www.journals.uchicago.edu/doi/10.1086/321301;
              U.S. Department of the Treasury, Community Development Financial Institutions                   Andrew
                                                                                                                  Fund,Wong,
                                                                                                                         AboutMihir     Bhatia,
                                                                                                                                  Us; FDIC       Zachary“Minority
                                                                                                                                             Quarterly.
    Freeman,“Angel
             Depository finance:  The other
                            Institutions:        venture Performance,
                                            Structure,    capital,” Strategic    Change,
                                                                           and Social       2009, https://onlinelibrary.wiley.com/doi/10.1002/
                                                                                         Impact.”  2014.
    jsc.849; Inessa Love, “Entrepreneurial Access to Finance in the U.S.,” Working Papers, University of Hawaii at Manoa, 2020,
       199 Community Action Partnership, “Small Business
    https://ideas.repec.org/p/hai/wpaper/202004.html;                 ColinTechnical    Assistance:
                                                                            Mason, “Venture          Micro
                                                                                                Capital:  A Business,   Small
                                                                                                             Geographical       Business and
                                                                                                                             Perspective,”   Hand-Business Expan-
    book of sion”   https://communityactionpartnership.com/wp-content/uploads/2018/06/small-business-technical-assistance.pdf
             research on venture capital, 2007,           https://www.elgaronline.com/view/9781845423124.00010.xml; Matthew Zook,
    “Grounded
       200        capital: venture
              E-commerce      grew financing
                                     increasingly   and the  geography
                                                       important    duringof  the
                                                                            the     internet industry,
                                                                                 COVID-19               1994-2000,”
                                                                                             pandemic. In the          Journal
                                                                                                                 U.S., the  shareofofEconomic
                                                                                                                                       e-commerce Geog-
                                                                                                                                                      in total retail
    raphy, 2002,    https://academic.oup.com/joeg/article-abstract/2/2/151/982413?redirectedFrom=fulltext;
             sales increased from an average of 10-12% in the              period spanning from 2018 Q1 to 2020 Q1 to 17%        Alison  Wood
                                                                                                                                    in 2020   Q2,Brooks,
                                                                                                                                                   according to
    Laura the
           Huang,    Sarah
                  OECD       Wood Kearney,
                          OECD.   “International  Fiona E.  Murray(2014)
                                                       Compendium      of “Investors      preferPolicies.”
                                                                           Entrepreneurship      entrepreneurial    ventures
                                                                                                           OECD Studies      onpitched
                                                                                                                                 SMEs andby attractive
                                                                                                                                             Entrepreneurship.
    men,” 2020.
           Proceedings of the National Academy of Sciences, 111(12): 4427–4431, March 10, 2014, https://www.pnas.org/doi/10.1073/
    pnas.1321202111
       201 Russell, LaJuanna, Small Business Owner. Statement for the record before the select committee on economic disparity
195 SBDCs areandhosted     nationwide
                  fairness in   growth by onleading
                                               fosteringuniversities,
                                                           American colleges,       state economic
                                                                       entrepreneurship               development
                                                                                             through starting,        agencies,
                                                                                                                 sustaining   andand    private
                                                                                                                                    growing      partners.
                                                                                                                                              small  businesses”
    BetweenMarch
               2019-20,    SBDC helped start 18,691 new businesses. Moreover, 76% of SBDC clients report starting new businesses
                      16, 2022.
    with the help of services like free business consulting, accessing capital, and technology development. https://americassb-
       202 U.S. Chamber of Commerce Foundation. “Understanding Small Business in America.” https://www.uschamberfoundation.
    dc.org/ and https://www.sbdcimpact.org/results
             org/smallbizregs/#:~:text=The%20regulatory%20costs%20of%20federal,over%20%2440%20billion%20per%20year.


           APPENDIX
           Endnotes                                                                                                                                     181
203 NationalDigital
        196     Conference
                      Tools of
                            Outreach
                               State Meeting
                                     Legislatures.
                                               – March
                                                   “The 23,
                                                         Evolving
                                                            2022 –State
                                                                   SBA'sofOffice
                                                                          Occupational
                                                                                 of Advocacy
                                                                                        Licensing.” November 11,
                                                                                             https://advocacy.sba.gov/2022/03/01/dig-
                                                                                                                  2019. Available
    at:  https://www.ncsl.org/research/labor-and-employment/the-evolving-state-of-occupational-licensing.aspx;
              ital-tools-outreach-meeting-march-23-2022/;      Herbert C. Hoover Federal Building, U.S. Department of Ryan
                                                                                                                        Commerce
                                                                                                                              Nunn.and
    “Eliminating
              Bureautheof Industry
                        Anti-Competitive
                                   and Security,
                                         Effects of
                                                 iStock.
                                                     Occupational Licensing.” Brookings Institution.” January 17, 2019. Available at:
    https://www.brookings.edu/opinions/eliminating-the-anti-competitive-effects-of-occupational-licensing/
        197 “FY2020 Annual Report. Resilience,” SCORE, https://s3.amazonaws.com/mentoring.redesign/SCORE-FY2020_Annual%20
204 Congressional
            Report%20FINAL.pdf
                  Research Service. “Small Business Administration 7(a) Loan Guaranty Program.” June 30, 2022. https://crsre-
    ports.congress.gov/product/pdf/R/R41146
      198 “About Us”   U.S. Department of the Treasury, Community Development Financial Institutions Fund, https://www.cdfifund.
205 Congressional
            gov/about;
                  Research
                       “Minority
                            Service.
                                 Depository
                                     “Small Business
                                            Institutions:
                                                      Administration
                                                          Structure, 7(a)
                                                                    Performance,
                                                                          Loan Guaranty
                                                                                  and Social
                                                                                        Program.”
                                                                                             Impact,”
                                                                                                  JuneFDIC
                                                                                                        30, 2022.
                                                                                                           Quarterly,
                                                                                                                  https://
                                                                                                                      2014, https://
    crsreports.congress.gov/product/pdf/R/R41146;
            www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2014-vol8-3/mdi-study.pdf.
                                                   https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2022/03/
    Small-Business-Policy-Report_R01.pdf
       199 “Small Business Technical Assistance: Micro Business, Small Business and Business Expansion,” Community Action Part-
206 Mr. Everett
             nership,
                   Sands, CEO of Lendistry, testified to the Committee that, “SBA’s
                       https://communityactionpartnership.com/wp-content/uploads/2018/06/small-business-technical-assistance.pdf
                                                                                            Community Advantage program’s prolonged
    status
       200 asE-commerce
               a pilot program
                             grew–increasingly
                                     even thoughimportant
                                                  it has an 11-year
                                                             duringtrack  record and
                                                                     the COVID-19      is the only
                                                                                    pandemic.      InSBA   loan the
                                                                                                     the U.S.,  program
                                                                                                                    sharewith   at least 10%in total retail
                                                                                                                           of e-commerce
    participation
             sales increased from an average of 10-12% in the period spanning from 2018 Q1 to 2020 Q1 to 17% in 2020 Q2,toaccording
                    by minority-owned     small  businesses   – reduces  the number    of  lenders   willing to make  a  commitment        the       to
    program.the In OECD
                   addition, its stagnant
                         OECD.             loan size
                                  “International      maximum of
                                                  Compendium      of $250,000   leaves aPolicies.”
                                                                     Entrepreneurship      wideningOECDgap toStudies
                                                                                                               banks’on
                                                                                                                      ever-rising
                                                                                                                          SMEs and  minimum
                                                                                                                                      Entrepreneurship,
    business2020,
               loan amounts.” The Biden-Harris Administration have recently          introduced flexibilities, increased the maximum
                     https://www.oecd.org/publications/international-compendium-of-entrepreneurship-policies-338f1873-en.htm.
    loan amount to $350,000: https://www.sba.gov/article/2022/mar/30/biden-harris-administration-expands-sba-pilot-pro-
       201 LaJuanna      Russell, Testimony before the Select Committee On Economic Disparity And Fairness In Growth, March 2022,
    gram-targeting-access-capital-underserved
             https://smallbusinessmajority.org/small-business-majority-board-chair-testifies-us-select-house-committee-econom-
207 Promoting     Equity Investments for An Equitable Recovery | Urban Institute and Statement of the Hon. Sharice Davids on A
             ic-disparity-fairness-growth-barriers-entrepreneurship
    Review of the SBIC Program | Small Business Committee (house.gov); On October 18, 2022, SBA announced a new Federal
       202 that
    Registry “Understanding
                    proposes toSmall    Business
                                   “reduce        in to
                                            barriers America,”   U.S. Chamber
                                                        SBIC program            of Commerce
                                                                        participation for         Foundation,
                                                                                            new private          https://www.uschamberfoundation.
                                                                                                           fund managers and     private funds
    focusedorg/smallbizregs/
              on equity and longer-term debt investments in small businesses and startups, especially those in underserved
    communities     and geographies,
       203 “The Evolving                capital-intensive
                              State of Occupational        industries
                                                       Licensing,”     and technologies
                                                                    National Conference critical
                                                                                             of StatetoLegislatures,
                                                                                                        national security.”
                                                                                                                     Nov. 11,For more
                                                                                                                              2019,     informa-
                                                                                                                                     https://www.ncsl.
    tion, please visit: https://www.sba.gov/article/2022/oct/18/administrator-guzman-advances-new-small-business-invest-
             org/research/labor-and-employment/the-evolving-state-of-occupational-licensing.aspx;                   Ryan Nunn, “Eliminating the
    ment-company-reforms-expand-access-strengthen
             Anti-Competitive      Effects of Occupational Licensing,” Brookings Institution,” January 17, 2019, https://www.brookings.edu/
             opinions/eliminating-the-anti-competitive-effects-of-occupational-licensing
208 Theodos, Brett. “Testimony before the Select         Committee on Economic Disparity and Fairness in Growth: Small Businesses
    in the
       204U.S.:   Strengths
             “Small          andAdministration
                      Business     Opportunities for  Growth.”March
                                                  7(a) Loan  Guaranty 16,  2021. Congressional Research
                                                                        Program,”https://www.urban.org/sites/default/files/2022-03/
                                                                                                                  Service, June 30, 2022, https://crsre-
    small-businesses-in-the-us-strengths-and-opportunities-for-growth.pdf
             ports.congress.gov/product/pdf/R/R41146
209 Federal   Reserve
       205 "From       Bank FedtoCommunities.
                    Pandemic                        “2021 CDFI
                                     Prosperity," Bipartisan       Survey
                                                                 Policy      Key Findings.”
                                                                         Center,   March 20,April
                                                                                               2022,2021. Available at: https://fedcommunities.
                                                                                                      https://bipartisanpolicy.org/download/?file=/
    org/data/2021-cdfi-survey-key-findings/
             wp-content/uploads/2022/03/Small-Business-Policy-Report_R01.pdf
210  Economic
       206      Opportunity
             Mr. Everett  Sands,Coalition.  https://www.economicopportunitycoalition.org/;
                                    CEO of Lendistry, testified to the                                  https://www.whitehouse.gov/brief-
                                                                             Committee that, "SBA’s Community          Advantage program’s prolonged
    ing-room/statements-releases/2022/10/04/fact-sheet-vice-president-harris-announces-new-public-and-private-sector-
             status as a pilot program – even though it has an           11-year track record and is the only SBA loan program with at least
    efforts-to-advance-racial-equity-at-freedmans-bank-forum/;
             10% participation by     minority-owned small businesses –         under  the the
                                                                                    reduces American
                                                                                                number Rescue   Plan Act
                                                                                                           of lenders     of 2021,
                                                                                                                      willing      StateaSmall
                                                                                                                              to make     commitment
    BusinesstoCredit  InitiativeIn(SSBCI)
                the program.               gotits
                                    addition,   a $10 billionloan
                                                  stagnant     investment      to support
                                                                    size maximum            venture capital,
                                                                                       of $250,000    leaves loan  guarantee,
                                                                                                              a widening        collateral
                                                                                                                           gap to          support,
                                                                                                                                   banks’ ever-rising
    capital access,
             minimum and loan   participation
                         business loan          programs:
                                          amounts."           https://home.treasury.gov/policy-issues/small-business-programs/
                                                       The Biden-Harris Administration have           recently introduced flexibilities, increased the
    state-small-business-credit-initiative-ssbci
             maximum loan       amount to $350,000. Everett Sands, Testimony before the Select Committee On Economic Disparity
             And Fairness
211 “Community               In Growth,
                   Development            March 16,
                                     Financial        2022, (CDFIs): Overview and Selected Issues,”
                                               Institutions   https://docs.house.gov/meetings/EF/EF00/20220316/114506/HHRG-117-EF00-
                                                                                                               Congressional Research Service.
             Wstate-SandsE-20220316.pdf;
    Aug. 16, 2022.                                “Biden-Harris Administration Expands SBA Pilot Program Targeting Access to Capital for
                   https://crsreports.congress.gov/product/pdf/R/R47217
             Underserved Entrepreneurs,” U.S. Small Business Administration, March 30, 2022, https://smallbusiness.house.gov/news/
212 “Community     Development Financial Institutions (CDFIs):
             documentsingle.aspx?DocumentID=4066;                        Overview Guzman
                                                                  “Administrator      and Selected   Issues,”
                                                                                               Advances    New Congressional   Research
                                                                                                                  Small Business         Service.
                                                                                                                                   Investment  Com-
    Aug. 16, pany
             2022.Reforms to Expand Access,
                   https://crsreports.congress.gov/product/pdf/R/R47217
                                                    Strengthen and Diversify SBA’s Public-Private Investment Partnership Program,” U.S.
213 Kriti Ramakrishnan,
             Small  BusinessElizabeth
                                Administration,
                                        Champion,  Oct.
                                                     Megan
                                                         18, 2022,
                                                               Gallagher, Keith Fudge. “Why Housing
                                                                    https://www.sba.gov/article/2022/mar/30/biden-harris-administration-ex-
                                                                                                             Matters for Upward Mobility:
    Evidence and Indicators for Practitioners
             pands-sba-pilot-program-targeting-access-capital-underserved
                                                    and Policymakers.” Urban Institute. January 12, 2021. https://www.urban.org/
    research/publication/why-housing-matters-upward-mobility-evidence-and-indicators-practitioners-and-policymak-
       207 On October 18, 2022, SBA announced a new Federal Registry that proposes to “reduce barriers to SBIC program partic-
    ers#:~:text=Homeownership%20can%20provide%20pathways%20to,benefit%20from%20their%20home’s%20equity;
             ipation for new private fund managers and private funds focused on equity and longer-term debt investments in small
    Laurie Goodman,
             businesses Christopher
                           and startups,Mayer.  “Homeownership
                                           especially                  is still financially
                                                        those in underserved                better than
                                                                                     communities         renting.” Urban
                                                                                                   and geographies,        Institute. February
                                                                                                                        capital-intensive       21, and
                                                                                                                                           industries
    2018. https://www.urban.org/urban-wire/homeownership-still-financially-better-renting;                     In 2019, the lower  50
             technologies critical to national security. “Promoting Equity Investments for an Equitable Economy,” The Urban Institute,percent  of
    Americans    had 58
             October     percent
                       2021,        of their total assets in home equity, while the top 10 percent of income earners had just 14 of their
                              https://www.urban.org/sites/default/files/publication/104928/promoting-equity-investments-for-an-equita-
    assets inble-recovery_0_0.pdf;
               home equity. Congressional       Budget
                                        Rep Sharice       Office.
                                                      Davids       “Trends
                                                                (D-KS)         in the Distribution
                                                                         statement                  of Family
                                                                                       before the House        Wealth, 1989
                                                                                                           Committee          to 2019.”
                                                                                                                         on Small       September
                                                                                                                                   Business,  Oct. 27, 2021,
    27, 2022.https://smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=4066;
               https://www.cbo.gov/publication/57598.                                                            https://www.sba.gov/article/2022/oct/18/
214    Scholastica (Gay) Coronation. “Single-family Homeowners Typically
              administrator-guzman-advances-new-small-business-investment-company-reforms-expand-access-strengthen
                                                                           Accumulated $225,000 in Housing Wealth Over 10
      Years.” National Association of Realtors. January 7, 2022. https://www.nar.realtor/blogs/economists-outlook/single-fami-
         208 Brett Theodos, Testimony before the Select Committee on Economic Disparity and Fairness in Growth, March 16, 2021,
      ly-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years.
              https://www.urban.org/sites/default/files/2022-03/small-businesses-in-the-us-strengths-and-opportunities-for-growth.
215  HousingpdfVacancies and Homeownership (CPS/HVS). “Table 11A/B. Quarterly Median Asking Rent and Sales Price of the U.S.
    and209Regions:
              “20211988
                      CDFItoSurvey
                              Present.”
                                     KeyUnited  States
                                         Findings,”     Census
                                                    Federal       Bureau.
                                                              Reserve     https://www.census.gov/housing/hvs/data/histtabs.html;
                                                                       Bank  Fed Communities, April 2021, https://fedcommunities.org/data/2021-
    Current cdfi-survey-key-findings/
             Population Survey. “Employed Full time: Median usual weekly nominal earnings (second quartile): Wage and salary
    workers: 16 years and over.” U.S. Bureau of Labor Statistics. https://www.bls.gov/cps/earnings.htm.
        210 Under the American Rescue Plan Act of 2021, State Small Business Credit Initiative (SSBCI) ALSO got a $10 billion invest-
             ment to support venture capital, loan guarantee, collateral support, capital access, and loan participation programs. “Vice
216 Samantha President
                  Smith. “Most
                           Harris think
                                  Announces
                                        the New
                                            ‘American
                                                    Public
                                                        Dream’
                                                            and is within
                                                                 Private-Sector
                                                                          reach for
                                                                                  Efforts
                                                                                     them.”
                                                                                          to Pew
                                                                                            Advance
                                                                                                  Research
                                                                                                      Racial Center.
                                                                                                             Equity atOctober
                                                                                                                       Freedman’s
                                                                                                                              31, 2017.
                                                                                                                                    Bank Forum,”
    https://www.pewresearch.org/fact-tank/2017/10/31/most-think-the-american-dream-is-within-reach-for-them/;
             The White House, Oct. 4, 2022,       https://www.whitehouse.gov/briefing-room/statements-releases/2022/10/04/fact-sheet-
                                                                                                                                 “2022 Pro-
    file of Home Buyers and Sellers.” National Association of Realtors. 2022.
             vice-president-harris-announces-new-public-and-private-sector-efforts-to-advance-racial-equity-at-freedmans-bank-fo-
                                                                                       https://www.nar.realtor/research-and-statistics/re-
    search-reports/highlights-from-the-profile-of-home-buyers-and-sellers
             rum/; “State Small Business       Credit Initiative (SSBCI),” U.S. Department
                                                                                       “2021Profile
                                                                                              of Treasury,
                                                                                                    of Home Buyers.” National
                                                                                                           https://home.treasury.gov/policy-issues/
                                                                                                                                  Association
             small-business-programs/state-small-business-credit-initiative-ssbci
    of Realtors. 2021.    https://cdn.nar.realtor/sites/default/files/documents/2021-highlights-from-the-profile-of-home-buyers-
    and-sellers-11-11-2021.pdf;
        211                        Elizabeth Edwards.
              “Community Development          Financial“Average    age(CDFIs):
                                                        Institutions   of first-time  homeowners
                                                                               Overview             remains
                                                                                           and Selected       high.”
                                                                                                        Issues,”     The Daily Universe.
                                                                                                                  Congressional   Research Service,
    OctoberAug.
              11, 2011. https://universe.byu.edu/2011/10/11/average-age-of-first-time-homeowners-remains-high/.
                    16, 2022, https://crsreports.congress.gov/product/pdf/R/R47217
217   Stella Sechopoulos. “Most in the U.S. say young adults today face more challenges than their parents’ generation in some
      key areas.” Pew Research Center. February 28, 2022. https://www.pewresearch.org/fact-tank/2022/02/28/most-in-the-
      u-s-say-young-adults-today-face-more-challenges-than-their-parents-generation-in-some-key-areas/; Tori Syrek. “NAR
      Study Shows Lack of Affordable Housing Biggest Obstacle to Home Buying.” National Association of Realtors. April 12, 2022.


                    House Select Committee on
182                 Economic Disparity & Fairness in Growth
Chapter 5: Building Connections
        https://www.nar.realtor/newsroom/nar-study-shows-lack-of-affordable-housing-biggest-obstacle-to-home-buying#:~:tex-
                t=The%20biggest%20challenges%20identified%20are,exceedingly%20difficult%2C%E2%80%9D%20said%20Dr..
212   Ms. Nikitra Bailey, Testimony before the Select Committee on Economic Disparity and Fairness in Growth, March 2, 2022,
         218     Federal Home Loan Mortgage Corporation. “Housing Supply: A Growing Deficit.” May 7, 2021. https://www.freddiemac.com/
      https://www.youtube.com/watch?v=ZMI9NIhz6yA&ab_channel=EconomicDisparity%26FairnessinGrowthCommittee
                research/insight/20210507-housing-supply.
213   In 2019, the lower 50% of Americans had 58% of their total assets in home equity, while the top 10% of income earners
      had219     Authors
           just 14%        Calculation
                      of their assets inofhome equity. Kriti
                                           https://fred.stlouisfed.org/graph/?g=T6Sp.
                                                              Ramakrishnan, Elizabeth Champion, Megan Gallagher, Keith Fudge,
      “Why
         220Housing
                 CurrentMatters   for Upward
                          Employment           Mobility:
                                          Survey,         Evidence
                                                  Bureau of   Laborand   Indicators for
                                                                     Statistics          Practitioners and Policymakers,” Urban Institute,
                                                                                https://www.bls.gov/ces/.
      January 12, 2021, https://www.urban.org/research/publication/why-housing-matters-upward-mobility-evidence-and-indica-
         221 Garo Hovnanian, Ryan Luby, Shannon Peloquin. “Bridging the labor mismatch in US construction.” McKinsey & Company.
      tors-practitioners-and-policymakers; Laurie Goodman, Christopher Mayer, “Homeownership is still financially better than
                March 28, 2022. https://www.mckinsey.com/capabilities/operations/our-insights/bridging-the-labor-mismatch-in-us-
      renting,” Urban Institute, Feb. 21, 2018, https://www.urban.org/urban-wire/homeownership-still-financially-better-renting;
                construction; Kendall Jones. “How Construction Can Beat A Growing Labor Shortage.” ConstructConnect. April 29, 2022.
      “Trends in the Distribution of Family Wealth, 1989 to 2019,” Congressional Budget Office, September 27, 2022, https://www.
                https://www.constructconnect.com/blog/blog-how-construction-companies-can-beat-a-growing-labor-shortage.
      cbo.gov/publication/57598
         222 Vanessa Brown Carter. “Zoning, Land-Use Planning, and Housing Affordability.” Cato Institute. October 18, 2017. https://
214   Scholastica (Gay) Coronation, “Single-family Homeowners Typically Accumulated $225,000 in Housing Wealth Over 10
                www.cato.org/policy-analysis/zoning-land-use-planning-housing-affordability; Up For Growth. “2022 Housing Underpro-
      Years,” National Association of Realtors, Jan. 7, 2022, https://www.nar.realtor/blogs/economists-outlook/single-fami-
                duction in the U.S.” 2022. https://upforgrowth.org/apply-the-vision/housing-underproduction/.
      ly-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years.
         223 Jenny Schuetz. “To improve housing affordability, we need better alignment of zoning, taxes, and subsidies.” Brookings.
215   Housing Vacancies and Homeownership (CPS/HVS), “Table 11A/B. Quarterly Median Asking Rent and Sales Price of the U.S.
                January 7, 2020. https://www.brookings.edu/policy2020/bigideas/to-improve-housing-affordability-we-need-better-align-
      and Regions: 1988 to Present,” United States Census Bureau, https://www.census.gov/housing/hvs/data/histtabs.html;
                ment-of-zoning-taxes-and-subsidies/.
      Current Population Survey, “Employed Full time: Median usual weekly nominal earnings (second quartile): Wage and salary
         224 16
      workers:   Paul  Emrath,
                     years      CaitlinU.S.
                           and over,”   Sugrue  Walter.
                                            Bureau       “Regulation:
                                                     of Labor          40.6 Percent of the
                                                              Statistics,                      Cost of Multifamily Development.” National Associa-
                                                                          https://www.bls.gov/cps/earnings.htm
                tion of Homebuilders, National Multifamily Housing Coalition. 2022. https://www.nmhc.org/globalassets/research--insight/
216   Samantha Smith, “Most think the ‘American Dream’ is within reach for them,” Pew Research Center, Oct. 31, 2017, https://
                research-reports/cost-of-regulations/2022-nahb-nmhc-cost-of-regulations-report.pdf
      www.pewresearch.org/fact-tank/2017/10/31/most-think-the-american-dream-is-within-reach-for-them/; “2022 Profile
         225
      of HomeCenter
                  Buyersfor
                          andSustainable   Systems.
                               Sellers,” National     “U.S. Cities
                                                   Association  of Factsheet.”  University
                                                                   Realtors, 2022,           of Michigan. 2021. https://css.umich.edu/publications/
                                                                                      https://www.nar.realtor/research-and-statistics/re-
                factsheets/built-environment/us-cities-factsheet.
      search-reports/highlights-from-the-profile-of-home-buyers-and-sellers “2021 Profile of Home Buyers.” National Associa-
      tion of Realtors,
         226              2021, https://cdn.nar.realtor/sites/default/files/documents/2021-highlights-from-the-profile-of-home-buy-
                Andrew Haughwout,       Donghoon Lee, Joelle Scally, Wilbert van der Klaaw. “Inequality in U.S. Homeownership Rates by Race
      ers-and-sellers-11-11-2021.pdf;
                and Ethnicity.” FederalElizabeth
                                           Reserve Edwards,   “Average
                                                    Bank of New          age of
                                                                   York. July 8, first-time  homeowners remains high,” The Daily Universe,
                                                                                 2020. https://libertystreeteconomics.newyorkfed.org/2020/07/in-
      Oct. 11, 2011, https://universe.byu.edu/2011/10/11/average-age-of-first-time-homeowners-remains-high/
                equality-in-us-homeownership-rates-by-race-and-ethnicity/;             Rashawn Ray, Andre M. Perry, David Harshbarger, Samantha
217   Stella Elizondo.   “Homeownership,
            Sechopoulos, “Most      in the U.S.racial segregation,
                                                say young  adults and  policy
                                                                   today      solutions to
                                                                         face more         racialthan
                                                                                    challenges    wealth equity.”
                                                                                                      their        Brookings
                                                                                                            parents’           Institution.
                                                                                                                     generation in   some Septem-
              ber 1,
      key areas,” Pew2021. https://www.brookings.edu/essay/homeownership-racial-segregation-and-policies-for-racial-wealth-equity/.
                       Research Center, Feb. 28, 2022,     https://www.pewresearch.org/fact-tank/2022/02/28/most-in-the-u-s-say-
      young-adults-today-face-more-challenges-than-their-parents-generation-in-some-key-areas/;
         227 Andre M. Perry, David Harshbarger. “America’s formerly redlined neighborhoods have changed,      Tori Syrek,
                                                                                                                       and“NAR    Study
                                                                                                                            so must   solutions to
      Shows Lack   of them.”
              rectify Affordable   Housing
                              Brookings      Biggest Obstacle
                                           Institution. Octoberto
                                                                14,Home
                                                                    2019. Buying,” National Association of   Realtors, April 12, 2022,
                                                                          https://www.brookings.edu/research/americas-formerly-redlines-ar-
      https://www.nar.realtor/newsroom/nar-study-shows-lack-of-affordable-housing-biggest-obstacle-to-home-buying
              eas-changed-so-must-solutions/.
218 “Housing  Supply:
       228 Tracy  Jan.A“Redlining
                        Growing Deficit,” Federal
                                  was banned   50Home   LoanIt’s
                                                  years ago. Mortgage     Corporation,
                                                                 still hurting          May
                                                                               minorities    7, 2021,
                                                                                          today.” Thehttps://www.freddiemac.com/
                                                                                                      Washington Post. March 28, 2018.
    research/insight/20210507-housing-supply.
            https://www.washingtonpost.com/news/wonk/wp/2018/03/28/redlining-was-banned-50-years-ago-its-still-hurting-minori-
          ties-today/.
219 Committee staff calculation of Federal Reserve data: https://fred.stlouisfed.org/graph/?g=T6Sp.
       229 Bruce
220 “Current      Mitchell, Juan
             Employment          Franco.
                           Survey,”      “HOLC
                                    Bureau of    ‘Redlining”
                                               Labor          Maps: The
                                                     Statistics,         Persistent Structure of Segregation and Economic Inequality.”
                                                                 https://www.bls.gov/ces/
            National Community Reinvestment Coalition. March 20, 2018. https://ncrc.org/holc; Written Testimony of Dr. Anne Bonds,
221 Garo Hovnanian, Ryan Luby, Shannon Peloquin, “Bridging the labor mismatch in US construction,” McKinsey & Company,
            Milwaukee Field Hearing. Apr. 12, 2022. https://www.congress.gov/117/meeting/house/114635/witnesses/HHRG-117-EF00-
    March 28, 2022, https://www.mckinsey.com/capabilities/operations/our-insights/bridging-the-labor-mismatch-in-us-
            Wstate-BondsA-20220412.pdf
    construction; Kendall Jones, “How Construction Can Beat A Growing Labor Shortage,” ConstructConnect, April 29, 2022,
       230 PLACEHOLDER
    https://www.constructconnect.com/blog/blog-how-construction-companies-can-beat-a-growing-labor-shortage
      231 Leah
222 Vanessa  BrownFoltman,
                     Carter, Malia Jones.
                             “Zoning,     “How Planning,
                                      Land-Use Redlining and
                                                         Continues to Shape
                                                             Housing         Racial Cato
                                                                      Affordability,”Segregation  in October
                                                                                           Institute,Milwaukee: 1930shttps://
                                                                                                             18, 2017, Lending Map
            Reveals the Policy Roots of Housing Discrimination.” University of Milwaukee
    www.cato.org/policy-analysis/zoning-land-use-planning-housing-affordability;      Up ForApplied
                                                                                             Growth,Populations  Lab. Underpro-
                                                                                                      “2022 Housing   February 28, 2019.
            https://apl.wisc.edu/shared/tad/redlining-milwaukee.
    duction in the U.S,” 2022, https://upforgrowth.org/apply-the-vision/housing-underproduction/.
       232 Schuetz,
223 Jenny     William“To
                       H. Frey. “Black-white
                          improve            segregationwe
                                    housing affordability, edges ownward
                                                             need better    since 2000,
                                                                         alignment      censustaxes,
                                                                                    of zoning, shows.”
                                                                                                     andBrookings Institution.
                                                                                                         subsidies,” BrookingsDecember 17,
             2018.
    Institution,    https://www.brookings.edu/blog/the-avenue/2018/12/17/black-white-segregation-edges-downward-since-2000-cen-
                 Jan. 7, 2020,  https://www.brookings.edu/policy2020/bigideas/to-improve-housing-affordability-we-need-bet-
             sus-shows/.
    ter-alignment-of-zoning-taxes-and-subsidies/.
       233
224 Paul    “Community
         Emrath,           Development
                  Caitlin Sugrue Walter, Financial Institutions
                                         “Regulation:           (CDFIs):
                                                       40.6 Percent       Overview
                                                                      of the Cost ofand Selected Issues,”
                                                                                     Multifamily          Congressional
                                                                                                 Development,”  NationalResearch
                                                                                                                         Associa- Service.
    tion of Aug. 16, 2022. National Multifamily Housing
           Homebuilders,   https://crsreports.congress.gov/product/pdf/R/R47217
                                                           Coalition, 2022, https://www.nmhc.org/globalassets/research--insight/
    research-reports/cost-of-regulations/2022-nahb-nmhc-cost-of-regulations-report.pdf
       234 Laurie Goodman, Alanna McCargo, Edward Golding, Bing Bai, Sarah Strochak. “Barriers to Accessing Homeownership:
             Down
225 “U.S. Cities   Payment,Center
                 Factsheet,” Credit,for
                                     and  Affordability.”
                                        Sustainable       UrbanUniversity
                                                    Systems,    Institute. of
                                                                           September
                                                                              Michigan,2018. https://www.urban.org/sites/default/files/publi-
                                                                                        2021, https://css.umich.edu/publications/
             cation/99028/barriers_to_accessing_homeownership_2018_4.pdf.
    factsheets/built-environment/us-cities-factsheet
       235 Sean
226 Andrew         Veal, Jonathan
             Haughwout,           Spader.
                           Donghoon        “Nearly a
                                     Lee, Joelle     Third
                                                 Scally,   of van
                                                              American
                                                         Wilbert           Households
                                                                       der Klaaw,       Were in U.S.
                                                                                   “InequalityCost-Burdened   Last Year.”
                                                                                                      Homeownership       Jointby
                                                                                                                        Rates     Race for
                                                                                                                                Center
             Housing
    and Ethnicity,”   Studies
                    Federal   of Harvard
                            Reserve BankUniversity.  December
                                           of New York,           7, 2018.
                                                         July 8, 2020,     https://www.jchs.harvard.edu/blog/more-than-a-third-of-ameri-
                                                                        https://libertystreeteconomics.newyorkfed.org/2020/07/in-
             can-households-were-cost-burdened-last-year.
    equality-in-us-homeownership-rates-by-race-and-ethnicity/;         Rashawn Ray, Andre M. Perry, David Harshbarger, Samantha
    Elizondo, “Homeownership,
       236 Housing               racial
                      Vacancies and     segregation, and
                                    Homeownership         policy solutions
                                                       (CPS/HVS).            to racial
                                                                     “Table 11A/B.     wealth Median
                                                                                   Quarterly  equity,”Asking
                                                                                                      Brookings
                                                                                                             RentInstitution, Sept. of
                                                                                                                   and Sales Price  1, the U.S.
    2021, https://www.brookings.edu/essay/homeownership-racial-segregation-and-policies-for-racial-wealth-equity/
             and Regions: 1988 to Present.” United States Census Bureau. https://www.census.gov/housing/hvs/data/histtabs.html;
227 Andre M.Current   Population
               Perry, David      Survey. “America’s
                            Harshbarger,   “Employed Full  time:redlined
                                                      formerly   Median usual   weekly nominal
                                                                         neighborhoods         earningsand
                                                                                         have changed,  (second quartile):
                                                                                                            so must        Wage
                                                                                                                    solutions toand salary
             workers: 16
    rectify them,”       years and
                   Brookings        over.” U.S.
                              Institution,      Bureau
                                            October 14, of Labor Statistics. https://www.bls.gov/cps/earnings.htm.
                                                        2019,                                                      Andrew Aurand, Dan
                                                              https://www.brookings.edu/research/americas-formerly-redlines-ar-
             Emmanuel,    Dan Threet, Ikra Rafi, Diane Yentel. “Out of Reach 2021: The High Cost of Housing.” National Low Income Hous-
    eas-changed-so-must-solutions/.
             ing Coalition. 2020. https://reports.nlihc.org/oor.
228 Tracy Jan, “Redlining was banned 50 years ago. It’s still hurting minorities today,” The Washington Post, March 28, 2018,
       237 Census Bureau. “Housing Vacancies and Homeownership.” https://www.census.gov/housing/hvs/data/histtabs.html;
    https://www.washingtonpost.com/news/wonk/wp/2018/03/28/redlining-was-banned-50-years-ago-its-still-hurting-minori-
    ties-today/.
       U.S. Bureau of Labor Statistics. “Employed full time: Median usual weekly nominal earnings (second quartile): Wage and salary
            workers:Juan
229 Bruce Mitchell,   16 years  and“HOLC
                           Franco,  over.” ‘Redlining” Maps: The
                                           https://www.bls.gov/news.release/wkyeng.toc.htm.
                                                                 Persistent Structure of Segregation and Economic Inequality,”
    National Community
       238 U.S.             Reinvestment
                 Department of             Coalition,
                                   Housing and   UrbanMarch 20, 2018, “HUD’s
                                                       Development.  https://ncrc.org/holc;
                                                                              Public HousingDr. Anne Bonds, Testimony,
                                                                                               Program.”               Milwaukee
                                                                                                         https://www.hud.gov/topics/rent-
    Field Hearing, April 12, 2022, https://www.congress.gov/117/meeting/house/114635/witnesses/HHRG-117-EF00-Wstate-Bond-
            al_assistance/phprog.
    sA-20220412.pdf
       239 National Low Income Housing Coalition. “Public Housing History.” October 17, 2019. https://nlihc.org/resource/public-hous-
            ing-history.
          APPENDIX
          Endnotes                                                                                                                     183
240 NationalLeah
      230    LowFoltman,
                  Income Malia
                           Housing
                                 Jones,
                                    Coalition.
                                         “How“ Public
                                               Redlining
                                                      Housing:
                                                         Continues
                                                               Where
                                                                   to Do
                                                                     ShapeWeRacial
                                                                              Stand?”
                                                                                   Segregation
                                                                                      October 17,
                                                                                               in2019.
                                                                                                  Milwaukee:
                                                                                                       https://nlihc.org/re-
                                                                                                               1930s Lending Map Re-
    source/public-housing-where-do-we-stand.
            veals the Policy Roots of Housing Discrimination.” University of Milwaukee Applied Populations Lab, Feb. 28, 2019, https://
            apl.wisc.edu/shared/tad/redlining-milwaukee.
241 Tax Policy Center. “Q. What is the Low-Income Housing Tax Credit and how does it work?” May 2020. https://www.tax-
    policycenter.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work#:~:text=Since%20the%20
       231 Leah Foltman, Malia Jones, “How Redlining Continues        to Shape Racial Segregation in Milwaukee: 1930s Lending Map Re-
    mid%2D1990s%2C%20the,in%20all%20since%20its%20inception..
             veals the Policy Roots of Housing Discrimination.” University of Milwaukee Applied Populations Lab, Feb. 28, 2019, https://
             apl.wisc.edu/shared/tad/redlining-milwaukee.
242 Will Fischer. “Research Shows    Housing Vouchers Reduce Hardship and Provide Platform for Long-Term Gains Among
    Children.”
       232   William
               CenterH.onFrey,
                           Budget and
                               “Black-white
                                       Policysegregation
                                              Priorities. edges
                                                         October 7,
                                                                downward
                                                                    2015. since 2000, census shows,”
                                                                         https://www.cbpp.org/research/housing/research-shows-
                                                                                                       Brookings Institution, Dec. 17, 2018,
    housing-vouchers-reduce-hardship-and-provide-platform-for-long-term;
             https://www.brookings.edu/blog/the-avenue/2018/12/17/black-white-segregation-edges-downward-since-2000-census-
                                                                                  Sonya Acosta, Erik Gartland. “Families Wait Years
    for Housing
             shows/
                 Vouchers Due to Inadequate Funding.” Center on Budget and Policy Priorities. July 22, 2021. https://www.cbpp.
    org/research/housing/families-wait-years-for-housing-vouchers-due-to-inadequate-funding.
       233 Shaun Donovan, Testimony before the House Committee on Economic Disparity and Fairness in Growth, March 1, 2022,
243 “Housing Vacancies and Homeownership.” United States Census
           https://www.congress.gov/117/meeting/house/114459/witnesses/HHRG-117-EF00-Wstate-DonovanS-20220301.pdf
                                                                        Bureau. https://www.census.gov/housing/hvs/index.html;
    Sonya
      234 Laurie Goodman, Alanna McCargo, Edward Golding, Bing Bai, Show
          Acosta, Brianna Guerrero.   “Long Waitlist for Housing  Vouchers  Sarah Pressing
                                                                                   Strochak,Unmet   Need
                                                                                              “Barriers to for Assistance.”
                                                                                                           Accessing        Center on
                                                                                                                      Homeownership:
    Budget and
           DownPolicy Priorities.
                  Payment,        October
                             Credit,      6, 2021. https://www.cbpp.org/research/topics/housing-vouchers#:~:text=More%20
                                     and Affordability,” Urban Institute, Sept. 2018, https://www.urban.org/sites/default/files/publica-
    than%202%20million%20low,state%20and%20local%20housing%20agencies.
           tion/99028/barriers_to_accessing_homeownership_2018_4.pdf
244 U.S. Department
       235  Sean Veal,ofJonathan
                         Housing and   Urban
                                   Spader,   Development.
                                           “Nearly a Third of“Inclusionary Zoning and
                                                             American Households       Mixed-Income
                                                                                     Were Cost-Burdened Communities.”  Spring
                                                                                                           Last Year,” Joint   2013. for
                                                                                                                             Center
    https://www.huduser.gov/portal/periodicals/em/spring13/highlight3.html;      Heather L. Schwartz, Liisa Ecola, Kristin J. Leus-
            Housing Studies of Harvard University, Dec. 7, 2018, https://www.jchs.harvard.edu/blog/more-than-a-third-of-american-
    chner, Aaron  Kofner. “Is Inclusionary Zoning Inclusionary?: A Guide for Practitioners” RAND Corporation. 2012. https://www.
            households-were-cost-burdened-last-year
    rand.org/pubs/technical_reports/TR1231.html.
       236 “Table 11A/B. Quarterly Median Asking Rent and Sales Price of the U.S. and Regions: 1988 to Present,” United States Census
245 White House
            Bureau,Briefing Room. “President Biden Announces New Actions to “Employed
                     https://www.census.gov/housing/hvs/data/histtabs.html;       Ease the Burden   of Housing
                                                                                             Full time:  MedianCosts.” May 16,nominal
                                                                                                                usual weekly    2022. earn-
    https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-
            ings (second quartile): Wage and salary workers: 16 years and over,” U.S. Bureau of Labor Statistics, https://www.bls.gov/
    to-ease-the-burden-of-housing-costs/#:~:text=The%20Unlocking%20Possibilities%20Program%2C%20proposed,bar-
            cps/earnings.htm; Andrew Aurand, Dan Emmanuel, Dan Threet, Ikra Rafi, Diane Yentel, “Out of Reach 2021: The High Cost of
    riers%20to%20affordable%20housing%20production%2C.
            Housing,” National Low    Income Housing Coalition, 2020, https://reports.nlihc.org/oor.
246 “Affordable  Housing   Credit Improvement
       237 Census Bureau, “Housing Vacancies    Actand
                                                    Center.” National Coalition
                                                       Homeownership,”          of State Housing Agencies. April 15, 2021. https://
                                                                          https://www.census.gov/housing/hvs/data/histtabs.html;        U.S.
    www.ncsha.org/resource/affordable-housing-credit-improvement-act-ahcia-center/.
            Bureau of Labor Statistics, “Employed full time: Median usual weekly nominal earnings (second quartile): Wage and salary
247 Rashawn      Ray, Andre
              workers:        M. and
                         16 years Perry,over,”
                                         David Harshbarger, Samantha        Elizondo, Alexandra Gibbons. “ Homeownership, racial
                                               https://www.bls.gov/news.release/wkyeng.toc.htm.
     segregation,
         238 “HUD’s andPublic
                         policyHousing
                                solutions  to racial wealth
                                         Program,”            equity.” Brookings
                                                      U.S. Department     of HousingInstitution.
                                                                                        and Urban  Sep.  1, 2021. https://www.brookings.edu/
                                                                                                      Development,     https://www.hud.gov/topics/rent-
     essay/homeownership-racial-segregation-and-policies-for-racial-wealth-equity/;
              al_assistance/phprog.                                                                   Emmanuel Martinez, Lauren Kirchner.
     “The Secret Bias Hidden in Mortgage-Approval Algorithms.” The Markup. August 25, 2021. https://themarkup.org/de-
         239 “Public Housing History,”      National Low Income Housing Coalition, Oct.
     nied/2021/08/25/the-secret-bias-hidden-in-mortgage-approval-algorithms;                      17, 2019,
                                                                                              Freddie        https://nlihc.org/resource/public-hous-
                                                                                                        Mac. “Racial and Ethnic     Valuation Gaps
     in Homeing-history.
               Purchase Appraisals.” September 20, 2021. https://www.freddiemac.com/research/insight/20210920-home-ap-
     praisals.
         240 “Public Housing: Where Do We Stand?” National Low Income Housing Coalition, Oct. 17, 2019, https://nlihc.org/resource/
              public-housing-where-do-we-stand.
248 Will Fischer, Sonya Acosta,     Erik Gartland. “More Housing Vouchers: Most Important Step to Help More People Afford
     Stable
         241 Homes.”
               “What isCenter
                          the on   Budget and
                              Low-Income          PolicyTax
                                             Housing     Priorities. Mayhow
                                                            Credit and    13, 2021. https://www.cbpp.org/research/housing/more-hous-
                                                                              does it work?” Tax Policy Center,        May 2020, https://www.taxpolicy-
     ing-vouchers-most-important-step-to-help-more-people-afford-stable-homes#:~:text=Vouchers%20are%20highly%20
              center.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work
     effective%20at%20helping%20low%2Dincome%20people%20afford,lives%20of%20low%2Dincome%20people; Sonya
         242 Will Fischer, “Research Shows Housing Vouchers Reduce Hardship and Provide Platform for Long-Term Gains Among Chil-
     Acosta, Erik Gartland. “Families Wait Years for Housing Vouchers Due to Inadequate Funding.” Center on Budget and Policy
              dren,” Center on Budget and Policy Priorities, Oct. 7, 2015, https://www.cbpp.org/research/housing/research-shows-hous-
     Priorities. July 22, 2021. https://www.cbpp.org/research/housing/families-wait-years-for-housing-vouchers-due-to-inade-
              ing-vouchers-reduce-hardship-and-provide-platform-for-long-term; Sonya Acosta, Erik Gartland, “Families Wait Years for
     quate-funding.
              Housing Vouchers Due to Inadequate Funding,” Center on Budget and Policy Priorities, July 22, 2021, https://www.cbpp.org/
249 “Economic Impact of Public Transportation Investment:             2020 Update.” American Public Transportation Association. April
              research/housing/families-wait-years-for-housing-vouchers-due-to-inadequate-funding
     2020. https://www.apta.com/wp-content/uploads/APTA-Economic-Impact-Public-Transit-2020.pdf.
         243 “Housing Vacancies and Homeownership,” United States Census Bureau, https://www.census.gov/housing/hvs/index.html;
250 Eileen Higgins.    “Written
              Sonya Acosta,       Statement
                               Brianna         for The
                                         Guerrero,      Record
                                                    “Long       Hon.for
                                                            Waitlist  Eileen  Higgins,
                                                                         Housing         County
                                                                                    Vouchers       Commissioner
                                                                                                Show                 Miami-Dade
                                                                                                        Pressing Unmet     Need forCounty,  Fla. Center
                                                                                                                                     Assistance,”
     in Collaboration
              on Budget with the
                           and    National
                                Policy      Association
                                       Priorities, Oct. 6,Of  Counties.” February 9, 2022.
                                                            2021                                https://www.congress.gov/117/meeting/
                                                                 https://www.cbpp.org/research/topics/housing-vouchers#:~:text=More%20
     house/114393/witnesses/HHRG-117-EF00-Wstate-HigginsE-20220209.pdf
              than%202%20million%20low,state%20and%20local%20housing%20agencies.
251 While244a number    of studies
               “Inclusionary        conclude
                               Zoning  and that      job accessibility
                                            Mixed-Income               is correlated
                                                              Communities,”    U.S. to     employment
                                                                                      Department            outcomes,
                                                                                                      of Housing         causality has
                                                                                                                   and Urban           been diffi-
                                                                                                                                Development,   Spring 2013,
     cult to establish, according to a study from      the University of Chicago. Moreover, other
              https://www.huduser.gov/portal/periodicals/em/spring13/highlight3.html;                       mechanisms
                                                                                                      Heather L.          might
                                                                                                                   Schwartz,     drive
                                                                                                                              Liisa    the Kristin
                                                                                                                                    Ecola, correla-J. Leus-
     tion between
              chner,job  accessibility
                      Aaron  Kofner, “Isand  employment
                                          Inclusionary       outcomes,
                                                         Zoning          including
                                                                 Inclusionary?:  A lack
                                                                                     Guideoffor
                                                                                              information     aboutRAND
                                                                                                 Practitioners,”     distant jobs, or 2012,
                                                                                                                                      (perceived)
                                                                                                                           Corporation,        https://www.
     discrimination by employer.     Please see Gazzé, Ludovica, “Chapter 5. Inequality in Job Accessibility via Transit in US Cities”
              rand.org/pubs/technical_reports/TR1231.html.
     2018. https://home.uchicago.edu/~lgazze/webfiles/2018_DividedCities_Gazze.pdf; Chetty, Raj, Hendren, Nathaniel, Kline,
         245 “President Biden Announces New Actions to Ease the Burden of Housing Costs,” White House Briefing Room, May 16, 2022,
     Patrick, Saez, Emmanuel. “Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United
              https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-
     States.” Quarterly Journal of Economics 129 (4): 1553-1623, 2014. Available at:
              to-ease-the-burden-of-housing-costs/#:~:text=The%20Unlocking%20Possibilities%20Program%2C%20proposed,bar-
https://opportunityinsights.org/wp-content/uploads/2018/03/mobility_geo.pdf.
              riers%20to%20affordable%20housing%20production%2C.                            Other research by Dong Liu and Mei-Po Kwan
     show similar findings.
         246 “Affordable Housing Credit Improvement Act Center,” National Coalition of State Housing Agencies, April 15, 2021, https://
252 Weinstock, Lida R., “Infrastructure and the Economy,”            Congressional Research Service, 2021, https://crsreports.congress.
              www.ncsha.org/resource/affordable-housing-credit-improvement-act-ahcia-center/.
     gov/product/pdf/R/R46826
         247 Rashawn Ray, Andre M. Perry, David Harshbarger, Samantha Elizondo, Alexandra Gibbons, “ Homeownership, racial segre-
253 “Delivering    for and
              gation,  America:
                            policyThe macroeconomic
                                   solutions              impacts of
                                               to racial wealth       reinvesting
                                                                 equity,”  Brookings in America’s    infrastructure
                                                                                        Institution, Sep. 1,  2021, systems.” Business      Round-
                                                                                                                     https://www.brookings.edu/essay/
     table. 2021. https://s3.amazonaws.com/brt.org/BusinessRoundtable_Delivering_for_America_Infrastructure_Report_Updat-
              homeownership-racial-segregation-and-policies-for-racial-wealth-equity/;                 Emmanuel Martinez, Lauren Kirchner, “The Se-
     ed_April2021.pdf.
              cret Bias Hidden in Mortgage-Approval Algorithms,” The Markup, Aug. 25, 2021, https://themarkup.org/denied/2021/08/25/
              the-secret-bias-hidden-in-mortgage-approval-algorithms;
254 Commissioner       Garza’s oral and written statements can be accessed        Freddie    Mac, “Racial and Ethnic Valuation Gaps in Home Pur-
                                                                                      at: https://www.congress.gov/117/meeting/
              chase Appraisals,” Sept. 20,     2021, https://www.freddiemac.com/research/insight/20210920-home-appraisals.
     house/114918/witnesses/HHRG-117-EF00-Wstate-GarzaD-20220617.pdf
       248 Campbell,
255 Sophia   Will Fischer, SonyaRuiz
                        Jimena    Acosta, Erikand
                                      Castro,  Gartland, “More Housing
                                                  David Wessel,          Vouchers:
                                                                 “The benefits  and Most
                                                                                     costsImportant Stepexpansion.”
                                                                                           of broadband  to Help More  People Afford Stable
                                                                                                                    Brookings
             Homes.”
    Institution.       Center
                 Aug. 18, 2021.on Budget and Policy Priorities, May 13, 2021, https://www.cbpp.org/research/housing/more-housing-vouch-
                                https://www.brookings.edu/blog/up-front/2021/08/18/the-benefits-and-costs-of-broadband-ex-
             ers-most-important-step-to-help-more-people-afford-stable-homes;
    pansion; “Bringing Broadband to Rural     America.” Richmond Fed. Dec. 2020. Sonya Acosta, Erik       Gartland, “Families Wait Years for
                                                                                     https://www.richmondfed.org/publications/
             Housing Vouchers Due to Inadequate Funding,” Center on Budget and Policy Priorities, July 22, 2021, https://www.cbpp.org/
    community_development/community_scope/2020/comm_scope_vol8_no1
             research/housing/families-wait-years-for-housing-vouchers-due-to-inadequate-funding.
256 Carnevale, Anthony P., Smith, Nicole, “Trillion Dollar Infrastructure Proposals Could Create Millions of Jobs: Will the New
    Jobs Lead to Sustainable Careers” 2017 https://cew.georgetown.edu/wp-content/uploads/trillion-dollar-infrastructure.pdf;
    Escobari, M. D. G. “How federal infrastructure investment can put America to work.” The Brookings Institution. March 9,
    2022, https://www.brookings.edu/research/how-federal-infrastructure-investment-can-put-america-to-work; Joseph W.
                    House Select Committee on
184                 Economic Disparity & Fairness in Growth
249 “Economic
           Kane,
              Impact
                 Robert
                     of Public
                        Puentes,
                               Transportation
                                 “Expanding opportunity
                                              Investment: 2020
                                                        throughUpdate,”
                                                                infrastructure
                                                                        American
                                                                               jobs.”
                                                                                  Public
                                                                                      The Brookings
                                                                                         Transportation
                                                                                                    Institution.
                                                                                                         Association,
                                                                                                                 May 7,April
                                                                                                                        2015. https://
    2020, www.brookings.edu/research/expanding-opportunity-through-infrastructure-jobs/
         https://www.apta.com/wp-content/uploads/APTA-Economic-Impact-Public-Transit-2020.pdf
250 Eileen
       257 Higgins,
             “Community
                    Testimony
                          Development
                              before the House
                                       FinancialSelect
                                                 Institutions
                                                       Committee
                                                              (CDFIs):
                                                                   OnOverview
                                                                       Economicand
                                                                                Disparity
                                                                                   Selected
                                                                                          andIssues,”
                                                                                               Fairness In
                                                                                                      Congressional
                                                                                                           Growth, February
                                                                                                                    Research9, Service.
    2022. Aug. 16, 2022. https://crsreports.congress.gov/product/pdf/R/R47217
           https://www.congress.gov/117/meeting/house/114393/witnesses/HHRG-117-EF00-Wstate-HigginsE-20220209.pdf
251 While
       258a number
               Hearingof   onstudies
                              Infrastructure
                                      conclude and
                                                 that job
                                                    Economic
                                                          accessibility
                                                               Growth |isSelect  Committee
                                                                           correlated    to employment
                                                                                                on Economic
                                                                                                          outcomes,
                                                                                                               Disparity and
                                                                                                                       causality
                                                                                                                              Fairness
                                                                                                                                 has been
                                                                                                                                        in Growth
                                                                                                                                            diffi- (house.
    cult to gov)
            establish,
                     Hearing:
                           according
                                Connecting
                                       to a study
                                              Americans
                                                   from the
                                                          to University
                                                             Prosperityof Chicago. Moreover, other mechanisms might drive the correla-
    tion between
       259     Phelps,jobHailey.
                           accessibility
                                   (2021). and employment
                                           “When   Interstatesoutcomes,
                                                               Paved theincluding
                                                                           Way: Thelack     of information
                                                                                        construction  of theabout   distant
                                                                                                              Interstate    jobs, orSystem
                                                                                                                          Highway    (perceived)
                                                                                                                                            helped devel-
    discrimination
              op the by USemployer.
                            Economy.”Ludovica      Gazzé, “Inequality
                                          Federal Reserve              in Job Accessibility via Transit in U.S. Cities,” 2018, https://home.
                                                            Bank of Richmond.
    uchicago.edu/~lgazze/webfiles/2018_DividedCities_Gazze.pdf; Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel
       260“Where
    Saez,      In thisisanalysis,
                          the Landthe   federal and state
                                     of Opportunity?   Theand   local government
                                                            Geography                investments
                                                                         of Intergenerational       are not
                                                                                                 Mobility  intreated  separately
                                                                                                              the United  States,”because,
                                                                                                                                   Quarterly“much
                                                                                                                                              Jour- of the
              infrastructure
    nal of Economics             investment
                           129 (4): 1553-1623,done
                                                2014,by state and local governments is financed        by the federal government through grants in
                                                      https://opportunityinsights.org/wp-content/uploads/2018/03/mobility_geo.pdf
              aid.”
252 Lida R. Weinstock, “Infrastructure and the Economy,” Congressional Research Service, 2021, https://crsreports.congress.
       Fair, Ray C.    (2021). “U.S. Infrastructure from 1929 to 2019.” https://fairmodel.econ.yale.edu/rayfair/pdf/2019D.PDF; Earlier
    gov/product/pdf/R/R46826
              estimates from the Congressional Budget Office show that combined federal, state and local spending on infrastructure
253 “Delivering    for
              reported   America:   The macroeconomic
                           in 2019 was                     impacts$441
                                         (in current 2019 dollars)  of reinvesting
                                                                         billion as ofin2017.
                                                                                         America’s  infrastructure
                                                                                              That translated        systems.”
                                                                                                                into 2.3 percentBusiness   Round-
                                                                                                                                  of U.S. GDP. According
    table. 2021.   https://s3.amazonaws.com/brt.org/BusinessRoundtable_Delivering_for_America_Infrastructure_Report_Updat-
              to a testimony of Richard E. Geddess of the American Enterprise Institute before the House Committee on the Budget on
    ed_April2021.pdf.
              October 22, 2019, the figure was “well below estimates of the spending needed to keep infrastructure in a state of good
              repair.” This
254 Commissioner        DavidCBO     estimate
                                Garza,         of before
                                        Testimony transportation  and water
                                                            the House          infrastructure
                                                                        Select Committee      Onspending
                                                                                                  Economic  as a share ofand
                                                                                                              Disparity   GDP  represents
                                                                                                                             Fairness  In the   lowest
                                                                                                                                          Growth,
    June 14, level
              2022,in more than 60 years (spending peaked at about three              percent in the late 1950s)”. https://budget.house.gov/sites/
                       https://www.congress.gov/117/meeting/house/114918/witnesses/HHRG-117-EF00-Wstate-GarzaD-20220617.pdf
              democrats.budget.house.gov/files/documents/Infrastructure%20and%20the%20Economy%20-%20Post-Hearing%20
255 Sophia Campbell,        Jimena Ruiz Castro, David Wessel, “The benefits and costs of broadband expansion.” Brookings Institu-
    tion. Aug.Report%20-%20FINAL.pdf
                 18, 2021. https://www.brookings.edu/blog/up-front/2021/08/18/the-benefits-and-costs-of-broadband-expansion;
       261
    “BringingIn this
               Broadband
                     analysis,
                           to the
                               Rural
                                  federal
                                     America.”
                                          and state
                                               Richmond
                                                     and local
                                                           Fed. Dec.
                                                                government
                                                                     2020. investments are not treated
                                                                           https://www.richmondfed.org/publications/communi-
                                                                                                        separately because, “much of the
    ty_development/community_scope/2020/comm_scope_vol8_no1
            infrastructure investment   done by state and local governments is financed by the federal government through grants in
256 Anthonyaid.”
              P. Carnevale, Nicole Smith, “Trillion Dollar Infrastructure Proposals Could Create Millions of Jobs: Will the New Jobs
    Lead
       Fair,
          toRay C.
             Sustainable
                       (2021). “U.S.
                                 Careers,” 2017
                                         Infrastructure from 1929 to 2019.”
                                                    https://cew.georgetown.edu/wp-content/uploads/trillion-dollar-infrastructure.pdf;
                                                                                    https://fairmodel.econ.yale.edu/rayfair/pdf/2019D.PDF; Earlier        M.
    D. G. Escobari,
              estimates  “How fromfederal
                                      the Congressional
                                            infrastructureBudget
                                                              investmentOffice
                                                                             canshow    America
                                                                                  put that   combined
                                                                                                   to work,”
                                                                                                           federal,
                                                                                                               The state
                                                                                                                    Brookings
                                                                                                                           and local
                                                                                                                                Institution.
                                                                                                                                      spendingMarch
                                                                                                                                                  on 9, 2022,
                                                                                                                                                      infrastructure
    https://www.brookings.edu/research/how-federal-infrastructure-investment-can-put-america-to-work;
              reported in 2019 was (in current 2019 dollars)               $441 billion as of 2017. That translated into 2.3 percent      Joseph   W.GDP.
                                                                                                                                              of U.S.   Kane,According
    Robert to a
             Puentes,      “Expanding
                     testimony               opportunity
                                     of Richard E.          through
                                                      Geddess          infrastructure jobs.”
                                                                 of the American       Enterprise TheInstitute
                                                                                                       Brookings   Institution.
                                                                                                                before the  HouseMay 7,  2015. on
                                                                                                                                    Committee   https://www.
                                                                                                                                                       the Budget on
    brookings.edu/research/expanding-opportunity-through-infrastructure-jobs/
              October 22, 2019, the figure was             “well below estimates of the spending needed to keep infrastructure in a state of good
              repair.”Testimony
257 Neil Crabtree,        This CBO before
                                        estimatetheofU.S.
                                                       transportation
                                                           House Selectand     water infrastructure
                                                                            Committee      on Economic    spending
                                                                                                            Disparity asand
                                                                                                                         a share  of GDP
                                                                                                                             Fairness      represents
                                                                                                                                       in Growth,   Feb.the
                                                                                                                                                          9, lowest
    2022, level in more than 60 years (spending peaked at about                         three percent in the late 1950s)”. https://budget.house.gov/sites/
           https://www.congress.gov/117/meeting/house/114393/witnesses/HHRG-117-EF00-Wstate-CrabtreeN-20220209.pdf
              democrats.budget.house.gov/files/documents/Infrastructure%20and%20the%20Economy%20-%20Post-Hearing%20
258 Dr. Carlos Martín,       Testimony before the U.S. House Select Committee on Economic Disparity and Fairness in Growth, Febru-
              Report%20-%20FINAL.pdf
    ary 2022, https://www.brookings.edu/testimonies/fairness-and-equity-in-infrastructure-policy/
       262 In this analysis, the federal and state and local government investments are not treated separately because, “much of the
259 Hailey Phelps,      “When Interstates
              infrastructure        investmentPaveddone by thestate
                                                                Way:andThelocal
                                                                            construction
                                                                                 governments of theisInterstate
                                                                                                      financed by Highway    System
                                                                                                                     the federal      helped develop
                                                                                                                                  government     through thegrants in
    U.S. Economy,”
              aid.” Federal Reserve Bank of Richmond, 2021, https://www.richmondfed.org/publications/research/econ_fo-
    cus/2021/q2-3/economic_history
       Fair, Ray C. (2021). “U.S. Infrastructure from 1929 to 2019.” https://fairmodel.econ.yale.edu/rayfair/pdf/2019D.PDF; Earlier
260 Clockwise     from topfrom
              estimates         left:the
                                       Photo 1: “A   Cross Bronx
                                           Congressional            Expressway
                                                             Budget Office          interchange
                                                                                show that    combinedin 1973," Chester
                                                                                                           federal,      Higgins
                                                                                                                     state and /   Environmental
                                                                                                                                local spending    on Protec-
                                                                                                                                                      infrastructure
    tion Agency;
              reportedPhoto in 2:  Construction
                                2019                 of the
                                       was (in current       Milwaukee
                                                          2019             freeway
                                                                 dollars) $441        in the
                                                                                 billion      1960s,
                                                                                          as of   2017. Milwaukee   County
                                                                                                        That translated   intoHistorical
                                                                                                                               2.3 percentSociety;  Photo
                                                                                                                                              of U.S. GDP.3: According
    Construction      of the Cross
              to a testimony             Bronx Expressway;
                                     of Richard    E. Geddess of Photo    4: The Sheridan
                                                                    the American               Expressway
                                                                                       Enterprise    Instituteinbefore
                                                                                                                 the Bronx,   MarchCommittee
                                                                                                                        the House    19, 2017, Gregg    Vigliotti
                                                                                                                                                   on the  Budget on
    for The New
              OctoberYork22,Times2019, the figure was “well below estimates of the spending needed to keep infrastructure in a state of good
261 “Beyondrepair.”
                Traffic This
                          2045,”CBO     estimate
                                     U.S.           of of
                                           Department  transportation     and water
                                                              Transportation,           infrastructure spending as a share
                                                                                  June 2017.                                      of GDP represents the lowest
                                                                                                https://www.transportation.gov/sites/dot.gov/files/
              level in more       than 60 years (spending
    docs/BeyondTraffic_tagged_508_final.pdf;                  ”Howpeaked    at about
                                                                      Interstate        three percent
                                                                                   Highways      Guttedin the late    1950s)”. Reinforced
                                                                                                          Communities—and      https://budget.house.gov/sites/
                                                                                                                                               Segregation,”
              democrats.budget.house.gov/files/documents/Infrastructure%20and%20the%20Economy%20-%20Post-Hearing%20
    HISTORY, https://www.history.com/news/interstate-highway-system-infrastructure-construction-segregation
              Report%20-%20FINAL.pdf
262 In this analysis, the federal and state and local government investments are not treated separately because, “much of
    the infrastructure Society
       263    American        investment of Civil
                                              doneEngineers.
                                                     by state (2021).
                                                                and local“Report   Card for is
                                                                            governments       America’s
                                                                                                 financedInfrastructure.”
                                                                                                            by the federal government through grants
    in aid.” Earlier   estimates       from   the Congressional      Budget    Office
       264 GAO. Transportation Infrastructure: Information on Bridge Conditions.        show    that  combined    federal,Nov
                                                                                                            GAO-16-72R      state and
                                                                                                                                30,     local
                                                                                                                                    2015.     spending
                                                                                                                                            Available  at:on
                                                                                                                                                           https://www.
    infrastructure      reported in 2019 was (in current 2019 dollars) $441 billion as of 2017. That translated into 2.3% of U.S. GDP. Ac-
              gao.gov/products/gao-16-72r
    cording testimony by Richard E. Geddes of the American Enterprise Institute in 2019, the figure was “well below estimates
       265spending
    of the     “Beyondneeded Trafficto 2045.”
                                          keep U.S.   Department
                                                infrastructure    in aofstate
                                                                         Transportation.     https://www.transportation.gov/sites/dot.gov/files/docs/Be-
                                                                               of good repair.”     This CBO estimate of transportation and water
              yondTraffic_tagged_508_final.pdf
    infrastructure spending as a share of GDP represents the lowest level in more than 60 years (spending peaked at about
       266percent
    three     Michael      Burrows,
                       in the            Charlynn
                                late 1950s)”.        Burd,
                                                 Ray C.     and
                                                          Fair,   Brian
                                                                “U.S.     McKenzie, “​​ from
                                                                       Infrastructure    Commuting
                                                                                                 1929 toby  Public
                                                                                                          2019,”    Transportation in the
                                                                                                                  2021,                       United States: 2019,”
                                                                                                                        https://fairmodel.econ.yale.edu/
    rayfair/pdf/2019D.PDF;
              U.S.   Census Bureau.  “PublicApr.
                                               Spending
                                                  2021. on Transportation and Water Infrastructure,
                                                         https://www.census.gov/content/dam/Census/library/publications/2021/acs/acs-48.pdf
                                                                                                                   1956 to 2017,” Congressional Budget
    Office,
       267 Oct.     15, 2018,
              Christina          https://www.cbo.gov/publication/54539;
                             Stacy,   Yipeng Su, Eleanor Noble, Alena Stern,Testimony                of Richard
                                                                                        Kristin Blagg,            GeddesRichard
                                                                                                          Macy Rainer,     before Ezike,
                                                                                                                                   the House    Committee
                                                                                                                                           “Access   to Op- on
    the Budget,     Oct. 22,
              portunity          2019, https://budget.house.gov/sites/democrats.budget.house.gov/files/documents/Infrastructure%20
                             through     Equitable Transportation,” Urban Institute. Oct. 2020. https://www.urban.org/sites/default/files/
    and%20the%20Economy%20-%20Post-Hearing%20Report%20-%20FINAL.pdf
              publication/102992/access-to-opportunity-through-equitable-transportation_0.pdf; “Supporting Late-Shift Workers:
263 “ReportTheir
              Card for
                   Transportation
                        America’s Needs
                                   Infrastructure,”
                                           and the American
                                                    Economy,”Society
                                                                Americanof Civil
                                                                           PublicEngineers,
                                                                                    Transit 2021,
                                                                                           Association. Sep. 2019.
                                                                                                   https://infrastructurereportcard.org/
                                                                                                                     https://www.apta.com/
    cat-item/broadband/
             research-technical-resources/research-reports/supporting-late-shift-workers-their-transportation-needs-and-the-econ-
             omy; Martha
264 “Transportation          M. Galvez,Information
                       Infrastructure:  “Transportation   options
                                                    on Bridge     are expanding,
                                                               Conditions,”         but can Accountability
                                                                              Government     they reach the Office,
                                                                                                              urban poor?”  Urban
                                                                                                                     Nov. 30, 2015,Institute.
                                                                                                                                    https:// June
             22, 2016. https://www.urban.org/urban-wire/transportation-options-are-expanding-can-they-reach-urban-poor#:~:tex-
    www.gao.gov/products/gao-16-72r
             t=Whether%20it%20is%20car%20ownership%2C%20new%20forms%20of,have%20fewer%20fallbacks%20when%20
265 “Beyondtheir%20transportation%20falls%20through
               Traffic 2045,” U.S. Department of Transportation, https://www.transportation.gov/sites/dot.gov/files/docs/Be-
    yondTraffic_tagged_508_final.pdf
       268 Alix Gould-Werth, “New research shows that 1 in 4 adults in the United States suffers from transportation insecurity,”
266 Michael Washington
              Burrows, Charlynn
                            CenterBurd,  and Brian
                                   for Equitable    McKenzie,
                                                 Growth.   Sep.“Commuting      by Public Transportation in the United States: 2019,”
                                                                14, 2022. https://equitablegrowth.org/new-research-shows-that-1-in-4-
    U.S. Census   Bureau. April 2021, https://www.census.gov/content/dam/Census/library/publications/2021/acs/acs-48.pdf
             adults-in-the-united-states-suffers-from-transportation-insecurity/
267 Christina  Stacy,Higgins.
       269 Eileen     Yipeng Su,  Eleanor
                               “Written    Noble, Alena
                                         Statement       Stern,
                                                    for The     Kristin
                                                             Record     Blagg,
                                                                     Hon.  EileenMacy  Rainer,
                                                                                   Higgins,    Richard Ezike,
                                                                                             County             “Access to
                                                                                                     Commissioner          Oppor- County, Fla.
                                                                                                                     Miami-Dade
    tunity through   Equitablewith
             in Collaboration   Transportation,”
                                     the NationalUrban   Institute,
                                                  Association       Oct. 2020,February
                                                                Of Counties.”    https://www.urban.org/sites/default/files/publi-
                                                                                          9, 2022. https://www.congress.gov/117/meeting/
             house/114393/witnesses/HHRG-117-EF00-Wstate-HigginsE-20220209.pdf

            APPENDIX
            Endnotes                                                                                                                                      185
270 “Access to Opportunity through Equitable
            cation/102992/access-to-opportunity-through-equitable-transportation_0.pdf;
                                               Transportation: Lessons from Four Metropolitan   “Supporting
                                                                                                   Regions,” Urban
                                                                                                             Late-Shift
                                                                                                                      Institute.
                                                                                                                          Workers:
                                                                                                                                 Octo-
                                                                                                                                    Their
            Transportation Needs and the Economy,” American Public
    ber 2020.                                                            Transit Association, Sept. 2019, https://www.apta.com/re-
              https://www.urban.org/sites/default/files/publication/102992/access-to-opportunity-through-equitable-transpor-
    tation_0.pdf; Raj Chetty, Nathaniel Hendren, Patrick Kline, and Emmanuel
            search-technical-resources/research-reports/supporting-late-shift-workers-their-transportation-needs-and-the-economy;
                                                                                  Saez. 2014. “Where Is the Land of Opportunity?
    The Geography
            Martha ofM. Galvez,
                       Intergenerational
                                “Transportation
                                         Mobility in
                                                options
                                                     the are
                                                         United
                                                             expanding,
                                                                States.” but
                                                                         Quarterly
                                                                             can they
                                                                                    Journal
                                                                                       reachofthe urban
                                                                                               Economicspoor?”
                                                                                                           129 (4):
                                                                                                                Urban
                                                                                                                    1553–Institute,
                                                                                                                           1623. June 22,
            2016, of
271 US Chamber    https://www.urban.org/urban-wire/transportation-options-are-expanding-can-they-reach-urban-poor
                     Commerce, “How Infrastructure Impacts Business,” published September 15, 2021 https://www.uschamber.
      com/infrastructure/business-guide-infrastructure.
        268 Alix Gould-Werth,  “New research shows that 1 in 4 adults in the United States suffers from transportation insecurity,”
            Washington
272 Ray Allen, U.S. HouseCenter
                          Selectfor Equitableon
                                 Committee    Growth, Sept.
                                                Economic    14, 2022,and
                                                          Disparity   https://equitablegrowth.org/new-research-shows-that-1-in-4-
                                                                         Fairness in Growth, “Connecting Americans to Prosper-
    ity: Howadults-in-the-united-states-suffers-from-transportation-insecurity/
             Infrastructure Can Bolster Inclusive Economic Growth,” Feb. 9, 2022. https://fairgrowth.house.gov/news/press-re-
    leases/hearing-recap-connecting-americans-prosperity-how-infrastructure-can-bolster
       269 Eileen Higgins, Testimony before the   House Select Committee On Economic Disparity and Fairness In Growth, Feb. 9, 2022.
273 Stewart https://www.congress.gov/117/meeting/house/114393/witnesses/HHRG-117-EF00-Wstate-HigginsE-20220209.pdf
            Schley, University of New Hampshire, https://www.unh.edu/broadband/study-finds-broadband-adoption-tied-
    economic-growth;
       270     “Access toJed Opportunity
                                 Kolko, “Broadband
                                            through and
                                                      Equitable
                                                            Local Growth,”
                                                                 Transportation:
                                                                             Journal
                                                                                  Lessons
                                                                                     of Urban
                                                                                           from Four
                                                                                              Economics,
                                                                                                       Metropolitan
                                                                                                            Volume 71, Regions,”
                                                                                                                           Issue 1, Urban
                                                                                                                                    January 2012.
                                                                                                                                           Institute, Oc-
    https://www.sciencedirect.com/science/article/pii/S0094119011000490?via%3Dihub;
              tober 2020,     https://www.urban.org/sites/default/files/publication/102992/access-to-opportunity-through-equitable-trans-
                                                                                                     Brian Whitacre, Robert Gallardo,
    Sharon Strover,
              portation_0.pdf;
                         “Does rural
                                   Raj Chetty,
                                       broadband Nathaniel
                                                    impact jobs
                                                            Hendren,
                                                                  and Patrick
                                                                       income?Kline,
                                                                                Evidence
                                                                                     and from
                                                                                          Emmanuel
                                                                                               spatialSaez,
                                                                                                        and “Where
                                                                                                             first-differenced
                                                                                                                        Is the Land of
                                                                                                                                  regressions.”
                                                                                                                                         Opportunity? The
    Ann Reg Sci
              Geography
                    53, 2014.of Intergenerational Mobility in
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                                                                 the United States,” Quarterly Journal
                                                                                                  Zuo, of
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                                                                                                                               (4): 1553–
                                                                                                                                      and Hired:
                                                                                                                                           1623, 2014
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       271 “HowEffects         of Subsidized
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       272 Ray Allen,      Testimony before the U.S. House Select Committee on Economic Disparity and Fairness in Growth, Feb. 9, 2022,
    papers.cfm?abstract_id=3577029
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274 Blair Levin, “COVID-19 proves we need to continue upgrading America’s broadband infrastructure,” Brookings Institution,
       2730,Jed
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                        https://www.brookings.edu/blog/the-avenue/2020/03/30/covid-19-proves-we-need-to-continue-upgrad-
              sciencedirect.com/science/article/pii/S0094119011000490?via%3Dihub; Brian Whitacre, Robert Gallardo, Sharon Strover,
    ing-americas-broadband-infrastructure
              “Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions,” The Annals of Re-
275 Adie Tomer,
              gionalJoseph
                       ScienceW.53,
                                  Kane,  Caroline George. “Rebuild with
                                     2014,                                  Purpose: An affirmative vision for
                                            https://link.springer.com/article/10.1007/s00168-014-0637-x;          21st W.
                                                                                                               George  century   American
                                                                                                                             Zuo, 2021,      infra-
                                                                                                                                         "Wired  and Hired:
    structure.”   The Brookings
              Employment            Institution.
                               Effects            April 2021.
                                         of Subsidized        https://www.brookings.edu/wp-content/uploads/2021/04/20210413_Brook-
                                                         Broadband   Internet for Low-Income Americans," American Economic Journal: Economic
    ingsMetro_American-Infrastructure-Vision_Report.pdf#page=25.
              Policy, 13 (3): 447-82.DOI: 10.1257/pol.20190648; Younjun Kim, Peter F. Orazem, "Broadband, Internet and New Firm Location
276 Sophia Campbell,
              Decisions in Jimena
                              Rural Ruiz
                                     Areas,"
                                          Castro,
                                             American
                                                   and David
                                                         Journal of
                                                               Wessel, “The
                                                                    Agricultural
                                                                              Benefits
                                                                                  Economics,
                                                                                       and Costs
                                                                                              Vol.of
                                                                                                   99, Issue
                                                                                                     Broadband1, 2017,
                                                                                                                    Expansion,” The
                                                                                                                       https://papers.ssrn.com/sol3/
                                                                                                                                        Brookings
    Institution. Aug. 18, 2021.
              papers.cfm?abstract_id=3577029
                                   https://www.brookings.edu/blog/up-front/2021/08/18/the-benefits-and-costs-of-broadband-ex-
    pansion/;
       274 Blair Colleen
                     Levin,McClain,
                             “COVID-19“34%   of lower-income
                                          proves                broadband
                                                      need to continue      users had
                                                                          upgrading    trouble broadband
                                                                                    America’s  paying for itinfrastructure,”
                                                                                                              amid COVID-19,”      Pew Research
                                                                                                                                Brookings    Institution,
    Center. June     3, 2021. https://www.pewresearch.org/fact-tank/2021/06/03/34-of-lower-income-home-broadband-users-
              Mar. 30, 2020, https://www.brookings.edu/blog/the-avenue/2020/03/30/covid-19-proves-we-need-to-continue-upgrad-
    have-had-trouble-paying-for-their-service-amid-covid-19/
              ing-americas-broadband-infrastructure
277 U.S. House
       275  AdieSelect Committee
                  Tomer, Joseph  W.on  Economic
                                     Kane,       Disparity
                                           Caroline George.and   Fairness
                                                             “Rebuild     in Growth,
                                                                        with         Roundtable
                                                                             Purpose: An         on vision
                                                                                         affirmative Building Inclusive
                                                                                                            for 21st    Prosperity
                                                                                                                     century American infra-
    for Ruralstructure.”
              America. https://fairgrowth.house.gov/legislation/hearings/rural-roundtable
                         The Brookings Institution. April 2021. https://www.brookings.edu/wp-content/uploads/2021/04/20210413_Brook-
278 As Brookings Institution describes in their
             ingsMetro_American-Infrastructure-Vision_Report.pdf#page=25.
                                                      above report, “there is an availability gap, which reflects a lack of physical con-
    nectivity  at a given address.    There  is
       276 Sophia Campbell, Jimena Ruiz Castro, also an  adoption  gap, which
                                                           David Wessel,   “Theexists   due and
                                                                                  Benefits   to affordability, digital skills,
                                                                                                  Costs of Broadband           and other
                                                                                                                         Expansion,”   Thebarriers.”
                                                                                                                                           Brookings
    https://www.brookings.edu/wp-content/uploads/2021/04/20210413_BrookingsMetro_American-Infrastructure-Vision_Re-
             Institution. Aug. 18, 2021, https://www.brookings.edu/blog/up-front/2021/08/18/the-benefits-and-costs-of-broadband-ex-
    port.pdf#page=25;      Federal   Communications       Commission,    Broadband     Deployment    Report,   Arp. 24, 2020.   https://docs.fcc.
             pansion/; Colleen McClain, “34% of lower-income broadband users had trouble paying for it amid COVID-19,” Pew Research
    gov/public/attachments/DOC-363985A1.pdf;              Letter from U.S. House Committee on Oversight and Reform, Oct. 21, 2021.
             Center, June 3, 2021, https://www.pewresearch.org/fact-tank/2021/06/03/34-of-lower-income-home-broadband-users-
    https://republicans-oversight.house.gov/release/lack-of-internet-access-hinders-rural-americas-education-and-econom-
             have-had-trouble-paying-for-their-service-amid-covid-19/
    ic-opportunities/#:~:text=%E2%80%9CAccording%20to%20the%20Federal%20Communications%20Commission%20
       277 Andrew Seibel, Testimony before the Committee on Economic Disparity and Fairness in Growth
    %28FCC%29%2C%20roughly,as%20download%20speeds%20of%20at%20least%2025%20mpbs;                                         JohnRoundtable,   July 14, 2022,
                                                                                                                                Busby, Julia
             https://youtu.be/ub48Dm25VlQ?t=2161
    Tanberk, Tyler Cooper,    “BroadbandNow Estimates Availability for all 50 States; Confirms that More than 42 Million Amer-
    icans
       278DoAsNot Have   Access
                 Brookings         to Broadband,”
                             Institution              BroadbandNow,
                                           describes in their            May 5,is an
                                                                report, “there    2021. https://broadbandnow.com/research/fcc-broad-
                                                                                      availability gap, which  reflects a lack of physical connectivity
    band-overreporting-by-state
             at a given address. There is also an adoption gap, which exists due to affordability, digital skills, and other barriers.” “Rebuild
             with purpose,”
279 Nicol Turner-Lee,          Brookings
                        “Building   for the Institution,  April 2021,
                                             Future: Advancing        https://www.brookings.edu/wp-content/uploads/2021/04/20210413_Brook-
                                                                  Digital Competitiveness through Broadband Access and Adoption”
             ingsMetro_American-Infrastructure-Vision_Report.pdf;
    before the   Select Committee on Economic Disparity and Fairness          “Broadband
                                                                                 in Growth.Deployment
                                                                                              February 2022.Report,”  Federal Communications Com-
                                                                                                               https://www.brookings.edu/
             mission, April 24, 2020,     https://docs.fcc.gov/public/attachments/DOC-363985A1.pdf; Letter from U.S. HouseJessica
    testimonies/building-for-the-future-advancing-digital-competitiveness-through-broadband-access-and-adoption;                            Committee on
             Oversight
    Fulton, “Joint       andWritten
                    Center    Reform,    Oct. 21, for
                                       Remarks     2021.
                                                      thehttps://republicans-oversight.house.gov/release/lack-of-internet-access-hinders-ru-
                                                          U.S. House Select Committee on Economic Disparity and Fairness in Growth
             ral-americas-education-and-economic-opportunities/;
    Roundtable on Rural Economic         Development.” July 14, 2022. John Busby, Julia Tanberk,             Tyler Cooper, “BroadbandNow Estimates
                                                                           https://jointcenter.org/wp-content/uploads/2022/07/Jessi-
             Availability for all 50 States; Confirms that More than 42 Million Americans Do Not Have Access to Broadband,” Broadband-
    ca-Fulton_Joint-Center_Rural-Roundtable_Written-Remarks.pdf
             Now, May 5, 2021. https://broadbandnow.com/research/fcc-broadband-overreporting-by-state
280 “Digital Inequality and Low-Income Households,” Evidence Matters, HUD Office of Policy Development and Research, Fall
       279 Nicol Turner Lee, Testimony before
    2016.                                              the Select Committee on Economic
           https://www.huduser.gov/portal/periodicals/em/fall16/highlight2.html;                 Disparity
                                                                                              Emily A      and“Digital
                                                                                                      Vogels.   Fairness in
                                                                                                                        divideGrowth,  February
                                                                                                                                 persists even as2022,
    Americanshttps://www.brookings.edu/testimonies/building-for-the-future-advancing-digital-competitiveness-through-broad-
                 with lower incomes make gains in tech adoption.” Pew Research Center. June 22, 2021 https://www.pewresearch.
             band-access-and-adoption; Jessica Fulton, Testimony before the Select Committee on Economic Disparity and Fairness in
    org/fact-tank/2021/06/22/digital-divide-persists-even-as-americans-with-lower-incomes-make-gains-in-tech-adoption/.
             Growth, July 14, 2022. https://jointcenter.org/wp-content/uploads/2022/07/Jessica-Fulton_Joint-Center_Rural-Roundta-
281 U.S. House    Select Committee on Economic Disparity and Fairness in Growth, Field Hearing: Infrastructure Investment -
             ble_Written-Remarks.pdf
    Building Economic Resilience in South Texas, June 17, 2022. https://www.youtube.com/watch?v=IzXyHvsZuxA&t=998s
       280 “Digital Inequality and Low-Income Households,” Evidence Matters, HUD Office of Policy Development and Research, Fall
282 House Committee       on Transportation and Infrastructure, Infrastructure Investment and
             2016, https://www.huduser.gov/portal/periodicals/em/fall16/highlight2.html;                  Jobs
                                                                                                      Emily     Act. https://transportation.
                                                                                                             A Vogels,  “Digital divide persists even as
    house.gov/committee-activity/issue/infrastructure-investment-and-jobs-act
             Americans with lower incomes make gains in tech adoption,” Pew Research Center, June 22, 2021, https://www.pewre-
283 IIJA’s broadband investment is split between $42.5 billion in state grants
             search.org/fact-tank/2021/06/22/digital-divide-persists-even-as-americans-with-lower-incomes-make-gains-in-tech-adop-
                                                                                          for deployment, $2 billion dedicated specifically
    to rural tion/.
             regions for broadband deployment, and $14.2 billion for the Affordable Connectivity Program — a private-public
    partnership
       281         — to address
             Jordana              the affordability
                       Barton-Garcia,                  component
                                          Testimony at the    Selectof the digital on
                                                                      Committee     divide.#
                                                                                        Economic Disparity and Fairness in Growth Field Hearing,
U.S. House Select
              June 17,
                  Committee
                       2022. on Economic Disparity and
                            https://www.youtube.com/watch?v=IzXyHvsZuxA&t=998s
                                                         Fairness in Growth, Hearing: Connecting Americans to Prosperity,
      https://www.youtube.com/watch?v=wiVkOXV34cU;        https://broadbandusa.ntia.gov/resources/grant-programs/digital-equi-
         282 House Committee on Transportation and Infrastructure,    Infrastructure Investment and Jobs Act, https://transportation.
      ty-programs.
              house.gov/committee-activity/issue/infrastructure-investment-and-jobs-act
284 PLACEHOLDER
      283 IIJA’s broadband investment is split between $42.5 billion in state grants for deployment, $2 billion dedicated specifically
285 Dr. Carlos
            to rural
               Martín,
                     regions
                        Davidfor
                              M.broadband
                                  Rubenstein Fellow,
                                             deployment,
                                                      The and
                                                           Brookings
                                                               $14.2 billion
                                                                     Institution;
                                                                             for the
                                                                                   From
                                                                                     Affordable
                                                                                         the testimony
                                                                                                Connectivity
                                                                                                        before the
                                                                                                             Program
                                                                                                                   Select
                                                                                                                       — aCommittee
                                                                                                                           private-public
    on Economic
            partnership
                  Disparity
                          — to
                            andaddress
                                 Fairness
                                       thein Growth,
                                            affordability
                                                     February
                                                          component
                                                               9, 2022.
                                                                      of the digital divide. “Hearing:
                                                                          https://www.congress.gov/117/meeting/house/114393/wit-
                                                                                                       Connecting Americans to Prosperity,”
    nesses/HHRG-117-EF00-Wstate-MartnC-20220209.pdf

                    House Select Committee on
186                 Economic Disparity & Fairness in Growth
     U.S.
       286House
             Andy
                Select
                  Winkler,
                       Committee
                            Owen on
                                  Minott,
                                       Economic
                                          “IIJA Provisions
                                                  Disparity to
                                                            andAccelerate
                                                                 Fairness in
                                                                           Clean
                                                                             Growth,
                                                                                 Infrastructure Permitting
                                                                                      https://www.youtube.com/watch?v=wiVkOX-
                                                                                                            and Environmental Review,”
     V34cU; “Digital
             Bipartisan
                     Equity
                        Policy
                            Programs,”
                               Center. Mar. 21,
                                        BroadbandUSA,
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                                                          National Telecommunications and      Information Administration, last
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             ture-permitting-and-environmental-review/
                              https://broadbandusa.ntia.gov/resources/grant-programs/digital-equity-programs.
284 Adie
       287Tomer,
             Joseph
                  Joseph
                      W. W.
                          Kane,Kane,
                                 “TheCaroline
                                       future American
                                               George.=,workforce    withhave
                                                           "Rebuild will   purpose:
                                                                                a lot An
                                                                                      of jobs to
                                                                                          affirmative
                                                                                                 fill, vision
                                                                                                      particularly
                                                                                                              for 21st
                                                                                                                   in century
                                                                                                                      infrastructure,”
                                                                                                                                AmericanBrookings
    infrastructure.=,"
             Institution. Dec.
                         Brookings
                                7, 2017.
                                    Institution. April 13, 2021,
                                         https://www.brookings.edu/blog/the-avenue/2017/12/07/the-future-american-workforce-will-have-
                                                                 https://www.brookings.edu/essay/american-infrastructure-vision/
             a-lot-of-jobs-to-fill-particularly-in-infrastructure;
285 Dr. Carlos Martín, Testimony before      the U.S. House Select Nicol    Turner-Lee,
                                                                      Committee           Testimony
                                                                                   on Economic         before and
                                                                                                   Disparity   the U.S. House
                                                                                                                   Fairness  in Select  Committee
                                                                                                                                Growth, Feb.  9,    on
             Economic Disparity & Fairness in Growth, Hearing on Connecting Americans to Prosperity: How Infrastructure can Bolster
    2022, https://www.brookings.edu/testimonies/fairness-and-equity-in-infrastructure-policy
             Inclusive Economic Growth, Feb. 9, 2022. https://www.congress.gov/117/meeting/house/114393/witnesses/HHRG-117-EF00-
286 Andy Winkler,   Owen Minott, “IIJA Provisions to Accelerate Clean Infrastructure Permitting and Environmental Review,”
             Wstate-TurnerLeeN-20220209.pdf
    Bipartisan Policy Center. March 21, 2022. https://bipartisanpolicy.org/blog/iija-provisions-to-accelerate-clean-infrastruc-
       288 “What The Infrastructure Package Means For Workforce Development: Opportunities For Governors,” National Governors
    ture-permitting-and-environmental-review/
             Association. Nov. 15, 2021. https://www.nga.org/center/publications/what-the-infrastructure-package-means-for-work-
287 Joseph W.   Kane, “The future American workforce will have a lot of jobs to fill, particularly in infrastructure,” Brookings
             force-development-opportunities-for-governors/
    Institution. Dec. 7, 2017. https://www.brookings.edu/blog/the-avenue/2017/12/07/the-future-american-workforce-will-have-
       289 Photo 1: “Works Progress Administration Worker
    a-lot-of-jobs-to-fill-particularly-in-infrastructure;           Receiving Paycheck,”
                                                             Nicol Turner-Lee,                National
                                                                                Testimony before      theArchives, Jan.Select
                                                                                                          U.S. House    1939, Committee
                                                                                                                               https://catalog.archives.
                                                                                                                                           on
             gov/id/594956
    Economic Disparity         Photo 2:inPhoto
                           & Fairness     Growth,by Feb.
                                                    Anthony   Tusler, “Historian assesses 30 years
                                                         9, 2022.                                       of the Americans with Disabilities Act,” SF
                                                                   https://www.congress.gov/117/meeting/house/114393/witnesses/
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    HHRG-117-EF00-Wstate-TurnerLeeN-20220209.pdf
             ties-act.html
288 “What The Infrastructure Package Means For Workforce Development: Opportunities For Governors,” National Governors
       290 Joseph
    Association,     W. 15,
                   Nov.  Kane,  “The
                            2021.    future American workforce will have a lot of jobs to fill, particularly in infrastructure,” Brookings
                                  https://www.nga.org/center/publications/what-the-infrastructure-package-means-for-work-
             Institution. Dec. 7, 2017. https://www.brookings.edu/blog/the-avenue/2017/12/07/the-future-american-workforce-will-have-
    force-development-opportunities-for-governors/
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Chapter 6:        An Disparity
             Economic  Unlevel& Fairness
                                      Playing       FieldHearing on Connecting Americans to Prosperity: How Infrastructure can Bolster
                                                 in Growth,
             Inclusive Economic Growth, Feb. 9, 2022. https://www.congress.gov/117/meeting/house/114393/witnesses/HHRG-117-EF00-
289 Photo 1: Wstate-TurnerLeeN-20220209.pdf
             “Works Progress Administration Worker Receiving Paycheck,” National Archives, Jan. 1939, https://catalog.archives.
    gov/id/594956. Photo 2: Anthony Tusler, “Historian assesses 30 years of the Americans with Disabilities Act,” SF State
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290 Testimony of Richard Cain, Vice President of Local 1104, United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
       292   Trymaine
    Allied Industrial andLee, “The Heartland:
                            Service             Life and Loss
                                    Workers International      in Ohio’s
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                                                                                                       Select Committee on Economic
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291 Robert
       294 E. Scott,   “We can
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292 TrymaineIntergenerational     Mobility
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293 Tyler Pager, “Trump Tells Upstate Residents to Flee New York.           Republicans There Don’t Disagree,” New York Times, Feb. 7, Victor
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294 “Neighborhoods,”                      Amitabh
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                                                                             https://books.google.com/books/about/The_New_Geogra-
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    nberwo/23001.html;
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                                                          Hendren,    NevianaJones,
                                                                                Petkova,  “Who
                                                                                      Sonya       Becomes
                                                                                             Porter,         an Inventor in
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                                                                                                                           Atlas:       Thethe Child-
                                                                                                                                  Mapping
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       297                  Amitabh
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                                                                                                   assistance          NBER.rural
                                                                                                               to maximize     February  2003, Brook-
                                                                                                                                   prosperity,”
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             ings           Patrick
                   Institution,     Kennedy, Harrison Wheeler, “Neighborhood-Level
                                2020,                                                         Investment from the U.S. Opportunity Zone
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    Program:Manduca.
                Early Evidence,”  April 13, 2022
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295 Raj Chetty,   John Friedman, Nathanial Hendren, Maggie Jones, Sonya Porter, “The Opportunity Atlas: Mapping the Childhood
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296 “Neighborhoods,”                            .
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       299
297 Tony      Kenan
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                                                             Income Convergence        Disparity
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                                                                                                                        http://www.nber.
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       303
301 Mike      Jens“Local
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                         Ties     J. Duncan,
                              in Spatial      Lisa A. Gennetian,
                                         Equilibrium,”           Lawrence
                                                       Finance and          F. Katz,
                                                                    Economics        Ronald C.
                                                                                Discussion     Kessler,
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                                                                                                          2019, no.              Sanbonmatsu,
                                                                                                                            Lisa https://
                                                                                                                     Kling,2019,
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                                                                                                                      Brookings   and Proceed-
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             ed-states

           APPENDIX
           Endnotes                                                                                                                         187
304 Note thattion, March
                there  are 9, 2022, types of place-based policies with objectives ranging
                           different https://www.brookings.edu/blog/the-avenue/2020/12/15/just-before-covid-19-american-migration-hit-
                                                                                                    from local economic activity stimula-
             a-73-year-low/;
    tion to targeting          Davidprograms
                       educational     Neumark,to“Do   Place-Based
                                                    specific           Policies
                                                              localities.        Work?”
                                                                          This ection     Econofact,
                                                                                        focuses        https://econofact.org/do-place-based-poli-
                                                                                                 on the former. Benjamin      Austin, Edward
    Glaeser,cies-work
              Lawrence Summers, “Jobs for the Heartland: Place-Based Policies in 21st-Century America,” 2018, https://www.
    brookings.edu/wp-content/uploads/2018/03/AustinEtAl_Text.pdf;
       302 Timothy J. Bartik, Testimony to the U.S. House Select Committee      David Neumark,
                                                                                         on EconomicHelen  Simpson,
                                                                                                         Disparity and“Place-Based    Policies.”
                                                                                                                         Fairness in Growth,  May 11,
    National2022,
              Bureau   of Economic Research, 2014; Robert Manduca,Catalina Anampa Castro, Analidis Ochoa, “Social Insurance
                    https://www.upjohn.org/sites/default/files/inline-files/FINAL%20Bartik%20written%20testimony%20May%2011%20
    Programs    as Place-Conscious Policies to Reduce Interregional Geographic Inequality,” https://osf.io/preprints/socarxiv/
             2022.pdf
    p8rtv/
       303 Jens Ludwig, Greg J. Duncan, Lisa A. Gennetian, Lawrence F. Katz, Ronald C. Kessler, Jeffrey R. Kling, Lisa Sanbonmatsu,
305 Jens Ludwig,    Greg J.the
             “Evaluating    Duncan,
                               ImpactLisa   A. Gennetian,
                                        of Moving          LawrenceinF.the
                                                    to Opportunity         Katz, Ronald
                                                                              United      C. Kessler,
                                                                                      States,”         Jeffrey
                                                                                                American       R. Kling,Review
                                                                                                            Economic     Lisa Sanbonmatsu,
                                                                                                                                Papers and Proceed-
    “Evaluating   the Impact   of  Moving  to Opportunity    in  the United  States,” American    Economic    Review   Papers  and Proceed-
             ings 103(3): 226-231, May 2013, https://www.povertyactionlab.org/evaluation/evaluating-impact-moving-opportunity-unit-
    ings 103(3): 226-231, May 2013, https://www.povertyactionlab.org/evaluation/evaluating-impact-moving-opportunity-unit-
             ed-states
    ed-states
       304 Note that there are different types of place-based policies with objectives ranging from local economic activity stimula-
306 “Community
             tion toDevelopment     Financial Institutions
                     targeting educational     programs to(CDFIs):
                                                              specificOverview
                                                                       localities.and
                                                                                   ThisSelected  Issues,” on
                                                                                        section focuses    Congressional
                                                                                                              the former. Research
                                                                                                                            Benjamin Service.
                                                                                                                                       Austin, Edward
    Aug. 16, 2022.  https://crsreports.congress.gov/product/pdf/R/R47217
             Glaeser,  Lawrence Summers, “Jobs for the Heartland: Place-Based Policies in 21st-Century America,” 2018, https://www.
             brookings.edu/wp-content/uploads/2018/03/AustinEtAl_Text.pdf;
307 The Indigenous peoples in the United        States also include Native Hawaiians,     David  Neumark,
                                                                                            Samoans          Helen Simpson,
                                                                                                        in American            “Place-Based
                                                                                                                     Samoa, Chamorro      in Policies.”
    Guam, andNational
                 Taino Bureau
                        residingofin Puerto
                                    Economic    Research,
                                             Rico. For    2014;
                                                       more        Robert please
                                                               information,Manduca,Catalina
                                                                                     visit:     Anampa Castro,     Analidis Ochoa, “Social Insurance
                                                                                            https://equitablegrowth.org/sovereignty-and-
             Programs as Place-Conscious Policies       to Reduce Interregional Geographic Inequality,” https://osf.io/preprints/socarxiv/
    improved-economic-outcomes-for-american-indians-building-on-the-gains-made-since-1990/
             p8rtv/
308 Before the COVID-19 pandemic, federal, state, and local governments were spending around $60 billion annually on spa-
    tially-targeted
       305     “The Opportunity
                      “place-based”
                                  Atlas,”
                                     policies
                                          U.S. to
                                               Census
                                                  create jobs
                                                        Bureau,in Harvard
                                                                  low-incomeUniversity,
                                                                               and and
                                                                                    economically
                                                                                            Brownstagnant
                                                                                                   University,
                                                                                                            areas. “Federal
                                                                                                               https://www.opportunityatlas.org/
                                                                                                                             Resources for
    State
       306and    Local Economic
              Roundtable:        Development,”
                            Economic   Empowerment Congressional
                                                         for NativeResearch    Service,
                                                                     Communities,    U.S.March
                                                                                          House22, 2021,Committee
                                                                                                Select  https://crsreports.congress.gov/
                                                                                                                     on Economic Disparity and
    product/pdf/IF/IF11794;   Emilyhttps://youtu.be/pbsqZb0GPrA
              Fairness in Growth,    Parker, Laura Tach, Cassandra Robertson, “Do Federal Place-Based Policies Improve Economic
    Opportunity in Rural Communities?” The Russell Sage Foundation Journal of the Social Sciences May 2022, 8 (4) 125-154;
       307
    DOI:      The Indigenous peoples in the United States also include Native Hawaiians, Samoans in American Samoa, Chamorro in
          10.7758/RSF.2022.8.4.06
              Guam, and Taino residing in Puerto Rico. For more information, please visit: https://equitablegrowth.org/sovereignty-and-
309 Jay Shambaugh,       Ryan Nunn, “Place-based Policies for Shared Economic Growth.”The Brookings Institution, September 28,
              improved-economic-outcomes-for-american-indians-building-on-the-gains-made-since-1990/
    2018. https://www.brookings.edu/multi-chapter-report/place-based-policies-for-shared-economic-growth/
       308 Before the COVID-19 pandemic, federal, state, and local governments were spending around $60 billion annually on spa-
310 Jay Shambaugh,       Ryan “place-based”
              tially-targeted Nunn, “Place-based      Policies
                                               policies        for Shared
                                                        to create           Economic Growth.”The
                                                                   jobs in low-income               Brookings
                                                                                        and economically       Institution,
                                                                                                          stagnant   areas. September  28,
                                                                                                                            “Federal Resources for
    2018. https://www.brookings.edu/multi-chapter-report/place-based-policies-for-shared-economic-growth/
              State and Local Economic Development,” Congressional Research Service, March 22, 2021, https://crsreports.congress.gov/
311 Jay Shambaugh,       Ryan Nunn, Emily
              product/pdf/IF/IF11794;“Place-based     Policies for
                                              Parker, Laura  Tach,Shared    Economic
                                                                     Cassandra         Growth.”The
                                                                                Robertson,          Brookings
                                                                                             “Do Federal       Institution,
                                                                                                         Place-Based        September
                                                                                                                       Policies Improve28,
                                                                                                                                        Economic
    2018. Opportunity in Rural Communities?” The Russell
           https://www.brookings.edu/multi-chapter-report/place-based-policies-for-shared-economic-growth/
                                                                     Sage Foundation Journal of the Social Sciences May 2022, 8 (4) 125-154;
              DOI: 10.7758/RSF.2022.8.4.06
312 Jay Shambaugh,       Ryan Nunn, “Place-based Policies for Shared Economic Growth.”The Brookings Institution, September 28,
      2018.
         309 Timothy J. Bartik, "Using Place-Based Jobs Policies
             https://www.brookings.edu/multi-chapter-report/place-based-policies-for-shared-economic-growth/
                                                                             to Help Distressed Communities," Journal of Economic Perspectives, 34
313            (3): 99-127,   https://pubs.aeaweb.org/doi/pdf/10.1257/jep.34.3.99;
       Brett Theodos, Christina Stacy Plerhoples, Helen Ho, “ Taking Stock of the          Testimony
                                                                                             Communityof Jay Williams before
                                                                                                          Development    Blockthe HouseThe
                                                                                                                                Grant,”  Committee
                                                                                                                                            Ur-       on
               Economic
      ban Institute,   AprilDisparity     and Fair Growth, May 11, 2022, https://www.congress.gov/117/meeting/house/114724/witnesses/HHRG-117-
                              14, 2017, https://www.urban.org/research/publication/taking-stock-community-development-block-grant
               EF00-Wstate-WilliaEIGmsJ-20220511.pdf
314    Timothy J. Barthink, “Using Place-Based Jobs Policies to Help Distressed Communities.” Journal of Economic Perspectives,
         310   Jay Shambaugh,
      34 (3): 99-127.DOI:             Ryan Nunn, “Place-based
                             10.1257/jep.34.3.99                    Policies for Shared Economic Growth,” The Brookings Institution, September 28,
                                                    https://pubs.aeaweb.org/doi/pdf/10.1257/jep.34.3.99
               2018, https://www.brookings.edu/multi-chapter-report/place-based-policies-for-shared-economic-growth/
315    George Zuo, “Getting Beneath the Hood of Effective Place-Based Policies: Evidence from the Community Development
         311 Grant,”
      Block    Margery     Austin Turner
                       November             andhttp://econweb.umd.edu/~zuo/files/ZuoGeorge_JMP.pdf
                                     18, 2020,    Solomon Greene “Causes and Consequences of Separate and Unequal Neighborhoods,” Urban
               Institute, https://www.urban.org/racial-equity-analytics-lab/structural-racism-explainer-collection/causes-and-conse-
316    The funding levels for the agency        have been historically volatile, reaching a peak of $4 billion in 1977 ($22.65 billion in 2021
               quences-separate-and-unequal-neighborhoods
      dollars), then plummeting to the average of $300 million between 2013-18. Brett Theodos, Leiha Edmonds, Christina Stacy,
         312 Photo
      Benjamin          1: Diesel
                  Docter,          engine assembly
                            Christopher                line at Shwabish,
                                            Davis, Jonathan    International  Harvester’s
                                                                           “History        Milwaukee Works,
                                                                                     and Programmatic         1938.ofWisconsin
                                                                                                         Overview               Historical
                                                                                                                      the Economic         Society,
                                                                                                                                    Develop-
               https://www.wisconsinhistory.org/Records/Image/IM3567;
      ment Administration,”                                                           Photo 2: Two Falk employees, Virginia Breest and Shirley Gunn
                                   The Urban Institute. October 2021, https://www.urban.org/sites/default/files/publication/105005/
               on the right, attend to the speed        increaser that is a later component of a jet engine compressor test stand on Feb. 8, 1973.
      history-and-programmatic-overview-of-the-economic-development-administration_0.pdf
               Wisconsin Historical Society. https://www.wisconsinhistory.org/Records/Image/IM50610
317    Liu, Amy, McDearman, Brad, et. al. “Making Local Economies Prosperous and Resilient: the Case for a Modern Economic
         313 Brett Theodos,
      Development                   Christina
                       Administration.”        Stacy
                                             June  27,Plerhoples,  Helen
                                                      2022. Available   at:Ho, “ Taking Stock of the Community Development Block Grant,” The Ur-
                                                                            https://www.brookings.edu/research/making-local-econo-
               ban   Institute,   April 14, 2017, https://www.urban.org/research/publication/taking-stock-community-development-block-grant
      mies-prosperous-and-resilient-the-case-for-a-modern-economic-development-administration/
318      314 Timothy
       Testimony    of JayJ.Williams,
                              Bartik, "Using   Place-Based
                                         the president        Jobs Policies
                                                         and Chief  ExecutivetoOfficer
                                                                                Help Distressed  Communities."
                                                                                       of the Hartford  FoundationJournal of Economic
                                                                                                                    for Public          Perspectives, 34
                                                                                                                               Giving, before
      the House(3):Committee
                    99-127.DOI:on   10.1257/jep.34.3.99,
                                      Economic Disparity   https://pubs.aeaweb.org/doi/pdf/10.1257/jep.34.3.99
                                                             and Fair Growth, May 11, 2022, https://www.congress.gov/117/meeting/
    house/114724/witnesses/HHRG-117-EF00-Wstate-WilliaEIGmsJ-20220511.pdf
        315 George Zuo, “Getting Beneath           the Hood of Effective Place-Based Policies: Evidence from the Community Development
319           Block Grant,”
     Empowerment       ZonesNov.
                              (EZs)18, 2020,
                                    were       http://econweb.umd.edu/~zuo/files/ZuoGeorge_JMP.pdf
                                           enacted    alongside smaller-scale Enterprise Communities (ECs) and Renewal Communities
    (RCs.
        316)HUD
              The funding
                  designatedlevels
                               six for
                                   urban
                                       the agency
                                          communities have as
                                                           been
                                                              EZs in the   firstvolatile,
                                                                 historically   round;USDAreaching a
                                                                                               designated
                                                                                                      peak of
                                                                                                           three
                                                                                                              $4 rural
                                                                                                                 billion in 1977
                                                                                                                         communities.
                                                                                                                                  ($22.65
                                                                                                                                        HUD
                                                                                                                                          billion
                                                                                                                                               andin 2021
    USDA designated
              dollars), then
                          20 additional
                             plummeting  EZsto(15the
                                                   urban
                                                     average
                                                         and of
                                                              five
                                                                 $300
                                                                   rural),
                                                                       million
                                                                           and in the
                                                                                 betweenthird2013-18.
                                                                                              round, Brett
                                                                                                      added nine
                                                                                                           Theodos,
                                                                                                                 EZsLeiha
                                                                                                                       (seven urban
                                                                                                                             Edmonds, and two
                                                                                                                                        Christina Stacy,
    rural). Benjamin
            “Revitalization
                          Docter,
                             Programs:
                                  Christopher
                                          Empowerment
                                                  Davis, Jonathan
                                                            Zones, Shwabish,
                                                                    Enterprise "History
                                                                                  Communities,
                                                                                             and and
                                                                                                 Programmatic
                                                                                                        Renewal Overview
                                                                                                                Communities,”of theGAO,
                                                                                                                                    Economic
                                                                                                                                         March  Develop-
    12, 2010, ment Administration,"
              https://www.gao.gov/assets/gao-10-464r.pdf
                                        The Urban Institute, Oct. 2021, https://www.urban.org/sites/default/files/publication/105005/histo-
              ry-and-programmatic-overview-of-the-economic-development-administration_0.pdf
320 “Empowerment         Zones, Enterprise Communities, and Renewal Communities: Comparative Overview and Anal-
    ysis,”
       317 Amy
           Congressional
                 Liu, Brad
                         Research
                           McDearman,
                                  Service,
                                        Xavier
                                           February
                                               de Souza
                                                     14, 2011,
                                                          Briggs, Mark Muro, Anthony F.
                                                               https://www.everycrsreport.com/files/20110214_R41639_
                                                                                        Pipa, Adie Tomer, Jennifer S. Vey, “Making Local
    b18ae5bf0fbe93505d7b6c2b13b744b76124b9ed.pdf
             Economies Prosperous   and Resilient: the Case for a Modern Economic Development Administration,” June 27, 2022, https://
             www.brookings.edu/research/making-local-economies-prosperous-and-resilient-the-case-for-a-modern-economic-devel-
321 Scott Eastman,   Nicole Kaedin, “Opportunity Zones: What We Know and What We Don’t,” Tax Foundation, 2022, https://
             opment-administration/
    taxfoundation.org/opportunity-zones-what-we-know-and-what-we-dont/
            Testimony
       318 Eastman,
322 Scott              of Jay
                     Nicole   Williams,
                            Kaedin,      the president
                                    “Opportunity        andWhat
                                                    Zones:  ChiefWe
                                                                  Executive
                                                                     Know and Officer
                                                                                 What ofWe
                                                                                         theDon’t,” TaxFoundation
                                                                                             Hartford   Foundation,    Public
                                                                                                                   for2022,   Giving, be-
                                                                                                                            https://
            fore the House Committee on Economic Disparity and Fair Growth, May 11, 2022, https://www.congress.gov/117/meeting/
    taxfoundation.org/opportunity-zones-what-we-know-and-what-we-dont/
            house/114724/witnesses/HHRG-117-EF00-Wstate-WilliaEIGmsJ-20220511.pdf
323 Testimony of the Urban Institute’s Brett Theodos before the U.S. House Ways and Means Committee’s Oversight Sub-
       319  Empowerment     Zones (EZs) were enacted alongside smaller-scale Enterprise Communities (ECs) and Renewal Communities
    committee, https://www.urban.org/sites/default/files/publication/105094/opportunity-zones-current-status-and-op-
            (RCs). HUD designated
    tions-for-reform.pdf;           six urban
                          Patrick Kennedy,     communities
                                             Harrison        as “Neighborhood-Level
                                                       Wheeler, EZs in the first round;USDA    designated
                                                                                         Investment        three
                                                                                                     from the    rural
                                                                                                               U.S.     communities.
                                                                                                                    Opportunity   ZoneHUD and
            USDA   designated 20  additional  EZs (15 urban and five rural), and in the third round, added
    Program: Early Evidence,” April 13, 2022 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4024514]   nine EZs  (seven urban   and two




                    House Select Committee on
188                 Economic Disparity & Fairness in Growth
324 rural).
     Testimony of
            “Revitalization
                    Brookings
                            Programs:
                               Metro Fellow
                                        Empowerment
                                               Tracy Hadden
                                                         Zones,
                                                              Loh to
                                                                Enterprise
                                                                     the U.S. House
                                                                            Communities,
                                                                                    Selectand
                                                                                          Committee
                                                                                              Renewalon Economic
                                                                                                      Communities,”
                                                                                                                 Dis-Government
    Accountability
    parity  and Fairness
                     Office,
                          in March
                             Growth,12,May
                                        2010,
                                           11, 2022:
                                               https://www.gao.gov/assets/gao-10-464r.pdf
                                                     https://www.brookings.edu/testimonies/designing-the-next-genera-
320 tion-of-place-based-policies-to-address-concentrated-poverty-at-the-neighborhood-level/
     “Empowerment Zones, Enterprise Communities, and Renewal Communities: Comparative Overview and Analysis,” Con-
325 Brett
    gressional
          Theodos,,
               Research
                    Christina
                         Service,
                              Plerhoples
                                  February 14,
                                         Stacy,2011,
                                                 Daniel Teles, Christopher Davis,
                                                     https://crsreports.congress.gov/product/pdf/R/R41639
                                                                                  Ananya Hariharan, “Project: Evaluating the
321 NMTC
    “SurveyProgram,”   Urban
             of Economic      Institute, 2021,
                            Development        Available
                                          Programs       at: https://www.urban.org/nmtc
                                                      in Michigan,”  2nd Edition, Report 347, June 2007, Citizens Research Council of
326 Cheryal
    Michigan,Hills; Testimony before the US
               http://crcmich.org/PUBLICAT/2000s/2007/rpt347-01.pdf
                                               House Select Committee on Economic Disparity and Fairness in Growth, May 11,
322 2022. Available at:
    Scott Eastman,       https://docs.house.gov/meetings/EF/EF00/20220511/114724/HHRG-117-EF00-Wstate-HillsC-20220511.pdf
                      Nicole Kaedin, “Opportunity Zones: What We Know and What We Don’t,” Tax Foundation, 2022, https://tax-
    or https://www.regionfive.org/post/r5dc-testifies-at-economic-development-hearing-before-congress
    foundation.org/opportunity-zones-what-we-know-and-what-we-dont/
327  Amy Liu,
323 Brett      BradMcDearman,
           Theodos,              “Making
                     Testimony before      LocalHouse
                                       the U.S.  Economies  Prosperous
                                                      Ways and  Means and Resilient: the
                                                                       Committee’s       Case for a
                                                                                    Oversight       Modern Economic
                                                                                              Subcommittee,           De-
                                                                                                              https://www.
    velopment Administration,” “https://www.brookings.edu/research/making-local-economies-prosperous-and-resil-
    urban.org/sites/default/files/publication/105094/opportunity-zones-current-status-and-options-for-reform.pdf;    Patrick
    ient-the-case-for-a-modern-economic-development-administration
    Kennedy,   Harrison Wheeler, “Neighborhood-Level Investment from the U.S. Opportunity Zone Program: Early Evidence,”
328 April
     Jeff 13,
          Chapman,
              2022 Josh Goodman, “How States
                   https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4024514]
                                                   Can Direct Economic Development to Places and People in Need,” Pew Trusts,
324 Feb.
    Tracy2,Hadden
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                    Loh, Testimony to the U.S. House Select Committee on Economic Disparity and Fairness in Growth, May 11,
    opment-to-places-and-people-in-need
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329 Quotations. Franklin
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325 Brett Theodos, Christina Plerhoples Stacy, Daniel Teles, Christopher Davis, Ananya Hariharan, “Project: Evaluating the NMTC
330 “The
    Program,” Urban
         Productivity-Pay
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                          Gap.”2021,
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                                                 Institute. Updated October 2022. https://www.epi.org/productivity-pay-gap/.
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    Bureau of Economic Research. June 2017.      https://www.nber.org/papers/w23516.
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336 Nicole
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                                                       Policies
                                                             growing  employer
                                                                (Such as  ‘Right to
                                                                                power,
                                                                                    Work’)
                                                                                       haveThat
                                                                                             generated
                                                                                                Attract a
                                                                                                       Relocating
                                                                                                          productivity-pay
                                                                                                                  Business.”
                                                                                                                           gapNorth
                                                                                                                               since
    Georgia
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339 Anna Stansbury, Lawrence
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340 of the American
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          APPENDIX
          Endnotes                                                                                                                 189
351   “CurrentLois M.
        347    Employment
                      Plunkert,
                             Survey.”
                                “The 1980s:
                                       Bureau
                                            a of
                                             decade
                                                 Laborof job growth and
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                                                                         industry shifts,” Monthly Labor Review. Bureau of Labor Statistics,
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352 Ihna Mangundayao,         https://www.bls.gov/opub/mlr/1990/article/1980s-a-decade-of-job-growth-and-industry-shifts.htm;
                         Celine McNicholas, Margaret Poydock. “Worker protection agencies need more funding to enforce
    labor
       348laws
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               Poverty   Line Matters, But It Isn’t Capturing Everyone It Should,” Center for American Progress, March 5, 2020: https://www.
388 ADC later  americanprogress.org/article/poverty-line-matters-isnt-capturing-everyone/.
                  became the Aid for Families with Dependent Children (AFDC). That was superseded by the Temporary Assistance
    to Needy
       393 Craig Families  (TANF)
                       Benson,      program
                                 “Poverty      in 1997.
                                            Rate        “A Short
                                                   of Children    History
                                                                Higher Thanof SNAP,”
                                                                              NationalU.S. Department
                                                                                       Rate,            of Agriculture,
                                                                                             Lower for Older            https://www.fns.usda.
                                                                                                               Populations,” U.S. Census Bureau,
    gov/snap/short-history-snap#2002
               October   2022:
389 Medicaid, Medicare, together with CHIP and the             ACA Marketplaces, covered 157 million Americans in July 2022. “Access to
       https://www.census.gov/library/stories/2022/10/poverty-rate-varies-by-age-groups.html
    Health Care,“ CMS, Oct. 28, 2022, https://acasignups.net/22/10/28/cms-releases-july-2022-enrollment-report-medicaid-
       394 Michael McLaughlin, Mark R Rank, “Estimating the Economic Cost of Childhood Poverty in the United States,” Social Work
    chip-enrollment-hits-90-million-first-time.
               Research, Volume 42, Issue 2, June 2018, Pages 73–83: https://academic.oup.com/swr/article-abstract/42/2/73/4956930
390 The poverty threshold in 2021 was defined as a single person making $13,788 per year, or a family of four making $27,740.
       395 The OECD includes counts as “family benefits”: child-related cash transfers to families with children; public spending
    “Poverty Thresholds,” U.S. Census Bureau. https://www.census.gov/data/tables/time-series/demo/income-poverty/histori-
               on services for families with children; and financial support for families provided through the tax system--at all levels of
    cal-poverty-thresholds.html; Arohi Pathak, Kyle Ross, “The Top 12 Solutions To Cut Poverty in the United States,” Center for
               government. “Public spending on family benefits,” OECD Family Database, January 2021: https://www.oecd.org/els/soc/
    American Progress, June 30, 2021, https://www.americanprogress.org/article/top-12-solutions-cut-poverty-united-states/;
               PF1_1_Public_spending_on_family_benefits.pdf
    “Poverty in the United States,” U.S. Census Bureau. Sept. 13, 2022, https://www.census.gov/library/publications/2022/demo/
       396      The OECD includes counts as “family benefits”: child-related cash transfers to families with children; public spending
    p60-277.html;
               on services for families with children; and financial support for families provided through the tax system--at all levels of
391 Office of Economic Cooperation and Development, https://data.oecd.org/inequality/poverty-rate.htm#indicator-chart
               government. “Public spending on family benefits,” OECD Family Database, January 2021: https://www.oecd.org/els/soc/
392 The Center for American Progress          found that financial insecurity affects even more Americans, with a third of adults not
               PF1_1_Public_spending_on_family_benefits.pdf
    able to cover a $400 emergency expense. Sarah Ayres Steinberg, “The Safety Net Is Good Economic Policy,” Center for
       397 Arloc Sherman and Tazra Mitchell, “Economic Security Programs Help Low-Income Children Succeed Over Long Term,
    American Progress, March 31, 2014, https://www.americanprogress.org/article/the-safety-net-is-good-economic-policy/;
               Many Studies Find,” Center on Budget and Policy Priorities, July 17, 20219, https://www.cbpp.org/research/poverty-and-in-
               equality/economic-security-programs-help-low-income-children-succeed-over

          APPENDIX
          Endnotes                                                                                                                      191
398 Alexandra
            Areeba
               Cawthorne
                    Haider and
                            Gaines,
                                Justin
                                    Bradley
                                       Schweitzer,
                                             Hardy, and
                                                    “TheJustin
                                                         Poverty Line Matters,
                                                               Schweitzer, “HowBut It
                                                                                  WeakIsn’t
                                                                                        Safety
                                                                                            Capturing
                                                                                               Net Policies
                                                                                                      Everyone It
                                                                                                            Exacerbate
                                                                                                                  Should,”
                                                                                                                       Regional
                                                                                                                           Center for Amer-
    and Racial
            ican
               Inequality,”
                 Progress, March
                            Center5,
                                   for2020,
                                       American Progress, Sept. 22, 2021,
                                            https://www.americanprogress.org/article/poverty-line-matters-isnt-capturing-everyone/.
                                                                          https://www.americanprogress.org/article/weak-safe-
    ty-net-policies-exacerbate-regional-racial-inequality
       393 Craig Benson, “Poverty Rate of Children Higher Than National Rate, Lower for Older Populations,” U.S. Census Bureau, Oct.
399 Testimony
           2022,
              of Sharon Parrott Before the House Select
                 https://www.census.gov/library/stories/2022/10/poverty-rate-varies-by-age-groups.html
                                                        Committee on Economic Disparity and Fairness in Growth, July 28,
    2022,
      394https://www.cbpp.org/research/poverty-and-inequality/the-nation-has-made-progress-against-poverty-but-policy-
           Michael McLaughlin, Mark R Rank, “Estimating the Economic Cost of Childhood Poverty in the United States,” Social Work
    advances
           Research, Volume 42, Issue 2, June 2018, https://academic.oup.com/swr/article-abstract/42/2/73/4956930
400 “Charitable
       395 “Public Giving  Statistics,”
                       Spending         National
                                   on Family       Philanthropic
                                               Benefits”            Trust, 2021,
                                                             Organization          https://www.nptrust.org/philanthropic-resources/charita-
                                                                             for Economic    Cooperation and Development, Jan.2021, https://www.
    ble-giving-statistics/;  Bradford K. Smith, “Philanthropy’s Difficult Dance With Inequality,” Philanthropy News Digest, July 7,
             oecd.org/els/soc/PF1_1_Public_spending_on_family_benefits.pdf
    2015: https://philanthropynewsdigest.org/features/commentary-and-opinion/philanthropy-s-difficult-dance-with-inequali-
    ty 396 The OECD includes counts as “family benefits”: child-related cash transfers to families with children; public spending on
             services for families with children; and financial support for families provided through the tax system--at all levels of gov-
401 Nationalernment.
               Philanthropic   Trust,
                         “Public      https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/
                                  spending                                                                                            drawn from
                                              on family benefits,” OECD Family Database, Jan.2021, https://www.oecd.org/els/soc/PF1_1_Pub-
    “Giving USA    2022:  The Annual    Report
             lic_spending_on_family_benefits.pdf on  Philanthropy     for the  Year 2021”,  Indiana  University    Lilly Family  School  of Philanthro-
    py: www.givingusa.org.
       397 Arloc Sherman and Tazra Mitchell, “Economic Security Programs Help Low-Income Children Succeed Over Long Term, Many
402 ChicagoStudies
               Community
                       Find,”Trust,
                              Center“Why    Philanthropy
                                       on Budget             Can’tPriorities,
                                                     and Policy     Replace July
                                                                               Government
                                                                                    17, 20219,inhttps://www.cbpp.org/research/poverty-and-inequality/
                                                                                                  Helping Illinois Thrive,” Oct. 10, 2018, https://
    www.cct.org/stories/why-philanthropy-cant-replace-government-in-helping-illinois-thrive/.
             economic-security-programs-help-low-income-children-succeed-over
403 An398
        expanded     ChildCawthorne
             Alexandra     Tax Credit provides     assistance
                                        Gaines, Bradley          to many
                                                             Hardy,         families
                                                                     and Justin       left out of
                                                                                  Schweitzer,      EITC,Weak
                                                                                                 “How    by extending
                                                                                                               Safety Net  assistance  to families out
                                                                                                                              Policies Exacerbate  Regional
    of work or
             and with very low
                  Racial        earnings.
                          Inequality,”      Arloc
                                        Center   forSherman
                                                      American and   Danilo Trisi,
                                                                  Progress,        “Safety
                                                                              Sept. 22,       Net for Poorest Weakened
                                                                                          2021,                               After Welfare Law But
                                                                                                 https://www.americanprogress.org/article/weak-safe-
    Regained    Strength in Great Recession, at Least Temporarily,” Center on Budget and Policy Priorities, May 2015: https://www.
             ty-net-policies-exacerbate-regional-racial-inequality
    cbpp.org/research/poverty-and-inequality/safety-net-for-poorest-weakened-after-welfare-law-but-regained; “EITC Fast
       399 Internal
    Facts,”  Sharon Revenue
                       Parrott Testimony
                                 Services. before     the U.S. House Select Committee on Economic Disparity and Fairness in Growth, July 28,
                                            https://www.eitc.irs.gov/partner-toolkit/basic-marketing-communication-materials/eitc-
             2022,   https://www.cbpp.org/research/poverty-and-inequality/the-nation-has-made-progress-against-poverty-but-policy-
    fast-facts/eitc-fast-facts; ”About the Child Tax Credit,” ChildTaxCredit.gov.              https://www.childtaxcredit.gov/about/
             advances
404 “Expansions to Child Tax Credit Contributed to 46% Decline in Child Poverty Since 2020,” Census Bureau, Sept. 13, 2022,
       400 “Charitable Giving Statistics,” National Philanthropic Trust, 2021, https://www.nptrust.org/philanthropic-resources/charita-
    https://www.census.gov/library/stories/2022/09/record-drop-in-child-poverty.html;                     Ben Casselman, “Child Tax Credit’s
             ble-giving-statistics/;
    Extra Help Ends,                   Bradford K.
                        Just as Covid Surges     Anew,”Smith,  “Philanthropy's
                                                            New York               Difficult
                                                                       Times, Jan. 2,    2022:Dance With Inequality,”       Philanthropy News Digest, July 7,
                                                                                                https://www.nytimes.com/2022/01/02/business/
             2015, https://philanthropynewsdigest.org/features/commentary-and-opinion/philanthropy-s-difficult-dance-with-inequali-
    economy/child-tax-credit.html;       and Zachary Parolin, Sophie Collyer, and Megan A. Curran, “The Earned Income Tax Credit
    and the ty
             Child Tax Credit Give Temporary Income Boost to Low-Income Families,” Columbia University Center on Poverty and
    Social
       401 Policy,  MayPhilanthropic
             National    10, 2022, https://www.povertycenter.columbia.edu/publication/monthly-poverty-march-2022.
                                        Trust, https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics; “Giving USA
405 Greg Duncan and Annual
             2022:   The  Suzanne Report   on Philanthropy
                                    Le Menestrel,     A Roadmap for the  Year 2021”,Child
                                                                     to Reducing       Indiana  University
                                                                                           Poverty,         Lilly5 Family
                                                                                                      Chapter               School
                                                                                                                   “Ten Policy   andofProgram
                                                                                                                                       Philanthropy:
                                                                                                                                                Ap- www.
             givingusa.org.
    proaches to   Reducing Child Poverty,” National Academies of Sciences, Engineering, and Medicine, The National Academies
    Press,
       4022019:   https://www.ncbi.nlm.nih.gov/books/NBK547351/
             Chicago Community Trust,         “Why Philanthropy Can’t Replace Government in Helping Illinois Thrive,” Oct. 10, 2018, https://
406 Michaelwww.cct.org/stories/why-philanthropy-cant-replace-government-in-helping-illinois-thrive/
              D. King, “Who Is Receiving Social Safety Net Benefits?” Census Bureau, May 24, 2022: https://www.census.gov/
    library/stories/2022/05/who-is-receiving-social-safety-net-benefits.html
       403 An expanded Child Tax Credit provides assistance to many families left out of EITC, by extending assistance to families out
             of workBasics:
407 CBPP. “Policy      or withUnemployment
                               very low earnings.      Arloc Sherman
                                                  Insurance.”    Octoberand    Danilo Trisi, “Safety Net for Poorest Weakened After Welfare Law But
                                                                           4, 2021.
             Regained Strength in Great Recession, at Least Temporarily,” Center on Budget and Policy Priorities, May 2015, https://www.
408 Rose Khattar,    Justin Schweitzer, Kyle Ross, “Expanding the Safety Net During a Recession Prevents Worsening Economic
             cbpp.org/research/poverty-and-inequality/safety-net-for-poorest-weakened-after-welfare-law-but-regained;                             “EITC Fast
    Pain,” Center
             Facts,”For American
                      Internal      Progress,
                               Revenue         Sept.https://www.eitc.irs.gov/partner-toolkit/basic-marketing-communication-materials/eitc-
                                          Services.     19, 2022: https://www.americanprogress.org/article/expanding-the-safe-
    ty-net-during-a-recession-prevents-worsening-economic-pain/
             fast-facts/eitc-fast-facts; ”About the Child Tax Credit,” ChildTaxCredit.gov, https://www.childtaxcredit.gov/about/
409 Robert
       404 A.   Moffitt andto
              “Expansions     James
                                Child P. Ziliak,
                                       Tax Credit“COVID‐19
                                                    Contributed andtothe
                                                                       46%U.S.Decline
                                                                                Safetyin Net,”
                                                                                          ChildSeptember    2020,
                                                                                                  Poverty Since      https://ideas.repec.org/a/wly/
                                                                                                                   2020,”   Census Bureau, Sept. 13, 2022,
    fistud/v41y2020i3p515-548.html
             https://www.census.gov/library/stories/2022/09/record-drop-in-child-poverty.html; Ben Casselman, “Child Tax Credit’s
410   Nick Gwyn,
              Extra Help
                  “Historic
                          Ends, Just
                             Unemployment
                                     as Covid Surges
                                                ProgramsAnew,”
                                                          Provided
                                                               NewVital
                                                                    YorkSupport
                                                                         Times, to
                                                                                 Jan. 2,
                                                                                     Workers
                                                                                         2022,and the Economy During
                                                                                               https://www.nytimes.com/2022/01/02/business/
                                                                                                                       Pandemic,
      Offer Roadmap for Future
              economy/child-tax-credit.html;
                                 Reform.” Center  andon
                                                      Zachary
                                                        Budget and
                                                              Parolin,
                                                                    Policy
                                                                       Sophie
                                                                           Priorities,
                                                                               Collyer, and
                                                                                       March 24,
                                                                                            Megan2022:
                                                                                                   A. Curran, “The Earned
                                                                                                       https://www.cbpp.org/research/
                                                                                                                          Income Tax Credit
      economy/historic-unemployment-programs-provided-vital-support-to-workers-and-the-economy
              and the Child Tax Credit Give Temporary     Income Boost to Low-Income Families,” Columbia University Center on Poverty and
411           Social
      Robert A.      Policy,
                Moffitt  andMay  10, 2022,
                             James           https://www.povertycenter.columbia.edu/publication/monthly-poverty-march-2022.
                                     P. Ziliak, “COVID‐19 and the US Safety Net,” September 2020: https://ideas.repec.org/a/wly/fi-
    stud/v41y2020i3p515-548.html;
       405 Greg    Duncan and Suzanne andLe“Five
                                             Menestrel,
                                                 Things A
                                                        You May
                                                          RoadmapNotoKnow
                                                                      Reducing
                                                                           AboutChild
                                                                                 the U.S.
                                                                                      Poverty,
                                                                                          Social
                                                                                               Chapter
                                                                                                 Safety Five,
                                                                                                        Net,”“Ten
                                                                                                              Urban
                                                                                                                  Policy
                                                                                                                     Institute,
                                                                                                                          and Feb.
                                                                                                                              Program Ap-
    4, 2019: proaches to Reducing Child Poverty,” National Academies
             https://www.urban.org/research/publication/five-things-you-may-not-know-about-us-social-safety-net.
                                                                        of Sciences, Engineering, and Medicine, The National Academies
             Press, 2019,
412 “Policy Basics:        https://www.ncbi.nlm.nih.gov/books/NBK547351/
                     Supplemental    Nutrition Assistance Program,” Center on Budget and Policy Priorities, June 9, 2022: https://
    www.cbpp.org/research/food-assistance/the-supplemental-nutrition-assistance-program-snap
       406 Michael D. King, “Who Is Receiving Social     Safety Net Benefits?” Census Bureau, May 24, 2022, https://www.census.gov/
             library/stories/2022/05/who-is-receiving-social-safety-net-benefits.html
413 Policy Basics: Supplemental Nutrition Assistance Program,” Center on Budget and Policy Priorities, June 9, 2022: https://
        407 “Policy Basics: Unemployment Insurance.” Center on Budget and Policy Priorities, October 4, 2021.
      www.cbpp.org/research/food-assistance/the-supplemental-nutrition-assistance-program-snap
414   SuzannaRose
        408    Macartney
                    Khattar,and
                             Justin
                                Robin
                                    Schweitzer,
                                      Ghertnerm,Kyle Ross,
                                                   “Participation
                                                           “Expanding
                                                                  in thethe
                                                                         U.S.Safety
                                                                              SocialNet
                                                                                    Safety
                                                                                        During
                                                                                           Net:aCoverage
                                                                                                RecessionofPrevents
                                                                                                             Low-Income
                                                                                                                    Worsening
                                                                                                                        Families,”
                                                                                                                              Economic
      Department
             Pain,”ofCenter
                      HealthFor
                             andAmerican
                                  Human Services,
                                         Progress, Sept.
                                                   November
                                                          19, 2022,
                                                               2021:https://www.americanprogress.org/article/expanding-the-safe-
                                                                     https://aspe.hhs.gov/sites/default/files/documents/9e9000cb-
      7b1e4e30c2e616e547ed9bd9/program-eligibility-participation-brief-december-2021.pdf
             ty-net-during-a-recession-prevents-worsening-economic-pain/
415   “Policy
        409 Robert
              Basics: A.
                      Temporary
                         Moffitt and
                                  Assistance
                                     James P.for
                                              Ziliak,
                                                 Needy“COVID-19 and
                                                        Families,” Center
                                                                     the U.S.
                                                                          on Budget
                                                                              Safety and
                                                                                     Net,”Policy
                                                                                           September
                                                                                                 Priorities,
                                                                                                        2020,March 2022:
                                                                                                              https://ideas.repec.org/a/wly/
                                                                                                                         https://www.
      cbpp.org/research/family-income-support/temporary-assistance-for-needy-families
              fistud/v41y2020i3p515-548.html
416    Aditi
         410 Nick
             Shrivastava
                    Gwyn,and
                           “Historic
                             Gina Azito
                                     Unemployment
                                        Thompson, “TANF
                                                      Programs
                                                            CashProvided   Vital
                                                                   Assistance Should
                                                                                 Support
                                                                                      Reach
                                                                                          to Workers
                                                                                              Millionsand
                                                                                                      Morethe
                                                                                                            Families
                                                                                                              Economyto Lessen
                                                                                                                        During Hard-
                                                                                                                               Pandemic,
      ship,”Center
               Offeron
                     Roadmap
                       Budget for
                              andFuture
                                   Policy Reform.”
                                          Priorities,Center
                                                     February
                                                            on 18,
                                                                Budget
                                                                   2022:and Policy Priorities, March
                                                                         https://www.cbpp.org/research/family-income-support/
                                                                                                     24, 2022, https://www.cbpp.org/research/
      tanf-cash-assistance-should-reach-millions-more-families-to-lessen
               economy/historic-unemployment-programs-provided-vital-support-to-workers-and-the-economy
417 Justin
       411 Robert
           Schweitzer,
                    A. “How
                       MoffittTo
                               and
                                 Address
                                   Jamesthe
                                         P. Ziliak,
                                             Administrative
                                                    “COVID-19 and
                                                            Burdens
                                                                  theof
                                                                      US Safety
                                                                        Accessing
                                                                                Net,”
                                                                                  the Safety
                                                                                      September
                                                                                             Net,”2020,
                                                                                                   Center for American
                                                                                                        https://ideas.repec.org/a/wly/fi-
                                                                                                                        Progress.
    May 5, 2022. ​​
            stud/v41y2020i3p515-548.html; and “Five Things You May
                 https://www.americanprogress.org/article/how-to-address-the-administrative-burdens-of-accessing-the-
                                                                        Not Know About the U.S. Social Safety Net,” Urban Institute, Feb.
    safety-net/
            4, 2019, https://www.urban.org/research/publication/five-things-you-may-not-know-about-us-social-safety-net.
418 “Federal
        412 IT
             “Policy
               Investments
                     Basics: are
                            Supplemental
                                 Necessary to
                                          Nutrition
                                              Deliver Critical
                                                     AssistanceRelief
                                                                 Program,”
                                                                      and Services
                                                                              CentertoonFamilies,”
                                                                                          Budget ​​and
                                                                                                   House
                                                                                                       Policy
                                                                                                          Committee
                                                                                                              Priorities,on
                                                                                                                          June
                                                                                                                            the 9,
                                                                                                                                Budget.
                                                                                                                                   2022 https://
    Sep. 3, 2020. ​​
             www.cbpp.org/research/food-assistance/the-supplemental-nutrition-assistance-program-snap
                  https://budget.house.gov/publications/report/federal-it-investments-are-necessary-deliver-critical-re-
    lief-and-services; “Reforming
        413 Policy Basics:        Unemployment
                           Supplemental            Insurance,” Program,”
                                         Nutrition Assistance   June 2021.Center
                                                                           ​​https://files.epi.org/uploads/Reforming-Unemploy-
                                                                                    on Budget and Policy Priorities, June 9, 2022: https://
    ment-Insurance.pdf;   Sara Soka, Chad Smith, “Economic Recovery Starts with a Modern Social Safety Net Benefit System,”
             www.cbpp.org/research/food-assistance/the-supplemental-nutrition-assistance-program-snap
    Beeck Center for Social Impact + Innovation at Georgetown University. Jul. 24, 2020. ​​https://beeckcenter.georgetown.edu/
    economic-recovery-starts-with-a-modern-social-safety-net-benefit-system .

                    House Select Committee on
192                 Economic Disparity & Fairness in Growth
414 Suzanna“Work
      419   Macartney and
                   Requirements
                            Robinand
                                  Ghertnerm,
                                     Work Supports
                                             “Participation
                                                    for Recipients
                                                            in the of
                                                                  U.S. Social
                                                                      Means-Tested
                                                                              Safety Net:
                                                                                     Benefits,”
                                                                                          Coverage of
                                                                                                Congressional
                                                                                                      Low-Income
                                                                                                              Budget
                                                                                                                   Families,”
                                                                                                                      Office, June
    Department
           2022.of Health and Human
                 https://www.cbo.gov/publication/58199
                                     Services, November 2021: https://aspe.hhs.gov/sites/default/files/documents/9e9000cb-
    7b1e4e30c2e616e547ed9bd9/program-eligibility-participation-brief-december-2021.pdf
      420 “Deep poverty” is defined as households with incomes that are less than half the official poverty levels for their family size,
415 “Policy using
            Basics:“expanded”
                    Temporary poverty
                                Assistance for
                                        measures
                                               Needy
                                                  thatFamilies,”
                                                        account for
                                                                  Center on
                                                                     government
                                                                             Budget and
                                                                                   transfers
                                                                                          Policy
                                                                                              and adjust
                                                                                                 Priorities,
                                                                                                          forMarch
                                                                                                              underreporting
                                                                                                                    2022, https://www.
                                                                                                                              in the Census
    cbpp.org/research/family-income-support/temporary-assistance-for-needy-families
            survey data. Arloc Sherman and    Danilo Trisi, “Safety Net for Poorest Weakened After Welfare Law But Regained Strength in
416 Aditi Great    Recession,
          Shrivastava and GinaatAzito
                                 LeastThompson,
                                       Temporarily,” Center
                                                 “TANF   Cash on Budget  and
                                                                Assistance    PolicyReach
                                                                            Should   Priorities, May 11,
                                                                                           Millions More 2015: https://www.cbpp.org/research/
                                                                                                           Families to Lessen  Hard-
            poverty-and-inequality/safety-net-for-poorest-weakened-after-welfare-law-but-regained
    ship,”Center on Budget and Policy Priorities, Feb. 18, 2022, https://www.cbpp.org/research/family-income-support/tanf-
       421 “Chart Book: Temporary    Assistance for Needy Families (TANF) at 26,” Center on Budget and Policy Priorities, updated Au-
    cash-assistance-should-reach-millions-more-families-to-lessen
             gust 4, 2022, https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
417 Justin Schweitzer, "How To Address the Administrative Burdens of Accessing the Safety Net," Center for American Progress,
    May422
         5, 2022,
             “Chart Book: Temporary Assistance for Needy Families (TANF)
                  https://www.americanprogress.org/article/how-to-address-the-administrative-burdens-of-accessing-the-
                                                                          at 26,” Center on Budget and Policy Priorities, updated Au-
    safety-net/
             gust 4, 2022, https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
418    “Federal IT
          423   “The
                   Investments
                     Abundant areBirthNecessary
                                       Project,” to
                                                 University
                                                    Deliver of
                                                            Critical
                                                               California
                                                                     ReliefSan
                                                                            andFrancisco.
                                                                                Services to Families,” House Committee
                                                                                             https://pretermbirthca.ucsf.edu/abundant-birth-proj-
                                                                                                                               on the Budget,
      Sep. 3, ect
              2020, https://budget.house.gov/publications/report/federal-it-investments-are-necessary-deliver-critical-re-
      lief-and-services;
          424 This would:“Reforming    Unemployment
                            increase the                 Insurance,”
                                           EITC to $1,502; make the June    2021.phase-out
                                                                      phase-in,   https://files.epi.org/uploads/Reforming-Unemploy-
                                                                                                rates 15.3%; reduce the general age of eligibility to
      ment-Insurance.pdf;    Sara  Soka,  Chad  Smith,  “Economic    Recovery  Starts
               19 years-old; reduce the age of eligibility for those attending school   with   a Modern
                                                                                           at least       SocialtoSafety
                                                                                                    part-time            Net Benefit
                                                                                                                   24; reduce the ageSystem,”
                                                                                                                                      of eligibility for
      Beeck Center
               formerfor Social
                       foster   Impact
                              youth   and+youth
                                           Innovation  at Georgetown
                                                 experiencing           University,
                                                                homelessness    to 18;Jul.
                                                                                       and 24,eliminate
                                                                                                2020. https://beeckcenter.georgetown.edu/
                                                                                                         the upper limit. “The ‘Childless’ EITC: Tempo-
      economic-recovery-starts-with-a-modern-social-safety-net-benefit-system
               rary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2),” CRS. May 3, 2021. https://crsreports.
419         congress.gov/product/pdf/IN/IN11610
    “Work Requirements and       Work Supports for Recipients of Means-Tested Benefits,” Congressional Budget Office, June
    2022,
       425https://www.cbo.gov/publication/58199
             It would also be expanded to agricultural and domestic workers and workers with short continuous work histories because
420 “Deep they
           poverty”
                  are is
                      either
                         defined
                             young
                                 as or just
                                    households
                                            returning
                                                  withto the
                                                        incomes labor
                                                                   that
                                                                      force
                                                                        are less
                                                                            afterthan
                                                                                  longhalf
                                                                                       periods
                                                                                           the of
                                                                                               official
                                                                                                  absence.
                                                                                                        poverty levels for their family size,
    using
       426“expanded”
             “Who Pays   poverty measures
                          the Corporate     thatCRS,
                                         Tax?”    account    for government
                                                       September              transfers and adjust for underreporting in the Census
                                                                     2021, https://crsreports.congress.gov/product/pdf/IF/IF10742;William      G.
    survey data.
            Gale Arloc   Sherman
                  and Andrew    A. and Danilo“Effects
                                   Samwick,    Trisi, “Safety  Net for
                                                         of Income   TaxPoorest
                                                                         Changes Weakened   AfterGrowth,”
                                                                                    on Economic   Welfare Law   But Regained
                                                                                                            Brookings           Strength
                                                                                                                        Institution,       in 2016,
                                                                                                                                     February
    Great Recession,   at Least Temporarily,” Center on Budget and Policy Priorities, May 11, 2015, https://www.cbpp.org/research/
            https://www.brookings.edu/research/effects-of-income-tax-changes-on-economic-growth/;                   and Gale’s testimony before
    poverty-and-inequality/safety-net-for-poorest-weakened-after-welfare-law-but-regained
            the Select Committee: https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-tax-
421 “Chart Book:   Temporary Assistance for Needy Families (TANF) at 26,” Center on Budget and Policy Priorities, updated Au-
             es-and-growth/
    gust 4, 2022,
       427         https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
              Christina D. Romer and David H. Romer. 2014. “The Incentive Effects of Marginal Tax Rates: Evidence from the Interwar
422 Darrick Era.”
            Hamilton,
                  American
                        Testimony
                             Economic
                                    beforeJournal:
                                            the House
                                                   Economic
                                                        Committee
                                                              Policy,on
                                                                      6 (3):
                                                                        Economic
                                                                             242-81.DOI:
                                                                                    Disparity and
                                                                                         10.1257/pol.6.3.242
                                                                                                  Fairness in Growth, Jan.
                                                                                                             https://www.aeaweb.org/arti-
                                                                                                                           20, 2022,
    https://docs.house.gov/meetings/EF/EF00/20220120/114344/HHRG-117-EF00-Wstate-HamiltonD-20220120.pdf
             cles?id=10.1257/pol.6.3.242; William G. Gale and     Claire Haldeman, “Searching for supply-side effects of the Tax Cuts and
             Jobs Act,”
423 “The Abundant       Brookings
                      Birth Project,”Institution,
                                       UniversityJuly 2021, https://www.brookings.edu/research/searching-for-supply-side-effects-of-the-
                                                  of California San Francisco, https://pretermbirthca.ucsf.edu/abundant-birth-proj-
    ect      tax-cuts-and-jobs-act/
       428Morial,
424 Marc    “Chart  Book: Temporary
                  Testimony before theAssistance  for Needyon
                                        House Committee      Families  (TANF)
                                                                Economic      at 26,”and
                                                                           Disparity  Center on Budget
                                                                                         Fairness        and Policy
                                                                                                   in Growth,       Priorities,
                                                                                                              June 28,          updated Au-
                                                                                                                        2022, https://
            gust 4, 2022, https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
    docs.house.gov/meetings/EF/EF00/20220728/115064/HHRG-117-EF00-Wstate-MorialM-20220728.pdf
       429 Paul
425 It would       Krugman,
             also be        “Charlatans,
                     expanded              Cranks
                                to agricultural andand Kansas,”
                                                    domestic     New York
                                                              workers   andTimes,
                                                                            workersJune
                                                                                     with29, 2014continuous
                                                                                          short   https://www.nytimes.com/2014/06/30/
                                                                                                             work histories because
            opinion/paul-krugman-charlatans-cranks-and-kansas.html
    they are either young or just returning to the labor force after long periods of absence.
      430 Pays
426 “Who     “Chart
                 theBook:  Temporary
                     Corporate        Assistance for Research
                                Tax?” Congressional  Needy Families (TANF)
                                                              Service,     at 26,” 2021,
                                                                       September   Center  on Budget and Policy Priorities, updated Au-
                                                                                         https://crsreports.congress.gov/product/
             gust 4, 2022,
    pdf/IF/IF10742;        https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
                    William G. Gale and Andrew A. Samwick, “Effects of Income    Tax Changes on Economic Growth,” Brookings
      Institution,
         431   “Chart
                   February
                       Book:2016,
                             Temporary Assistance for Needy Families (TANF) at
                                  https://www.brookings.edu/research/effects-of-income-tax-changes-on-economic-growth/;
                                                                               26,” Center on Budget and Policy Priorities, updated
                                                                                                                               and Au-
      Gale’s gust
             testimony  before the Select Committee:
                    4, 2022,                          https://www.brookings.edu/testimonies/william-gales-house-select-com-
                             https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-26
      mittee-testimony-on-taxes-and-growth/
         432 “Corporate Top Tax Rate and Bracket,” Tax Policy Center, February 2022, https://www.taxpolicycenter.org/statistics/cor-
427 Christina D. Romer and    David H. Romer, ;
             porate-top-tax-rate-and-bracket   "The Incentive
                                                 “Pass-Through  Effects of Marginal
                                                                   Business,” Tax Tax  Rates: Evidence from the
                                                                                  Foundation.                    Interwar Era."
                                                                                              https://taxfoundation.org/tax-basics/pass-
    American Economic
             through-business/;
                          Journal:and
                                   Economic
                                       “How are
                                              Policy, 6
                                                pass-through
                                                        (3): 242-81,
                                                                 businesses
                                                                     2014, taxed?” Tax Policy Center.
                                                                          https://www.aeaweb.org/articles?id=10.1257/pol.6.3.242;
                                                                                                       https://www.taxpolicycenter.org/
    William G. Gale and Claire Haldeman,
             briefing-book/how-are-pass-through-businesses-taxed.
                                            “Searching for supply-side effects of the Tax Cuts and Jobs Act,” Brookings Institu-
    tion,
       433JulyTax
               2021, https://www.brookings.edu/research/searching-for-supply-side-effects-of-the-tax-cuts-and-jobs-act/
                  Foundation,  https://taxfoundation.org/tax-basics/pass-through-business/; and Tax Policy Center, https://www.taxpoli-
428 Paul Krugman, “Charlatans, Cranks and Kansas,” New York Times, June 29, 2014, https://www.nytimes.com/2014/06/30/
            cycenter.org/briefing-book/how-are-pass-through-businesses-taxed.
    opinion/paul-krugman-charlatans-cranks-and-kansas.html
      434 CBO, “The Distribution of Household Income, 2018.” https://www.cbo.gov/publication/57061
429 Thomas
       435 L.   Hungerford, Research
              Congressional    "Taxes and  the Economy:
                                         Service,          An Economic
                                                   “Taxpayers  in the TopAnalysis  of the
                                                                          Income Tax       Top Tax
                                                                                       Bracket:     Rates Since
                                                                                                  Statistics and 1945,” December
                                                                                                                  Observations,”   12, 2021,
                                                                                                                                 May   3, 2021.
    https://sgp.fas.org/crs/misc/R42729.pdf;      " A Guide to Statistics on Historical Trends in Income Inequality," Center on Budget
             https://crsreports.congress.gov/product/pdf/IN/IN11653.
    and Policy Priorities, January 13, 2020, https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-his-
       436 Emmanuel        Saez and Gabriel Zucman, The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay (New
    torical-trends-in-income-inequality
             York: W.W. Norton & Company, 2019).
430 “Historical Highest Marginal Income Tax Rates,” Tax Policy Center, February 2022, https://www.taxpolicycenter.org/statis-
       437 Daron Acemoglu, Testimony before the Select Committee, Hearing on Technological Innovation, Automation and the Future
    tics/historical-highest-marginal-income-tax-rates
             of Work, November 3, 2021.
431 Qualified dividends are now taxed at the same rate as capital gains. IRS explains: “Dividends can be classified either as
       https://fairgrowth.house.gov/sites/democrats.fairgrowth.house.gov/files/documents/Acemoglu%20Testimony.pdf
    ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain
    requirements
       438          are taxed
              Gabriel Zucman.  at lower capital gain
                                 “Distributional      rates.”
                                                  National    “Dividends,”
                                                           Accounts.”   UC Internal
                                                                           Berkeley.Revenue Service,     Aug. 29, 2022 https://www.irs.
                                                                                      http://gabriel-zucman.eu/usdina/.
    gov/taxtopics/tc404; and “Historical Capital Gains and Taxes,” Tax Policy Center, https://www.taxpolicycenter.org/statistics/
       439 CBO, “The Distribution of Major Tax Expenditures in 2019.” https://www.cbo.gov/publication/57413..
    historical-capital-gains-and-taxes
       440 Select Committee Majority staff calculations based on CBO report and underlying data tables.
432 “Corporate Top Tax Rate and Bracket,” Tax Policy Center, February 2022, https://www.taxpolicycenter.org/statistics/cor-
       441 Select Committee majority
    porate-top-tax-rate-and-bracket;        staff calculations
                                          “Pass-Through         based Tax
                                                           Business,”  on CBO,   “The Distribution
                                                                           Foundation,                of Major Tax Expenditures in 2019.” https://
                                                                                         https://taxfoundation.org/tax-basics/pass-
             www.cbo.gov/publication/57413.
    through-business/; and     “How are pass-through businesses taxed?” Tax Policy Center, https://www.taxpolicycenter.org/
    briefing-book/how-are-pass-through-businesses-taxed
       442 Congressional Budget Office, https://www.cbo.gov/publication/57061
433 “The
       443Distribution   of Household
              William Gale   (BrookingsIncome,    2018,”
                                         Institution)    Congressional in
                                                      recommendation     Budget  Office,atAug.
                                                                            testimony      the 4, 2021,Committee hearing
                                                                                               Select    https://www.cbo.gov/publica-
                                                                                                                            on tax policy, June
    tion/57061
             2022, https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
434 “The and      in Gale’s
          Distribution   of 2019  book, Fiscal
                            Household   Income,Therapy,  https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
                                                  2018,” Congressional Budget Office, August       4, 2021, https://www.cbo.gov/publica-
    tion/57061


           APPENDIX
           Endnotes                                                                                                                         193
444 See435
         Tax “Taxpayers
             Foundation,in“The
                           the Tax
                               Top Income
                                   ChangesTax
                                           in Bracket:
                                             PresidentStatistics
                                                       Obama’s and
                                                                 Fiscal Year
                                                                     Observations,”
                                                                             2015 Budget,”
                                                                                     Congressional Research
                                                                                           https://taxfoundation.org/tax-chang-
                                                                                                             Service, May 3, 2021,
    es-president-obama-s-fiscal-year-2015-budget/
            https://crsreports.congress.gov/product/pdf/IN/IN11653
                                                    and CBO Options for Reducing the Deficit: 2017 to 2026, https://www.cbo.
    gov/budget-options/2016/52254.
       436 Emmanuel Saez and Gabriel Zucman, The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay,
445 Gale (2019),
           W.W.Fiscal
                 Norton &
                      Therapy,
                           Company, 2019
                               https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
446 William
       437 Gale
            Daron(Brookings
                   Acemoglu,Institution)
                              Testimony before
                                         recommendation
                                                 the Committee,
                                                             in testimony
                                                                   November
                                                                          at the
                                                                              3, 2021,
                                                                                 Select Committee hearing
                                                                                       https://docs.house.gov/meetings/EF/
                                                                                                            on tax policy, June
    2022, EF00/20211103/114205/HHRG-117-EF00-Wstate-AcemogluK-20211103.pdf
          https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
    and438
        in Gale’s 2019
            Gabriel    book, Fiscal
                    Zucman,         Therapy, https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
                             “Distributional National Accounts.” UC Berkeley, http://gabriel-zucman.eu/usdina/.
447 William    Gale (Brookings
        439 “The     DistributionInstitution) recommendation
                                   of Major Tax Expenditures inin   testimony
                                                                  2019,”       at the Select
                                                                         Congressional       Committee
                                                                                        Budget           hearing on tax policy, June
                                                                                                Office, https://www.cbo.gov/publication/57413.
    2022, https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
    and440    Select2019
         in Gale’s    Committee    Majority
                          book, Fiscal       staffhttps://global.oup.com/academic/product/fiscal-therapy-9780190645410.
                                       Therapy,    calculations based on CBO report and underlying data tables.
448     441   Select(Brookings
     William Gale     Committee    Majority staff
                                 Institution)      calculations in
                                              recommendation     based on  CBOat
                                                                    testimony   report
                                                                                  the and
                                                                                      Selectunderlying
                                                                                             Committee data tables.
                                                                                                         hearing on tax policy, June
    2022,   https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
        442 “The Distribution of Household Income, 2018” Congressional           Budget Office, https://www.cbo.gov/publication/57061
    and in Gale’s 2019 book, Fiscal Therapy, https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
        443 William Gale, Brookings Institution, Testimony to the Committee, June 2022, https://www.brookings.edu/testimonies/wil-
449 Williamliam-gales-house-select-committee-testimony-on-taxes-and-growth/
               Gale (Brookings Institution) recommendation in testimony at the Select Committee hearing on tax policy, June
    2022, https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
        444 Tax Foundation, “The Tax Changes in President Obama’s Fiscal Year 2015 Budget,” https://taxfoundation.org/tax-changes-
    and in Gale’s 2019 book, Fiscal Therapy, https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
              president-obama-s-fiscal-year-2015-budget/; “CBO Options for Reducing the Deficit: 2017 to 2026,” https://www.cbo.gov/
450 Williambudget-options/2016/52254
               Gale (Brookings Institution) recommendation in testimony at the Select Committee hearing on tax policy, June
    2022, https://www.brookings.edu/testimonies/william-gales-house-select-committee-testimony-on-taxes-and-growth/
        445 William G. Gale, Fiscal Therapy, 2019, https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
    and in Gale’s 2019 book, Fiscal Therapy, https://global.oup.com/academic/product/fiscal-therapy-9780190645410.
        446 Gustavo Grullon Yelena Larkin, Roni Michaely, “Are US Industries Becoming More Concentrated?” Review of Finance, July
451 Franklin D. Roosevelt, “Presidential Re-Nomination Address,” Democratic National Convention, June 27, 1936, https://pub-
              2019, https://academic.oup.com/rof/article/23/4/697/5477414.
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        447 Tim Wu, The Curse Of Bigness: Antitrust In The New Gilded Age, 2018; Joe Stiglitz, The Price Of Inequality: How Today’s
452 “Fact Sheet: Executive Order on Promoting Competition in the American Economy,” The White House, Jul. 9, 2021, https://
              Divided Society Endangers Our Future, 2013; Tom Wheeler, “Who makes the rules in the new Gilded Age? Lessons from the
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              industrial age inform the information age,” Brookings Institution, Dec. 12, 2018, https://www.brookings.edu/research/who-
    tition-in-the-american-economy; Brian Callaci & Sandeep Vaheesan, How an Old U.S. Antitrust Law Could Foster a Fairer
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        448 The
    Waller,    Matthew    Rognlie,
                   Antitrust       “Deciphering
                             Legacy of  Thurman the   Fall and
                                                   Arnold,     Rise in
                                                           Loyola      the NetChicago,
                                                                   University  Capital Share: Accumulation
                                                                                       School of Law  (2004) or Scarcity,” Massachusetts Insti-
                                                                                                             https://lawecommons.luc.
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              Steven C. Salop, “Antitrust, Competition Policy, and Inequality,” Georgetown Law, 2015, https://scholarship.law.georgetown.
453 https://stats.oecd.org/glossary/detail.asp?ID=3262.
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454 https://stats.oecd.org/glossary/detail.asp?ID=3265.
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455 “Issue
        449 Brief,
              SeanLabor
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                            Pedro Gonzaga,        Trends,
                                              Chris        Consequences,
                                                    Pike, “Inequality:     and Policy
                                                                       A hidden       Responses.”
                                                                                 cost of market    The White
                                                                                                power,”        House, for
                                                                                                         Organization  Council   of
                                                                                                                           Economic   Cooperation
    Economic  andAdvisors,  2016, 2017,
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                                         https://www.oecd.org/daf/competition/Inequality-hidden-cost-market-power-2017.pdf
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456 Azar, Marinescu,     and Steinbaum (2020).
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457 Gregor    Schubert,D.Anna
        451 Franklin            Stansbury,
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                                       “Presidential          “Employer
                                                      Re-Nomination       Concentration
                                                                       Address,”          and National
                                                                                  Democratic  Outside Options,”  Center
                                                                                                       Convention,  Junefor  Equitable
                                                                                                                           27, 1936, https://pub-
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458 Kate
       452Bahn,   Washington
              “Fact             Center Order
                    Sheet: Executive     for Equitable    Growth,
                                                 on Promoting       Testimony before
                                                                  Competition             the HouseEconomy,”
                                                                                  in the American       Select Committee
                                                                                                                   The White onHouse,
                                                                                                                                Economic      Disparity
                                                                                                                                         Jul. 9, 2021, https://
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459 Evan Starr,   The Use, Abuse, and Enforceability  BrianofCallaci, Sandeepand
                                                               Non-Compete       Vaheesan,
                                                                                      No-Poach  “How   an Old U.S.AAntitrust
                                                                                                    Agreements:                Law of
                                                                                                                     Brief Review  Could    Foster a Fairer
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460 Adil Abdela & Marshall Steinbaum, Labor market impact of the proposed Sprint—T-Mobile merger, Economic Policy Insti-
       453   “Monopoly,”
    tute-Roosevelt          Organization
                      Institute, 6  (Dec. 17,for Economic
                                              2018)          Cooperation
                                                    (citing Hyatt            and 2016;
                                                                    and Spletzer   Development,
                                                                                            Molloy etMarch   2003,
                                                                                                        al. 2016;   https://stats.oecd.org/glossary/detail.
                                                                                                                  Song et al. 2018).
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461 Washington Center for Equitable Growth, “Wage and employment implications of U.S. labor market monopsony and
       454 policy
    possible “Monopsony,”     Organization
                     solutions,”   February 18,for2020,
                                                   Economic Cooperation and Development,               March 2002, https://stats.oecd.org/glossary/de-
                                                          https://equitablegrowth.org/wage-and-employment-implications-of-u-s-la-
             tail.asp?ID=3265.
    bor-market-monopsony-and-possible-policy-solutions/.
       455Gonzaga
462 Ennis     “Issue Brief, LaborSee
                      Pike 2017.     Market   Monopsony:
                                       also Matthew          Trends,
                                                         Rognlie,     Consequences,
                                                                   Deciphering     the Falland
                                                                                            andPolicy   Responses.”
                                                                                                   Rise in            The White
                                                                                                           the Net Capital  Share:House,    Council of
                                                                                                                                   Accumulation      or
    Scarcity,Economic     Advisors,
              Massachusetts          2016, of Technology (2015)
                                Institute   https://obamawhitehouse.archives.gov/sites/default/files/page/files/20161025_monopsony_la-
                                                                     https://www.brookings.edu/wp-content/uploads/2016/07/2015a_rog-
    nlie.pdf,bor_mrkt_cea.pdf.
              Jonathan B. Baker & Steven C. Salop, Antitrust, Competition Policy, and Inequality, Georgetown Law (2015) https://
    scholarship.law.georgetown.edu/facpub/1462,
       456 José Azar, Iona     Marinescu, Marshall John           Creedy
                                                         Steinbaum,       & Robert
                                                                       “Labor   Market Dixon, The     Distributional
                                                                                         Concentration,”             Effects
                                                                                                              Journal of Humanof Monopoly,
                                                                                                                                  Resources,   Austra-
                                                                                                                                                 May 2020,
    lian Economic   Papers (Dec. 18, 2002) https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-8454.00053.
             http://jhr.uwpress.org/content/early/2020/05/04/jhr.monopsony.1218-9914R1.full.pdf+html
463 Darrick  Hamilton &
       457 Gregor           Madeline
                     Schubert,    AnnaNeighly,
                                        Stansbury,“Theand
                                                        Racial  Rules
                                                            Bledi      of Corporate
                                                                   Taska, “EmployerPower:         How and
                                                                                        Concentration   Extractive  Corporate
                                                                                                                Outside         Power
                                                                                                                         Options,”       Harms
                                                                                                                                     Center   forBlack
                                                                                                                                                  Equitable
    and Brown    Communities
             Growth,   Jan. 26, and
                                 2021,How Race-Conscious Solutions Can Create an                 Inclusive Economy,” Roosevelt Institute (Nov.
                                       https://equitablegrowth.org/working-papers/employer-concentration-and-outside-options/.
    2019), https://rooseveltinstitute.org/wp-content/uploads/2020/07/RI_Racial-Rules-of-Corporate-Power_Issue-brief_201911-1.
       458 Kate Bahn, Washington Center for Equitable Growth, Testimony before the House Select Committee on Economic Disparity
    pdf
             and Fairness in Growth, April 6, 2022, https://equitablegrowth.org/kate-bahn-testimony-before-the-select-committee-on-
464 OECD. https://one.oecd.org/document/DAF/COMP/WD(2018)67/en/pdf
             economic-disparity-and-fairness-in-growth-on-imbalance-of-power/
465 Michael  Mitchell,
       459 Evan          Groundwork
                   Starr, “The          Collaborative,
                                Use, Abuse,               testimony of
                                                and Enforceability    for Select   Committee’s
                                                                         Non-Compete                 hearing. Agreements: A Brief Review of the Theory
                                                                                            and No-Poach
466 Shannon  Evidence,   andWal-Mart:
                Pettypiece,   Recent Reform      Efforts,”
                                          It Came,          Economic
                                                     It Conquered,      Innovation
                                                                      Now             Group,
                                                                            It’s Packing    Up Feb.   2019, https://eig.org/wp-content/uploads/2019/02/
                                                                                                 and Leaving,   Bloomberg (Jan. 25, 2016), https://
             Non-Competes-Brief.pdf
    www.bloomberg.com/news/articles/2016-01-25/wal-mart-it-came-it-conquered-now-it-s-packing-up-and-leaving#x-
    j4y7vzkg.
       460 Adil Abdela, Marshall Steinbaum, “Labor market impact of the proposed Sprint—T-Mobile merger,” (citing Hyatt and
467 SenatorSpletzer     2016;Press
              John Tester,    Molloy  et al. 2016;
                                    Release:        Song
                                               “Tester,    et al. 2018)
                                                         Grassley,      Economic
                                                                    Rounds    unveilPolicy
                                                                                      bill to Institute-Roosevelt    Institute,
                                                                                               combat anti-competitive          Dec. 17,in2018
                                                                                                                            practices      meat pro-
    cessing industry that threaten nation’s food supply” (Jun. 11, 2021) https://www.tester.senate.gov/newsroom/press-releases/
    pr-8380.
468 Id. at 96 (response to Questions for the Record of Hon. Joe Simons, Chair, Fed. Trade Comm’n, at 21).
469 https://www.judiciary.senate.gov/imo/media/doc/Testimony%20-%20Khan%20-%202022-09-20.pdf
                    House Select Committee on
194                 Economic Disparity & Fairness in Growth
461 “Wage
       470 and
            Semega,
                employment
                     Jessica; Kollar,
                             implications
                                      Melissa;
                                           of U.S.
                                               Shrider,
                                                   laborEmily
                                                         market
                                                              A., and
                                                                  monopsony
                                                                      Creamer,and
                                                                               John,
                                                                                  possible
                                                                                     “Income
                                                                                           policy
                                                                                               and Poverty
                                                                                                  solutions,”in the
                                                                                                               Washington
                                                                                                                    United States:
                                                                                                                            Center2019,”
    for Equitable
            UnitedGrowth,
                   States Census
                          February 18,
                                   Bureau,
                                       2020,Sep. 15, 2020
                                               https://equitablegrowth.org/wage-and-employment-implications-of-u-s-la-
                                                           https://www.census.gov/library/publications/2020/demo/p60-270.html
    bor-market-monopsony-and-possible-policy-solutions/
       471 Sergent, Jim, “Inflation and Thanksgiving: Expect to pay 20% more for turkey and all the trimmings,” USA Today, Nov. 16,
462 Sean Ennis,
            2022Pedro Gonzaga, Chris Pike, “Inequality: A hidden cost of
                  https://www.usatoday.com/in-depth/graphics/2022/10/24/thanksgiving-turkey-potatoes-holiday-meal-prices-up-in-
                                                                         market power,” Organization for Economic Coopera-
    tion and Development,
            flation/10540388002/
                           2017, https://www.oecd.org/daf/competition/Inequality-hidden-cost-market-power-2017.pdf
      472 U.S.
463 Darrick Hamilton
                 Customs
                      & and
                        Madeline
                               Border
                                  Neighly,
                                       Protection,
                                           “The Racial
                                                   “CBPRules of
                                                        Enforcement
                                                                Corporate
                                                                     Statistics
                                                                          Power:Fiscal
                                                                                  HowYear
                                                                                       Extractive
                                                                                          2023” Corporate Power
                                                                                                  https://www.cbp.gov/newsroom/stats/
                                                                                                                  Harms Black
    and Brown Communities
            cbp-enforcement-statistics
                              and How Race-Conscious Solutions Can Create an Inclusive Economy,” Roosevelt Institute, Nov.
    2019,
      473https://rooseveltinstitute.org/wp-content/uploads/2020/07/RI_Racial-Rules-of-Corporate-Power_Issue-brief_201911-1.
            American Medical Association, “Issue brief: Nation’s drug-related overdose and death epidemic continues to worsen,” Sep.
    pdf     7, 2022 https://www.ama-assn.org/system/files/issue-brief-increases-in-opioid-related-overdose.pdf
464 Jason
      474 Furman,
           Centers“Prepared  Testimony
                   for Disease          to the Hearing
                               Control, “Provisional   on Overdose
                                                     Drug ‘Market Concentration,’”
                                                                   Death Counts“ Organization  for Economic Cooperation and
                                                                                   https://www.cdc.gov/nchs/nvss/vsrr/drug-over-
    Development, June 7, 2018, https://one.oecd.org/document/DAF/COMP/WD(2018)67/en/pdf
           dose-data.htm
465 Michael Mitchell, Testimony
      475 U.S.Bureau     of Labor before the Civilian
                                  Statistics, U.S. House  Select
                                                      labor forceCommittee   onrate,
                                                                 participation  Economic    Disparity and Fairness in Growth, Apr. 6,
                                                                                     https://www.bls.gov/charts/employment-situation/
    2022, https://www.congress.gov/117/meeting/house/114615/witnesses/HHRG-117-EF00-Wstate-MitchellM-20220406.pdf
            civilian-labor-force-participation-rate.htm
466 Shannon   Pettypiece,“Here’s
       476 Bloomberg,      “Wal-Mart:
                                  Why It100
                                          Came,  It Conquered,
                                            Million              Now It'sWorking
                                                    Americans Weren’t      Packing This
                                                                                   Up and  Leaving,”
                                                                                        Month,”  Oct.Bloomberg,   Jan. 25, 2016, https://
                                                                                                      27, 2022 https://za.investing.com/news/
    www.bloomberg.com/news/articles/2016-01-25/wal-mart-it-came-it-conquered-now-it-s-packing-up-and-leaving#x-
            hereswhy-100-million-americans-werent-working-this-month-2640414
    j4y7vzkg.
       477 U.S. Bureau of Labor Statistics, “Consumer prices up 9.1 percent over the year ended June 2022, largest increase in 40
467 Sen. Jonyears,”
             Tester,July
                     “Tester, Grassley,
                         18, 2022        Rounds unveil bill to combat anti-competitive practices in meat processing industry that
                                  https://www.bls.gov/opub/ted/2022/consumer-prices-up-9-1-percent-over-the-year-ended-june-2022-
    threatenlargest-increase-in-40-years.htm
             nation’s food supply,” Jun. 11, 2021, https://www.tester.senate.gov/newsroom/press-releases/pr-8380.
468 Testimony  of Joe Simons,
       478 Hernandez,          Chair,
                         Salvador,    Federal1 Million
                                   “Record     Trade Commission,      Testimony
                                                       Pills with Fentanly       toby
                                                                            Seized thethe
                                                                                       House
                                                                                          U.S. Judiciary Subcommittee
                                                                                               Drug Enforcement   Agency,onLos
                                                                                                                            Antitrust,
                                                                                                                               Angeles Times,
    Commercial,   and
            July 14,   Administrative Law, Nov. 13, 2019.
                     2022                                    https://www.govinfo.gov/content/pkg/CHRG-116hhrg40787/pdf/CHRG-
                          https://www.latimes.com/california/story/2022-07-14/1-million-pills-with-fentanyl-seized-by-dea-in-ingle-
    116hhrg40787.pdf
            wood-during-record-breaking-bust
469 Prepared     Statement
        479 National         of Lina Khan,
                         Assessment           chair of theProgress
                                         of Educational     Federal Report
                                                                     Trade Commission,     before the
                                                                              Card 2022, National      United
                                                                                                   Center  forStates  Senate
                                                                                                               Education       Committee
                                                                                                                          Statistics      on
                                                                                                                                     https://www.
    the Judiciary,   Subcommittee       on  Antitrust,  Competition
              nationsreportcard.gov/highlights/reading/2022/           Policy and  Consumer    Rights, Sep. 20, 2022,  https://www.judiciary.
    senate.gov/imo/media/doc/Testimony%20-%20Khan%20-%202022-09-20.pdf
        480 Psacharopoulos, George; Collis, Victoria; Patrinos, Harry Anthony; Vegas, Emiliana, “Lost Wages: The COVID-19 Cost of
Chapter School8: Minority            Views
                       Closures,” Policy    Research Working Paper No. 9246, World Bank, May 2020 https://openknowledge.worldbank.org/
              handle/10986/34387
470 Jessica Semega, Melissa Kollar, Emily A.Shrider, John Creamer, “Income and Poverty in the United States: 2019,” United
        481 Census
    States    Hanushek,     Eric A.;
                      Bureau,        Woessmann,
                                Sept. 15,  2020, Ludger, “The Economic Impacts of            Learning Losses,” OECD, Sep 2020 https://www.oecd.
                                                  https://www.census.gov/library/publications/2020/demo/p60-270.html
              org/education/The-economic-impacts-of-coronavirus-covid-19-learning-losses.pdf
471 Jim Sergent, “Inflation and Thanksgiving: Expect to pay 20% more for turkey and all the trimmings,” USA Today, Nov. 16,
        482 Katsnelson, Laura, Oberholzer-Gee, Felix, “Being the Boss:
    2022,                                                                           Gig Workers’ Value of Flexible Work,”
           https://www.usatoday.com/in-depth/graphics/2022/10/24/thanksgiving-turkey-potatoes-holiday-meal-prices-up-in-
    flation/10540388002/
        483   Anderson, Monica; McClain, Colleen; Faverio, Michelle; Gelles-Watnick, Risa, “The State of Gig Work in 2021,” Pew Research
              Center, Dec.Statistics
472 “CBP Enforcement         8, 2021 https://www.pewresearch.org/internet/2021/12/08/the-state-of-gig-work-in-2021/
                                        Fiscal Year 2023,” U.S. Customs and Border Protection, https://www.cbp.gov/newsroom/stats/
    cbp-enforcement-statistics
        484 Leonhardt, Megan, “Incomes rose 6.8% in the U.S. last year—but a closer look shows there may not be much to cheer
              about,”
473 “Issue brief:      CNBC,drug-related
                    Nation’s    Sep 15, 2020overdose
                                                https://www.cnbc.com/2020/09/15/incomes-rose-in-the-us-last-year-but-a-closer-look-re-
                                                          and death epidemic continues to worsen,” American Medical Association, Sept.
              veals-little-to-cheer-about.html
    7, 2022 https://www.ama-assn.org/system/files/issue-brief-increases-in-opioid-related-overdose.pdf
474     485   U.S. Drug
    “Provisional    Bureau of   LaborDeath
                          Overdose      Statistics, “JobCenters
                                              Counts,”    Openingsforand   LaborControl,
                                                                      Disease     Turnover Summary,” Nov. 1, 2022    https://www.bls.gov/news.
                                                                                         https://www.cdc.gov/nchs/nvss/vsrr/drug-over-
              release/jolts.nr0.htm
    dose-data.htm
        486 Competitive
475 “Civilian                Enterprise Institute,
               labor force participation               “Federal Regulations
                                             rate,” U.S.Bureau                 Cost anhttps://www.bls.gov/charts/employment-situation/
                                                                 of Labor Statistics,   Estimated $1.9 Trillion per Year: Many Rules Hinder Virus
              Response,    Economic Recovery,” May 28, 2020 https://cei.org/citations/federal-regulations-cost-an-estimated-1-9-tril-
    civilian-labor-force-participation-rate.htm
              lion-per-year-many-rules-hinder-virus-response-economic-recovery/
476 “Here’s Why 100 Million Americans Weren’t Working This Month,” Bloomberg, Oct. 27, 2022, https://za.investing.com/news/
        487 Ryan, P., & Rachidi, A. (Eds.).      (2022). American Renewal: A Conservative Plan to Strengthen the Social Contract and Save the
    hereswhy-100-million-americans-werent-working-this-month-2640414
              Country’s Finances. American Enterprise Institute. https://www.americanrenewalbook.com/
477 “Consumer prices up 9.1 percent over the year ended June 2022, largest increase in 40 years,” U.S. Bureau of Labor Statis-
        488
    tics, July“The   Distribution
                18, 2022,          of Household Income, 2019,” Congressional Budget Office, Nov. 15, 2022 https://www.cbo.gov/publica-
                          https://www.bls.gov/opub/ted/2022/consumer-prices-up-9-1-percent-over-the-year-ended-june-2022-
              tion/58353
    largest-increase-in-40-years.htm
        489 Wilcox,
478 Salvador           W. Bradford;
                Hernandez,    “Record 1 Wang,   Wendy,
                                          Million         “TheFentanly
                                                   Pills with   Millennial  Success
                                                                        Seized       Sequence:
                                                                                 by the U.S. DrugMarriage,  Kids, and
                                                                                                  Enforcement         the Los
                                                                                                                 Agency,  ‘success  Sequence’
                                                                                                                               Angeles Times, Among
              Younghttps://www.latimes.com/california/story/2022-07-14/1-million-pills-with-fentanyl-seized-by-dea-in-ingle-
    July 14, 2022,    Adults,” American Enterprise Institute, June 14, 2017 https://www.aei.org/research-products/working-paper/millenni-
              als-and-the-success-sequence-how-do-education-work-and-marriage-affect-poverty-and-financial-success-among-mil-
    wood-during-record-breaking-bust
              lennials/
479 “National Assessment of Educational Progress Report Card 2022,” National Center for Education Statistics, https://www.
        490   National   Assessment of Educational Progress Report Card 2022, National Center for Education Statistics https://www.
    nationsreportcard.gov/highlights/reading/2022/
              nationsreportcard.gov/highlights/reading/2022/
480 George Psacharopoulos, Victoria Collis, Harry Anthony Patrinos, Emiliana Vegas, “Lost Wages: The COVID-19 Cost of School
        491 Binkley,
    Closures,”    PolicyCollin;
                         ResearchFoley, Ryan J.,
                                     Working      “Flush
                                                Paper   No.with COVID-19
                                                            9246,           aid, schools
                                                                   World Bank,           steerhttps://openknowledge.worldbank.org/han-
                                                                                  May 2020,    funding to sports,” Associated Press, Oct. 6, 2021
              https://apnews.com/article/coronavirus-pandemic-school-funding-sports-5b468b260ebd2593e53f03f9104d9bca
    dle/10986/34387
481 Eric A. Hanushek, Ludger Woessmann, “The Economic Impacts of Learning Losses,” OECD, September 2020, https://www.
    oecd.org/education/The-economic-impacts-of-coronavirus-covid-19-learning-losses.pdf
482 Laura Katsnelson, Felix Oberholzer-Gee, “Being the Boss: Gig Workers’ Value of Flexible Work,” Harvard Business School
    Working Paper, May 2021, https://www.hbs.edu/faculty/Pages/item.aspx?num=60255
483 Monica Anderson, Colleen McClain, Michelle Faverio, Risa Gelles-Watnick, “The State of Gig Work in 2021,” Pew Research
    Center, Dec. 8, 2021 https://www.pewresearch.org/internet/2021/12/08/the-state-of-gig-work-in-2021/
484 Megan Leonhardt, “Incomes rose 6.8% in the U.S. last year—but a closer look shows there may not be much to cheer
    about,” CNBC, Sept. 15, 2020 https://www.cnbc.com/2020/09/15/incomes-rose-in-the-us-last-year-but-a-closer-look-re-
    veals-little-to-cheer-about.html




          APPENDIX
          Endnotes                                                                                                                     195
      485 “Job Openings and Labor Turnover Summary,” U.S. Bureau of Labor Statistics, Nov. 1, 2022, https://www.bls.gov/news.
          release/jolts.nr0.htm
      486 “Federal Regulations Cost an Estimated $1.9 Trillion per Year: Many Rules Hinder Virus Response, Economic Recovery,”
          Competitive Enterprise Institute, May 28, 2020, https://cei.org/citations/federal-regulations-cost-an-estimated-1-9-tril-
          lion-per-year-many-rules-hinder-virus-response-economic-recovery/
      487 Paul Ryan, Angela Rachidi (Eds.), American Renewal: A Conservative Plan to Strengthen the Social Contract and Save the
          Country’s Finances, American Enterprise Institute, 2022, https://www.americanrenewalbook.com/
      488 “The Distribution of Household Income, 2019,” Congressional Budget Office, Nov. 15, 2022 https://www.cbo.gov/publica-
          tion/58353
      489 W. Bradford Wilcox, Wendy Wang, “The Millennial Success Sequence: Marriage, Kids, and the ‘Success Sequence’ Among
          Young Adults,” American Enterprise Institute, June 14, 2017 https://www.aei.org/research-products/working-paper/millenni-
          als-and-the-success-sequence-how-do-education-work-and-marriage-affect-poverty-and-financial-success-among-mil-
          lennials/
      490 “National Assessment of Educational Progress Report Card 2022,” National Center for Education Statistics https://www.
          nationsreportcard.gov/highlights/reading/2022/
      491 Collin Binkley, Ryan J. Foley, “Flush with COVID-19 aid, schools steer funding to sports,” Associated Press, Oct. 6, 2021,
          https://apnews.com/article/coronavirus-pandemic-school-funding-sports-5b468b260ebd2593e53f03f9104d9bca




                House Select Committee on
196             Economic Disparity & Fairness in Growth
                         Committee Members




                         CHAIRMAN              RANKING MEMBER       Rep. Marcy Kaptur Rep. Warren Davidson
                      Jim Himes (D-CT)        Bryan Steil (R-WI)           (D-OH)               (R-OH)




                     Rep. Gwen Moore        Rep. Jodey Arrington   Rep. Vicente Gonzalez Rep. Stephanie Bice
                           (D-WI)                    (R-Tx)                (D-Tx)               (R-OK)




                    Rep. Pramila Jayapal     Rep. Kat Cammack        Rep. Angie Craig    Rep. Byron Donalds
                           (D-WA)                    (R-FL)               (D-MN)                (R-FL)




                                              Rep. Alexandria        Rep. Sara Jacobs
                                            Ocasio-Cortez (D-NY)           (D-CA)




                         House Select Committee on                                                             AppENDIx
                         Economic Disparity & Fairness in Growth                                               Endnotes   197


49-944_cov.indd 2                                                                                                               12/14/22 12:03 PM
                                          U.S. Government Publishing Office
                                                        Washington : 2022

                                              U.S. House of Representatives
                                                  117 st Congress, 1st Session
                                                          December 12, 2022
                                                           Report no. 117-619
                                                    Union Calendar no. 447




                    Bridging
                    the Divide
                    BUILDING AN ECONOMY
                    THAT WORKS FOR ALL




49-944_cov.indd 1                                                    12/14/22 12:03 PM


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