Challenge of Inclusive Growth: The
Challenges of Race and Democracy; and
Sustainable Growth
William E. Spriggs
Department of Economics
The top quintile of income is America’s
Economic Majority
America's Economic Majority
White, non-Hispanic
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Black
Asian
Hispanic
Other
But, the racial demography of America, it’s
democratic makeup is different
American Household Demographics
White, non-Hispanic
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Black
Asian
Hispanic
Other
Jan-72
0.0
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White Unemployment Rate
Black Unemployment Rate
Mar-16
May-15
Jul-14
Sep-13
Nov-12
Jan-12
Mar-11
May-10
Jul-09
Sep-08
Nov-07
Jan-07
Mar-06
May-05
Jul-04
Sep-03
Nov-02
Jan-02
Mar-01
May-00
Jul-99
Sep-98
Nov-97
Jan-97
Mar-96
May-95
Jul-94
Sep-93
Nov-92
Jan-92
Mar-91
May-90
Jul-89
Sep-88
Nov-87
Jan-87
Mar-86
May-85
Jul-84
Sep-83
Nov-82
Jan-82
Mar-81
May-80
Jul-79
Sep-78
Nov-77
Jan-77
Mar-76
May-75
Jul-74
Sep-73
Nov-72
Racial Disparities are Persistent:
Unemployment rate differences are very pronounced, “Good”
Black unemployment is recession level for Whites
Monthly Unemployment Rate, Seasonally Adjusted
25.0
20.0
15.0
10.0
5.0
The richest 10% account for 46% of all US
household expenditures on education
Share of Aggregate Expenditures by Income Decile
50.0
40.0
30.0
20.0
10.0
.0
7.8
Second
10
percent
Third
10
percent
Fourth
10
percent
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Fifth
10
percent
Sixth
10
percent
Seventh
10
percent
Eighth
10
percent
Ninth
10
percent
Highest
10
percent
Income growth for the top 1% has outpaced
th
the median and the 20 Percentile
Income Growth at different deciles
260.0%
240.0%
220.0%
200.0%
180.0%
160.0%
140.0%
120.0%
100.0%
1980-81
1985-86
1990-91
Income
Top 1%
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1995-96
Income
Top 20%
2000-01
2005-06
Median
2010-11
2015-16
Increases in tuition at Private (non-profit) and
Public Four-Year Colleges
Full tuition and fees (2015 dollars)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1975-76
1980-81
1985-86
1990-91
1995-96
Private Nonprofit Four-Year
2000-01
2005-06
2010-11
2015-16
Public Four-Year
Source: https://trends.collegeboard.org/college-pricing/figures-tables/tuition-and-fees-and-room-and-board-over-time-1975-76-2015-16-selected-years
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1980 to 2000 the top 1% kept up with tuition growth,
but not the 20th Percentile or median earner household
Tuition and Income Growth 1980-2015
300%
250%
200%
150%
100%
50%
0%
1980-81
1985-86
Tuition
Private
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1990-91
Tuition
Public
1995-96
2000-01
Income
Top 20%
2005-06
Median
2010-11
Top 1%
2015-16
Almost 60% of Black College students have
zero expected family contribution aid levels
Zero Expected Family Contribution
70
60
50
40
30
20
10
0
White
Black or
African
American
Hispanic or
Latino
Asian
American
Native
Indian or Hawaiian /
Alaska other Pacific
Native
Islander
Other
Source: U.S. Department of Education, National Center for Education Statistics, 2011-12 National Postsecondary Student Aid Study (NPSAS:12).
Department of Economics