Gotham Gazette

The Place for New York Policy and politics

Opinion

The Luxury of Risk: Helping People Afford to Pursue Their Dreams Again


compt di hold

An opportunity for workers in an old law (photo: Michael Appleton/Mayor's Office)


As several cities begin to shutdown again with the hope of slowing the spread of COVID-19, we’re reminded of the timeless words “certain unalienable rights, that among these are life, liberty and the pursuit of happiness.” I’m interested in the unique opportunity to evaluate how that third unalienable right — the pursuit of happiness — matches with the reality of today’s world and steps we can take to improve opportunities for people to pursue and achieve their definition of happiness.

For Americans, it has become increasingly difficult to feel content, optimistic, and fulfilled during this period of uncertainty and tragedy. While happiness is of course subjective, research shows that only 49% of Americans are very satisfied with their job while an even more shocking 14% of Americans report being generally “very happy.” There is a clear culprit that makes this pursuit of happiness difficult for many: lack of financial security.

There is plenty of evidence to suggest that money cannot buy everlasting happiness, but there are also strong correlations between rising incomes and a certain level of happiness. Not having enough income to cover basic needs can contribute to unhappiness and general dissatisfaction (not to mention the negative correlation with overall health).

For many, being able to pursue a better life is dependent on the ability to take on certain risks. One’s ability to start a new job, go back to school, launch a business, or even spend more time on a new hobby does not happen in a vacuum. Those who are struggling to pay their basic bills every month do not have the financial freedom to take these kinds of risks. Yet there is hope.

New York City has just announced an ambitious initiative, Employee Ownership NYC, that will help more employees of small businesses in the city to become owners — and also help infuse struggling businesses with capital and resources to be able to sustain themselves through the duration of this pandemic.

At the same time, as more and more Americans work for large companies, there is a tremendous opportunity to help even more people realize financial security, especially women and people of color.

Written into law in 1964, the Employee Stock Purchase Plan (ESPP) was created as part of President Lyndon Johnson’s War on Poverty. Effectively, it was America’s first financial wellness benefit and today it still holds incredible promise to help Americans build sustainable wealth and secure their financial futures.  

Under the original law, employees could contribute up to $25,000 per year to purchase company stock at a discount. Although the $25,000 limit has never been updated to reflect inflation over more than 50 years, the value of these programs for hardworking Americans is incredibly powerful.

Around half of America’s publicly-traded companies offer ESPPs, which means millions of Americans have direct access to the wealth-building power of the stock market—at a discount—through their employers. Well-run, financially-inclusive ESPPs can help employees generate what can be equated to an 11% annual raise.

Despite this, participation in ESPPs remains incredibly low because the reality of affording access to this benefit can be out of grasp for many. Companies need to harness the power of technology and innovation to make these plans accessible to all of their employees, not just the ones that can afford to reduce their take-home pay in order to participate. It is a solution to income inequality that is directly within our grasp.

It’s impossible to talk about income inequality, however, without taking a close look at who’s participating in the stock market today. Recent reporting by the Associated Press found that 61% of white households own stock while in Black households that number is only 33%. The same report noted that the S&P 500 grew approximately 260% over the last decade—meaning for those Americans that are in the market—the last ten years have been quite successful financially.

One of the most impactful ways to get more Americans into the stock market and sustainably close the wealth gap is through employee stock purchase programs coupled with the right financial inclusion tools and education.

By building equity in the companies where they work, American workers can begin to align their interest with the goals and priorities of the decision-makers at the very top of their firms. Research shows that employees who have ownership in the companies where they work are more satisfied and more motivated in their jobs. This also means that employees have access to capital on a rainy day and have the opportunity to make their money work for them.

While stock programs will never take away the need for employees to earn a good living and have access to other crucial benefits like healthcare, ESPPs are one of the few benefits that immediately help employers and employees alike and that don’t require action from Washington or costly changes by companies.

Through ESPPs companies can take book value of their shares—which look good on a balance sheet but do little else—and convert those to cash which can be used to cover any number of business-related expenses. Pair that with a more motivated and committed workforce and the benefit looks even better from an employer perspective.

Through these stock programs we have a proven solution that squarely aligns with the goals and values of both political parties and presents an opportunity to make a huge difference in the lives of working Americans—offering a pathway to more financial freedom, happiness and greater economic opportunity for millions.

***
Aaron Shapiro is the Founder and CEO of New York-based Carver Edison. On Twitter @CarverEdisonHQ.

***
Have an op-ed idea or submission for Gotham Gazette? Email This email address is being protected from spambots. You need JavaScript enabled to view it.

A Green Recovery Plan for New York City


cm attends bridge

A path to greener pastures (photo: John McCarten/City Council)


As New York City plans for recovery from the COVID-19 pandemic, we must first examine the ways our environmental decisions have contributed to public health abuses in the past and enact a green recovery program that centers the wellbeing of long-ignored communities.

New York City has a long history of environmental racism and injustice. Low-income communities, majority-immigrant communities, and communities of color have borne the burden of severe environmental degradation. Landfills, industrial power plants, waste incinerators and transfer stations, and toxic waste disposal sites are consistently built in lower-income neighborhoods. Data is clear that a person’s zip code is often a greater determinant of health than many genetic predispositions. Yet, due to a lack of political accountability coupled with historically racist zoning and environmental practices, we have repeatedly put the health and wellbeing of fellow New Yorkers at risk.

But we can end this vicious cycle of neglect with effective, comprehensive legislation instead of patchwork solutions. 

It’s no secret that the climate crisis is getting worse. But, here in New York, the city’s failure to protect the environment cannot be overstated. Discriminatory city planning initiatives have placed the health of marginalized communities in jeopardy. A lack of access to green energy planning, insufficient neighborhood green spaces, and the effects of toxic waste have led to higher instances of asthma and lead poisoning from Gowanus to Greenpoint. 

The scale of contamination in North Brooklyn alone is still being unearthed. Greenpoint, WIlliamsburg, and other parts of the 33rd City Council District are home to multiple federal and state superfund sites and brownfields; and, for decades, residents have felt the massive toxic impacts of these sites in their neighborhoods.. Our communities are also divided by the Brooklyn-Queens Expressway, which has polluted our environment for generations. 

Yet, we can still take bold action against these polluters. For years, local environmental advocates have been on the frontlines of neighborhood toxic clean-up and air monitoring initiatives, and have fought tirelessly to hold gas and energy companies accountable for contributing to the district’s disrepair. They need a partner in government. 

We must elect legislators who will work with community members to hold toxic polluters accountable, divest from for-profit energy suppliers, and actively work to stop the construction of National Grid’s North Brooklyn Pipeline. Repeatedly, companies like ExxonMobil and National Grid show that they cannot be trusted. We must demand actionable remedies for the harm these companies have caused, and shift to renewable energy. It's time we free ourselves from reliance on fossil fuels. It’s time New Yorkers were in control of their energy — it’s time for public power. 

We’ve made progress, but there is still a long way to go toward achieving the green and just New York we need to face the climate crisis head-on. 

Foremost, we can commit to creating and expanding a network of open green spaces. This will not only help us meet the challenges of climate change and improve environmental health, but also usher in a new era of safe, efficient, and sustainable transportation in New York. Campaigns like Make Meeker Move and the BQGreen acknowledge the environmental degradation done to Black and Brown communities and seek to take back public space for people. 

An investment in open space in neighborhoods that lack parks also creates opportunities for environmental economic growth, and moves us on the urgently needed path away from car-centric infrastructure toward more people-first planning. New protected bike and busways ensure cyclists and pedestrians have safer commuting options; and making the city’s Open Streets program permanent would keep our communities vibrant and help our local businesses thrive in the wake of the COVID-19 pandemic.

In 2012, Hurricane Sandy ripped through our city, causing billions of dollars worth of damage, and lasting harm to residents in public housing. Right now, we are unprepared to handle another hurricane of that magnitude, and our waterfront neighborhoods in Brooklyn need a plan to properly withstand the effects of another deadly storm. We can immediately invest in ‘sponge city infrastructure;’ permeable pavements, green roofs, and cost-effective bioswales in flood prone areas to absorb stormwater and reduce carbon emissions. 

Longer-term, we need a comprehensive, citywide resiliency plan and reform of City Environment Quality Review (CEQR) procedures, exploring ways to rezone heavy flood areas as open spaces, create resiliency projects, and increase wetland restoration centers. We also need to build neighborhood energy hubs for storage, and invest in new building energy retrofits. This will create new jobs and we must prioritize communities harmed by environmental racism in hiring.

New York cannot afford to lose more ground in the fight against climate change. These solutions are critical to safeguarding our communities, and will enable us to create a green job corps for COVID recovery. 

We must make environmental justice the centerpiece of New York’s economic recovery plan. We need to take an aggressive stance on local and sustainable climate policy, and elect leaders committed to cultivating the future we deserve. It will take work, but we can build this future together. 

***
Elizabeth Adams is a Democratic candidate for City Council in District 33, in Brooklyn. Read her full environmental recovery plan here. On Twitter @ElizabAdams.

***
Have an op-ed idea or submission for Gotham Gazette? Email This email address is being protected from spambots. You need JavaScript enabled to view it.

For Climate and Community Protection, It’s Time to Electrify Transportation in New York


mta pro el

An electric bus (photo: Marc A. Hermann/MTA New York City Transit)


This has been a year of unexpected and devastating loss with the number of deaths from COVID-19 in the United States already surpassing 300,000. In New York City, bus drivers, train operators, and other transit workers have shown up everyday to keep the city moving forward through the spring peak and now into a second wave of infections. 

But there is a cost to providing transit services during a pandemic. And the cost is more than 125 MTA workers who have already lost their lives, and thousands more who have been infected and may suffer lifelong health impacts. 

What’s most tragic, is that much of this loss was preventable. Partly because our leaders could have managed the pandemic better, but also because air pollution makes the impacts of COVID-19 much worse, and air pollution is largely preventable. 

Many bus drivers, train operators, and other transit workers come from the same neighborhoods most impacted by high concentrations of air pollution, the environmental justice communities leading the fight for climate justice.  

Air pollution, specifically particulate matter (PM) 2.5, is the largest environmental health risk in the United States, and the Trump EPA just rejected stricter standards despite concerns from the agency’s own scientists. PM 2.5 directly leads to heart problems, respiratory illness like asthma, diabetes, and birth defects. PM 2.5 comes from burning fossil fuels, and in New York, vehicle tailpipe emissions are the number one source of this harmful pollution.   

These emissions from cars, trucks, buses, and trains are also the largest contributor to New York State’s greenhouse gas (GHG) emissions, responsible for 36% of the state’s total GHG emissions according to the New York State Energy Research and Development Authority’s inventory.

And, these harmful pollution impacts are even worse near their sources. Roughly one-third of the negative health impacts occur within five miles of the emission source, which means that neighborhoods in heavily-trafficked communities suffer the most.  

Studies show that 74% of Black and Latino New Yorkers, and 80% of Asian New Yorkers live in areas where transportation-related PM 2.5 concentrations are higher than the state average. The most polluted Census tract in the Northeast is in the West Bronx, where the population is 99% people of color. By contrast, more than two-thirds of white New Yorkers live in areas that are below the state average.  

In response, the ElectrifyNY coalition – in partnership with Assemblymember Jeffrey Dinowitz and Senator Timothy Kennedy – introduced the Green Transit Green Jobs bills to mandate that all transit agencies in New York purchase only zero-emissions vehicles starting no later than the year 2029.

This legislation will help decrease air pollution and protect New Yorkers’ health, while also helping to achieve the GHG emissions reduction goals set by New York’s nation-leading climate law (the Climate Leadership and Community Protection Act). In fact, by transitioning all the buses in New York to zero-emissions electric vehicles, transit agencies would eliminate 900,000 metric tons of CO2 and save approximately $870 million in health costs

Green Transit Green Jobs also means more local, good-paying jobs because it will encourage electric bus manufacturing in New York and will contribute to the growth of a green economy that no longer exacerbates the risk to public health and our climate. There are 8,500 transit buses in operation throughout the state, and transitioning all of them to electric vehicles will greatly improve the health, environment, and economy of the entire state and its people. 

The link between transportation and air pollution is clear, as are the negative impacts of that pollution on public health and the climate. The Green Transit Green Jobs bills give us a roadmap to protect the health of our communities and our climate while prioritizing the equity and environmental justice goals in New York’s climate law. 

Bus drivers, subway conductors, and other transit workers have kept New York moving forward through this crisis. We should honor them by putting New York on track to a future with good jobs, healthier communities, and a sustainable climate. 

***
Renae Reynolds is Transportation Planner at NYC-Environmental Justice Alliance. Rachel Patterson is Legislative and Climate Associate at Environmental Advocates NY. The Green Transit Green Jobs bills are A9046/S7349 and A10559/S8548. On Twitter @Renae_Rey, @NYCEJAlliance, @greenwatchdogNY & @electrify_ny.

***
Have an op-ed idea or submission for Gotham Gazette? Email This email address is being protected from spambots. You need JavaScript enabled to view it.



Print Friendly and PDF

Editor's Choice


Gotham Gazette: New York Voters Approve $4.2 Billion Environmental Bond Act
New York Voters Approve $4.2 Billion Environmental Bond Act
Gotham Gazette: 
New York City Voters Approve Racial Justice Ballot Measures
New York City Voters Approve Racial Justice Ballot Measures
Gotham Gazette: 
Housing Development in New York City Slows to a Crawl as Officials Debate Tax Incentives
Housing Development in New York City Slows to a Crawl as Officials Debate Tax Incentives
Gotham Gazette: 
City Council Examines Low Voter Turnout, Moving Local Elections to Even Years City Council Examines Low Voter Turnout, Moving Local Elections to Even Years