Category: income inequality

North Carolina, land of lost opportunity?

As more researchers burrow in to the idea of economic mobility, the Equality of Opportunity Project (led by four economists, two from University of California-Berkeley and two from Harvard) has ranked the 100 largest U.S. cities on the economic mobility of children, looking specifically at the odds of a child reaching the top fifth income group if he or she started life in the bottom fifth. Here’s a link to the rankings.

The big news for those of us in the Carolinas is that our two states are propping up the bottom of the list.

Four of the bottom five cities are in North Carolina. Another is Columbia, S.C. In order, starting at 100, are Memphis, Fayetteville (N.C.), Charlotte, Columbia, Atlanta, Greensboro, Detroit, Raleigh, Indianapolis, Columbus. Greenville (S.C.) is No. 11 from the bottom.

The study looked at “commuting zones” for cities, which is a different regional configuration than looking at Metropolitan Statistical Areas or just at city limits.

As this Salon.com article (“Class warfare in Dixieland”) notes, the bottom of the list is dominated by Southern cities. It doesn’t point out that all six of the Carolinas cities in the study are scraping the bottom of the list.

The big question – why? – is not addressed in the research. Theories abound, including in the Salon.com article. 

What’s at core of the affordable housing problem?

I stumbled on this excellent piece “The Zen of Affordable Housing,” by Dan Bertolet, a “recovering electrical engineer,” who blogs at Cititank.org. In it, he tries to debunk some myths and expound on what he considers truths of cities, housing and the market. Example:
“The urban density debate is over. An ever-growing mountain of density research unequivocally demonstrates the benefits associated with energy, greenhouse gas emissions, water, habitat, farmland, economics, human health and safety, etc. It’s not hyperbole to say that in America, our future prosperity will depend heavily on the densification of our urban areas. Accordingly, high-density housing should be recognized as a public benefit in itself.” 
But his final point is one that, in my observation, is the core of the problem and gets overlooked by virtually all the interested parties in the affordability debate. It’s all about income. If your income is too low, it’s tough to afford a place to live: 
“Income inequality is the core reason why housing affordability is such an intractable problem in the United States. In pretty much every other industrialized nation on earth, greater redistribution of wealth helps ease the problem of affordable housing. This includes social investments that significantly reduce other major household expenses, such as health care, education, childcare, and transportation, thereby freeing up more income to pay for housing. Here in the U.S, we will be beating our heads against the wall forever trying to provide enough affordable housing to make up for this underlying inequity.”