Residential Segregation and Upward Mobility

450New Orleans         Reports of a new study by economists Raj Chetty, Nathaniel Hendren, and Lawrence Katz looking more deeply at the earning records of millions of families who moved to different addresses found that “poor children who grow up in some cities and towns have sharply higher odds of escaping poverty than similar poor children elsewhere.”   As the New York Times summarized, “…the city is especially harsh for boys:  Low-income boys who grew up there in recent decades make roughly 25 percent less as adults than similar low-income boys who were born in the city and moved as small children to an average place.”

I’m scratching my head just a bit wondering what the news is, in all of this.  Are the headlines simply about the fact that rather than just thinking that families are being trapped in poverty in urban neighborhoods and a lot of rural areas and Indian reservations, that now that we have the numbers, we can prove they are trapped?

God knows we have been tricking ourselves, so maybe that’s the point.  Studies by several independent research teams have found that Americans severely misjudge the amount of upward mobility in society through a self-serving psychological conceit:  overestimating upward mobility is self-serving for the rich and justifies their wealth and for the poor provides hope for a brighter future.  Neither is true, but “what the hey!”

The map, county-to-county, is interesting.  You are in trouble living in Tampa, Orlando, West Palm, Atlanta, Chicago, Los Angeles, and New Orleans for sure, and good luck if you live in the Bronx or some parts of Manhattan still.  You live on the Navaho, Northern Cheyenne, or other reservations, luck won’t help you.  The best shot for your family according to the numbers is DuPage County outside of Chicago, if you can afford the rent, and about the same can be said for San Francisco, Salt Lake City – and a whole lot of other places in Utah – Las Vegas, and Providence, as well as some of the suburban counties around them.  You might be able to afford the rent in Altoona and some parts of Pittsburgh.

Sadly for all of the Sunbelt boom, overall if you look at the map of the South your best shot outside of northwestern Arkansas is just getting by and holding your own.   South and North Carolina look like disaster areas or, I guess to be more specific, they look like the Mississippi Delta.  There’s nothing but trouble in all of this.

HUD Secretary Julian Castro says he’s excited about this.  He wants to allocate funding to help families move to higher cost neighborhoods with larger housing vouchers.  This will be an interesting appropriations battle when he goes with that budget to the Republican Congressmen from these suburban districts and asks for more money to move families from the ghetto to their counties.  For a long time residential income and racial segregation has been a concrete ceiling for poverty, and the numbers that prove it aren’t going to be enough to change the hearts and minds of politicians who are committed to no change coming to their areas and the same faces in their electorate.

You can’t have mobility when all the roads are filled with STOP signs.

“Dare You to Move” by Switchfoot – Poverty

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Internet Monopolies Walls are Going to Tumble

Telus better pack it up or get right!

Telus better pack it up or get right!

Dallas     At the ACORN Canada staff training and then the management meeting in Montreal, we spent a LOT of time assessing and strategizing about our next steps on our Digital Access to Opportunities campaign which, plainly stated, continues to be our effort to build bridges for lower income families across the digital divide.

In Canada the companies are even more closely held monopoly concerns with the big three Telus, Canada Bell, and Rogers than are found even in the United States, although Comcast with its proposed merger of Times-Warner clearly has its heart set on going the same way.  Despite some steps to accommodate us with a $10 per month plan in public housing in Tornoto, Rogers has not moved past that opening round and what they delivered has been less than promised.  Telus in a meeting in Vancouver had told us they were moving our way, but then have not gotten back to us, and Bell continues to be unabashedly arrogant and impervious to our concerns, having adopted what can only be seen as a Comcast head-in-the-stand, make-me-do-it, schoolyard bully approach to the problem, hoping it will disappear into the Ethernet or something.

Not clear what tea leaves their lobbyists are telling them to read, but they’ve got trouble on the horizon.  The regulators in Canada are preparing for a hearing this winter on declaring the internet a public utility, and the same thing has been promised in the US by the FCC.

ACORN is committed to participating in the Ottawa hearings, but we’re convinced the court of public opinion is where we will be able to be heard more clearly.   They may have invested in some infrastructure but surveys of our members and others reveal that people hate their cable and internet company the way they once hated the local tax man.  Furthermore their brands are ubiquitous and their tentacles stretch everywhere from their ownership to sports teams in Tornoto to the bicycle sharing program in Montreal.  That’s a big, wide butt ready for the kicking!  We’re convinced that to get them finally to take seriously the desperation of lower income families to have access to opportunities, we’re going to have to go big, go broad, and be as ubiquitous as they are.  Enough said for now.

Meanwhile the often clueless former industry lobbyist heading the FCC must have startled the big boys of the industry in the financial papers the other day by pretty graphically drawing a picture of all of the internet companies as being emperors with no clothes on.  He simply stated the obvious without stating the obvious.  He said there is little or no competition in most markets so that internet service costs too much and changing from one operator to another is prohibitively expensive.  All of which is another way of saying that the companies are anti-competitive and operating like Canadians, or what we used to call monopolies.  Chairmen Wheeler claimed 80% of Americans have access to high speed internet at 25 megbits per second, though he didn’t say at what price, but if he’s going to acknowledge as his statement indicated that the “F.C.C. planned to promote more choices and protect competition, because a lack of adequate consumer choice inhibits innovation, investment and economic benefits,” it’s hard to believe that they can’t get the message.  For a change it was even an indirect shot across Comcast’s bow, since their claim that they are not a monopoly through their purchase of Times-Warner is that they don’t often compete in the same markets.  Someone seems to have given Wheeler the memo that they are in different markets, because they don’t compete, and you can’t claim you are regulating them to assure competition when they are silently colluding to kept customers captive and control separate geographies.

Ok, yeah, maybe I’m dreaming about the FCC being something other than chattel for the companies, but maybe when they see what we have in store for the companies in Canada some of the chill will blow down from the north to cool some of the imperial monopoly dreams that are widening the digital divide.  Here’s hoping!

 

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