Causes of Urban Poverty - Essay Example

Final Paper Causes of urban poverty In the analysis of Wilson, in his article, “The political and economic forces shaping concentrated poverty”, he set forth that the major efforts by the federal government to provide housing to the people during the Depression era prompted them to underwrite many of the foreclosing mortgages of the urban poor. However, the FHA (Federal Housing Administration) selectively implemented this venture by choosing not to support areas which they deemed not profitable. On further analysis, this selective implementation was also based on racial composition where areas with European settlers were not given priority and worse, where black neighborhoods were totally ignored. Those who wanted to purchase homes in black neighborhoods were not covered in their mortgage even if they were financially well-off. As a result, black families and communities became trapped in these poor communities and their plight was not improved at all when other white communities were flourishing. Part of the development process in the cities also included the building of freeways cutting through many black communities and areas, prompting these people to move and settle in the suburbs or in other more convenient areas. The devastating part about the building of the freeway system is that it only cut through the black and poorer communities, but hardly through rich and white neighborhoods. This practice successfully separated black and white communities, or poor and rich communities – it successfully displaced the already disadvantaged black communities into poorer and even more dangerous neighborhoods. The government also provided much motivation for the middle class whites to leave the cities and flee to the suburbs. Motivation came in the form of mortgage and tax exemptions offered to veterans. Consequently, these individuals took advantage of these benefits and further increased the gap between the rich and the poor and increasing the concentration of poverty in some areas. These suburban communities featured successful individuals – most of them were white. In fact, the first black family to settle in such an urban community was bullied and eventually driven out of the community. In effect, the rich and the white status of said communities were maintained and the black and poor image of the urban poor was also maintained. Moreover, zoning policies further restricted the access of the poorer people to the more affluent and more progressive urban communities. New housing policies which were set forth in the aftermath of the Second World War still did not address the problem of the ghetto poor dwellers. Instead, they were plucked and evicted from their homes. Their situation did not improve in any way and instead it was only made by the discriminatory policies of the government. In the years which followed the Second World War, the situation of these urban poor was exacerbated by poor peace and order policies, including poorly implemented welfare policies. The use of illicit drugs became rampant and the unemployment rates became pervasive in these communities – further driving up the poverty rates into these areas and spreading the impact of poverty to more families and more communities sharing similar qualities. In evaluating the issue of urban poverty as expressed by Wilson in his article, the racial discrimination and disparity has been highlighted as a major cause of urban poverty. Such poverty has been spurred by the development policies which only served to benefit the white communities – and severely neglecting the black communities. Racial segregation became a function of these policies for the more privileged groups of people. The poor members of the community – mostly blacks – became poorer and those who were rich and white achieved greater success in their communities. Capital versus community The deindustrialization of America is said to be the main premise behind the capital versus community discussion. The focus of the industries at some point during the 1970s to the 1980s became less about investing on capital and other industries which would benefit the people and the country, but about foreign investments and direct acquisitions of industries. There is an inherent incompatibility between community life and capital. Capital and industries also lead to the formation of roads and buildings. These roads become freeways and often take up more space in land areas devoted to communities and community activities. People have also become preoccupied in engaging in many of these industries as employees or as investors. This has led to the increase and pervasiveness of these industries and in this capital economy. The concentration of these industries in the urban areas became manifest as these so-called boomtowns expanded in population and became more inviting to those who wanted to improve their fortunes and achieve more financial success. Sacrifices in the environment became an unfortunate consequence of these boomtowns. It therefore also exposed the people to more pollution and higher crime rates. Just as major improvement was becoming more apparent in these boomtowns, the values in communities became more focused on profits and on coordinating services. An offshoot of this issue is the fast-paced development of urban areas and the growth of capitalism in these areas. However, communities became smaller and became less involved with each other. The space in these communities became smaller and the industries became bigger. In effect, the “life space” became smaller, and the economic space became bigger. As a result, the inherent incompatibility of the community and of capital became apparent. They cannot coexist with each other as equals in one area. In the race for economic gains, the community life was compromised and sacrificed. The impact of capital in the community has been observed by various analysts. They point out ruthless expansion communities of capitalists as they tear down old buildings, parks, and community centers to give way to malls, golf courses, and other high-end recreation areas. They emphasize that capitalists bulldoze through neighborhoods to make way for their businesses. “It abandons entire regions, because profits are greater somewhere else. Deprived of their life spaces, people’s lives are reduced to a purely economic dimension as workers and consumers – so long at least as there is work” (Friedmann, as cited by Bluestone & Harrison, p. 19). Deindustrialization caused massive shutdowns in different factories and industries. As a result, many towns and communities which were dependent for their work in said industries lost their jobs. Consequently, many of these towns and communities were emptied in favor of the urban towns. Ghost towns were created and migration rates to the urban areas became more apparent. The issue of poverty however was not resolved when these people moved to the urban areas. In fact the unemployment rates in urban areas increased as a result of more migrants and as a result of limited and scarce employment opportunities. On a global scale, the United States became less competitive as a result of deindustrialization. Other countries and other investors were able to set forth their own plans in the industries and activities which used to be dominated by the US. With other nations making their own mark, the US was never able to gain the profits and the economic success it used to exclusively enjoy in the past. It was now facing tough competition from other Western nations and emerging economies. In the end, the US has suffered the economic implications of its deindustrialization. Promotion of economic growth Lower taxes and tax incentives is one of the major ways in which states, cities or communities promote economic growth. Taxes can be a major setback for industries to start-up their business in certain communities or cities. The goal of every businessman or corporation is still to make as much profit in their business ventures and investments. Taxes can often eat on their profits and can deter them from exploring opportunities in certain communities. For areas therefore which can offer less taxes, businesses and corporations would be enticed to invest more and to build their branches therein. As a result, more job opportunities for the members of the community can be gained. Social development projects can help implement economic development. For states and cities to gain more development, more jobs and better access to social services can also mean higher levels of economic development in the short-term and in the long-term scale. It is also important for states and cities to concentrate their support for the industries which are strong and profitable for the areas. Tax reliefs can be offered, for example, to real estate businesses in areas where real estate firms and flourishing. Such benefits or tax reliefs can also be offered to other businesses or industries which are thriving in these areas. This will help ensure the continuity and viability of businesses in these areas. With the above principles in place, the following activities can be set-up by the state or the community in order to support these plans: sales and promotion; subsidization, making sites and buildings, and the use of land use control and provision of infrastructure. Sales and promotions help to sell the products in the community or the city. Subsidization helps promote these industries. Making sites and buildings provide structure for these buildings, allowing them to flourish. Finally, land use control helps to monitor the development and the implementation of activities. Growth Management Growth development is the regulation of the amount, the timing, the location, and the character of development. It is about promoting and implementing growth to an extent that it does not affect the environment and the social development of the people. Growth management is important because it helps control the activities which are being undertaken by the state, the cities, and other firms for the sake of development. Growth and development can be fast-paced, especially in the urban areas. It can also be uncontrolled in terms of land use and expansion activities. Growth management is the crucial determinant in the pace and extent of development because it helps to control and “manage” the development. Growth management can also be misused by some circles when appropriate and much needed development is blocked by other people. There is indeed a need to manage and control development activities. However, methods of control have to be implemented reasonably – without blocking the important elements of development. In this case, growth management is important in the sense that it can be used as a tool to show the people how development can also lead to various benefits and advantages for the people. Growth management can be used as a tool in order to inject much needed development for certain areas which need it the most and to control it also in areas which have limitless development activities. Growth and development is important because it also helps achieve sustainable development. In the current state of our environment and global warming, the growing population and the growing industries are continuing to pressure our already limited resources. Growth management is the tool which helps to curtail unnecessary efforts towards pervasive development efforts. It is the tool which can help ensure that the generations which follow us can still enjoy the resources that we are enjoying today. Read More