Follow the Money

by Robert W. Lake, Acting Director

Even the most cursory reading of the daily newspaper reveals some disturbing juxtapositions. One day we read that year-end bonuses from record highs on Wall Street have produced a consumption frenzy among twenty-something stock traders ordering $1,200 bottles of wine with their steak and cigars. The next day we read that New York City will lose 13,000 Section 8 housing certificates due to changes in regulations quietly announced on HUD’s home page. Although HUD’s action was quickly rescinded following loud public outcry, these juxtaposed events are symptomatic of the widening income disparities in cities that academics have been writing about for some time.

All the evidence—and common sense—suggests that the income gap between rich and poor will widen even further as economic and policy trends take their course. Changes in labor demand, the de-skilling and export of jobs, growing part-time and temporary employment, and the incessant dismantling of the social safety net will lead only to more poverty, hunger, and social insecurity. The growing reliance on soup kitchens and shelters is stark testimony that these effects are already apparent.

Research on the causes and consequences of income inequality, and the search for adequate policy responses, are major ongoing activities at CUPR. Through CUPR’s Rutgers Economic Advisory Service (R/ECON™), Nancy Mantell and Mike Lahr chart trends in job growth and income levels in the regional economy. Carole Walker is heading up a series of projects evaluating the impacts on tenants and neighborhoods of changing housing and welfare policy, including New Jersey’s transitional housing program and HUD’s voucher program for low-income households. David Listokin, Elvin Wyly, and Robin Leichenko are engaged in research on the role of lending institutions in financing affordable housing. Bob Burchell recently completed a national assessment of the job-creating effects of EDA investment in economically distressed communities. Norm Glickman, while on sabbatical, is pursuing research to enhance capacity building in community-based organizations. Lyna Wiggins is developing portable Geographic Information Systems for use in participatory planning by low-income, community-based organizations. CUPR’s "Project Community," led by Steve Finn, provides outreach and technical assistance to low-income communities and community organizations throughout the metropolitan region. In my spare time, I am examining persistent income inequality as the major barrier to sustainable urban development.

CUPR will continue to focus on income inequality and problems of low-income populations and neighborhoods. The question of who has the money—and who doesn’t—is the cornerstone of urban process and urban policy.

For more information on articles in CUPReport, please contact Arlene Pashman, CUPReport Editor.