What we talk about when we talk about gentrification

“Racial and income segregation locks low-income people in a trap of concentrated poverty. The best schools are relegated to the highest-income neighborhoods, good jobs often exist in either exclusive or gentrifying neighborhoods, and businesses are less willing to take root in an area of concentrated poverty because there are fewer customers. All of this is a vicious cycle that traps low-income Americans. It also hinders their ability to foster growth on their own because financial insecurity makes people transient and lacking in time and energy to build community.

Meanwhile, homeowners in well-off neighborhoods have cemented systems of local control through rules like exclusionary zoning to keep their neighborhoods prohibitively expensive for lower-income Americans, including many Black and brown Americans.

Zoning laws are the rules and regulations that decide what types of homes can be built where. While this can sound innocuous, exclusionary zoning is anything but. These rules have a dark history in the United States as a tool of racial and economic segregation, used explicitly to keep certain races, religions, and nationalities out of certain neighborhoods. And while the explicit racism has been wiped from the legal text, the effect of many of these rules remains the same: keeping affordable housing and the people who need it away from the wealthiest Americans.

City by city, the message is clear: Segregation and concentrated poverty are the true blights of urban life, despite our fascination with gentrification.”

The economic case for letting in as many refugees as possible

“Refugees and immigrants are not only good for the economy, they can help us reverse dangerous trends in stagnant cities and towns. Policymakers should stop referring to refugees as a burden and trust that new Americans will benefit the nation.”

The death of the job

“Once upon a time, there were good jobs.

These jobs paid people enough money to live on, even enough to support a family. They provided health insurance so people could go to a doctor if they got sick. They even came with pensions so that once you’d worked for a certain number of years, you could actually stop working. You could rest.

But there was a problem.

These jobs weren’t for everyone. They were mostly for white men, and mostly in certain places, like a factory or an office. For everyone else, there were jobs that paid less, with fewer benefits — or no benefits at all. And over time, there were more and more bad jobs and fewer and fewer good jobs, and even the good jobs started getting less good, and everyone was very tired, and there was not enough money.”

“The pandemic has made matters even worse. Millions of front-line workers risked their lives doing jobs that often offered them little more than poverty-level wages in return. Even for those able to work in the relative safety of their homes, the pandemic often sapped whatever joy, camaraderie, or fulfillment jobs had once offered — 40 percent of workers in one 2020 survey, the majority of them working remotely, reported experiencing burnout during the pandemic. The problem was only compounded for parents and others who took on new caregiving responsibilities, with mothers especially dealing with high levels of exhaustion and depression.

But the pandemic has also been a turning point for many workers, leading them to reevaluate their jobs in the face of new dangers — or a realignment of priorities brought on by a once-in-a-lifetime public health disaster. Indeed, the pandemic has led to record numbers of people quitting their jobs — 4 million this April alone, a phenomenon so widespread it’s been called the Great Resignation.”

“over the past 70 years or so, retail, hospitality, and other service jobs have proliferated while the manufacturing sector and others that once provided well-paid jobs with benefits have shrunk. That’s part of the reason American wages stagnated and more and more people had to go without health insurance (at least before the passage of the Affordable Care Act). “To a degree, the crisis today in work is because of this huge expansion of the service sector, which was not covered by the kind of regulations or unions or social norms that we once expected,” Lichtenstein said.

Other factors, too, combined to make jobs worse. Long hours became more common as more and more workers were declared exempt from the 40-hour standard. The rise of “just-in-time scheduling” made retail and other service work increasingly unpredictable, leaving workers unsure if they’d get enough hours to be able to pay rent, or be able to find child care during their ever-changing shifts. And some jobs themselves changed to become less pleasant. Retail, for example, “moved toward more customer self-service and away from the sort of skilled model of retail selling,” which meant less opportunity to interact with customers and hone sales techniques, and more of an emphasis on mechanically keeping people moving through a store”

More Than 53,000 American Companies Sought Exemptions From Trump’s China Tariffs. Almost All Were Denied.

“The bureaucratic process established by the Trump administration to determine which American companies should be exempted from paying tariffs on imports from China is a black box of “inconsistencies” and poorly documented decision-making, according to a new audit.

In a report published last week, the Government Accountability Office (GAO) cast a critical eye on the so-called “tariff exclusion process” created in 2018 as part of the Trump administration’s efforts to slap tariffs on a wide range of imports from China. The process, overseen by the Office of the U.S. Trade Representative, allowed American businesses to appeal to the federal government for permission to not pay tariffs if they could demonstrate that a given product was not available from other sources, or if a business faced “severe economic harm” due to the tariffs.

Between 2018 and 2020, American businesses submitted more than 53,000 exclusion requests. The vast majority—87 percent—were denied, and most of the denials were on the grounds that the company failed to demonstrate sufficient economic harm to the Office of the U.S. Trade Representative, the GAO found.

In other words, federal bureaucrats reviewed tens of thousands of statements from companies pointing out how the Trump administration’s tariffs would cause economic harm—because, yes, Americans paid for the tariffs—then discarded most of those requests because the harms were not “severe” enough.

What’s even worse is that there’s very little in the way of objectivity or due process afforded to companies that had their exclusion requests denied. Soon after the tariffs were imposed, members of Congress warned that the exclusion process lacked “basic due process and procedural fairness” and that it could be “abused for anticompetitive purposes.” As Reason previously reported, business owners have complained that simply getting a decision one way or the other can take months. And there is no way to appeal the rulings.

The new GAO report confirms some of those concerns.”

“tariffs are always about protecting certain industries, and protecting certain industries always invites influence-peddling.”

The big drop in American poverty during the pandemic, explained

“In March, researchers at Columbia led by Zachary Parolin estimated that as a result of President Joe Biden’s stimulus package, the American Rescue Plan, the US poverty rate would fall to 8.5 percent, the lowest figure on record and well below 2018’s figure of 12.8 percent. This past month, researchers at the Urban Institute, using a slightly different means of measuring poverty, found that 2021 poverty will be around 7.7 percent, almost a halving relative to 2018’s rate of 13.9 percent per their methodology. (Official US Census poverty statistics for 2020 have not yet been released.)

The Columbia authors find that if you compare 2021 to every year for which the census does have data, from 1967 to 2019, and use a consistent poverty line, 2021 is projected to have the lowest poverty rate on record.

Considering that the US endured a pandemic and economic shock in 2020, these numbers are remarkable.”

“If handing out cash led people to work dramatically fewer hours or to quit their jobs, then cash payments wouldn’t cut poverty by as much as they initially seem to.

Luckily, cash doesn’t seem to discourage work to that degree. In 2019, a group of economists and sociologists specializing in child poverty put together a major report for the National Academy of Sciences, and their estimate based on the research literature was that a cash benefit of $3,000 per year for all but the richest children would reduce work effort by about 1.15 hours a week on average — a fairly trivial amount that barely changes the antipoverty impact of such a program.

The effects of stimulus checks to adults, like those pursued in the past year, are surely different, but the evidence generally suggests that work disincentive effects of cash are small. University of Pennsylvania economist Ioana Marinescu, in a wide-ranging review of the effects of cash programs, concluded, “Our fear that people will quit their jobs en masse if provided with cash for free is false and misguided.””

“The US has been sending out a lot of cash during the pandemic. But that’s almost certainly coming to an end. The enhanced child tax credit is a policy many Democrats want to make permanent, or at least (as the Biden administration has proposed) extend for several more years. But the $1,200 and $600 and $1,400 stimulus checks were emergency measures, as were the $300/$600 weekly unemployment supplements.

All that implies that in 2022, when those measures are gone, poverty is likely to shoot back up again, even in a strong economy with robust job growth.”