Category Archives: Poverty & income gap

Helping the Poor by… Replacing Lower-Income Housing with Mixed-Income Housing?

The Highland Grove mixed-income community. Photo credit: Richmond Free-Press

The premise behind public housing is that “market failure” fails to supply enough decent and affordable housing for poor people. Government must intervene in the housing marketplace not only with subsidies but as a real estate developer to fill the gap. What government succeeded in creating all too often — from Chicago’s infamous Pruitt Igoe towers to Richmond’s public housing courts — is concentrated poverty, crime and social dysfunction. Learning from past disasters, the public housing sector now sees the solution as diluting poverty by bundling low-income housing with middle-class housing under the rubric of “mixed-income” development.

Ironically, the consequence of implementing this philosophy in Richmond is less low-income housing and more middle-income housing.

The Richmond Redevelopment and Housing Authority has decided not to replace 22 of the 60 public housing units in Dove Court that were bulldozed in 2008 in order to make way for a a mixed-income community called Highland Grove. Reports the Richmond Free-Press: Continue reading

“It Is Becoming OK Not to Go to School”

Zenobia Bey

Zenobia Bey is CEO of Community 50/50, an organization dedicated to promoting “positive thinking” and “social skills” in Richmond inner-city youth. As a civic activist who works and lives in the community, she has a different take on the high dropout rate in Richmond Public Schools than what we hear from well-meaning white, middle-class politicians, journalists and pundits who pontificate about poverty from afar.

While the high school graduation rate has improved statewide since 2014, the graduation rate has declined from 84% to 75.4% for Richmond high school students. Richmond Public Schools have the worst dropout rate in the state. Clearly, the problem is related to the high incidence of poverty among Richmond school students. But poverty does not explain why the problem is getting worse — even as the Richmond School Board last spring suspended an attendance policy that would have put 400 students at risk of missing graduation.

Writes RVA Hub in an article about Richmond’s low graduation rate: Continue reading

Migration Chains and Trickle-Down Housing

Call it trickle-down housing. When developers build luxury housing for the wealthy because more expensive housing provides bigger profit margins, do the poor go homeless? No. When an affluent household moves into a luxurious new penthouse apartment, it creates a vacancy in its previous residence…. which a less well-to-do family moves into, creating yet another new vacancy. The idea, if not the label, has been around at least since the time of 1960s-era urbanist Edward Banfield, author of the sociology classic “Unheavenly City.”

The trickle-down description of housing markets always made sense to me because I saw up close how it operated. When my father was serving in the U.S. Navy in the early 1960s, he was stationed in Newport, R.I., the summering place of the Vanderbilts and other captains of finance and industry in the late-19th century. We lived next door to a former mansion that had been chopped up into multiple rental apartments. Some rich family had built the manse in the 1800s. After decades passed, it was no longer suitable enough or fashionable enough for rich people. The building was re-purposed as rental housing.

The reason people are going homeless is that not enough new housing, luxury or otherwise, is being built — not because luxury housing is too expensive for most people to afford. Continue reading

Do Female UVa Faculty Suffer from Pay Discrimination?

Martha Zeiger, chair of the department of surgery at the School of Medicine, is the highest-paid female employee at the University of Virginia. She earns only $692,000, making her only the third highest-paid employee at the university.

To crib a gag line from the Instapundit blog, why are liberal and leftist institutions such cesspools of sexism? The Cavalier Daily, the University of Virginia’s student newspaper has found that female faculty at the university are earning almost $34,000 less this fiscal year than male faculty members on average. Only six of the top 20 earners at the university are women.

Here’s the part of the story I loved: In explaining the gap in male-female earnings, UVa spokesman Anthony De Bruyn sounded very much like a conservative explaining why gender pay gaps exist in society at large. Continue reading

More Unaffordable Affordable Housing

The Lawson Companies., a Virginia Beach multifamily development company, is planning to construct a $19.25 million, low-income housing project in South Richmond, reports Richmond BizSense. The apartment complex will have 96 units, for an average cost of $200,000 each. Rent for two-bedroom apartments will average around $1,000 a month, while three-bedroom units will go for $1,100.

“We see this project drawing a lot of families,” said Freddie Fletcher, a Lawson development associate. “It’s a good market over there for families looking for an affordable, Class A apartment.”

The Virginia Housing Development Authority (VHDA) is providing financing for the development. The article does not say whether or not the $1,000-a-month rent will be subsidized from vouchers or other public funds.

The project appears to be similar to many other lower-income housing projects in Virginia. Lawson Corp. has $290 million in ongoing development across Hampton Roads and Northern Virginia, and is looking to do more deals in the Richmond region. Continue reading

Virginia’s Unaffordable Approach to Affordable Housing

The Creighton Court public housing project in Richmond.

If the public policy debate over affordable dwellings is as impoverished as that described in The Virginia Mercury this morning, poor Virginians are doomed to lives of housing misery. Here’s how reporter Ned Oliver sums up the controversy: “Is affordable housing something for the state to tackle, or should it be left to cities and counties to address with local money?”

Embedded in this formulation are two assumptions: (1) The paucity of affordable housing might be remedied by more grants and low-interest loans; and (2) it is the responsibility of government, either state or local, to find the money for those grants and loans. In other words, the solution to the affordability crisis is more government, not less. Yet in the same article, Oliver notes that it costs $200,000 per unit to build new apartment complexes! Continue reading

Mugged by Reality: Sedgwick Gardens Edition

Lawrence Hilliard moved to Sedgwick Gardens to escape the ghetto. Then the ghetto came to him. Photo credit: Washington Post

A conservative, as the saying goes, is a liberal who has been mugged by reality. Well, it appears that a large number of liberals in the affluent Cleveland Park neighborhood of Washington, D.C., have been mugged by reality. Whether they become conservatives remains to be seen.

In a social experiment that could have implications here in Virginia where the idea of mixed-income housing is all the rage, the D.C. Housing Authority increased in 2016 the maximum value of vouchers to 175% of fair market rent as set by the Department of Housing and Urban Development. That meant, according to the Washington Post, that vouchers could be used for one-bedroom apartments renting at up to $2,648 per month.

At Sedgwick Gardens, a historic Art Deco apartment complex overlooking Rock Creek Park, one-bedroom apartments rented for about $2,200 per month in 2017. The apartment complex, located in D.C.’s predominantly white Cleveland Park neighborhood, is, as the WaPo puts it, “a bastion of urbane liberalism where only one in 20 voters cast a ballot for President Trump in the 2016 election.” The reaction of many Sedgwick Gardens inhabitants to the influx of tenants directly off the streets, however, was less than warm, tolerant and embracing. Continue reading

Wealth Shocks and Wealth Creation in the South

Rhett Butler, dissipated southern aristocrat who (in fiction) made a fortune after the Civil War.

The abolition of U.S. slavery after the Civil War, along with the accompanying decline in land value, triggered one of the greatest episodes of “wealth compression” in world history. Slaves accounted for roughly half the accumulated wealth of Southern whites in ante-Bellum society. Reflecting a loss in productivity after the war, the value of land, which accounted for much of the non-slave wealth, fell by 60% in the Deep South and by 15% in the rest of the South. Overall, southern whites in the top 5% percentile lost 75% of their wealth, according to  according to research published by the National Bureau of Economic Research.

Remarkably, however, the sons of slaveholders largely recovered their relative standing by shifting to new occupations, concludes the paper, “The Intergenerational Effects of a Large Wealth Shock: White Southerners after the Civil War,” by Philipp Ager, Leah Platt Boustand, and Katherine Eriksson.

Despite the massive loss of material resources, the ability of slaveholders’ sons to find new sources of wealth suggests “a remarkable persistence” of wealth that cries out for explanation. The authors’ research, based upon newly digitized, complete-count Census samples linked to 1860 slave schedules, did not enable them to identify the attributes that allowed families to reconstitute their wealth. However, drawing upon the research of others, they speculate that the sons of slave-holders bounced back thanks to their access to elite social and marital networks. Continue reading

How Government Creates Poverty: Fines and Fees

Government is much better at creating poverty than at curing it.

Yesterday the General Assembly voted to end the practice of suspending driving licenses for non-payment of fines or restitution or both and ordered Department of Motor Vehicles to restore driving privileges for hundreds of thousands of Virginians. If you need to do business at a DMV office in July, get there early. Restoring 600,000 licenses may take a while.   Continue reading

Promoting Financial Literacy

Here’s a government initiative I like. The City of Richmond’s Treasurer’s Office is holding its first Financial Literacy Fair this Friday. States the press release:

The purpose of this fair is to empower the citizens of Richmond to take more control of their finances and begin the initial steps needed to build personal wealth. The mission of the Richmond City Treasurer’s Office is to inspire, encourage and pursue the high possibilities of potential in others through the elimination of financial barriers by taking “Small Steps for Big Change.” This literacy fair is one step toward big change in the lives of our Richmond residents.

The fair will hold workshops such as Banking 101, Budgeting and Saving, Balling with Budget and Credit. Financial counselors will be onsite.

Bacon’s bottom line: One reason — I’m not saying it’s the main reason, but it’s a contributing factor — that people fall into the poverty trap is that they often make poor financial decisions. The literacy affair addresses a root cause of poverty. Let’s hope it gets great attendance!

Brace Yourself for the “Food Justice” Movement

Richmond Food Justice Corridor “planting party”

“Food justice” is a thing now.

My first instinct when I read the phrase was cynical: While some people are busy running food banks and food pantries, growing urban gardens, and setting up grocery stores in Richmond’s inner city — you know, doing things that actually feed poor people — food justice warriors are busy advocating economic and political change.

As I looked into it, I decided my gut reaction wasn’t entirely fair — partly fair, but not entirely. The Richmond Food Justice Alliance, for example, has sponsored urban-gardening events and nutritional workshops. And some of the values it promotes — inner city citizens eating better, becoming food producers as well as food consumers, in sum becoming more self-sufficient — are actually quite admirable. The movement does appear to be pushing for some positive cultural changes in the inner-city black community.

Still, steeped in the rhetoric of the Oppression Narrative, food justice warriors seem hostile to the efforts of well-intentioned outsiders. There are signs that a rift has developed between African-American community militants and white liberals in the nonprofit sector who espouse similar goals. That doesn’t help anyone. Continue reading

Yes, Let’s Restore Drivers Licenses. But…

The General Assembly spiked bills in the 2019 session that would have ended the practice of suspending the drivers licenses of Virginians who fail to pay court fines and other obligations unrelated to driving. Without some kind of repercussion, foes of the bills argued, those obligations often would go unpaid.

Now Governor Ralph Northam is proposing to use the budget as an end run around the failed legislation. He is adding an amendment to the budget bill to end the licenses-suspension practice and reinstate driving privileges for more than 600,000 Virginians.

“Having a driver’s license is essential to a person’s ability to maintain a job and provide for their families,” Northam said at a press conference yesterday. “It is especially pertinent to those that live in rural Virginia because we don’t have public transportation that is adequate to get to employment.” Continue reading

Fatherless Households and SOLs

Source: Cranky’s Blog

We know that the percentage of “economically disadvantaged” students in a school district is correlated significantly with Standards of Learning failure rates. But is poverty the driver behind low test scores, or is it just correlated with a third factor that is the real driver? Over on Cranky’s Blog, John Butcher ran an interesting analysis: He correlated English reading pass rates in a Virginia school district with the percentage of no-husband households in the jurisdiction. The results can be seen in the graph above. The percentage of no-husband households accounts for roughly 40% of the variability in SOL pass-rate performance.

John was addressing a different issue from the one I am interested in. He was making the argument that school districts should not be judged on raw SOL pass rates. Given the fact that SOL pass rates are strongly correlated with poverty, and even more strongly correlated with the percentage of fatherless children, schools should not be held accountable for their district’s demographics. They should be held accountable for under-performing on a demographically adjusted basis. (Even by that standard, he notes, the City of Richmond schools underperform “atrociously.”)

While I totally agree with the point Butcher is making — schools should be judged on their educational value added, not the demographics of their student bodies — my interest in this post is different. To what extent is the sociological background of Virginia’s students responsible for poor educational outcomes? Continue reading

Health Care and the Oppression Narrative

County health rankings. Source: Robert Woods Johnson Foundation

Correlation does not equal causality. That’s a fundamental tenet of statistics, but the concept apparently is so rarefied that a Virginia Mercury article based the Robert Wood Johnson Foundation’s County Health Rankings appears to be unfamiliar with it. The result is a headline — “In Virginia, health outcomes follow geographic and racial lines” — that has become standard fare in the ongoing Oppression Narrative embraced by most of Virginia’s media outlets. By misdiagnosing the problem, the Oppression Narrative does a grave dis-service to Virginia’s poor and minorities.

Writes the Virginia Mercury today:

More than 20 percent of Virginia’s black, American Indian and Hispanic populations report poor or fair health, compared to 14 percent of the state’s white residents. …

Year over year, the rankings essentially tell the same story: Virginia’s healthy counties, many of which are nestled in the northern part of the state, remain healthy, while its unhealthy localities, clumped together in the south and southwest, continue to struggle with poor outcomes. …

Continue reading

Richmond Schools Weaken Anti-Truancy Initiative

Attendance officer Breon Eppes. Photo credit: Richmond Free Press

It has long been a pillar of Virginia education policy to increase the high school graduation rate. To advance that goal, several school districts have cracked down on students skipping school. The Richmond Public School system, for instance, has long employed a team of “school attendance officers” to round up truants and get them back into the classroom.

Then last year, in a move that generated little publicity, the General Assembly gutted a 20-year-old anti-truancy law. That bill, according to the Richmond Free-Press, did four things: It (1) doubled from five to 10 the number of days that a student could miss, (2) allowed schools to wait another 10 days before meeting with parents, (3) eliminated most of the authority of school attendance officers to be involved, and (4) allowed school districts to use volunteers instead of paid staff to work on attendance issues.

Now, with support from the Richmond school board, Superintendent Jason Kamras proposes to save $500,000 by eliminating 21 positions slotted for attendance officers and replacing them with seven “attendance liaisons.”

The Richmond Free-Press quoted Bacon’s Rebellion’s friend and comrade-in-arms John Butcher, author of Cranky’s Blog and the first person outside the educational establishment to notice the change:

Update: In an important comment, Dick Hall-Sizemore takes exception to the way the Richmond Free-Press characterized changes to the anti-truancy law, and suggests that the tweaks might have stemmed from issues specific to Fairfax County, and anything happening in Richmond was unintended consequence. Continue reading