The term gentrification has been around for about 40 years. But today’s gentrification is occurring in a really different political and economic context than 30-40 years ago. Thirty years ago the United States had a strong public sector.
Today that has been stripped down to almost nothing – there has been an 85% reduction in federal urban programs in the past thirty years. Thirty years ago the federal administration declared a “war on poverty.”
Today, our cities have declared a war on the poor, constantly seeking new ways to criminalize poverty, swelling our prison population threefold over the past 20 years. Thirty years ago a person could graduate from high school, get a good union job in a factory and be able to buy a house and send her kids to college.
Today, in Los Angeles, most of those jobs have gone overseas and have been replaced with non-union low-wage manufacturing and service jobs that do not offer benefits. Thirty years ago the U.S. had a social infrastructure that could help people out in hard times.
Today, much of that social infrastructure has been moved to the private sector or stripped away. Witness Katrina. Yesterday’s urban economies had local and regional roots.
Today’s major cities respond to global demands.
Much of the economic logic of today’s major cities responds to global demands. Thirty years ago U.S. cities contained a large middle class.
Today the gap between the rich and poor has widened enormously and middle class incomes have diminished. Thirty years ago much of the nation’s investment capital went into stocks.
But when the high tech bubble burst and the stock market became unstable, billions of investment dollars started being placed into real estate in our cities, escalating prices and creating new “hot” markets.
And with less public money, cities try to cash in on the boom by using real estate development to raise taxes. Convention Centers, stadiums, tourist hotels, and huge auto malls produce sales, ticket, and bed taxes that help keep city hall doors open. Analysts call this trend the “fiscalization of land use.” It means that city administrators start looking at land in terms of how much revenue it can produce rather than what communities really need – like housing, community-serving-retail, parks, and good jobs.
A humane economics
Needs/satisfiers matrix
Divergent thinking
REPLACES conventional economics notion of wants and goods with needs, satisfiers, and goods