Detroit's Problem: Poverty, Not Gentrification

Jamal HamadeMonday, March 31, 2014

Economics 5520State and Local Public Finance

By: Laura BermanDetroit News

Gentrification is a Shift in an Urban Community Toward Wealthier Residents and/or Businesses and Increasing Property Values

$121 Per Person Restaurant to Open in Southwest

Not Main Presentation But Plays as Introduction Theme

Goldfinch American• Concept Location is a Gritty Neighborhood

Surrounding Landmarks:• Laundromats• Taquerias

• A Beautiful Park (Quirky)• Abandoned FortressesArticle Says, “…Verges on Parody…”

Now For the Main Presentation

Brookings Institution Sprinkles Hard Numbers

• Of the Nation’s 50 Largest Cities, Detroit Ranked 14th in Income Inequality• Detroit Has the Poorest Low-Income Residents• The Least Affluent at the High End

An Attempt to Put it Into Perspective

Compare with Other Major Cities Across the Nation: Top 5 Percentile

• San Francisco: $353,576• Raleigh, N.C.: $199,000• Tulsa, O.K.: $183,407• Indianapolis: $150,000

DETROIT: $101,620At Least the City’s Top Is Raking In Over 100KDETROIT’S BOTTOM IS UNDER 10KThe Poorest In The Nation

Deputy Director at the Brookings Institution

To Echo His Comments, Alan Berube:

“Detroit Desperately Needs an Infusion of Working People Whose Salaries Enable Them to Pay Property Taxes for the Services All

Detroiters Need.”

To Make Sense In Public Finance

Resident’sIncome

0 CityServices

As Residents IncomeIncreases the More TheyCan Pay in Property Taxes.Not To Mention, WhenTheir Income Rises, TheMore Reliable That TaxPayments Are Made.

“Other Cities Have Poverty But They Also Have High-Wage Jobs in Health Care, Law, Finance and Media — Jobs That Detroit Lost Over Decades.”