Urban Studies 101 midterm PDF

Preview

Summary

Alan Takeall URBST 101 notes from start of the semester towards the middle in preparation for the midterm exam. terminologies, dates, exam essay questions and more in this document...

Description

Urban Studies 101: Urban Poverty and Affluence, S p r i n g 2 0 1 9 Midterm Review Sheet The following is a list of terms that you should be able to recognize and use on your midterm exam. MIDTERM DATE: March 25, 2018 during normal lecture time in Rosenthal 230 Wealth gap -

based on assets has widened over the passed 30 years richer are becoming richer and poorer are becoming poorer. happening because shift in the tax burden, (the poor people are being taxed more than the wealthy.) lower minimum wage (employers are lowering the salaries of workers because of deunionization, without the government getting involved because of downsizing the government and globalization

Income vs assets: - income is your salary earned- money assets are things you own- house, car, stocks, bonds- can be converted into cash Income inequality - is at its greatest point in history. top 10% own more than 50% total income income inequality by race- gap between blacks and whites are almost always consistently gaped income gap by race - based on money and salary earned the gap between blacks and whites are almost always consistently gaped - whites tend to get better jobs then blacks - study done where whites more likely to get a job callback over black who is just as qualified as white man - (job channeling- whites channeled up and blacks channeled down) Wealth gap by race - more unequal regarding assets gap between whites and blacks greater then the gap between whites and hispanics assets- house - there is alot of racial discrimination in the housing market - redlining- blacks denied loans reverse redlining- blacks charged higher for loans-unfair redux- foreclose house and wealthy buy it for cheap and sell it for expensive

mortgage gap- lower whites are given mortgage over higher blacks sometimes blacks dont have assets Meritocracy definition is a system in which the talented are chosen and moved ahead on the basis of their achievement. The U.S. is not a meritocracy because social mobility is dependent on so many factors that are beyond an individuals’ control: • Family income/wealth • Conditions in the job market like wages and employment rates • Discrimination in the job market

plutocracy - is a system in which one gets ahead by virtue of their income and wealth. It is a system where wealth determines who is in control. Millennials vs older generations - older gens were paid more for their work - hard for millennials to make money and find a decent job - overtime millennials net worth are decreasing dramatically Redistribution of wealth - -top 1% have the highest net worth -bottom 80% account for 15% net worth Job channeling - Job channeling is racially fueled, where minorities would be pushed towards certain jobs, usually lower than the position they have come in to inquire, while white people would be pushed into higher positions the majority of the time. Minorities given jobs with more physical labor and smaller wage The great depression -

during the great depression 1929-1941 the stock market crashed and distribution of wealth was bad income inequality was high so there were less jobs available banks closed doors, refused to give out money rich people had money to fall back on but poor people were screwed income inequality was super high

The great compression -

great compression 1941-1979 roosevelt and the feds came up with the new deal the government supported unions and wealthy people started being taxed there was higher minimum wages the new deal had social welfare programs like medicare and medicaid banks started opening up their doors to people and lent them money to start new businesses there were more employment opportunities and that led to the great compression when income inequality was really low

The great divergence higher inequality--> people being laid off their jobs--> higher competition for few jobs that were left--> the profit of business declines--> new strategies that businesses must globalize in order to benefit the business leaders not the workers the great divergence of 1979- present civil rights act was passed and white workers disagreed with the new deal and civil rights act so white workers switched from democratic to republican party and took over power. after the rich white took power there were 6 important factors that undermined workers 1. deunionization 2. frayed safety nets 3. downsizing of the government 4. consumer debt increased 5. minimum wage decreased 6. shifting tax burdens ^^ these factors increased the wealth gap Globalization - integration of the economy on a global scale, causing increased interdependence on people and decreased importance of nations the flow of money capital mobility increases profits by devaluing labor outsourcing) history- people bought american cars japanese cars ended up outsourcing to america- used american pieces - helps enable international trade - not just confined to one single market two aspects:

-

1. outsourcing- when you send labor elsewhere because it is cheaper it makes the income higher because you get more bang for your buck 2. increase interdependence of other people of other nations- people are more dependent on eachother on a global scale in the great divergence when workers got rid of unions it caused a wide gap between the rich and the poor so inequality increased that impacted U.S cities- business profits were declining because of increased competition because of outsourcing more competition for the few jobs that are left (due to outsourcing) that so many people lost their jobs

Americam exceptionalism -

douglass massey says american is exceptional because it has the highest gap between the rich and the poor of any industrialized country its a place without royalty non conforming to the european style of monarchy - the new deal was made in attempt to redistribute wealth from the rich to the middle and working classes whilte the white workers hated the plan so they left the new deal coalition 6 factors that undermined workers political and economic power

The new deal -

FDR wanted to take the money and use it for health and education benefits.. new deal programs- taxing the rich, redistribution black civil rights movement- almost got "equality" laws were placed against racial discrimination white workers in the south became republicans in response to these laws abandoning the new deal plans COLLAPSE THE NEW DEAL COALITION based off racial conflict during the great compression 1941-1979 roosevelt and the feds came up with the new deal the government supported unions and wealthy people started being taxed there was higher minimum wages the new deal had social welfare programs like medicare and medicaid banks started opening up their doors to people and lent them money to start new businesses there were more employment opportunities and that led to the great compression when income inequality was really low

the white working wealthy people didnt like the new deal and the civil rights act because it was to redistribute their wealth to the middle working class and they switched from democratic to republican party and took over power. there were 6 factors that undermined workers political and economic power 1. deunionization 2. fraying of safety nets 3. decreasing minimum wage 4. downsizing of the government 5. shifting tax burdens 6. consumer debt increasing

Deunionization - got rid of unions that protected workers from their employers. they used to be able to ask for better wages and strike for better wager but now they can get fired, the government doesnt protect them anymore and its a loss of power for these employees

Minimum wage -

-De-unionization pulled down the average wage, removed incentive for employers to pay higher wages -Real value of minimum wage declined dramatically from 1968 to 2003 -Lower minimum wages keep everyone's wages lower overall -Lower wages increase economic pressure on working families, necessitating two-income households

Safety net programs -

-Dramatic cutbacks in financial aid -Reduced spending on unemployment insurance -Fall in social services ex-welfare reform and food stamps -Loss of government benefits increases importance of employment, leads to competition among workers and shitty wages

Shifting tax burdens

-

the poor people are being taxed more than the wealthy tax percentage on the rich is not high as it used to be even after taxes rich are still making a lot

Capital flight -

- a large-scale of financial assets and capital from a nation due to events such as political or economic instability, currency devaluation or the imposition of capital controls. - money is pulled out of a neighborhood - idea of globalization - capital that is used to invest in a certain area flies off to somewhere else or is being reinvested somewhere - there can be a return in a different form in terms of redevelopments such as building new stadiums or new apartments

Poverty line -

he line that distinguishes who the government believes to be considered poor based on this gets decided who gets benefits and who doesnt line is calculated based on how much food a family of four needs to stay alive and then multiplied by three changes over the years due to inflation not based on location- which is a problem because each city has different expense prices for things but the federal measure is the same also food isnt a third of our budget studies show its our 7th

Industrial city/metropolis -

cities were mainly industrial included accommodations of residential working class interests including: provisions of basic infrastructure public health and safety public resources for the entertainment and recreation of city dwellers like putting a park in the middle of the city making sure workers can go back and forth to their jobs many tax dollars are going into this

Deindustrialization -

-since 1942 the number of manufacturing jobs that have been available to people has decreased up until 2007 in NYC

Racial capitalism Fiscal crisis -

when NY was in debt because they borrowed too much money from the bank so now they want to borrow more and more but the banks for lend them and now they are in a lot of debt. jobs are being lost and people are being let go because recession and because people were moving into the city it created a lot of expenses usually they would borrow from the banks but the banks refused to help

Planned shrinkage -

-Policy to redirect city funds to downtown Manhattan and other neighborhoods with revenue potential - Drastically cut public services to poor neighborhoods in outer boroughs (police, fire, transit, streets, schools)

Fiscal austerity -

decisions by a government to reduce the amount of government borrowing (i.e. cut the size of a fiscal deficit) over a period of years.

Tourist growth strategy -

makes the city an attraction for suburban visitors

EFCB and MAC -

MAC- sell bonds. enforced city officals to freeze wages. EFCAB- removes the mayor

Municipal bonds -

-bonds that fund the city - contributed to the fiscal crisis in the city -how the go funds the city -State and local governments rely on borrowing in the municipal bond market to finance short-term and long-term needs and capital projects.

Fiscal Crisis Winners and losers Residential segregation Postindustrial City Institutional Discrimination Fair housing act GI Bill - -state authentication to get goods for the veterans - the means to create a middle class

Racial Steering Redlining/ Mortgage/ Insurance gap -

banks and insurers refuse to give blacks loans blacks receive less private credit less total mortgage money then compared to white neighborhoods

Reverse Redlinging -

banks and insurance charge higher fees for loans to blacks

Flexibility Economic mobility Discrimination with a smile

Paired testing Gentrification -

when wealthy people come in and change around the neighborhood making it more upscale sometimes leads to displacement gentrification causes higher rent prices and higher product prices which drives people out because they cant afford it

City as growth machine -

-Cities under pressure to attract tourists, new residents -More public expenditure: bigger and more expensive facilities -Since the mid-1970s: increased state and locally-funded (with tax dollars) expenditures for sports facilities, convention centers, other entertainment amenities

Inclusionary Zoning Section 8 housing -

-Eligible tenants can rent in privately owned buildings that allow section 8. They pay 30% of income and the government pays the rest. -a federally funded program aimed to assist low-income families in America pay for rent

Public housing Rent stabilization Pros and Cons of gentrification pro: improved buildings, new investments stabilize declining neighborhoods, upgrade residential structures, making the area more attractive, promote tourism, greater public safety, more opportunities,

Cons: higher rents, higher property tax, long-term residents are displaced and priced out, Sometimes residents can't afford the new services or higher taxes in the area

1. Is wealth distributed equally or unequally in the United States? Has the wealth gap widened or narrowed in the last thirty years? Explain your answers with reference to information discussed during class. -

The wealth gap in the us is very unequally distributed. If the top 10% of income earners took home 51% of ALL income in 2012 (hasn’t changed much since), that leaves only 49% for the bottom 90% (all the rest of us). But the top 1% is even richer than that! In 2012, the top 1% took home about 23% of all income in the US. 30 years ago, america’s riches earned an average of 42 times what regular employees earned, now they earn 200 times . since 2008, there has been much more focus on income inequality.

2. Describe the economic divide in the United States in terms of both income and assets. -

The top 1% of families captured 52% of the country’s total real income in 2016. From 2009 to 2002 the top 1% captures 91% of the income gains and the top 1% possesses 40% of the nations wealth

3. How does racial discrimination affect low-wage labor markets in the United States, according to Devorah Pager and Bruce Western?

a. Discimonation in labor and workforce 4. Compare and contrast the three perspectives on poverty and impoverishment. What are the solutions proposed by each perspective? Poverty as pathology The most common way in the US that we think about people and what causes poverty Pathology – suggests that poverty is caused by there being something wrong with individual poor people that makes them poor - Poor financial decisions - No motivation - Immoral

Mentality (im gonna stay poor so why try) Poor people live in a culture of poverty – values of poor pople might be handed down to future generation Solutions: - take benefits away for them to hustle for the benefits - Provide social work or therapy (change their mindset) -

Poverty as Accident - People are poor due to temporary weakness in the economy, not pathological behavior (bad luck) - ECONOMIC SLOWDOWNS - Company bankruptcy - The great depression Social safety net program: To end poverty, offer short-term relief/temporary generosity when the economy isn’t strong enough to provide well-paid jobs for everyone  Unemployment insurance  Job training  Incentives for job creation - If you let people stay on unemployment insurance for too long, they wouldn’t want to go back to work; they will become dependent of government relief, so when the economy bounces back and becomes stable, the benefits will then be taken from them. Poverty as Structure - Economic recovery does not necessarily mean your recovery - Poverty is built into the structure of capitalism – produces wealth for some people by creating poverty for the vast majority for other people.

5. Describe how federal government policies and/or programs promoted the growth of the suburbs after 1945. How did these policies/programs contribute to racial disparities in income and wealth? 6. What is the poverty line? How is it calculated? What are some of the critiques of it that we discussed in class? a. the 2018 poverty guideline for a family of four is $25,100. b. Calculated based on 3x what they spend on food c. I SPEND $200 A MONTH ON FOOD WHICH IS $2400 A YEAR. POVERTY LINE WOULD BE 3x 2400 WHICH IS $7200 IF YOU GO BELOW THAT YOU’RE CONSIDERED POOR 7. Based on class materials (including videos), what is the myth of economic mobility in the U.S.?

8. What is globalization? What is its impact on U.S. cities? How did it impact employment in the city? 9. According to Douglass Massey, why did some people switch to a more conservative political stance in the 1960s? What were the consequences of the end of the New Deal era for low income and working people? 10. Why, according to Douglass Massey, is America exceptional compared to other industrialized countries? 11. Explain how changes to the U.S. tax system affect income inequality and the wealth gap. Why does Warren Buffet pay less in taxes than his secretary? I.e., how do tax policies favor the wealthy? a. The US tax system affect income inequality and the wealth gap because t 12. Define the “fiscal crisis” of the mid-1970s. Describe some of its economic, demographic, and budgetary causes and consequences. How did political leaders try to bring the city out of it? 13. What were the demands that bankers made of New York City during the fiscal crisis? What were the effects of their policy demands? 2 14. How does the building of stadiums reflect larger changes in urban economies? How are new stadiums financed? What is the justification for using public monies to fund them? 15. Describe the social, political and economic implications of building the city as an entertainment venue – i.e., massive stadiums and tourist attractions. 16. Is New York City segregated? How do we know? And what are some of the main reasons for this? NYC is segregated, reasons for segregation in NY is due to examples ofwhite flight, white people moving out of neighborhoods due to the movement of minorities ex: black people, hispanics.When black people and hispanics move in it is considered a drop in property value and white people will either move out or move to suburbs where there are more white people and less minority groups. 17. What are some of the mechanisms of racial discrimination in housing markets that we discussed in class? -

Mechanisms of racial discrimination in housing markets are racial steering, when realtors try to bring you towards neighborhoods that they feel you might want to live in. Ex;black people living with black people. 114.Another mechanism of racial discrimination in housing markets is income, if your income is too low realtors may not rent to you or your family.

18. What are some of the consequences of residential segregation? How does it become a self-perpetuating cycle? 19. What were restrictive covenants? What was contract buying? What was blockbusting? 20. Describe how the concept of racial capitalism applies to racial segregation and gentrification. 21. Ferguson, MO exploded in 2014, exposing stark racial divides between white and black neighborhoods. Explain some of these divisions using information we learned in class about segregation and urban space. 22. What is gentrification and how does it work? a. the process of renovating and improving a house or district so that it conforms to middle-class taste. o Low property values allow the city them over or developers to begin to buy them o Cities rezone areas o Young people/students/artists begin renting places in low-rent neighborh...