Structural Change: Confronting Race and Class THE KIRWAN INSTITUTE FOR THE STUDY OF RACE AND ETHNICITY & ISAIAH OHIO ORGANIZING COLLABORATIVE WEEKLONG TRAINING TOLEDO, OH JULY 19, 2010
Presentation Overview Introduction and Opportunity Stories The Geography of Opportunity The Disparate Impacts of the Recession Race, Equity, and Organizing: the ISAIAH & Kirwan experience Small group exercise and reporting back
About Kirwan Multidisciplinary applied research institute, founded 2003 john powell, Executive Director Our mission is to expand opportunity for all, especially for our most marginalized communities Opportunity Communities Program Opening pathways to opportunity for marginalized communities through investments in people, places and supporting linkages Opportunity Mapping, Regional Equity, Neighborhood Revitalization, Opportunity Based Housing
About Our Work Emphasis on how systems work to produce inequity How do multiple issues interact to either depress or uplift certain populations or communities? What can we do to strategically intervene and improve outcomes for marginalized communities Emphasis on intersections in our work Geography, race, class, gender Focus on how various populations are situated in our complex social, economic, civic, political systems
The Geography of Opportunity
Opportunity Matters. Opportunity is a situation or condition that places individuals in a position to be more likely to succeed or excel. Opportunity structures are critical to opening pathways to success: High-quality education Healthy and safe environment Stable housing Sustainable employment Political empowerment Outlets for wealth-building Positive social networks
Neighborhoods & Community Matters Neighborhoods are critical to understanding access to opportunity Does your community provide pathways to opportunity and success? Safe environment, good schools, positive peers and role models, employment Or does your community present you with barriers to opportunity and success Unsafe environment, failing schools, poor peers and role models, no employment
Systems of Disadvantage: Neighborhoods & Access to Opportunity Five decades of research indicate that your environment has a profound impact on your access to opportunity and likelihood of success High poverty areas with poor employment, underperforming schools, distressed housing and public health/safety risks depress life outcomes A system of disadvantage Many manifestations Urban, rural, suburban 8
Our opportunity context matters Some people ride the Up escalator to reach opportunity Others have to run up the Down escalator to get there
Why do some people have access to the good life while others do not? It s more than a matter of choice.
Historic Government Role A series of federal policies have contributed to the disparities we see today School Policy Suburbanization & Homeownership Urban Renewal Public Housing Transportation 11
Policies Enforcing Inequity: Historical Government Role If a neighborhood is to retain stability, it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally contributes to instability and a decline in values. Excerpt from the 1947 FHA underwriting manual 12
The Rise of Suburbia: But not accessible to everyone In the suburb-shaping years (1930-1960), less than one-percent of all African Americans were able to obtain a mortgage.
FHA Highway Construction in Cincinnati Demolishing much of the African American West Side 14
Structural Causes and Racialized Outcomes Structural disadvantage produces racialized outcomes People of color are far more likely to live in opportunity deprived neighborhoods and communities Poverty Rate: White and African American Neighborhoods in 2000 25% 20% 15% 10% 5% 0% 8% 8% 9% Avg White Neighborhood 24% 24% 20% Avg AA Neighborhood Cincinnati MSA Cleveland MSA Columbus MSA
Opportunity Indicators Education Economic & Mobility Housing & Neighborhood Public Health Public Safety & Criminal Justice
In Ohio, Nearly 3 out of 4 Black Ohioans were living in the State s lowest opportunity neighborhoods in 2000.
compared to 1 in 2 Latinos and 1 in 4 Asians and Whites.
Racial Segregation & Educational Isolation
Economic Segregation and Racial Segregation in Public Schools: Southwest Ohio High Poverty Schools (Red and Yellow) are Concentrated in African American Neighborhoods (Areas in Gray) 20
Ohio Schools: Segregation by Race & Class Average School Poverty Rate for the Average Student by Race in 2000 African Metropolitan Area White Non Hispanic Students American Students Akron 25.7% 66.1% Cincinnati 27.0% 69.4% Cleveland 25.3% 74.3% Columbus 23.7% 61.1% Dayton 26.8% 74.7% Toledo 29.5% 77.8%
Overview: Summing it Up I believe the State is staring at the crossroads: one path has opportunities with advancement and the other is more of the status quo, where folks are falling behind. (quote from State of Black Ohio interview participant)
The Disparate Impacts of the Recession
Uneven Impacts Across Various Dimensions 30.0 Underemployment Rate by Race July 2007 to Nov 2009 (Calculated by the Economic Policy Institute) 25.0 20.0 15.0 10.0 An uneven recession with many disparate impacts Race, Age, Gender, Geography, Educational Attainment, Occupation 5.0 Black Latino White Total
An Uneven Recession 18.0 16.0 Unemployment Rate by Race (January 09 to January 10) 16.5 14.0 12.0 10.0 8.0 7.0 8.7 12.8 9.9 12.6 7.7 9.7 6.0 White Black Latino Total Jan-09 Jan-10 40.0% 35.0% 30.0% Percent Change in Unemployment, by Race: (January 2009 to January 2010) 32.2% 38.4% 33.9% 25.0% 22.3% 20.0% 15.0% 10.0% White Black Latino Total
An Uneven Recovery. In June 2010, private sector employment grew by 83,000 jobs From June 2009-June 2010: White unemployment decreased by 1.7% Black unemployment increased by 4.4% Latino unemployment increased by 3%
Ohio s Challenges Unemployment Foreclosures and Vacant property Budget Crisis
Growing Unemployment 28 18.0% Unemployment Rate in Ohio, 1990-2007 (%) 16.0% 14.0% 15.3% 16.3% 15.5% 15.2% 12.0% Percentage 10.0% 8.0% 11.2% 6.0% 4.0% 2.0% 0.0% 1990 2000 2005 2006 2007 White 5.7% 4.2% 6.4% 6.1% 6.3% Black 15.3% 11.2% 16.3% 15.5% 15.2% Asian 5.1% 3.7% 5.2% 3.7% 4.6% Hispanic 7.9% 9.1% 9.9% 9.7%
Ohio: 3 rd highest black unemployment rate Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment) Total 3rd Quarter 2009 Projected 1st Quarter 2010 Black 3rd Quarter 2009 Projected 1st Quarter 2010 White 3rd Quarter 2009 Projected 1st Quarter 2010 Latino 3rd Quarter 2009 Projected 1st Quarter 2010 Michigan 15.2% 15.7% Michigan 23.9% 24.8% Michigan 13.7% 14.2% Nevada 20.1% 19.0% South Rhode Nevada 13.0% 12.3% Carolina 20.4% 22.7% Island 11.2% 11.7% California 15.6% 16.9% Rhode Island 12.8% 13.4% Ohio 19.5% 22.0% Oregon 11.0% 12.4% Florida 13.1% 14.3% California 12.1% 13.1% Illinois 18.6% 20.2% Kentucky New 10.6% 11.2% Jersey 12.0% 12.6% Oregon 11.8% 13.3% Alabama 18.0% 18.8% Nevada 10.6% 10.0% Arizona 11.6% 13.1% Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org
Will Growing Poverty Lead to a Recession Generation? Black Child Poverty 2008 Native American Top Ten States for Child Poverty (By Race) in 2008 Child Poverty 2008 Latino Child Poverty 2008 White Child Poverty 2008 Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22% Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20% Kentucky 44% California 24% Tennessee 39% Montana 18% Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17% Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17% Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16% Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15% Ohio 41% Oregon 35% Indiana 14% Indiana 40% North Carolina 34% Maine 14% Alabama 38% Oklahoma 34% Missouri 14% Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database
Unemployment Remains High Highest Rate: Clinton County 16.7% Lowest Rate: Delaware County 7.2% National Rate: 9.7% Ohio s Rate: 10.7%
Ohio Unemployment Using the U6 measure of unemployment which includes underemployment and those who have dropped out of the workforce-- Ohio s unemployment rate climbs above 17% Source: Monthly Report on Ohio s Economy and State Finances, May 2010 http://obm.ohio.gov/
Foreclosure Crisis From Redlining to Reverse Redlining
Disparities Cost us All. Lost Home Equity from nearby foreclosures, 2009-2012 US: $1.9 trillion Ohio: $17.2 billion Almost 4 million Ohio homes are experiencing a foreclosure-related decline
Race or Risk? what about fair credit Source: United for a Fair Economy
Rising foreclosures Ohio has a long history of foreclosure problems Almost ten-fold from 1995
Changing causes of foreclosures? From a subprime problem Foreclosures increased by 155% between 1994 and 2001 despite strong economic growth in Ohio.
Foreclosures contd. Table from Home Insecurity, David Rothstein, Policy Matters Ohio, March 2010 http://www.policymattersohio.org/pdf/homeinsecurity2010.pdf to an unemployment problem? Morgan has an unemployment rate of 13.8%, 6 th highest in Ohio 6 out of these 10 counties had unemployment rates greater than Ohio s average in May 2010
Budget Crisis 2012-2013 budget deficit could be as large as $8 billion In 2009, tax collections declined by 12%, an historic high http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse _fis.html
ISAIAH and Kirwan RACE, EQUITY AND ORGANIZING DORAN SCHRANTZ ISAIAH
Small Group Exercise Each group will generate a list for each of the following questions: Q1: How did opportunities decline in the Rust Belt? Q2: How could we open up opportunity for all in the Rust Belt? What are the key items in a new Rust Belt agenda? Each person will vote for their top two items from each list Each group will report back to the larger group
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