Poverty Rates: The Suburban Life Loses Its Luster

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By Douglas A. McIntyre Published
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The original concept behind the creation of the suburbs was that they were an oasis for the middle class, fairly far from the bustle of cities and away from the poor who were housed mostly in and around large urban downtowns. The belief was reinforced by the inner-city riots of the late sixties, as well as the slums that were part of every large American metropolis. Now, it turns out that the poor have moved to the suburbs, and many may have been there all along.

Brookings released its “Confronting Suburban Poverty in America” study and one of its primary findings was that:

For decades, suburbs added poor residents at a faster pace than cities, so that suburbia is now home to more poor residents than central cities, composing over a third of the nation’s total poor population. Unfortunately, the antipoverty infrastructure built over the past several decades does not fit this rapidly changing geography. The solution no longer fits the problem.

One flaw stands out in the Brookings assumption, which is that “antipoverty” measures ever worked at all, no matter where the poor were located. The poverty rates of New York State and Kentucky were identical at about 14.5%, based on the figure as measured by household income in 2009. New York City’s population is 8.3 million, compared to the state’s population of 19.4 million. And that number does not include the city populations of Buffalo, Rochester or Albany. Kentucky has 4.8 million residents. The poorest residents live on the West Virgina border, one of the most abjectly poor regions in the Unite State.

Two states, in comparison, do not make a case. Suffice it to say that the poorest regions of Kentucky are not suburbs. And there are large pockets of poverty within the cities of New York.

Individual examples by city or state do not address the fact that the poor in the United States have remained poor for decades, no matter where people with incomes below the poverty line live. The poverty rate in America was more than 15% in 2010. That compares with less than 12% in the mid-1970s. The two other years when the poverty rate was above 15% since 1975 where in the recession-battered years of 1983 and 1993. Location may be one factor that drives poverty rates, but the overall economy has at least as much influence, if not more.

At the root of the argument about poverty and how it can be alleviated, once again, are the numbers. No federal program has made a difference in the past four decades. And there is no reason to think that will change, based on whether the poor have moved to the suburbs.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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