February 5, 2014
The
Portland observer
Black History Month
Page 19
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Great Divide of Income Inequality
The growing gap
between rich
and poor
by M arc H. M orial
“Income inequal
ity” has become the
political buzzword of
2014.
P re sid e n t
Obama has made it a central theme
of his second term. Both progres
sive Democrats and conservative
Republicans in Congress are mak
ing it a focus of this year’s mid-term
elections, and leading voices for
human rights have called on gov
ernment and business leaders to
take immediate action to close the
income gap for the sake of long-term
economic and social stability.
Even last week, as the world’s
elite - leaders from government,
business and non-government or
ganization sectors - gathered in
Davos, Switzerland for the World
‘Économie Forum’s annual meeting,
the issue of inequality was atop the
agenda.
The forum ’s Global Risks 2014
report recently revealed that the
“chronic gap between the incomes
of the richest and poorest citizens is
seen as the risk that is most likely to
cause serious damage globally in
the coming decade.”
Another voice was added to the
chorus last week when the British-
based anti-poverty organization,
Oxfam International, released a re
port in advance of the Davos gath
ering, revealing that the richest 85
people in the world control as much
wealth as the bottom half of the
global population - about 3.5 billion
people.
C om m enting on the report;
Oxfam’s Executive Director Winnie
Byanyima said, "It is staggering that
in the 21 st century, half of the world's
population own no more than a tiny
elite whose numbers could all sit
comfortably in a single train car
riage. Widening inequality is creat
ing a vicious circle where wealth
and power are increasingly concen
trated in the hands of a few, leaving
the rest of us to fight over crumbs
from the top table.”
According to the same report, in
the U.S., where the gap between rich
and poor has grown at a faster rate
than any other developed country,
the richest one percent of Ameri
cans have received 95 percent of the
wealth created since 2009 - after the
economic crisis - while the bottom
90 percent of Americans have be cent visit to Detroit, where unem
In a message to the Davos at
come poorer.
ployment has been above 15 per tendees, Pope Francis said that “the
While we are pleased that both cent for more than a year, said that growth of equality demands some
sides of the political ping-pong table it would be a “disservice” to the thing more than economic growth,
in the United States are now focus jobless to extend their unemploy
even though it presupposes it... It
ing on the domestic crisis and impli ment benefits beyond the current also calls for decisions, mechanisms
cations of this global problem, there limit. Further, Sen. Paul Ryan, R- and processes directed to a better
are disturbing signs that the issue Wis., another potential presidential distribution of wealth, the creation
may fall prey to the same kind of candidate, has been traveling the of sources of employment and an
ideological posturing that has sty country declaring how the govern
integral promotion of the poor which
mied recent efforts to create jobs, ment safety net - programs like Social
goes beyond a simple welfare men
reduce unemployment, raise the Security, Medicare and Head Start - tality.
minimum wage and help the long has “failed miserably.”
I am convinced that from such an
term unemployed.
In contrast, President Obama has openness to the transcendent a new
In fact, as re p o rte d by warned that “The combined trends political and business mentality can
CNNMoney, almost two-thirds of of increased inequality and decreas take shape, one capable of guiding
the delegates surveyed during a ing mobility pose a fundamental all economic and financial activity
debate in Davos on Friday said that threat to the American dream, our within the horizon of an ethical ap
the widening gap, or what I call The way of life and what we stand for proach which is truly humane.”
Great Divide, “between rich and poor around the globe.” He has called for
The need is clear. The Urban
is having a corrosive effect on U.S. an increase in the minimum wage - League has raised this issue con
politics.”
a move the National Urban League stantly over the last several years -
For example, Sen. Marco Rubio, has been pushing since 2006 - and and people are finally listening. We
R-Fla., sees the problem not as one an extension of unemployment ben must not let the seriousness and
of income inequality but of “oppor efits as first steps in addressing the urgency of this problem get caught
tunity inequality” and continues to problem. On Jan. 9, he announced in the crossfire of ideological war
resist efforts to raise the minimum the creation o f five “Prom ise fare. Americans need policy solu
wage. To be clear, opportunity in Zones,” in San Antonio, Philadel tions developed in partnership with
equality is alive and thriving in phia, Los Angeles, Southeastern corporate, government and non
America; but any attempts to sepa Kentucky and the Choctaw Nation profit leaders - now. Awareness is
rate it from income inequality are of Oklahoma that will receive tar good...action is better.
divertive and lacking recognition of geted government tax incentives to
Marc H. Morial is president and
the correlation between the two. create jobs and reduce unemploy chief executive officer o f the Na
Sen. Rand Paul, R-Ky., during a re ment.
tional Urban League.
Too Often ‘Development’ Means ‘Displacement’
End gentrification to advance economic equity
by D edrick M uhammad , A udrey
T errell and R achel G ilmer
As President Obama noted in his
State of the Union address, eco
nomic inequality has reached an
epic height in our nation, shutting
the doors of opportunity for mil
lions of Americans. In urban cen
ters we see this growing inequality
through gentrification.
Too often the “development” of
urban centers means the displace
ment of low and moderate-income
long-time residents and new hous
ing and amenities for the rich. A first
step in ending the growing eco
nomic inequality, which is deeply
tied to ongoing racial inequality, is
to stop this displacement.
T he c o rro siv e e ffe c t o f
gentrification can be found through
out the nation, even in the liberal
and so -c alled w h itest city o f
America, Portland, Ore., known in
ternationally as a leader in urban
design with many boasting of its
bike-friendly streets, accessible 20-
minute neighborhoods and quaint
local business culture.
Unbeknownst to many, however,
Portland is also a case study in
gentrification, a glaring reminder that
urban economic disparities will per to be one of the fastest gentrifying
sist as long as the structural in zip codes in America. This decision
equalities of our economy remain. was announced only weeks after
Other cities riding the cusp of the the city committed to including a
latest development trends have ex new network of black leaders, the
perienced the same results. In Wash Portland African American Leader
ington D.C., Chicago, Los Angeles ship Forum, in any major develop
and Ne w York, inner city neighbor ment decisions that would impact
hoods that were once majority black the black community, and months
have been inundated with plans for after inviting Portland’s NAACP
redevelopment. The upward redis chapter to a key PDC advisory group
tribution of wealth through public- - only to later deny their applica
private partnerships, have rewarded tion.
real estaté speculators, exporting
In a recent open letter, the leader
long time black residents and bring ship forum called into question the
ing in higher income predominately cronyistic city policies that con
white residents
tinuously funded the rich at the
To halt this practice a growing expense of the poor, and then de
community-led.movement calls for manding that any further develop
an end to displacement by promot ment in the area support the stabili
ing policies that dismantle systemic zation o f its historic black residents.
barriers to economic opportunity A statement released by the Port
and prosperity.
land NAACP strongly encouraged
Last November, the Portland’s a stop to the development.
D evelopm ent C om m ission a n
As more and more Americans
nounced plans to provide a 2.4 mil find themselves barred from eco
lion dollar subsidy to develop a nomic opportunity, ideas once con
long time vacant property with bil sidered extreme are becoming main
lion-dollar California developer stream. Nationally, there are signs
Majestic Realty. The property is in that this movement is accumulating
the heart of the city’s historically political power. In Seattle, the
black community; which happens NAACP is fighting for a $15 mini
mum wage and collaborating with
newly elected City Council Woman
Kshama Sawant in an effort to re
shape their economy. In New York,
Mayor Bill de Blasio successfully
ran a “tale-of-two-cities” electoral,
declaring economic and social in
equality his highest priority.
Nationally there is much to be
done that can address the record
level of American economic inequal
ity. It is a fight which must occur city
by city. Growing economic inequal
ity will only cease with an end to
gentrification. There must be restor
ative policies that address past
wrongdoings, and forward thinking
policies that will make our urban
centers as places of opportunity for
all racial and income groups.
Dedrick Muhammad is senior
director o f the NAACP National
Economic Department; Audrey
Terrell is president o f the Portland
branch o f the NAACP; and Rachel
Gilmer is a member of the Portland
African American Leadership Fo
rum.
better to the (Scditer
•>
Squandering Opportunity
I can ’ t remember a time in which
the black community is in better
position to take advantage of eco
nomic opportunity in northeast
Portland. But elements of the black
community cannot continue to be
foolish in squandering this oppor
tunity by alienating the very forces
who are now poised and commit
ted to righting past wrongs.
Current Portland Development
Commission and city officials bear
little responsibly for past deeds
and now have a clear trend of work-
ing on behalf of the black commu
nity. With community oversight,
why not give them a chance to
demonstrate a serious effort to re
invest resources back into the black
community and forge future part
nerships for progress?”
James Posey, chair o f Coali
tion o f Black Men Economic De
velopment committee and mem
ber o f the National Alliance o f
Minority Contractors