Thursday, May 28, 2015

What policies allow for all Americans to enjoy fully the bounty of this country?

Joel Kotkin writes at Real Clear Politics,
...what has not been looked at nearly as much are the underlying conditions that either restrict or enhance upward mobility among racial minorities, including African-Americans, Latinos and Asians. In order to determine this, my colleague at Houston-based Center for Opportunity Urbanism Wendell Cox and I developed a ranking system that included four critical factors: migration patterns, home ownership, self-employment and income.

We found, for all three major minority groups, that the best places were neither the most liberal in their attitudes nor had the most generous welfare programs. Instead they were located primarily in regions that have experienced broad-based economic growth, have low housing costs, and limited regulation. In other words, no matter how much people like Bill de Blasio talk about the commitment to racial and class justice, the realities on the ground turn out to be quite different than he might imagine.

...Today almost all the best cities for blacks are in the South, a region that has enjoyed steady growth and enjoys generally low costs. Indeed, of the top 15 cities for African-Americans, 13 are in the old Confederacy starting with top-ranked Atlanta, No. 2 Raleigh, No. 4 Charlotte, No. 6 Virginia Beach-Norfolk, No. 7 Orlando, No. 8 Richmond (a distinction it shares with Miami and San Antonio), as well as four of Texas’ large metro areas: No. 12 Houston, No. 13 Dallas-Ft. Worth and No. 8 San Antonio. The only two other metros are “inside the Beltway”: the metropolitan expanses of Washington and, surprisingly, Baltimore.

...Ironically, blacks – 6 million of whom moved to the North during the great migration -- are once again voting with their feet, but back to the same region in which, for so long, they were so harshly oppressed. Between 2000 and 2013, the African-American population of Atlanta, Charlotte, Orlando, Houston, Dallas-Fort Worth, Raleigh, Tampa-St. Petersburg and San Antonio all experienced growth of close to 40 percent or higher, well above the average of 27 percent for the nation’s 52 metropolitan areas with more than 1 million residents.

In contrast, the African-American population actually dropped in five critically important large metros that once were beacons for black progress: San Francisco-Oakland, San Jose, Los Angeles, Chicago and Detroit. In many cases, most notably in San Francisco, blacks have become the unintended victims of soaring housing prices and rampant gentrification, with little option to move to the also high-priced suburbs. Today, suggests economist Thomas Sowell, the black population of the city itself is half that of 1970; the situation has changed so much that former Mayor Gavin Newsom even initiated a task force to address black out-migration.

Yet if many African-Americans can be seen “going home” to their native region, the South is also doing well among ethnic groups that have historically had little attachment to Dixie. For Latinos, now the nation’s largest ethnic minority, seven of the top 13 places are held by cities wholly or partially in the old Confederacy, led by No. 1 Jacksonville, Fla., as well as No. 4 Houston, No. 6 Virginia Beach, No. 7 Dallas-Ft. Worth, No. 9 Austin, No. 12 Tampa and #13 Orlando.The majority of newcomers to the South, notes a recent Pew study, are classic first-wave immigrants: young, 57 percent foreign-born and not well educated -- but they see the South as their land of opportunity.

In Florida, no stranger to Latino populations, Tampa-St. Petersburg, Orlando and Jacksonville all experienced Hispanic growth rates since 2000 between 100 and 150 percent, well above the average of 96 percent among the 52 metropolitan regions. Lower housing costs and better prospects for advancement drive this change. Despite their historically large populations in Texas, Latino populations still grew at a rapid rate in Houston, at 68 percent, Dallas-Ft. Worth at 70 percent and Austin, 83 percent. "You go where the opportunities are," explains Mark Hugo Lopez, associate director of the Pew Hispanic Center in Washington, D.C.

Asian-Americans, although their economic and educational performance tends to be better than other minorities, follow a surprisingly similar pattern. Seven of the top 10 regions for them also were in the South, as well as two others, Washington and Baltimore, that abut the old Confederacy. Most of the best metros for Asians were in the Sunbelt, starting with No.1 Riverside-San Bernardino, Calif., No. 2 Richmond, No. 4 Raleigh, No. 5 Houston, No. 7 Dallas-Ft. Worth, No. 8 Austin, No. 9 Las Vegas, No. 12 Phoenix, No. 13 Atlanta and No. 15 Jacksonville.

Some of the worst results -- in terms not only homeownership but income -- are ironically in those part of the country that purport to be most sympathetic to minority interests. In New York, Los Angeles and San Francisco, between 25 and 30 percent of African-Americans own their own home. In Atlanta it’s nearly 50 percent and well over 40 percent in most of the other Dixie metro areas.

Ultimately what really matters are the economics of opportunity. Many of the cities that scored best for all three groups -- the Washington, D.C. area, Houston, Dallas-Fort Worth, San Antonio and Austin -- have enjoyed stronger than normal economic growth over the past decade. In the areas around the nation’s capital, government employment has been a critical factor; in the other areas more generalized business growth has taken the lead. In contrast, notes University of Washington demographer Richard Morrill , many regions that have seen rapid de-industrialization and slow housing growth have developed “barbell” economies based on a combination of ultra-high-wage industries, like technology and finance, and low-end service jobs.

There are other policy implications. Blue state progressives are often the most vocal about expanding opportunities for minority homeownership but generally support land use and regulatory policies, notably in California, that tend to raise prices far above the ability of newcomers -- immigrants, minorities, young people -- to pay. Similarly blue state support for such things as strict climate change regulation tends to discourage the growth of industries such as manufacturing, logistics and home construction that have long been gateways for minority success.

Given the persistence of racial tensions, this data begins to give us a clearer understanding of what actually works for America’s emerging non-white majority. Denunciations of racism, police brutality and xenophobia may be all well and good for one’s sense of justice. But if you want actually to improve the lives of minorities, we might consider focusing instead on policies that promote economic opportunity, keep living costs down, and allow for all Americans to enjoy fully the bounty of this country.
Read more here.

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