Urban Economic Issues

Poverty is a major urban economic issue

Urban areas experience a variety of economic issues not often found elsewhere. Many of these issues are related to inner city housing developments and problems caused by the poverty in these areas. Other issues relate to income inequality, gentrification and political corruption. While poverty is seen in rural areas, extreme poverty resulting in homelessness is generally associated with the high cost of living in large cities.

Poverty

Poverty is a major problem in urban areas. While urban areas generally have higher average income levels than rural areas, poverty in urban areas tends to cause more serious problems for the people experiencing it. Because the cost of living in urban areas is so high, many urban poor are driven into homelessness. This can lead to problems like high youth mortality rates and high crime levels.

Crime

Crime is a major issue in poor urban areas. Wherever poverty leads to homelessness and hunger, crime is very likely to occur. The inner cities of America have higher rates of homelessness than suburban areas, and also have much higher crime rates than their suburban counterparts. According to a report by Missouri Families, crime is much more likely to occur among poor urban populations than among poor suburban or rural populations.

Inequality

Inequality is another major economic issue facing urban residents. Major cities are home to some of America's richest and poorest residents. New York City, for example, has one of the highest concentrations of billionaires among American cities, while also having one of the largest homeless populations in the country. Income inequality is sometimes seen as a contributor to social tensions in urban areas.

Housing Issues

Housing issues have always been a major problem in urban areas. In recent decades, however, the problem seems to have intensified, with condominium developments driving rent prices up and forcing the poor out of their homes. This problem, known as gentrification, has been blamed for the massive reduction in black urban populations seen in recent years.

Political Issues

Political corruption is seen as a major source of economic destruction in urban areas. In urban areas, which tend to have large concentrations of wealthy people, there is a relatively high chance of bribery and intimidation being used to direct public policy. This can lead to policies such as the exclusion of poor and minority residents from the wealthier parts of town.

References

• "Social Problems"; Chapter 6: Urban Problems; Russel Long; January 2010
• Connecting For Baby; Poverty in America, Urban and Rural Differences; Lawrence Ganong, et al.
• "PressTV"; Not a Word About Gentrification as Urban Black Population Declines; Glen Ford; April 2011
• "Journal of Economic Issues"; The Crisis of America's Cities; Peter Kresl; September 1999
• "CityMayorsSociety"; Economists Question 'Official' Poverty Statistics Used for US Mayors' Report; Tony Favro; April 2007