Income Segregation: Stay Out of Bridgeport

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By Douglas A. McIntyre Published

A research group from Stanford has just issued a new study called “Residential Segregation of Families by Income: 1970 – 2009.” The cities with the highest level of income segregation are familiar. They are also on nearly every list of metropolitan areas with low income, high poverty, low education attainment, high unemployment and falling home values. This list of cities like Detroit, Bridgeport, Newark and Memphis can be passed around to any and all research groups who mean to show what has happened between America’s rich and poor over the past several decades. These problems cannot be fixed nationally unless they are fixed in the local areas where they are the worst. There is no evidence that is happening.

The Stanford segregation survey reports that:

In every city or metropolitan area in the U.S., there are some neighborhoods inhabited primarily by families with above-average income and wealth, and other neighborhoods that are home primarily to families with below average income and wealth. The extent to which neighborhoods within a city or metropolitan area differ in their average income levels, however, varies considerably among U.S. metropolitan areas. More importantly, the extent of this economic variation among neighborhoods has grown substantially over the last 40 years.

The cities on this list, and most like it, are either the old industrial cities of the north and Midwest or areas of border states like Texas and California where there are many immigrants who make very little money. Fresno and Modesto are on almost all of these lists. So are Syracuse and Rochester, cities that once were home to great companies passed by as the service economy overtook the industrial one.

Among all the proposals to move the 99% closer to the 1% in terms of income or opportunity, what is rarely mentioned is that it is probably easier to help a poor person in Greenwich, Conn., than it is in Buffalo, N.Y. Nearly everyone in Greenwich is rich. A few people in Buffalo are as well, but the imbalance is startling. Buffalo’s tax base is gone, even if every millionaire there pays his entire income to the city.

“Residential Segregation of Families by Income: 1970 – 2009” can be thrown on the pile of studies by Brookings, Pew and the U.S. government. They all read about the same, because the problems they describe remain almost entirely local to a relatively few areas of the country.

Douglas A. McIntyre

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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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