A growing income gap
A growing income gap and the presence of persistent poverty in our communities constrains economic opportunity for everyone. The economic gains of the past several years have not reduced poverty. Even as unemployment and the Gross Domestic Product recover from the economic downturn, the poverty rate is on the rise, and the cost of living is
growing faster than incomes.
The burden of the poverty crisis has fallen on local communities. The poverty rate increased over the period
from 1970 to 2014 in all 10 places analyzed for this project.
The Urban Opportunity Agenda maximizes economic opportunity by helping cities effectively reduce poverty
and provide benefits to all residents and businesses.
Traditional approaches to combat poverty have increased incomes with public benefits and created employment
opportunities. These methods are critically important, and research has shown that such programs have
successfully helped millions of families. But there’s more that needs to be done. By making targeted investments
that help families spend less on the basics, civic leaders can reduce poverty while providing benefits to the
entire community.
Poverty is a two-sided equation
It isn’t just what you earn, it is also what you spend—and low-income families
are often hit with high costs.
The Urban Opportunity Agenda, unlike traditional anti-poverty programs,
treats both sides of the coin, with job creation and household savings that
together can help families achieve long-term financial success. The smart
investment examples in this document show just a few ways expenses can
be reduced for households of all income levels.
Smarter investments deliver city-wide benefits for all
Too much money is spent on unsustainable
infrastructure, limiting our ability to expand economic
opportunity. Civic leaders should instead allocate
resources to initiatives that reduce waste, lower
expenses for families, create connected communities,
and address the risks of a changing climate by:
- Reducing spending on transportation by all households
- Cutting energy and water costs for all households
- Improving access for all to basic services, such as groceries, childcare, doctors, and other regular
destinations
These investments are doubly effective because they
lift low-income residents out of poverty and they
benefit people and businesses across the community.
To be effective, civic leaders need to set measurable goals, track their investments, and make adjustments
as they go.
A city cannot just give every resident more money,
but it can help them cut down on bills and save. In the
areas of energy, water, transportation, telecom, and
even food it is possible to save money each month
by reducing waste and making efficient decisions.
Education programs in Chicago have reduced
expenses by $125/month, the equivalent of a $0.72/
hour raise. These are programs that can benefit
households of every income level.
In addition to individual actions, systemic efficiencies,
such as smarter land-use planning, can reduce costs
communitywide. A 20 percent decrease in auto travel
could save a low-income household $500 to $900
per year in the 10 communities analyzed.
