Programs that subsidize businesses that locate in neighborhoods in need of economic development are fundamentally flawed. They fail to understand how neighborhood economies work on the most fundamental level, and rely on an inherently patronizing view of the people who live there. Sometimes I wonder if they are really only meant as a justification for corporate welfare.
We provide incentives at taxpayer expense for corporations to locate their businesses in targeted neighborhoods. Supposedly this will improve access to jobs for the residents in these areas... as if they are incapable of driving or taking a bus or subway to a job in another neighborhood. Nobody has any illusion that affluent suburbs are populated by residents who are well off because they all got jobs in their neighborhood. While affluent professionals are generally understood as mobile workers, the implicit view of low-income workers treats them as place-bound. Conceptually, there is probably some trace of serfdom, where poor workers were attached to the land. There is certainly a heavy legacy of American segregation in this assumption that jobs for residents in disadvantaged communities will be located in those neighborhoods.
What are the jobs we are actually subsidizing in the disadvantaged neighborhoods we are supposed to be helping? They inevitably seem to be primarily low-wage, low-skill retail jobs. While there may be something to be said for "gaining work experience," these positions are certainly not ideal for developing more marketable skills, and the concentration of low-wage jobs is problematic. The economic polarization that comes with such concentration deprives communities of the social networks necessary to help talented individuals find the opportunities to realize their potential.
What are the jobs we are actually subsidizing in the disadvantaged neighborhoods we are supposed to be helping? They inevitably seem to be primarily low-wage, low-skill retail jobs. While there may be something to be said for "gaining work experience," these positions are certainly not ideal for developing more marketable skills, and the concentration of low-wage jobs is problematic. The economic polarization that comes with such concentration deprives communities of the social networks necessary to help talented individuals find the opportunities to realize their potential.