Changing the Narrative to Change the Odds: Improving Upward Economic Mobility in Fayetteville

We’re in a special season here at MDC: it’s the time of year when we select our new Autry Fellow, a recent college graduate who will spend one year learning from and contributing to MDC’s programs that help bring people and places closer to opportunity and success. As MDC staff members review applications each year, we keep in mind that an ideal Fellow brings to MDC a spirit of both reflection and hope: they critically examine systems that produce inequitable outcomes, but also firmly believe in the potential and strength of leaders and communities to make those systems better. Indeed, this determined mix of examination and encouragement is a crucial asset in any community working towards change. My colleagues and I saw this spirit first-hand when we discussed economic mobility with leaders in Fayetteville last month.

Our discussion with a cross-section of leaders in Fayetteville was the last in a series of community work sessions that MDC and the John M. Belk Endowment held throughout the state in 2016 to disseminate the report, North Carolina’s Economic Imperative: Building an Infrastructure of Opportunity. In these sessions, representatives from MDC, the Endowment, and various sectors in each locality examined data related to economic mobility in North Carolina and discussed strategies for changing the odds for success, rather than merely helping individuals beating the odds.

FTCC BryantIn mid-December, we traveled to Fayetteville: a mid-sized city in the Sandhills of North Carolina with strong higher education institutions and a notable military population, thanks to the presence of Fort Bragg. As we learned from session participants, some of Fayetteville’s greatest strengths lie in community leaders’ ability to come together and speak honestly and reflect about community challenges. But, participants told us, all too often, a thorough examination of the issues leads to exhaustion and discouragement, distracting from the great work—often of national recognition—done by dedicated leaders in education, government, philanthropy, public service, and more.

But the leaders gathered at Fayetteville Technical Community College’s Horticulture Education Center that Tuesday afternoon collectively refuted the persistent whisper of discouragement. “There’s a lot to be proud of, and we need to tell our story more effectively,” Dr. Larry Keen, President of FTCC, told the group. Keen and others acknowledged the barriers that can keep people in Fayetteville stuck at the bottom of the economic ladder: competition for limited resources, a cradle-to-career continuum with room for increased collaboration, and difficulty getting new perspectives involved in planning and design. But they also acknowledged that they had significant work to build on and resources to tap, including what they shared during our afternoon session: a group of knowledgeable leaders, their honesty and self-reflection, and their determined belief in the potential of Fayetteville’s residents and institutions. And they were ready to put these strengths into action: “We’ve got a lot of work to do,” Keen said. “We have an obligation and a responsibility to step in.”

Thank you, Fayetteville, for showing us at MDC what it looks like to have difficult conversations with compassion and integrity, without becoming discouraged or apathetic. Economic mobility requires having high expectations for what can be achieved—and those expectations are too often stolen by the hopelessness of poverty. With continued courageous conversations like this one, Fayetteville can begin changing the odds in their community.

A big thank-you to all the communities and leaders who spoke frankly with us this past year about the economic mobility opportunities and challenges in their communities. You can read here on the State of the South blog about our time in Western N.C., in the North Central Prosperity Zone, in Monroe, N.C. and Wilkes County, and in the Northeast and Southeast region.

We Need to Look Forward: Shared Mobility Challenges & Potential in Urban and Rural NC

monroe-connection

These Monroe community work session participants say #NCMobilityMatters because connection = success!

Earlier this year, MDC and the John M. Belk Endowment released a report examining economic mobility across North Carolina and how communities are responding to recent Equality of Opportunity research showing that intergenerational poverty is particularly dire in the South compared to other U.S. regions. We’ve documented several community work sessions discussing the findings from that report here on the blog. As we crossed all of North Carolina’s prosperity zones, we saw unique challenges facing rural and metro areas, but we also witnessed similarities.

Take the community work sessions that were held in Monroe and Wilkesboro. Monroe is a growing city, part of Union County (which has a significant rural population), on the edge of the Charlotte metropolis. Wilkes County is a rural county on the edge of the Blue Ridge Mountains, with its population spread across 757 square miles. But in both places, we were hosted by a North Carolina community college and the local Chamber of Commerce served as a key partner. One place is trying to find a way to restore or reimagine a manufacturing economy; the other is looking for ways to encourage participation in the advanced manufacturing opportunities that exist. Both are grappling with limited public transportation systems and affordable housing options that would ease the burden on families trying to make ends meet and get ahead.

In each community work session, we’ve asked people to share their mobility stories. We ask them to think about how their starting point affected where they ended up, and to consider what people or policies or simple serendipity cleared a path or propelled them to their current situation. The same elements showed up in Wilkes County and in Monroe (and nearly every other work session):

  • Adults—often educators—who “believed in me”
  • Personal drive
  • Military service and the GI bill
  • Education (and related scholarships, including athletic opportunities)
  • Public policies (like war bonds) that allowed people to save and transfer wealth

The headwinds faced were also similar, including public policies that were not available because of discriminatory practices. These shared experiences are a great example of how systems and aspirations intersect. In order to make the elements of an infrastructure of opportunity pervasive and available to more people across North Carolina, communities must find ways to cultivate aspirations and institutions that are launching pads for the enormous potential that exists in our residents. It may seem a daunting challenge, but as Jeff Cox, president of Wilkes Community College, said “we’re not afraid of a fight and we’re ready to move forward, ready to tackle the problems we have. We’re ready to get about the business of solving those problems. We need to look forward.”

Bootstraps vs. Blockades: Closing the Growing Racial Wealth Gap When Doing the “Right Thing” Doesn’t Work for Everyone

Conceptions of the American Dream often frame upward mobility as an ideal best accomplished through individual effort and perseverance. However, persistent racial disparities despite similar inputs demand a reconsideration of the story we tell ourselves about the degree to which success is available to everyone. A recent report using data from the Survey of Consumer Finances shows that, in 1983, white households held, on average, 5.3 times greater wealth than black households and 6.1 times greater wealth than Latino households. By 2013, those rates had increased to 7.7 and 6.7 times greater, respectively. This is a growth of 85 percent for white households, but only 27 percent for black households, and 69 percent for Latino households.

Source: CFED and Institute for Policy Studies. The Ever Growing Gap. August 2016

Source: CFED and Institute for Policy Studies. The Ever Growing Gap. August 2016

What is more striking, however, is that even if the wealth of black and Latino households had grown at the same rate as white households or even as drastically as those on the Forbes 400 list (a 736 percent increase in wealth between 1983 and 2013), their wealth would still not match the wealth held by white households. Black households would fall short by $181,000 and Latino households would fall short by $270,000. The report concludes that:

“If average Black family wealth continues to grow at the same pace it has over the past three decades, it would take Black families 228 years to amass the same amount of wealth White families have today. That’s just 17 years shorter than the 245-year span of slavery in this country.”

Catching Up: The Racial Wealth Gap is Unlikely to Narrow

In order to catch up to white families, black and Latino families would need to find a way to increase their wealth by over 700 percent. But traditional drivers of wealth creation do not produce as much value for people of color relative to their white counterparts (with the exception of Asians). For example, education has long been described as the great equalizer and, while there are significant economic returns to a college degree, there are large earnings and wealth gaps by race even among those who have earned postsecondary degrees. Similarly, homeownership is the largest expenditure for many families and represents a large portion of their total wealth, but non-whites are less likely to own their own home and, when they do, their property values are significantly lower. Given the extent to which homeownership is constrained by income and student loan debt (which is accumulated in larger amounts by non-white students), these racial disparities are not surprising.

Source: Georgetown University Center on Education and the Workforce. The College Payoff. 2011

Source: Georgetown University Center on Education and the Workforce. The College Payoff. 2011

 

Source: St. Louis Federal Reserve Bank. The Regional Economist. Unequal Degrees of Affluence: Racial and Ethnic Wealth Differences across Education Levels. October 2016.

Source: St. Louis Federal Reserve Bank. The Regional Economist. Unequal Degrees of Affluence: Racial and Ethnic Wealth Differences across Education Levels. October 2016.

Intergenerational transfers of wealth are another major contributor to wealth creation, but for black families, this strategy is much less successful. Black children born into moderately wealthy families (the middle wealth quintile), are more than twice as likely as white children to fall from the middle to the bottom quintile as adults (33 percent vs. 14 percent).

This trend is especially concerning in the South, with deep racial divides in economic opportunities and a long history of excluding racial minorities from sources of wealth accumulation. For example, the high degree of residential segregation found in the South further exacerbates the gap in wealth created by home ownership; neighborhoods with higher concentrations of non-white residents often have significantly lower property values. Coupled with lower rates of intergenerational income mobility, this suggests that an even greater challenge exists for black and Latino families hoping to build wealth and economic security.

New Outcomes Require New Systems

If black and Latino families are pursuing the same strategies for upward economic mobility as white families, why aren’t they reaping similar rewards? As we’ve written before, our history, particularly in the South, of economic dependence on forced and exploitative labor limited opportunities for wealth creation for those outside the economic elite, and particularly for people of color. Unequal investment in community resources that are beneficial to the entire population, like schools, transportation, and healthcare compounded these issues. This history and it’s continued legacy, apparent in current disparities, undermines a pillar of our proclaimed American ideal that upward economic mobility is available to all who are motivated, persistent, and hard-working. If we believe that closing the racial wealth gap is an issue best solved with strategies implemented at the individual level, what then, is a viable pathway for black and Latino families to catch up, if not through education, income, or homeownership? If we do not have a good answer to this question, we cannot continue to tell ourselves that the only thing standing between poverty and prosperity is a strong work ethic. Instead, we must commit to systemic changes at the institutional level, which focus on the racial disparities among major drivers of wealth creation and create an infrastructure of opportunity that is prosperous for everyone.

Redefining Collaboration: Communities in Eastern N.C. Come Together to Work Together

If you’ve been keeping up with us here on the State of the South blog, you probably know that we’ve been traveling across North Carolina since August facilitating community work sessions with the John M. Belk Endowment and local institutional partners. These work sessions were sparked by a report that MDC and the Belk Endowment released earlier this year titled North Carolina’s Economic Imperative: Building an Infrastructure of Opportunity, examining how North Carolina reflects recent research showing that the South has the lowest rates of economic mobility for young people in the nation.

To find out how these data play out in real places in North Carolina, we talked with leaders from eight communities in the state about how residents and institutions are confronting slim odds for upward mobility. Now we’re reconvening those same leaders and more to reflect on the data as a cross-sector group and to lay the groundwork for planning next steps.

#NCMobilityMatters to Lori Preast and Rachel Bridgers of Pitt Community College because equity is not the same as equality

Lori Preast and Rachel Bridgers (Pitt Community College) share why mobility matters to them.

In mid-November, two MDC staff members had the privilege of traveling to the eastern part of the state to hold two of these work sessions: one in Brunswick County, including leaders from New Hanover County; and one in Beaufort County, including leaders from Pitt and Martin counties, as well. Though distinct in geography and history, these regions in the southern and northern parts of the state have a lot in common—people in leadership who care about their community and are striving for deeper cross-sector coordination; a mixture of urban and rural areas, each with unique needs; and strong higher education institutions that are determined to expand access to all residents in their service areas.

Those of us at MDC who had the opportunity to speak with a variety of leaders in both communities couldn’t help but notice a similar challenge, followed by a similar proclamation, in both regions: Fragmented work makes for fragmented funding, which stalls strategic investment that could move a community forward as a collective group. Both sets of leaders bemoaned that all too often, groups of leaders get together, each say their bit about the work they’re doing, and then go back to their corners without having really changed much about their way of working. Even in communities where there is some cross-over, it can be difficult to create deep collaboration that reaches every system or institution at every level. In fact, a participant at the Brunswick County session raised an issue with the word “collaboration” itself: one definition of the word refers to how an enemy might gather information from their opposing side. Though malicious intent doesn’t apply, this sense of working on separate “teams” is all too common as communities strive in silos to achieve change and growth.

But both of these work sessions were different. Inspired by sobering data showing that nearly 70 percent of children born into poverty in both the southeast and northeast regions in North Carolina will stay at the very bottom or rise only one income quintile as adults, leaders from these eastern counties were ready to put their heads together to find a new way of pooling their resources. By aligning their efforts and working to fill gaps in resources as a community team, in which all players are working towards the same goal, these regions can start to build an infrastructure of opportunity in which the systems and factors that influence a person’s path to success are strengthened and aligned to make sure no one sees inequitable barriers to opportunity.

Big thanks to the caring and insightful leaders from New Hanover, Brunswick, Pitt, Martin, and Beaufort counties for two great conversations this November on why #NCMobilityMatters! It’s hard to believe we only have on more community work session to go—we’ll see you Dec. 13, Fayetteville!

Beyond Black & White: Latinos Reciprocal Impact on the Southern Economy

This year’s election highlighted the growing impact Latinos are having on the South. And there’s a reason for that: the highest rates of increase in Latino populations in the U.S. between 1990 and 2000 were in six states: North Carolina, Arkansas, Georgia, Tennessee, South Carolina, and Alabama. None of these states are generally considered traditional settlement states—and none are the Southern states where one might expect to see such rapid growth, such as Texas or Florida.

In 2010, 36 percent of all Latinos in the United States lived in the South. North Carolina had the highest rate of increase, an astounding 394 percent (see Table 1 for the increase in other states). And overall, the South experienced a growth of 57 percent in its Latino population, four times the growth of the general population in the region (14 percent). Across the U.S., since 1960, the Latino population has increased from 6.3 million to 55.3 million and is projected to grow to 119 million by 2060, according to the latest projections from the U.S. Census Bureau (2014).

What does this mean? Here’s an analogy. We can probably all agree that middle school is hard and awkward for everyone, with new social norms and higher expectations. Now imagine that middle school feeling, but infused in every part of your life—housing, transportation, employment, and beyond. Imagine having just moved to town, being from a different country, and not knowing the language. Imagine doing that alone. These are just some of the challenges faced by Latinos, who migrate here for work, and their families, who eventually end up calling the South their home.

percenthispanicpop

This isn’t a new story. The traditional settlement states—New Jersey, California, Illinois, and New York—have experienced increases in Latino population from the beginning of migration waves from the 1960s, and at a steady rate. The Latino population grew in every region of the United States between 2000 and 2010, most significantly in the South and Midwest. What makes the Latino migration in the South unique is the speed of its growth, the relation to the growth of other population groups, the reasons for the growth, and the characteristics of the Latinos settling here.

In the traditional settlement states, most Latinos come to be reunited with family members. Since the Latino population growth in the South is still relatively new, the number one reason for Latino migration is work. According to the 2006 report “The New Latino South: The Context and Consequences of Rapid Population Growth,” Latinos in the South are much more likely to be foreign-born recent arrivals, often of Mexican origin, who only speak Spanish. They tend to be young, single males with a median age of 27, with little formal education. While work is often the draw, in 2000 the median annual income of Hispanic workers in these new settlement states was just $16,000 per year.  Even more disheartening are the poverty rates among Latinos in the six Southern states. Between 1990 and 2000 poverty rates increased from 19.7 percent to 25.5 percent, a 30 percent increase compared with the poverty rate for Latinos nationwide, which dropped by 4 percent.

Those income and poverty rate figures may be the result of language barriers and lack of an established community, which limit economic mobility and make it difficult for them to participate in the institutions that make up an infrastructure of opportunity.  A drive through major cities in the traditional settlement states such as Los Angeles, New York City, and Chicago would reveal strip malls of Latin food, clothing, and services. When Latinos move to these cities they are more likely to find others who speak Spanish and can connect them to jobs. There are some business districts popping up here and there in the South (think taquerias, Latin grocery stores, and laundromats), but in many places they are not nearly as established or accessible.

What parts of the infrastructure of opportunity can help break down the barriers that limit economic mobility? Here are a couple:

  • Breaking down the language barrier is key. Bilingual or dual language resources like food assistance programs and job placement agencies can contribute to ease of access to living wage jobs for this demographic and help new residents learn how to navigate financial, education, and employment systems.
  • While the current demographic is young and single, there are future generations to consider. We know that a child’s health, education, and economic mobility are closely linked to a parent’s financial well-being and education. A two-generation approach is key to consolidating the complexities of being born in the United States to immigrant parents.

That next generation will enter the education system and eventually the economy. They will be bilingual, have unique life experiences, and two cultures. With these unique and powerful attributes, how do they belong? How can we make sure they thrive? How can we ensure they are shaping the South—and their own lives—for the better? In upcoming posts we will explore what it looks like in the second generation of Latinos as these young people settle down and have families.