Feb
23
Blog Post #4: Unrealized Effects of NYC’s Income Inequality
February 23, 2015 | Leave a Comment
Reading these articles, especially Nicole Gelinas’ “What the Rich Give to New York,” definitely made me doubt what I had prepared for the presentation Thursday. I’ve always been familiar with the concept of income inequality and the stark inequality that is prevalent in New York City. Just taking the subway everyday for the past six years, I can’t say a ride went by when I didn’t see a poor beggar and a lavishly dressed couple on the same train together. At this point, I’ve become so desensitized to the sight that I just shrug and take it as it is. I know the statistics that are constantly being printed. Tami Luhby does a great job summarizing that with her chart, which I took the liberty of copying below.
To someone just looking at these figures for the first time, it really is shocking. I showed my high school sister and she couldn’t believe that people in the lower 20% of the income ladder only saw median household incomes increase by barely $1000 while people in the upper 1% of the income ladder saw median household incomes increase by almost $275000. When we look at these numbers, we are, of course, assuming that the poor work the same 40 hours, if not more, as the top 1%.
Median Household Income, Tami Luhby
However, what I never really considered was Nicole Gelinas’ argument that the rich do contribute to the city in important ways. According to Gelinas’, the city’s rich pay approximately 45.7% of the city’s total income tax. While this figure highlights the huge portion of income the top 1% reaps in, it also shows how dependent our city is on them. Without that high a percentage in taxes, much of our city’s police force, transportation, libraries, and parks would not be in the great shape they currently are in.
What really struck me was the public transportation. Taking the train for six years, I’ve never really had second thoughts about being on them 5AM in the morning before the sun’s up or 12AM when the sun’s long gone. I’ve never had to think twice before falling asleep on nearly every ride. I just went on and believed I was safe. Many New Yorkers think the same. I’ve been irritated and annoyed every time the 7 train had signal delays due slight drizzles or heavy snow. Yet, I’ve found myself commenting on the fact that the 7 doesn’t have delays all too often now. After the past few snow storms we’ve had this winter, the 7 was delayed only once. That truly shocked me. A couple years ago, in high school, it took me 40 minutes to take the express 7 train from Flushing to Times Square. It takes a bit under 30 now. That’s a huge improvement. Many New Yorkers think the same. We cannot say this change occurred without the help of the wealthy. In fact, as Nicole Gelinas’ mentioned, this change is heavily due to the fact that “MTA’s chairman Richard Ravitch persuaded New York’s business community to support a package of tax subsidies, so that the agency could borrow the funds.” Many of the poor do not have the influence, connections, or ability to bring about these types of changes, as unfortunate as that may be.
Perhaps this stark contrast in income inequality creates a balance in the city. If the rich were not so wealthy, would the city really have enough funds to transform the public transit system, to support public libraries and museums, and to continue the upkeep of our public parks? But if we continue on the road we are on, wouldn’t the portion of the city’s income that the rich have control of only grow? At what point would that stop, if there is a threshold?
-Amy (SiJia) You
