Mega Projects-Altshuler

Mega-projects is a topic that I have been exploring ever since the beginning of my fall semester this year. My previous IDC class, science and technology in New York, delved into this topic, so reading this introduction by Altshuler was relevant to my previous studies. Mega projects in my opinion are always two sided, because ultimately any public development project has to have some financial incentive so that the government can keep going. In his introduction, Alshuler seems to highlight both the business and public side of megaprojects.

Altshuler breaks down the benefit of mega projects to either the major investors or the public. Ever since the 1950’s there has been a trend of focusing more on tactics to “lure major investors” rather than focusing on public infrastructure development. There wasn’t enough information to understand as to why the 1970’s resulted in more difficulty for the government to pass mega projects, however I would like to explore that time frame. I really liked the way Altshuler broke down the concept of interjurisdictional competition by explaining that the government needs private/business investors to continue on this growth coalition. I didn’t realize that governments don’t make profit from essential public facilities such as mass transit and convention centers, and that is why they focus often on more profitable public facilities such as sports arenas.

The issue with government taking profit from mega projects is that there is a thin line of actually serving the community or servicing companies. For instance, in my previous class we looked into hydraulic fracturing for natural gas across America. While gaining natural gas is great for the US economy and is often backed by the US government, this heavily influences the residents of the area where the fracturing takes place. We watched a documentary called Gasland in my class and it was shocking to see the negative health effects this process had on the residents and how little the government and companies did to help/minimize the situation at hand.

However of course there is a non-cynical view, which looks at government growth initiatives as benefit to the public and not for public profit. For instance the public housing project in St. Louis, Missouri called Pruitt-Igoe, was a megaproject that was originally intended to help the people, however as we learned in class it wasn’t a successful project.  While the government had only intentions to help the lower class out and to rid St. Louis of the slums, but not having any business/private investors giving them money back, the government stopped the funding of this project causing it to go to shambles and breaking down the city of St. Louis. I believe there needs to be a fair mix between investors and public infrastructure development in this government

Overall, this was a well-written introduction that was easy to follow and applied to all of the things we have learned this semester. In a democratic government there are a lot of players when it comes down to the decision making process, so often I feel the original intent to help the public is lost to corporations that infiltrated our government system. I am interested to see what course my research on Times Square goes.

 

 

 

 

The True Underclass

In the excerpt we read by Katz he writes that the underclass transformed, in it of itself it is now coming to be defined as entrepreneurs. Katz means by this that the people who were previously seen as poor and underprivileged were now more hopeful where they are waiting for an opportunity and then be able to capitalize on it and thereby become successful. Personally, I believe that what Katz is saying holds some truth to it but, it is not completely true, furthermore putting them to this standard may have some repercussions.

During the beginning of Katz’s excerpt my first thoughts were complete disagreement. My first thought was that you have to explain what underclass means, which he does by saying it has many societal factors. But, he proceeds to give an example of a teenage girl who gets pregnant out of wedlock and then ‘mooches’ off society. That sounds a bit underclass, this is not implying that all people who take money from society are underclass, quite the opposite. The differentiation I’m trying to emphasize is that being poor doesn’t necessarily make one underclass. Rather, if one chooses to accept themselves as being poor and being less than everyone else they are underclass, not because they are any worse than anybody else, but because they don’t believe enough in themselves to succeed. And in my opinion that’s the true meaning of underclass.

Regarding what Katz said about the concept of the ‘underclass’ being considered entrepreneurs (again I hold this to mean the poor, as not all poor are underclass) this holds some truth where they just need an opportunity as he says. Take Steve Jobs, when he was founding Apple he built the first computer in his parents’s garage. In fact Steve’s parents couldn’t really afford to pay for his higher education, so he audited a lot of classes and slept on the floor in his friends’ dorm rooms. However, he soon became one of worlds greatest entrepreneurs of the 21st century. But, I guess it refers back to what Katz said, he waited for an opportunity and seized it, for him it was Apple the company he helped cofound and he did a great job at it.

Finally, one has to be careful by putting the poor/underclass in a way where one is claiming they are Entrepreneurs. The reason for this is that on the one hand you set them up for failure, but on the other hand you are setting them up for greatness. By placing them in this light one of two situations may occur, either the people will use this as a motivation and will accept there’s more to them than meets the eye. Or they might think the bar is set too high and since they will never make it they might as well not try. I guess this refers back to my definition of the underclass, where here there is a clear distinction. Those who will use it to fuel their drive are simply poor, while those who will just give up because of it, those are the true people who are underclass.

Finally, after an analysis of how Katz introduces the topic of underclass meaning entrepreneurs I have to disagree. I think that the poor has the potential to become entrepreneurs (as does everyone else) but, the true underclass are those who don’t choose to act on this.

Katz Response

As I was reading the Katz piece, the idea of how the poor became poor changed. When the Philadelphia Guardians said that those dependent on charity and public assistance were synonymous to the “undeserving poor,” I really thought these people had no minds. To me, it is so clear that some people simply couldn’t go up the social ladder because of their background. It is not necessarily their fault that they became dependent on it. Because of how they are dressed and the areas they live in, they were not given the opportunities to improve their lives as much as others. I don’t know who the Philadelphia Guardians are but I can’t help but think if they are educated people or not.

I was very surprised to read that racism was not the reason association with poverty was with black people. I did not know that it was actually the massive immigration of Africans after World War II were the cause. Since I live in the modern times, the ghettos are where most people associate poor black to be but at one point the country was still rural. Black people at that time still lived in rural areas and the ghettos in the cities were very small. While racism is a strong, driving force against black people, it is not always racism that makes us associate black people for certain qualities.

It sort of amazes how a term can transform so much over the course of time. Poverty was thought properly to be something caused by a poor person’s actions. People then were able to talk about the “deserving” and “underserving.” Then people started to divide the two categories into two, creating four total distinctions of certain levels of poverty. It is fascinating how much a word can change.

As I read the term “culture of poverty,” it seems very similar to “rape culture.” Both seem to blame the victims for what happened to them. Honestly, I never understood how some people could blame others for something like that. It isn’t like a poor person can suddenly become rich if he tries. There are certain obstacles in the way preventing him from doing so.

It is interesting how social programs at first were actually fueling the culture of poverty. The social programs themselves weren’t providing new opportunities for the underclass. It was simply helping them maintain the same way of life that generations of their families have lived. It kind of surprises me that writings about this did not draw to this conclusion faster. It isn’t straightforward but with more effort, I feel like the connection would have been seen sooner.

Katz’s “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America” and the doom of gentrification

In Katz’s “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” gave me another reason to think that harmony is the hardest substance to achieve in the midst of urbanization.

Gentrification, even though has been explained to me back in the days of IDC 3001, still seems relatively “alien” to me, mainly because I have lived in areas where gentrification went by unnoticed. Gentrification, the idea that new people coming into the neighborhood and changes the whole dynamic of the place, seems unrealistic to me. Idealistically, gentrification is used as a dominant force of revamping one neighborhood through the interaction between insiders and outsiders and somehow this interaction fuses the two groups together in “harmony” and brings in new culture and fresh perspective into the group. As a psychology major, I remain skeptical since “in-group, out-group” psychology generally prevents encroachment of outside perspectives into the existing environment, creating more discrimination and conflicts and promoting disruption of the community. Especially since little has been explored about the feeling of the existing neighborhood toward the wave of incoming gentrifiers, I expect, from a totally human point of view that at best, interaction will be little, since the existing residents themselves do not really interact with each other that much, let alone with the new people and even if they do, the quality of the interaction will be decreased since the same amount of interaction will happen with an increasing number of people in the neighborhood.

In short, gentrification, practically speaking, destroys the tightness of the community, if the tightness even exists to begin with. Yet the “theory” about the benefit of gentrification keeps extoling that having middle class people moving into a neighborhood will increase social ties. Maybe there has been something that I’ve been missing all along or that I am just that pessimistic. My view kept being echoed over again as I kept on reading the excerpt. The existing residents of the neighborhood are the driving force behind changes around the neighborhood rather than the new residents. Again, competition among in-group and out-group for the reign of the neighborhood will erupt and not cease to exist unless one group gains control and excludes the other faction from the throne. It’s just human nature.

The hostility, though mild in effect, becomes a driving force keeping the neighborhood from becoming gentrified. A classical example is given in the piece, about a black gentrifier named Jennifer, who, after moving into an existing resident of the neighborhood, was called “white” by another in-group resident. She is of course, not “white” in race, but “white” in the fact that she has the status of an outsider.

From a policy-maker point of view, gentrification may make the neighborhood more attractive in terms of real estate value and marketable for people who are looking to move in, but the neighborhood itself decreases in intrinsic, community value that really makes a neighborhood what it is. Depending on the outcome striven for, I really think policy makers should separate between “bettering a neighborhood” and “enriching a neighborhood.”

“Underclass to Entrepreneur” – Response

During a summer College Now class in high school, I was exposed to the idea of “poverty as pathology” – the idea that the poor are doomed to remain poor due to their own lack of motivation, focus on instant gratification and lack of initiative. In my opinion, this is a very simplistic and convenient explanation for a pervasive social problem. The strategy of “blaming the victim” is a recurrent theme in many debates about various social justice issues. Michael Katz’s discussion of 19th and 20th century attitudes towards poverty show that this attitude was the foundation of theories regarding urban poverty. It can be easily argued that this outlook on poverty is still highly prevalent in society. By determining poor people to be the cause of their own poverty, society can dissolve itself of any responsibility in trying to solve the problem.

This is the reason why the idea of the “underclass” became so easily accepted into mainstream theories about poverty, it was an idea that was legitimized by media – it appeared in Times magazine and other leading publications, as Mr. Katz mentions repeatedly – and it was palatable to the extent that policy makers didn’t have to see poverty as a consequence of failed social structures. The main problem with this, as Mr. Katz points out is the resulting image of the undeserving poor as being fundamentally different and therefore beyond the reach of solutions offered to those who were merely experiencing temporary financial difficulties. But, Mr. Katz makes several comparisons which show that the activities observed in poor neighborhoods and demonized by researchers and policy makers – such as drug dealing – were simply substitutes for mainstream market activities.

It was a really interesting connection to make that drug markets and markets for other illegal activities thrived in certain neighborhoods because mainstream markets such as the housing market did not exist in these neighborhoods. I wonder if Mr. Katz was suggesting that it was the natural entrepreneurial spirit at work here and with no legal means available, people turned to available markets as a way of getting ahead. In any case, the idea of creating markets in poor neighborhoods is a valid idea. But as exemplified by programs implemented during the Reagan and Clinton administrations, even programs that tried this approach have often failed.

The article identifies, with reference to the work of Michael Porter, the reason or the failure of these programs was that they treated inner city neighborhoods as being “different” and separate from their surrounding neighborhoods and economies. Instead of treating them as being lesser than other markets and desperately incentivizing businesses to invest, it would be a better idea to portray them as places with advantages such as their “strategic location,” yet-to-be saturated local demand, and vast wealth of untapped human resources.

The article goes on to discuss current programs in place, many of them involving public-private partnerships. This reflects, in my view, the general popularity of social entrepreneurship in recent times. Social entrepreneurship and public-private initiatives weren’t invented in this generation but such projects have certainly reached new and great heights in the past few years. I think there is great potential in the ideas discussed by Mr. Katz, particularly micro financing and the focus on education. With a growing understanding of the causes of poverty and destigmatization of the “underclass,” solutions to poverty can and should involve more than just food stamps and unemployment benefits.

Response to Katz

In “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” Michael B. Katz describes what the “underclass” was, the approaches to helping it, and how it has evolved. The chapter made me think about the different views of the poor and the ways of responding to their needs.

Katz describes the underclass as a class of people, who are mostly young and minorities, defined by drugs, crime, teenage pregnancy, and high unemployment. It typically referred to black poor people living in inner cities. The concept related to the distinction between the deserving and the undeserving poor.

One topic that Katz explains in the reading is the division of poor people into categories. Katz explains that this has historically been these types of distinctions have been made to determine how to distribute scarce resources to those in need. However, the categorization of poor people has also been used for moral judgment. These categories are used to determine who deserves aid and who does not. I believe that it is necessary to categorize the poor in order to provide aid that will be most beneficial. For example, the distinction between people who cannot work because they are disabled and people who can work but are unable to find a job at the moment is very important for determining how to help these people. People in both categories should be treated as equally deserving of help but the distinction makes it clear that, in the long term, those in the second category will need jobs. This means that there should be policies and aid geared toward making sure there are jobs available. Without understanding the different categories of the poor, it isn’t possible to understand how to help them. In my example, without the distinction between the two categories resources and policies might have focused on providing the poor with aid that satisfies their needs at the moment, which wouldn’t help the second category in the long term. Even worse, resources and policies might have focused on bringing more jobs to the area, which would be of little help to the first category, who couldn’t work anyway. I believe the approaches to categorization of the poor are often flawed but the concept can be positive.

The main topic of Katz’s chapter is how the idea of the underclass has, over time, been replaced with the idea of the poor as a source of “entrepreneurial energy and talent.” I think this can be both a positive and a negative. This view of the poor encourages investment in poor people who have the ideas and talent that can improve their lives. On the other hand, this view of the poor does little to encourage aid for people who are unable to help themselves with investment.

I thought the reading was insightful. Katz gave good descriptions and examples of attitudes towards the poor and methods of helping them. It made me think about the different ways of helping people in need and how these methods and attitudes can be improved.

Katz Response

Michael B. Katz’s “ From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” begins by talking about how in the late 1970s to early 1990s, “underclass” meant poor, black people, who were in the midst of the crumbling core of the nation’s inner cities. However, by the early 21st century, no one really talked or wrote about the “underclass” anymore, but they instead “celebrated the entrepreneurial energy and talent latent within poor people who were waiting for the spark of opportunity to transform their lives.” I thought this was interesting because I never really heard or read people say this, and I don’t think this really applies to everyone who is poor. There are of course differences, as is discussed in the chapter amongst those in poverty, and while there are those who are trying to get work, but there just no opportunities, I think most people tend to focus on the “undeserving” poor, which is quite sad since this would tend to lead to a negative about those who receive government assistance.

In the chapter, Katz talks about the categorization of the poor into the deserving poor, those who are clearly helpless, and those who suffered circumstances beyond their control and proved to be willing to work for anything, even small things, and the undeserving poor, which includes those who committed crimes and did drugs or were dependent on the government, without really trying to get out and live on their own.  While is can be useful to separate the poor in such a way when talking about who should get benefits and such, a kind of separation like this can also be incorrect because it just looks at the surface.

For example, many people who commit crimes and do drug, may simply be a product of the environment they were in. If a person is around such activity from a young age, and they don’t really see much else, there is a big chance that is what they will do as well because that’s all they really know. In a situation like this, they were really deserving poor when young, and in addition to that, there could be so many other factors that lead to their lifestyle when older, and simply categorizing them as underserving poor isn’t really right or helpful. There should be an emphasis on helping people get out of poverty to prevent this type of thing, which I believe education is a large part of, as was also mentioned.

The War on Poverty emphasized opportunity, not by focusing on the labor market, but by improving individual skills through education and job training. I think this is a really important thing to focus on when helping the poor. Of course money is important, but by improving their skills would have a more profound and lasting impact and would allow them to stand on their own two feet and not depend on the government. It’s also important for the education system to help the young people in poverty so they have a way out and can do more for themselves.

Something that caught my eye was about Muhammad Yunus and how he began to lend poor women small amount of money to start their own businesses. I’ve read about various types of programs like this, some that allow people to loan to the poor all over the world to start business, and also others that are more community based and have women who form a group and decide who to lend money to. I think this is a really good way to help the poor who have skills and want to work and get out of poverty, but just don’t have the means to. This not only helps the poor, but also society as a whole, with more entrepreneurs and less people dependent on the government.

Response to Katz “From Underclass to Entrepreneur”

In “From Underclass to Entrepreneur,” Katz brings up the term “underclass” and goes into length defining the term and describing the connotations. It surprised me that this term was used recently in the 70s and 80s though I had never heard the term used in such a way before. What is more surprising is how much New York City has changed since then. Underclass, used to describe New York’s urban inner city areas, “conjured up a mysterious wilderness in the heart of America’s cities; a terrain of violence and despair.” The New York now, with it’s much lower crime rates, doesn’t seem to resemble the dangerous urban area filled with the “underclass” as it used to be.

It was interesting to read about Brace’s 1854 report about how “the growing density of America’s cities had eroded the character of their inhabitants.” Unlike Jane Jacobs’ ideas of how a bustling city would be a safer one, Brace argued that the density and over crowding was “corrupting” others around those areas. Housing reformers from the 1900s had similar reactions to slums, labeling them as “viruses infecting the moral and physical health of the city districts that surrounded them.” Poorer districts were considered to be an infection of the city and were avoided in order to prevent contamination.

From such an attitude towards the slums grew the distinction between the “deserving and undeserving poor.” Those whose misfortunes came about accidentally, such as in the case of a widowed women, were labeled the deserving poor. Unskilled, minority, or unwilling to work men, especially alcoholics, were considered undeserving and “sentiment … did not shift in [their] favor.” Thus campaigns were run to deplete such people from relief programs.

Michael Porter brought up several very interesting points regarding these inner-city neighborhoods. He spoke about the potential of these areas to “create wealth.” I agree with his point that policies should get out of the “trap of redistributing wealth,” which doesn’t create any real value, and instead work with an economic model to develop profitable businesses that would benefit the people and the communities. Porter claimed such areas had four concrete competitive advantages such as a “strategic location” in the middle of the city, high “local market demand” in an unsaturated market, “potential for integration,” and vast “human resources” of people who are eager to work. The policies of the government and other sectors mainly needed to provide a “hospitable environment” to allow for such businesses to grow. Porter was successful with some of his theories after developing the Initiative for a Competitive Inner City and opened up thousands of jobs in small businesses for people in inner-city areas.

A more recent program to help out such neighborhoods included Bloomberg’s Opportunity NYC. Not particularly effective, the program was said to award the “undeserving poor” by providing incentives for “parents who had not been sending their children to school regularly.” I don’t think any similar programs can be effective since there may always be a population to take advantage and be incentivized to do less in order to receive benefits. Something that encourages people to invest in themselves and the surrounding community may be more effective but the question remains of how to implement such a program without too much policy involvement.

Katz – “From Underclass to Entrepreneur” || Response

In the excerpt, “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America”, Katz talks about how the expression “underclass” evolved over time. During the late twentieth century, “underclass” was used to describe the poor, especially poor black women. The term also described the life of drugs, crime, high poverty, and urban decay. And thus, America’s inner cities were deemed as “a terrain of violence and despair”. I personally think that these characteristics actually describe just being “underclass” and not poverty. One can choose a life of drugs and crime and not necessarily be poor. One can choose to ignore education. That is what I define as “underclass”.

At the turn of the century however, these same people are seen as highly motivated and ambitious. Because of their low social status, they wanted to prove to everyone that they were not a lower class of people. Katz states that the label essentially became a metaphor of social transformation. Formerly described as “underclass”, these individuals jumped at any opportunity and became entrepreneurs. Market-based technologies certainly helped the poor obtain this newfound status.

Katz discussed exactly how market-based technologies gave the poor a boost. Four market-based strands were intertwined with poverty work, including “place-based initiatives that intended to unleash poor people as consumers by rebuilding markets in inner-cities; microfinance programs that turned poor people into entrepreneurs; asset-building strategies that helped poor people accumulate capital; and conditional cash transfers that focused on deploying monetary incentives to change behavior.” As a business major and psychology minor, I found these ideas to be very interesting. These market-based brands mixed aspects of business and psychology together to obtain a positive result.

Other points I found interesting was when Katz talked about Clinton’s presidency and Muhammad Yunus. Throughout my studies in American History before college, I have never heard of the Enterprise Zone or the Empowerment Act of 1998. Although it ultimately did not succeed, the Clinton administration did try hard to revitalize the inner-city. This act called for nine empowerment zones and ninety-five enterprise communities, both of which were allowed tax breaks and “other incentives” to help the poor. Clinton also added eligibility to social services and community-based programs. On the other hand, Yunus’ Grameen program proved successful. He was more inclined to help women because he felt that they were more likely to do good for their families compared to men. He also believed that that was the main reason for the program’s success. Although it may come off as a little unfair to men, I do agree with Yunus and his method of helping the poor.

Overall, I found this reading to be very informative and insightful. As a New Yorker exposed to a variety of entrepreneurial ideas, I certainly do see a great deal of talent and motivation coming from individuals who are less wealthy. But how exactly is the government dealing with poverty today? I do believe that our government is doing an adequate job (considering the economic circumstances) assisting the poor today. There are many social services including food stamps, Medicare, Social Security, etc. With that said, there is always room for more improvement.

“Underclass to Entrepreneur” Response

In Katz’s “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” the underclass is a group of people defined not by poverty but by characteristics like drugs, crime, teenage pregnancy and high unemployment. Over time, those qualities became synonymous and the poor became the underclass. I think that was inevitable because they overlap, so it makes sense, but it’s a little too general for my liking.

There was one particular description of the underclass that I found very interesting: the categorization of the poor. Ken Auletta organized poor people into groups that he labeled as the passive poor, the hostile, the hustlers, and the traumatized. I like this approach because it helps to differentiate the people who are making the best and the worst of the same situation. Naturally, we see the bad things and then assume that everyone in that predicament is doing them. Not every poor person is a criminal, but many people, including myself sometimes, perceive them all that way. This categorization can change that. Although it might be true to a certain extent, it is still unfair to say that every poor person is a dropout or an addict. If that can be eliminated, then a lot of issues regarding stereotypes can too.

Something that comes up is that the concept of the underclass supports the practice of blaming the victim. I believe this happens a lot to those involved with drugs, delinquency, and pregnancy out of wedlock. This isn’t to say that it is never their fault, but it seems that people ignore the possibility of external factors. For example, a drug addict may not have chosen to become one of his or her own free will. However, all we see is a poor life choice. Nobody considers what could have driven that person to that point and whether or not it had anything to do with him or her at all. Instead, we cast these people aside as the underclass. With this logic, people in that type of situation may never be able to find a way out.

The example that Katz makes of Muhammad Yunus, who distributed money on the idea that the poor are inherently entrepreneurial, brought a few questions to my mind. How true is that statement? We hear stories all the time of people who came from nothing and now have everything, but how often does that actually happen? If the poor really are such fervent entrepreneurs, how successful are they? Clearly there is some truth to this statement, or else Katz would not have written this chapter, but I wonder if it still holds true today. All we’ve been hearing about in the news lately is the rich getting richer and the poor getting poorer. Maybe it was the time period and the need to oppose racism that encouraged them back then, but I’m not so sure that poor people nowadays have that ambition or opportunity.

Even so, the micro-finance method sounds effective. I don’t expect everyone to climb to the top with this bit of help, because that’s just impossible, but it’s better than nothing. At the very least, it supports saving, which can eventually assist the elimination of the underclass. The question is not if they should be saving but how the government can help them save. I think people are definitely capable of that, and they should absolutely be aided in doing so. Sadly, in today’s economy, I can’t say that the government is doing such a great job of that.