Economics and Socio-Economics
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The built form of an urban area can be a good gauge for a city’s presence, especially when compared to other similar areas. However, to properly understand a city, one most go beyond that. The success and failures of cities are largely determined by its economic base. What types of industries does the city have, and ultimately how much revenue is being generated for the municipality. This is an effective model for measuring a city’s economic strength, however, it does not take social conditions into account. Cities, unlike smaller, suburban communities, are rarely homogenous. The makeup includes people of various races, ethnicities, religions, economic status, and age. Understanding the demographics of a city can provide a clearer snapshot of the socio-economic status, but it is important to understand how the demographics are distributed spatially throughout the city. From here, inferences can be distinguished about local, regions, and national trends affecting cities. In the United States, concentrated poverty has been a socio-economic trend that planners, politicians, and social thinkers have been trying to dispel for years. While this issue peaked from the 1960’s through the 1980’s, the issue still persists today and is important to identify (Kingsley and Pettit, 2003). Social concerns should also be cross-referenced with historical data to better comprehend why the situation exists today. Tracking immigration patterns that may coincide with important social events or movements can offer explanations for current socio-economic issues. While analyzing the built environment is rather straight forward, researching the how and why behind a city’s socio-economic situation can be a tedious endeavor. Trying to solve these issues is even more difficult.
Economic Structure and Shifts
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As it has been learned through the overview of Richmond’s history, economic factors have guided the city’s development since the 1700’s. Tobacco, slavery, and iron have helped define the city throughout various points in history. The tobacco industry was the catalyst for Richmond’s establishment via the Warehouse Act. This evolved from simple farming practices, to processing plants, to large-scale company headquarters and manufacturing plants. Not unlike many cities, this industry was spatially concentrated during its peak in the Shockoe Bottom and Shockoe Slip areas, referred to as “Tobacco Row” (nps.gov). Helping fuel the strength of the tobacco industry during the early to mid 19th century was the slave trade. While the city was a major distribution point for slaves being sold further south, many ended up staying in the region as workers on Tobacco Row, or on the peripheral tobacco plantations. Also along the James River was the Tredegar Iron Works, which served as a main reason why Richmond was named the capital of the Confederacy.
The city’s working class past helped position modern Richmond’s strong white-collar economy based around government and finance. On top of being the state capital, Richmond is home to both the United States Court of Appeals for the Fourth Circuit (only 13 nationally) and the Federal Reserve Bank of Richmond (only 12 nationally) (TIP Strategies, 2010). For a mid-sized market, Richmond has a significant number of Fortune 500 companies in a diversity of economic sectors. True to its roots, Altria Group of the tobacco industry is the area’s largest revenue generating company, ranking 161st nationally. Rounding out the list are Dominion Resources (electricity), CarMax (used car retail), Genworth Financial (mortgage insurance), Owens & Minor (medical supply), and MeadWestvaco (packaging) (Schwartz, 2014). Richmond’s unemployment rate is identical to the national rate at 5.5% (U.S. Bureau of Labor Statistics). This illustrates the rise in economic strength that has occurred in Richmond following the recession, where unemployment peaked at 10.9% in 2009. Today, as the inner core of the city continues to revitalize, tourism and related economic sectors have seen a rise. The local food scene has helped facilitate both the rise in inner-city population and historical tourism, with Richmond even being called “the next great American food city” by the founder of Saveur magazine, Colman Andrews (Richmond Times-Dispatch, 2014).
The city’s working class past helped position modern Richmond’s strong white-collar economy based around government and finance. On top of being the state capital, Richmond is home to both the United States Court of Appeals for the Fourth Circuit (only 13 nationally) and the Federal Reserve Bank of Richmond (only 12 nationally) (TIP Strategies, 2010). For a mid-sized market, Richmond has a significant number of Fortune 500 companies in a diversity of economic sectors. True to its roots, Altria Group of the tobacco industry is the area’s largest revenue generating company, ranking 161st nationally. Rounding out the list are Dominion Resources (electricity), CarMax (used car retail), Genworth Financial (mortgage insurance), Owens & Minor (medical supply), and MeadWestvaco (packaging) (Schwartz, 2014). Richmond’s unemployment rate is identical to the national rate at 5.5% (U.S. Bureau of Labor Statistics). This illustrates the rise in economic strength that has occurred in Richmond following the recession, where unemployment peaked at 10.9% in 2009. Today, as the inner core of the city continues to revitalize, tourism and related economic sectors have seen a rise. The local food scene has helped facilitate both the rise in inner-city population and historical tourism, with Richmond even being called “the next great American food city” by the founder of Saveur magazine, Colman Andrews (Richmond Times-Dispatch, 2014).
Poverty/Social Class Structure and Shifts
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To understand poverty in Richmond, it is necessary to understand the city’s long and unfortunate past with slavery and segregation. African-Americans nationwide make up a higher percentage of people in poverty than any other demographic group at 27.5%. The city of Richmond, like nearly all American cities tend to attract a disproportionate level of impoverished residents, as at the regional level, the city has the strongest social services, public housing, and public transportation (Mayor’s Anti-Poverty Commission Report, 2013). While the city’s unemployment rate is inline with the national average, the poverty rate is nearly double it, at 25.3%. This also makes for the highest poverty rate in the Commonwealth. What makes the issue more problematic is that Virginia has a relatively low rate of poverty, therefore not giving the issue the attention it deserves federally (MAPCR, 2013). Child poverty is an extremely pressing issue, as nearly 2 out of 5 children are living in impoverished conditions. While the poverty rate for whites is 15.4%, which is greater than the national average, it pales in comparison to African-Americans and Hispanics, with rates of 30% and 38.4% respectively. When looking at the geographic distribution of poverty in Richmond, the levels of segregation begin to unfold. Eighteen of the city’s sixty-six neighborhoods have poverty rates of 35% or higher, with six of those exceeding 50%. Of those in poverty, 51% reside in one of these neighborhoods, illustrating a high level of poverty concentration (MAPCR, 2013).
Slavery in Richmond can be pointed to as the beginning for the disproportionate distribution of poverty; however modern day issues in the neighborhoods of high concentration can be attributed to specific policies from the 1930’s through the 1970’s. The Home Owner’s Loan Corporation was part of the New Deal that developed a method for assigning risk to various neighborhoods. In Richmond, all African-American neighborhoods received poor grades, while even poor white neighborhoods were given high grades. Despite the intention to evaluate neighborhoods based on income, they were really based on race (MAPCR, 2013). This practice, known as “red-lining” identified the East End of Richmond as the lowest graded area in 1937, and today, the area remains the most impoverished section of the city. This practice essentially determined which areas would see the most investment, with African-American areas falling significantly behind.
It has been noted that the construction of the Richmond-Petersburg Turnpike helped encourage the rise of suburban communities, however it was even more directly detrimental to the inner city. As an urban renewal project, the turnpike was built right through Jackson Ward, Richmond’s largest African-American neighborhood, displacing 10% of the city’s African-American residents (MAPCR, 2013). Other projects like the Richmond Coliseum destroyed the community of Navy Hill, another working-class African-American neighborhood. Previously homeowners, these residents were forced to relocate to sterile public housing projects. Poverty in the city peaked during the 1980’s, and conditions have improved gradually as time has separated from these failed policies. However, Richmond still has a significant issue to mitigate moving forward, especially as gentrification continues to rise in popularity (MAPCR, 2013).
Slavery in Richmond can be pointed to as the beginning for the disproportionate distribution of poverty; however modern day issues in the neighborhoods of high concentration can be attributed to specific policies from the 1930’s through the 1970’s. The Home Owner’s Loan Corporation was part of the New Deal that developed a method for assigning risk to various neighborhoods. In Richmond, all African-American neighborhoods received poor grades, while even poor white neighborhoods were given high grades. Despite the intention to evaluate neighborhoods based on income, they were really based on race (MAPCR, 2013). This practice, known as “red-lining” identified the East End of Richmond as the lowest graded area in 1937, and today, the area remains the most impoverished section of the city. This practice essentially determined which areas would see the most investment, with African-American areas falling significantly behind.
It has been noted that the construction of the Richmond-Petersburg Turnpike helped encourage the rise of suburban communities, however it was even more directly detrimental to the inner city. As an urban renewal project, the turnpike was built right through Jackson Ward, Richmond’s largest African-American neighborhood, displacing 10% of the city’s African-American residents (MAPCR, 2013). Other projects like the Richmond Coliseum destroyed the community of Navy Hill, another working-class African-American neighborhood. Previously homeowners, these residents were forced to relocate to sterile public housing projects. Poverty in the city peaked during the 1980’s, and conditions have improved gradually as time has separated from these failed policies. However, Richmond still has a significant issue to mitigate moving forward, especially as gentrification continues to rise in popularity (MAPCR, 2013).
Race/Ethnicity/Immigration Shifts
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The city of Richmond’s demographics are an accurate representation of city’s long history. African-Americans make up 50.1%, Whites 44.5%, and Hispanics 6.4%, and the foreign born population is 7% (census.gov). When compared to national averages, the city strays from the norm, as it has a much higher percentage of African-Americans, and lower percentages of Whites, Hispanics, and foreign-born citizens. While the city’s demographic makeup may be in-line with some northern and Midwestern cities like Cincinnati or Baltimore, it’s important to note the long history of African-American presence in Richmond. Northern cities exhibited a rapid influx of African-Americans during the Great Migration of the 20th Century, while southern cities like Richmond have had large free African-American populations since the end of the Civil War. Virginia Union University, founded in 1899, is a significant historically Black university, further illustrating the lasting impacts that African-Americans have made in the city (nps.gov).
For a city as old as Richmond, it’s somewhat surprising to see a lack of shifting in neighborhood demographics. As noted previously, the city’s East End has long been the African-American stronghold of the city, and remains so today. However, in the past ten years the increased interest in urban living has led to gentrification permeation into some of Richmond’s historically African-American and lower-income neighborhoods (rvanews.com, 2014). To help combat urban blight, the city introduced an extremely generous residential real estate rehabilitation program, which has led to a large influx of middle to upper class white residents taking up residence in neighborhoods like Jackson Ward, Church Hill, or The Fan. While it is good for the city overall to have an increase in population and tax base, it has been detrimental for some of the longstanding lower-income residents who no longer can afford the rising property taxes. Considering the high rates of poverty in the city, and the relatively new phenomena of the city’s urban revitalization, ideally Richmond can learn from the success and mistakes of its peers, and harness the increased tax base to improve the quality of life for its most struggling citizens.
For a city as old as Richmond, it’s somewhat surprising to see a lack of shifting in neighborhood demographics. As noted previously, the city’s East End has long been the African-American stronghold of the city, and remains so today. However, in the past ten years the increased interest in urban living has led to gentrification permeation into some of Richmond’s historically African-American and lower-income neighborhoods (rvanews.com, 2014). To help combat urban blight, the city introduced an extremely generous residential real estate rehabilitation program, which has led to a large influx of middle to upper class white residents taking up residence in neighborhoods like Jackson Ward, Church Hill, or The Fan. While it is good for the city overall to have an increase in population and tax base, it has been detrimental for some of the longstanding lower-income residents who no longer can afford the rising property taxes. Considering the high rates of poverty in the city, and the relatively new phenomena of the city’s urban revitalization, ideally Richmond can learn from the success and mistakes of its peers, and harness the increased tax base to improve the quality of life for its most struggling citizens.
Spatial Outcomes
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Richmond’s high concentration of poverty creates a city with a high level of spatial segregation. The eastern and southern sections of the city have the highest levels of poverty, while the western neighborhoods are more affluent. Generally, this coincides with the racial makeup of the city, as like previously stated, the East End of the city is the historically African-American section. At the metropolitan level, the cities of Richmond and Petersburg both have a disproportional share of the African-American population, with Petersburg being 79% African-American (census.gov). This is not a unique phenomenon, as urban areas tend to be much more diverse than their suburban counterparts. Richmond’s spatial makeup began somewhat organically, with the strong, tight-knit African-American neighborhoods forming the eastern section of the city. However, it was through flawed federal policies that caused the lack of upward mobility for many of these residents, and thus a more spatially integrated Richmond.