Charlotte and Atlanta: Diverging Paths in Economic Mobility

Welcome to?Invest: Digest, our weekly newsletter on?LinkedIn, featuring articles selected by our editors that capture some of the transformative developments and trends reshaping U.S. metro areas.

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• The Houston Ship Channel expansion is a major infrastructure project poised to significantly boost the local economy. By widening and deepening the channel, the project will accommodate larger vessels, enhance shipping efficiency, and increase cargo capacity. This development is expected to create thousands of jobs, attract new businesses, and reinforce Houston’s status as a leading global trade hub. The expansion underscores Houston’s strategic importance in international trade and its commitment to sustaining long-term economic growth.
• Georgia's 2024 elections are drawing significant attention due to the implementation of new election laws and several high-stakes House and Senate races. The new laws aim to balance increased election security with improved voter access, addressing previous controversies. Critical races in the state have the potential to alter the political landscape, influencing key policies on education, healthcare, and infrastructure. Recent polls indicate heightened public interest, suggesting a high voter turnout as Georgians prepare for what could be a pivotal election cycle.
• CBIZ’s acquisition of Marcum marks a notable consolidation in the accounting sector, signaling a strategic move to enhance service offerings and expand market presence. This acquisition will allow CBIZ to leverage Marcum’s expertise and resources, providing comprehensive solutions to a broader client base. The deal reflects a trend among accounting firms to pursue growth through mergers and acquisitions, adapting to the evolving demands of the industry. The combined entity aims to better serve clients with an expanded array of services and a stronger national footprint.

Quote of the week

"When you think of Texas, you think of oil and gas. But we also have the burgeoning aerospace sector comprising the NASA Johnson Space Center and the Houston Spaceport. There is a vibrant community growing around space exploration, and it is an exciting time." - Denise Navarro , President & CEO, Logical Innovations, Inc.

Economic Mobility: A Tale of Two Cities - Charlotte vs. Atlanta

Writer: Eleana Teran

Charlotte and Atlanta, two major Southeastern U.S. cities, present contrasting stories in terms of economic mobility for low-income Black families, according to a study by Raj Chetty and Opportunity Insights.

For those born in the late 1970s, both cities showed low mobility levels. By the early 1990s, Charlotte saw significant improvement, nearly reaching the national average for mobility. This success is attributed to a changing social environment, higher parental employment rates, and strong community support. Programs like Novant Health ’s Upward Mobility RN Educational Assistance and the Charlotte Opportunity Initiative, which focused on health, education, and reducing segregation, have driven these positive changes. Charlotte, previously ranked last among the 50 largest metropolitan areas for upward mobility, has now moved up to No. 38.

In contrast, Atlanta's mobility rate has remained low for both Black and white children from low-income families. Despite its reputation as a hub of Black economic progress, Atlanta struggles with income inequality. White households in the city have 46 times more wealth than Black households on average, with over a third of Black households having zero or negative net worth. Disparities in school funding and underfunded public schools further entrench this inequality, limiting potential upward mobility for Black children.

Efforts are being made to address these issues. The Kindred Futures suggests policies such as enforcing the Community Reinvestment Act, addressing predatory lending, and better funding for Black-owned businesses. Mayor Andre Dickens has appointed David Brand as an advisor to help integrate minority businesses into major development projects like Centennial Yards and affordable housing initiatives, aiming to ensure equitable growth.

Charlotte’s improvements show that targeted, community-focused efforts can significantly enhance economic mobility, while Atlanta continues to face challenges that require comprehensive policy and community solutions.

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