??Redefining The American Dream: A Future Proof Approach to Income Equality

Redefining The American Dream: A Future Proof Approach to Income Equality

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In 2020, there were multiple crises that revealed the problem of racial injustice in the US. The COVID-19 pandemic, economic recession, and the killing of George Floyd by the police brought attention to the fact that our political institutions have been influenced by white supremacy. As a result, people of color continue to suffer from poverty and premature death at a disproportionate rate.

As a #Jamaican immigrant and Black male living in #America, I can attest that income inequality has consistently been a problem in the United States from my personal experience. Many #immigrants and #Black people are unable to achieve the American Dream, despite the perception that America is a land of opportunity and security for families. To create the life we deserve, I am proposing we shift our focus towards entrepreneurship.

This post will discuss the importance of addressing income inequality and how having an entrepreneurial mindset can help our economy and increase income equality. We also take a closer look at how recent changes have increased the #incomeinequality in #Philadelphia, and explore ways to narrow this gap by investing in "Future Proof" education.

Sour Milk & Honey: Income Inequality in America

The expression "Land of Milk and Honey" originates from the description of the Promised Land in the Bible, which was believed to have an abundance of milk and honey. When many immigrants arrived in America between the late 1800s and early 1900s, this phrase symbolized the prospect of a brighter future and the aspiration to discover success and plenty in a foreign land.

Despite the promise of a better life in America, many immigrants and Black Americans have not experienced this reality. Income inequality, especially among minority communities, is a significant problem that impacts numerous individuals and families in the United States.

A report from the Economic Policy Institute shows that the wealth gap between White and Black households in America has increased since the 1980s. In 2019, the median wealth of White households was $188,200, while the median wealth of Black households was only $24,100, resulting in a wealth gap of over $160,000. Additionally, the report revealed that Black families are more likely to face poverty and economic uncertainty than White families.

Moreover, immigrants, especially those without proper documentation, have to deal with many economic difficulties. As per the report published by the Institute on Taxation and Economic Policy, undocumented immigrants paid a total of $11.7 billion in taxes back in 2014. However, since they are not qualified to avail of numerous government schemes and benefits, they are at a higher risk of being trapped in poverty and find it hard to obtain healthcare and education.

Non-immigrant visa holders in the United States experience significant income inequality, as they are typically paid lower wages than American citizens. This can lead to a cycle of poverty and limited economic opportunities. Additionally, visa holders do not have access to federally funded benefits like food stamps or Medicaid that could help them compensate for the lower wages. As a result, the wealth gap between visa holders and US citizens widens, making it harder for them to achieve financial stability in the long run.

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Philly's Fight With Income Inequity

The city of Philadelphia has both rich and poor neighborhoods, which is evident from its income inequality statistics. The report by the Economy League of Greater Philadelphia states that the wealthiest households earn more than ten times the amount of the poorest. Moreover, the city's income inequality is growing at a faster rate than the national average, which could impact its economic future.

According to the report, a growing wealth gap can be attributed to various factors including limited job opportunities for low-income workers, racial disparities, and inadequate access to quality education and training. The report recommends policy interventions like targeted investments in education and workforce development programs as potential solutions to combat income inequality and foster economic growth.

What You Need to Know (source)

• In 2021, Philadelphia’s median household income tracked at $52,650.
• Black and Latino/Hispanic households in Philadelphia reported median household incomes far below the city’s overall 2021 median, by $13,297 and $13,837 respectively.
• Philadelphia’s non-Hispanic White households reported a median household income of $74,279 in 2021; this is $21,630 above the city’s median, roughly $18,400 above the city’s Asian households’ median, almost $35,000 above Black households’ median, and approximately $35,500 above Latino/Hispanic households’ median.
• Only 14 of the 142 majority non-Hispanic White neighborhoods of the city (roughly 10%) saw a median household income below the city’s median in 2021.

The Way Forward: "The Philly Reinvestment Fund"

To tackle income inequality in America, we need sustainable investment attached to a focused Innovation Cluster comprised of workforce development initiatives and business education programs.

We have workforce development programs and small business programs, but these initiatives a limited in capacity and lack the coordinated funding and strategic oversight to collaborate effectively. Also, many of these programs require ongoing program evaluations and leadership development before they are prepared to scale.

Academics are currently discussing how reparation could be a form of JEDI policymaking to promote justice, equity, diversity, and inclusion. William A. Darity Jr. and A. Kirsten Mullen explore this idea in their book, "From Here to Equality: Reparations for Black Americans in the Twenty-First Century".

William Darity Jr. and A. Kirsten Mullen have written a book that argues for economic reparations for U.S. descendants of slavery. They use innovative methods that link monetary values to historical wrongs to assess the costs of justice being denied for 155 years since the end of the Civil War. In the book, they offer a detailed plan for an effective reparations program that includes a substantial payment to each documented U.S. black descendant of slavery.

I instead propose creating a "Philly Reinvestment Fund" that utilizes funds from corporate sponsors, government reputation payments, and philanthropy to back the strategic coordination of workforce development, business training, and accelerator programs. These programs will not only provide training for full-time employment but also equip individuals with skills essential for entrepreneurship and financial literacy to withstand future economic challenges.

List Programs in Philly:

Temple University's Lenfest North Philadelphia Workforce Initiative (LNPWI) is having a positive effect on North Philadelphia. The LNPWI, created by Temple University, the Lenfest Foundation, and community partners, aims to provide job training and employment opportunities for North Philadelphia residents. The initiative offers training programs in different fields and provides additional support services such as job placement assistance and help with resume building.

The West Philadelphia Skills Initiative (WPSI) is a program by the University City District (UCD) that helps unemployed and underemployed West Philadelphia residents find jobs in the area. The program provides training in fields like healthcare, hospitality, manufacturing, and more, and connects participants with job openings at partner companies. Over 70 employers work with WPSI, and the program has helped over 1,500 individuals find jobs since it started in 2011.

In Philadelphia, there are #businessaccelerator programs that assist #entrepreneurs and #smallbusiness owners in growing and succeeding. These programs provide various resources and support to help startups establish themselves, such as mentorship, coaching, funding, and networking opportunities.

Two accelerator programs in Philadelphia that can help startups and entrepreneurs are the University City Science Center and the Pennovation Center. The University City Science Center has various programs and resources available, including the QED Program that focuses on healthcare technologies. The Pennovation Center offers coworking space, mentorship, and access to resources such as funding and legal services.

Furthermore, it is worth mentioning that the ImpactPHL Accelerator program specifically assists startups that have a social impact mission. The program offers mentorship and funding opportunities for those startups that are dedicated to making a positive difference in society or the environment.

Two other business accelerator programs in Philadelphia are Ben Franklin Technology Partners and DreamIt Ventures. Ben Franklin provides funding and resources for startups in technology and innovation, while DreamIt Ventures offers mentorship, funding, and access to networks to help startups grow.

Many working-class #immigrants and #bipoc face obstacles accessing the valuable resources and support provided by accelerator programs in #Philadelphia, such as location, opportunity cost, elite access, or lack of technical skills/knowledge. This difficulty can prevent these groups from participating in the city's entrepreneurship and innovation ecosystem.

Therefore, there is a need to develop an innovation cluster with sustainable funding that will further support underrepresented entrepreneurs and the underemployed in Philly.

By doing this we would increase resources for education and training programs that focus on leadership, entrepreneurship, and resilience. These initiatives foster an environment of inclusivity where all individuals have access to financial literacy skills, network support systems, access to mentorship and funding opportunities necessary to be “future proof” against economic downturns.

By doing this #Philadelphia can become the example of how cities across the country can invest in their future generations. The combination of #learning #entrepreneurship skills with #leadership capabilities helps people create their own paths instead of relying on traditional job markets that are prone to disruption. Learning these skills also allows them to better position themselves as #changemakers!

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