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The Democratic Strategist

Political Strategy for a Permanent Democratic Majority

Dem Candidates: Check Out New Study on Class, Race and Poverty

Democratic candidates and their campaign workers have an article to read, “Class, race and the chances of outgrowing poverty in America” at The Economist. Some of the observations:

A new study by Raj Chetty, of Harvard University, and colleagues provides fresh data on how America’s landscape of opportunity has shifted sharply over the past decades. Although at the national level there have been only small declines in mobility, the places and groups that have become more (or less) likely to enable children to rise up have changed a lot. The most striking finding is that, compared with the past, a child’s race is now less relevant for predicting their future and their socioeconomic class more so.

The greatest drops in mobility have been not in the places evoked in song, but on the coasts and the Great Plains, which historically provided pathways up (see maps). “Fifteen years ago, the American Dream was alive and well for white children born to low-income parents in much of the North-east and West Coast,” says Benjamin Goldman of Cornell University, one of the co-authors. “Now those areas have outcomes on par with Appalachia, the rustbelt and parts of the South-east.”

The fact that white children have become more likely to remain in poverty than before, whereas for black children the reverse is true, raises many questions. The finding comes from tracing the trajectories of 57m children born in America between 1978 and 1992 and looking at their outcomes by the age of 27. “This is really the first look with modern big data into how opportunity can change within a place over time,” says Mr Goldman. For children born into high-income families, household income increased for all races between birth cohorts. Yet among those from low-income families, earnings rose for black children and fell for white children.

A black child born to poor parents in 1992 earned $1,400 a year more than one born in 1978. A similar white child earned $2,000 less than one born in 1978. But on average, a poor white child still earned $9,500 more than a poor black child.

Convergence, not equality

This pattern has played out in virtually every county, though with big regional differences. As a result, the earnings gap between rich and poor white children (the “class gap”) grew by 27%, whereas the earnings gap between poor white and poor black children (the “race gap”) fell by 28% (see chart). The class gap did not meaningfully change for non-white people. This convergence between poor white and poor black children is as much the result of improved mobility for black children as it is of decreased mobility for white ones.

The effects echo in other outcomes too. The gap in early-adulthood mortality between rich and poor white Americans more than doubled between the 1978 and 1992 birth cohorts, while the white-black race gap for the same metric fell by 77%. Other gaps between black and white Americans, from sat uptake and rates of graduation to rates of marriage and incarceration, have narrowed similarly.

None of this means that race is no longer relevant for Americans’ chances in life. Although the reversal of the direction of travel is striking, a young black American born in 1992 to poor parents was still four percentage points more likely to remain in poverty than a poor white peer, down from a 15 percentage-point gap for those born in 1978. And while the near doubling in rates of mortality among young, lower-income white Americans is deeply alarming, mortality rates for their black counterparts have increased too, and they are still (a bit) more likely to die young.

In polarised America, where race remains a divisive topic, some are bound to misappropriate the findings. Anti-woke conservatives will claim that the data show how “white privilege” is a myth and that programmes targeting poor black children should instead invest in poor white ones. Woke warriors will argue that race remains the most important factor holding children back from upward mobility, and so dismiss concerns about left-behind white kids. Both are wrong.

Convergence has not yet brought equality. Despite improvements across America for poor black children, there is still no county where their outcomes match those of poor white ones. Yet the decline of the white working class is steep, and bound to cause grief. Telling a young white man with lower life outcomes than previous generations that he is still doing better than the average black peer is about as useful as telling a young black man that he’s doing well “for a black man”.

Another possible misconception is that social mobility is a zero-sum game: that poor white children are doing worse because poor black children are doing better. The authors tackle this by showing how in places where black children have done well, white children’s outcomes have remained stable; and in places where white children have done particularly poorly, their black peers have also not thrived.

In his previous work Mr Chetty demonstrated just how much a child’s chances of outperforming their parents depended on their race and where they grew up. One of the questions the authors were left with was how “sticky” these effects would be over time: could opportunities for the next cohorts of children change within these same places, or were they fixed? The new study’s most hopeful finding is that, far from being fixed, opportunities within a place can change significantly and rapidly. Neither history nor place is destiny.

This offers clues for policymakers. Jobs, and their role in ensuring that communities flourish, are at the heart of understanding these big shifts. Children’s outcomes are tightly correlated with those of the communities in which they grow up. The narrowing of the race gap and widening of the white class gap, write the authors, “can be explained almost entirely by the sharp fall in employment rates for low-income white parents relative to low-income black and high-income white parents”. Growing up in a thriving community is crucial for children’s future outcomes—and which communities have been thriving over the past 15 years has changed in a way that relatively disadvantages poor white families. “In the past 15 years, we’ve seen a decline in conditions in low-income white communities relative to low-income black and high-income white communities,” concludes Mr Goldman.

So the gap between upward mobility stats for African Americans and low-income whites is shrinking a bit, and that’s good for Democratic candidates to consider, when reaching out to working-class voters. When it comes to  dealing with cheap shots regarding Diversity, Equity and Inclusion programs, however, note also that less than 10 percent of Fortune 500 C.E.O.s  are women and about 1.6 percent  are African Americans, with 3.2 percent of S & P 500 C.E.O.s  identifying as Latinos. A good question for D.E.I. critics is, “So, how would you improve these statistics, or do you think it’s O.K. the way it is?”

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