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The St Louis Contrarian

Providing Independent and Intelligent Insight on St. Louis Public Policy Issues

Archive for the category “Racism”

Homeownership Tax Deduction

I hate to ever agree with the Trump administration but here goes. They are in favor of limiting the homeownership tax deduction to $500,000 annually. This is a good start. This deduction mostly favors wealthier people. Furthermore research has shown it does not stimulate the purchase of housing but drives up the price. Another largely white upper middle class entitlement. Written by Paul Dribin

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Ferguson

Two stories regarding Ferguson Missouri are in the news. The first is that a new Empowerment Center has opened which has promised job training and related services. The second story is that businesses along Florissant Avenue that were burned out as a result of the riots are still empty.  

There is only one conclusion. Things in Ferguson have not improved. What was a viable community has now deteriorated. Starting a job training program is a great idea. Unfortunately I have seen such efforts in inner city neighborhoods my whole life, usually without significant results. Do any of you know if people who want job training who have not been able to receive it.? The crowd who burned the stores in a Ferguson are not employable. We will not get anywhere unless we face facts.  Written by Paul Dribin

Division of Spoils in St. Louis

Sunday’s Post Dispatch posed an interesting article. The issue at hand was how funding from the proposed tax increase should be funded in the city. I need to say a little more.

The city has a population of a little over 300,000 and contains 28 geographic wards. This is the same number of wards as when the city had a population of nearly 1,000,000 people. Resources ranging from federal dollars such as Community Development Block Grants are divided evenly among the 28 wards, and for the most part the aldermen regard these funds as their personal slush funds. This has never made any sense and leads to the increased splintering of the city. It is also probably an illegal used of federal funds, which HUD has never chosen to enforce.

Now it appears that north side aldermen are pushing for a bigger share of the new proposed tax revenue due to special need. They are totally correct. Alderman can point fingers all day but the poverty of the north side has little to do with the quality of political leadership in those areas. The article pointed to disagreement about a funding formula. I believe the answer is simple; apportion the funds according to poverty indicators which are easy to find. That would make for a more efficient and equitable distribution of the funds. Written by Paul Dribin

What Will Get Young People to St. Louis

I read an article last week touting Pittsburgh as the next great place to live. What would earn St. Louis that status?

Despite all my griping about St. Louis I know it is a great place to live. What are the key positive attributes?

1. A lot to do. Great cultural, sports, and dining opportunities. We are more in a league with Chicago rather than Omaha when it comes to cultural activities.

2. Affordable housing. The median housing price is much less than in most big cities. Young couple could get more for their dollar and save hundreds of thousands of dollars over the course of a lifetime.

3. Easy to get around- This speaks for itself. You will not need to commute for hours to get to work or school.

4. Top institutions of higher education

Negatives

1. Crime

2. Racial intolerance- Businesses want an open and accepting work and cultural climate for their employees. St. Louis has a long way to go to achieve this goal.

3. A proliferation of small governments-Our system of governance is too expensive, inefficient, and fosters exclusion.

4. Climate-The weather is horrible in the summer and still cold in the winter. Spring and fall are great.

Almost everyone who visits St. Louis likes it. We should develop a program to bring recent college graduates or college senior to town for a weekend to sell them on settling here. We have a lot to offer, and most of the country is unaware of us. Written by Paul Dribin

Segregation in Affordable Housing

The New York Times recently ran an article which was very thoroughly documented and described how Low Income Housing Tax Credit projects almost always were located in a racially segregated and economically depressed area. The city described was Houston but the facts could apply to almost any United States location. Projects located in depressed census tracts provide much worse outcomes for the residents than those that are not.(Although the sample size of projects located in higher income areas is very small). Here is a link to the article: https://www.nytimes.com/2017/07/02/us/federal-housing-assistance-urban-racial-divides.html?smprod=nytcore-iphone&smid=nytcore-iphone-share

Certainly in some situations building LIHTC projects in economically deprived areas might make sense if part of a major redevelopment project. Most often, the projects are located in those areas because of NIMBYISM or developer decision making.

I am not confident these situations can ever be changed. Higher income neighborhoods will almost never support the construction of low income project in their midst.

A solution to the problem would be something I frequently recommend; an income approach to poverty which provides everyone with a guaranteed minimum income which would be used to support housing as well as other critical programs. New housing would be constructed in response to the demand created by this source of income. FHA would beef up its’ mortgage development program providing a strong vehicle for the construction of new housing. Developers using this program would need to set aside 10% of their units for affordable tenants. Direct construction subsidies would still be available for special needs housing.

We need to overcome the inertia in housing policy caused by the greed of developers of the status quo.

St. Louis as a Place to Live

I have a very good perspective on St Louis having grown up in Chicago and living here for 21 years.  In spite of itself, St Louis is a great place to live.   The culture and restaurants are first class. It is a great sports town and housing is quite affordable. You can get anywhere fairly quickly.  

Why have things not taken off here. There are several reasons 

1.  Racism.  Most of the other problems, crime, education, jobs, and dysfunctional government come from or racist traditions 

2.  Crime.  People around the country hear about crime in St. Louis and don’t want to move here.

3.  Education.  Many school systems are still a mess 

4. Cronyism. By cronyism I mean the strong tendency of people from St. Louis to pick there high school friends for key jobs and not consider outsiders. 

5. Dysfunctional government. This speaks for itself and is related to the other problems. 

We know what it takes to correct these issues. We have had lots of studies. Do we have the leadership and political will to make the changes?   Written. By Paul Dribin 

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