Page 28 - The City of Greensboro Conditions and Trends

CITY OF GREENSBORO COMPREHENSIVE PLAN CONDITIONS & TRENDS

The Shrinking Middle Class

The most significant result of growing disparities in income and wealth has been the rapid decline of the US middle class,
long considered the driving force in the US economy. This decline is evidenced by the decline in real wages. Although
absolute middle class wages have increased over the past four decades, wages have actually stagnated when inflation is
taken into account. Research points to national factors that together have caused the cumulative effect of a missing middle
class, including globalization and regulatory impediments.

A related issue in the discussion of income disparity is the extreme growth in compensation for corporate executives
relative to typical workers among US firms over the past 40 years. According to a report from the Economic Policy Institute,
the ratio of CEO-to-worker compensation has ballooned from 30-to-1 in 1978 to 270-to-1 in 2016. This vast and growing
differential in compensation has further accelerated the income disparity between the wealthiest one percent and the rest
of US wage earners.

What This Means for Greensboro
Increases in disparity have affected Greensboro as much as or more than other urban centers. According to the US Census
Bureau, Greensboro’s poverty rate is nearly 19% higher than both the state and overall US level. One impact is a high level
of food insecurity as a source of disparity in Greensboro with over 82,000 residents living in areas determined to be “food
deserts” by the USDA. The high level of poverty can be attributed to a variety of factors including:
 The shift from manufacturing jobs to service-oriented professions; and
 The increasing portion of Greensboro residents who commute elsewhere for employment, expending a greater
percentage of their income on transportation.

Over the course of the comprehensive planning process, the City will explore strategies for alleviating disparity through
recommendations aimed to address inequities. While the trend is a national issue, Greensboro, as well as other
municipalities around the country, can use innovative economic development and city service strategies to close the gaps.
Research shows that providing high quality public education, empowering young entrepreneurs, and providing social and
other assistance in minority communities can go a long way in addressing these issues. Also ensuring that city services are
provided as equitably as possible, both geographically and socio-economically, will be an effective measure in minimizing
this issue and, in the long term, closing the gap between different income groups, wealth groups, and races within the City
limits.

DRAFT -28- March 15, 2018