Urban Poor and the Great Recession One of the biggest impacts on the urban poor in my lifetime, let alone the last five years is the great recession that started in late 2007, early 2008 because of a housing market correction and a subprime mortgage crisis. We will focus on how the great recession affected the urban poor as it relates to William Julius Wilson’s theory. When the great recession hit in late 2007 and into early 2008 because of the hosing market and subprime mortgage crisis it left many Americans scrambling for work. Business had to cut back and layoff employees to cut costs and many of the middle to lower classes were found jobless. According to the Department of Labor, roughly “8.7 million jobs were shed from …show more content…
When joblessness becomes a way of life for a community, its citizens then “experience a social isolation that excludes them from the job network system that permeates other neighborhoods and is so important in learning about or being recommended for other jobs, this a vicious cycle is perpetuated through the family, through the community.” Wilson argues that the problem of the underclass in America is not one culture but of isolation from the community and resources.” In urban city ghettos joblessness has became a way of life since the great recession. No matter what culture or community you go to, there will always be joblessness not just in urban city ghettos. Community revitalization endeavors have separated questions of race and class from economic development and housing initiatives. They have oversimplified existing problems by saying that a cure for urban ills rest in the residents’ ability to change their community by simply identifying existing assets and building community capacity. Since ghettos are now part of the “urban poor” community what is going on today from the great recession backs up Wilson’s theory. We now know that in the urban ghettos there is a high unemployment rate due to the lack of education and the great recession. Jobs are extremely …show more content…
Low educated workers quickly became out of work when the great recession hit because companies had to cut expenses, which unfortunately meant that many works in the work force had to be laid off. The first culture to be affected by the great recession was the people living in the urban city ghettos. This shift in the economy had a great effect on the unemployment segregation rate in African American communities since the majority of the populations in these neighborhoods are low skilled, low educated people. With the increase, it also increased racism against the African American communities since a significant proportion of this population worked in low skilled manufacturing trades. “This increase in unemployment is further compounded by secondary social structural variable, included institution racism again the African American community as evident in unjust housing policies and discrimination in labor markets. In particular, Wilson argues that discriminatory federal housing policies after World War II drew middle class whites to suburbs and, in effect, trapped blacks in the inner cities” (Canto 2008). When blacks became trapped in the inner cities after World War II like Wilson stated, the urban ghetto community quickly grew sine many of the middle class whites had moved to suburbs. Wilson claims a spatial