In the vibrant hub of Atlanta, hiding in the shadows behind the façade of prosperity lies a deep divide between wealth and poverty. According to the Gini index, a measure of income inequality on a scale from 0 to 1, Atlanta has the highest score in the nation at 0.58. Racial disparities underscore the gravity of the situation, as Atlanta’s demographic makeup is nearly evenly split between African Americans and other ethnicities.
When it comes to wealth, the disparity is glaring. According to Atlanta Wealth Building Initiative, “30% of Black households in metro Atlanta have zero or negative net worth, compared to 10% of white households … median household income for a white family is $83,722 compared to $28,105 for a Black family.” Atlanta is not necessarily the Black mecca it is sometimes deemed to be, as much of Atlanta’s economic success eludes its Black residents.
The stark income inequality between white and Black families can be attributed to historical and systematic racism. From slavery to segregation, the Black community has been riddled with obstacles intended to stop African American progression. The victory of the Civil Rights Act in 1965 did not simply undo the damage caused by centuries of systemic racism. Systemic racism has perpetuated generational poverty within Black families, ensnaring Black Americans in an unrelenting cycle of economic hardship.
According to Shatakshee Dhongde, a Georgia Tech associate professor of economics who specializes in issues of poverty, inequality and social justice, “poverty does not refer to just income — multidimensional poverty refers to people above the poverty line but [who] are deprived.”
Dhongde defines such deprivation as two or more of the following: having a burden of high mortgages, no healthcare access, no insurance, two or more disabilities, non-English fluency, or no high school degree.
Allen Hyde, an associate professor at Georgia Tech’s School of History and Sociology with expertise in income inequality, shared how Atlanta’s segregation is evident today. According to Hyde, predominantly white populations are concentrated in the northern areas, while Black residents primarily reside in the southern and western parts of Atlanta, and “racism and historical segregation have resulted in the disinvestment of Black communities.”
In the 19th and 20th century, racial covenant laws prevented Black families from residing in certain neighborhoods. When racial integration began in the mid-20th century, white families often chose to relocate, a phenomenon known as “white flight.” This movement of white residents to Cobb and other northern Atlanta counties contributed to the suburbanization of Atlanta. The suburbs became where capital, quality education, job opportunities, networks, and resources became concentrated.
“So we see Black neighborhoods tended to be neighborhoods that didn’t have as much investment … whether that means the quality of schools that you go to, the kind of access to jobs you have, the ability to work and make social connections and network,” said Hyde.
There are vast differences in the quality of education between schools in suburban (more affluent neighborhoods) and those in low-income areas. Public schools are funded through property taxes, and schools in impoverished communities often lack the resources and support needed to provide quality education. The money, support, and resources a school has affects test scores, high school completion rate, college enrollment, and college graduation rate.
In recent years, Atlanta has made goals to bring equity to the Atlanta Public Schools. According to the APS, the district received $200 million to address COVID-19 impacts and more. According to the APS’ website, “the district planned to utilize that funding to address several critical areas, including academic recovery and intervention, social-emotional learning, and student and staff health and well-being.”
“The more educated you are, on average, your income goes up,” Hyde mentioned. In order to get more educated, “you have got to take certain classes, [know] what kind of college to apply for, FAFSA, financial aid … imagine what it would be like to try and do this without, you know, people that know how to do it.”
Georgia’s minimum wage is $7.25, which means that “for a lot of people working at the bottom of the income distribution, you are making as low as possible… so many folks in Atlanta, unfortunately, are just getting underpaid now,” Hyde shared. He continued by saying that “minimum wage has been steady, but things have gotten way more and more expensive.” This leaves those Atlantans with low career and economic mobility.
According to Dhongde, “purchasing power is much lower for the poor … the removal of some social safety nets and COVID relief checks has lowered their power.” This is becoming an increasing problem as inflation increases and wages stay the same. This dilemma is amplified because Georgia is a right-to-work state, meaning workers can not be required to join or make payments to a union. According to Hyde, this “really affects the ability for unions to organize and also be funded well.” “My rent for my current apartment has gone up about 20 percent in the past five years… my income hasn’t gone up that much,” said Hyde. Rapid suburbanization, gentrification, and migration from high-rent states like California and New York have driven up housing costs. This pushes marginalized communities farther to the outskirts of the city, often far away from employment opportunities and essential services. On top of that, Atlanta’s limited and inaccessible public transportation makes it challenging for those without access to a personal vehicle to commute to jobs, schools, and essential services.
“Policy is needed to remove the causes of income inequality,” Dhongde expressed.
Despite the popular notion of “pulling yourself up by your bootstraps,” hard work means little without adequate opportunity and resources. Dhondge and Hyde suggested that policy initiatives such as guaranteeing higher education seats to Georgians, financial aid for higher education, small business support, and fair wages, could help provide more adequate opportunity and resources.
For example, Hyde talked about policy that supports small businesses: “Black business and entrepreneurship has not been valued as much compared to white people’s businesses — that is why you see the recent ‘buy Black’ trend. Having more Black entrepreneurship success leads to more economic prosperity for those communities.”
Dhongde mentioned a policy initiative to increase higher education enrollment: “ensuring enrollment for Georgia students at a university, even a community college, is a step for building wealth and breaking out of poverty.”
Addressing income inequality in Atlanta requires a coordinated effort from government, businesses, and community organizations to create a fairer city so that Atlanta’s economic success encapsulates all of its residents.