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There's been a few references so far to what I think is the other major reason for IZ. It's not just about making "yuppies feel better about their neighborhoods." It's one more tool to deconcentrate poverty (and joblessness, which is obviously related, but conceptually different).

If you want to put it in an economic framework, the argument goes like this: There are negative externalities associated with creating neighborhoods in which a high percentage (above 40 % ish) of residents live in poverty. The market, left to its own devices, won't correct that, which argues for a government intervention to make the market more efficient.

What are the negative externalities? Lower quality of life than would exist if the same amount of poverty were redistributed caused by, more crime, including violent crime, more drug abuse, less social capital, among other things.

There's a vast body of academic literature regarding the socially corrosive effects of a housing policy that concentrates poverty. So IZ can be seen as one more tool to address some of the historically most intractable social problems we face in this country.

by Mark Jordan on Jun 21, 2012 12:11 pm • link • report