We Can’t Talk About Housing Policy Without Talking About Racism

Originally published in The American Prospect on May 20th, 2015.
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Over the past year, unrest in places like Baltimore and Ferguson has inspired a nationwide debate on how to best combat systemic inequality and injustice. In the wake of high-profile police violence cases in these cities and elsewhere, this conversation has contributed to a renewed understanding of how federal and local housing policies helped create the inequality and racial injustice urban America confronts today. Yet lost in this discussion has been the complicated record of more recent desegregation efforts and what they can teach us about undoing generations of systemic racism and persistent segregation.

A case-in-point is HUD’s Clinton-era Moving to Opportunity (MTO) program, the subject of a new study by Harvard economists Raj Chetty, Nathan Hendren, and Lawrence Katz. Focusing on MTO’s long-term economic impacts, the study sheds more positive light on a program long considered to be a failure.

Running from 1994-1998, MTO was a housing experiment that involved moving individuals out of high-poverty neighborhoods with vouchers and into census-tracts with less than 10 percent poverty to see if this would improve their life outcomes. The results were mixed. While critics of the program have dubbed it a failure for not significantly improving children’s school performance or the financial situation of their parents, there was a lot about it that proved successful. MTO yielded significant gains in mental health for adults, for instance, including decreased stress levels and lower rates of depression. It also greatly lowered obesity rates and improved the psychological well being of young girls.

The new Harvard study further bucks the notion that MTO failed. Instead of looking at MTO’s economic impact on parents, it looks at the adult earnings of their children. Such an analysis simply wasn’t possible to do a decade ago, given that the kids were still too young. Researchers now find that poor children who moved into better neighborhoods were more likely to attend college and earned significantly more in the workforce than similar adults who never moved. The researchers also ranked which cities were “the worst” in terms of facilitating upward mobility. Out of the nation’s 100 largest counties, the authors found, Baltimore came in dead last.

Many writers were quick to make the connection between Baltimore’s low chances for social mobility and the recent bouts of unrest surrounding the death of Baltimore’s Freddie Gray. However, few seemed interested in connecting the new Harvard study with the politics of why we have segregated communities and concentrated poverty in the first place.

Emily Badger’s Washington Post write-up of the study framed the ills people face in Baltimore as a city failure, rather than a state or federal one. She discusses the “downward drag that Baltimore exerts on poor kids” and says that Baltimore “itself appears to be acting on poor children, constraining their opportunity, molding them over time into the kind of adults who will likely remain poor.” Badger acknowledges that maybe this has to do with struggling schools and less social capital. “Change where these children live, though,” she writes, “and you might well change their outcomes.”

In The Wall Street Journal, Holman W. Jenkins Jr. looks at the new Harvard study and concludes, “Neighborhoods themselves are clearly transmitters of poverty. The problem for residents isn’t racism: it’s where they live.”

Such narrow portrayals of Baltimore and its residents are only possible if we exclude decades of state and federal policy from our frame of analysis. Richard Rothstein of the Economic Policy Institute wrote something I suggest reading in its entirety. But to quote:

In Baltimore and elsewhere, the distressed condition of African American working- and lower-middle-class families is almost entirely attributable to federal policy that prohibited black families from accumulating housing equity during the suburban boom that moved white families into single-family homes from the mid-1930s to the mid-1960s—and thus from bequeathing that wealth to their children and grandchildren, as white suburbanites have done.

Slate’s Jamelle Bouie traces not only how efforts to segregate Baltimore succeeded, but also how there’s never been a sustained attempt to undo them.

The simple fact is that major progress in Baltimore—and other, similar cities—requires major investment and major reform from state and federal government. It requires patience, investment, and a national commitment to ending scourges of generational poverty—not just ameliorating them.

Expanding housing choice vouchers is a good thing. We should have subsidies available to ensure that everyone has similar opportunities for mobility. That said, moving millions of impoverished families out of high-poverty areas would be nothing short of a logistical nightmare. In effect, mass relocation efforts would require low-poverty communities to relinquish some of their gatekeeping discretion—no small political fight. MTO tracked 4,600 families in five U.S. cities. As Reihan Salam put it, “It’s not at all clear that an MTO-style approach would work if we scaled it up to, say, 40,000 families in one city.” Nothing is impossible, but we cannot have a serious discussion about housing mobility as a broad anti-poverty strategy without frankly discussing the politics of racism and segregation. 

Investing In Better Mobility Vouchers

So what does a more effective mobility strategy look like? A look to MTO’s own weaknesses may provide some clues. Indeed, for sociologists Stefanie DeLuca and Peter Rosenblatt, one problem with MTO was that it simply didn’t go far enough. Ina 2010 paper, they argue that while some students undoubtedly benefited from moving to wealthier communities, a lack of social capital, support, and resources, combined with housing vouchers that did not cover the cost of living in low-poverty communities, kept many students out of the highest-performing schools. At the same time, many families found that the obstacles created by poverty—like health problems and the chaotic nature of low-wage work—tended to follow them even as they left impoverished communities, and in turn contributed to poor student performance.

For DeLuca and Rosenblatt, there’s plenty that MTO did right but confronting endemic poverty and segregation requires a more systematic approach. That is, something perhaps more akin to the Baltimore Mobility Program (BMP), through which 2,400 Baltimore families have relocated since 2003. Whereas MTO offered housing search counseling to program participants, BMP provided that plus post-move counseling, second move counseling if necessary, and financial literacy and credit repair training. In another study released last year, DeLuca followed 110 BMP participants for nearly a decade, and found that over two-thirds of these families were still living in their integrated, low-poverty communities one to eight years after moving.

If MTO were to be a truly successful intervention, then expanding the program’s available services—including educational assistance, housing counseling, job support, and transportation help—would be important. We can’t know how the MTO participants would have fared if they had been given increased support, but we do know that additional services helped to make the transitions more surmountable and lasting for BMP families.

From “Finding Home: Voices of the Baltimore Housing Mobility Program,” a report by The Century Foundation.

This chart by The Century Foundation shows how the MTO and BMP compare with Section 8 vouchers and the Gautreaux Project, a desegregation experiment that ended in 1990 and helped inspire MTO.

Needless to say, high-quality BMP vouchers are more costly than MTO and traditional Section 8 vouchers. Excellent mobility programs will require a real financial investment. As it is, there are long Section 8 waiting lists around the country, and local housing authorities currently receive fixed amounts from HUD to support voucher participants. Unless we significantly scale up funding, moving more people to affluent neighborhoods would mean moving fewer people overall through vouchers.

The findings from the new Harvard study are useful. They allow us to ask new kinds of questions. But in terms of policy, we must be wary of those who now suggest that simply uprooting families and planting them into new communities is the responsible thing to do—especially if we’re not ready to provide the supports that research has shown makes these types of moves more successful.

For example, in The National Review Jonah Goldberg writes, “Consider Baltimore. If you’re poor, it is a very bad idea to raise your kids there if you can avoid it.” He implicitly suggests that if you’re a good parent, if you care about your kid’s future, then you will leave Baltimore, or Detroit, or Philadelphia if you can. Let us hope that this policy conversation does veer into an ugly, parent-blaming one. Housing mobility vouchers are good options, but our best anti-poverty interventions shouldn’t have to demand that people abandon their social networks, churches, and communities if they want to stay. We should make high-quality vouchers available, but we should vigorously invest in the communities where poor people already live.

As Daniel Kay Hertz, a senior fellow at City Observatory pointed out to me, the Harvard study provides some new ammunition against those who have long doubted the effectiveness of a housing policy that puts integration front and center. Now there is some pretty strong empirical evidence that shows that children’s life chances were significantly affected by growing up within integrated environments. Additionally, these findings come on the heels of Robert Putnam’s new book, Our Kids, which traces the growing opportunity gaps between wealthy and poor children around the country. In light of these new high-profile studies, perhaps policymakers will more readily accept the idea that your access to the American Dream has everything to do with your race, class, and geographic location.

At the end of the day, Baltimore ranks last in the Harvard mobility study not because poor, black people live there, but because leaders in power made choice after choice, year after year, to ensure that poor blacks’ opportunities would be overwhelmingly constricted. We can and must make new choices now.

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Marginalized Economists: Revisiting Robert Heilbroner

Originally published on the US Intellectual History blog on May 25th, 2014.
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While historians have begun to take interest in the history of economic thought, the tendency to research the most influential figures, the “historical winners”, has persisted as the predominant scholarly trend. But there are merits to studying the dissenters, too. Following not only how the economics profession took the turn it did but also looking at those who tried to advocate for an alternative vision, can help to clarify the seeming intellectual hegemony of our economic times.

Robert Heilbroner, arguably the most prominent dissenting American economist of the late twentieth century, followed his changing discipline with despair. So great was his anxiety over the powerful trends capturing the minds of his colleagues, championed by individuals like Paul Samuelson, Milton Friedman and Gregory Mankiw, that he dedicated himself to addressing what he felt were economics’ existential threats. Yet despite his efforts, with over twenty books to his name, Robert Heilbroner never gained recognition and mainstream respect. Even in 2014, there remains little work written about him. [1]

Born into an affluent German-Jewish family in 1919, Robert Heilbroner was no stranger to privilege. Yet when his father died when he was just five years old, and his family’s chauffeur then became his surrogate father, Heilbroner developed a nascent sense of class-consciousness. Heilbroner “sensed the indignity of [his driver’s] position as a family intimate yet a subordinate.”[2] Later in life Heilbroner would say that he felt the experience “explains something about my…personality and hence about my work. I’ve found myself pulled between conservative standards on the one hand, and a strong feeling for the underdog on the other.”[3]

Heilbroner went on to Harvard in 1936, and became interested in economic thought after readingThe Theory of the Leisure Class during his sophomore year. He called the experience “an awakening” and went on to graduate with majors in history, government and economics. [4] (Fortuitously: read Andy Peal’s recent post on Veblen’s “iconoclasm”.) Throughout his life one could spot the Veblenian influence in Heilbroner’s work; it was his central conviction that the “search for the order and meaning of social history lies at the heart of economics.”[5]

Heilbroner worked during an era of great political and cultural upheaval. In the late 1940s and 50s, while other European countries were suffering from the harsh ramifications of the war, American economics grew rapidly. Not only was America’s economy growing strong, but employment opportunities for economists were also expanding ever since the passage of the New Deal. Moreover, when many war veterans went off to college on the GI Bill of 1944, many of them chose to study the social sciences, creating a new demand for economics professors. Thus, economics departments grew to a size that American universities had never before seen.

Additionally, partly due to the influence of wartime planning, statistical study and empirical work became increasingly interwoven. After 1945, economics grounded itself more firmly within the confines of quantitative methods, including algebraic procedures, theoretical models, and economic statistics. When Paul Samuelson published Foundations of Economic Analysis in 1947, he constructed a persuasive framework that would guide the economic discipline towards a field defined much more through the development of testable propositions. The influence of John Maynard Keynes also helped to establish mechanisms that could be analyzed formally, setting the stage for the transition to math. [6] Economists like Milton Friedman also followed up on all this in the early 1950s, pushing for a “positivist” economic movement that would be “in principle independent of any particular ethical position or normative judgments.”[7]

As economics drifted in a more mathematical direction, the former stronghold of the institutionalist camp began to falter. Universities espousing the new mathematical approach like MIT, the University of Chicago and Berkeley rose to prominence, while former bastions of institutionalism, like Columbia and the University of Wisconsin-Madison, declined dramatically in relevance and influence. [8]

Robert Heilbroner’s most famous book, The Worldly Philosophers, provides insight into what he thought about these new professional trends. Published in 1953, the book which traces the lives of economists like Adam Smith, Karl Marx and others, became one of the most widely-read texts ever written on the history of economic thought. Although Heilbroner self-described politically as a democratic socialist, he reserved immense admiration for economists like Smith and Schumpeter. In fact, realistically, he hoped to see a return to economic conversations rooted in the spirit of thinkers like Smith. That would demand, for example, that to really theorize on markets and businesses, as Smith does in The Wealth of Nations, one must also delve into topics like justice, virtue and conscience, as Smith does in The Theory of Moral Sentiments. [9] In a 1999 New York Times interview, just six years before his death, Heilbroner said, ”The worldly philosophers thought their task was to model all the complexities of an economic system—the political, the sociological, the psychological, the moral, the historical… modern economists, au contraire, do not want so complex a vision. They favor two-dimensional models that in trying to be scientific leave out too much.” [10]

To be sure, Robert Heilbroner did not oppose the entry of mathematics into economics. He felt a quantitative approach could augment the thick, social and philosophical analysis already (or at least formerly) employed. And he recognized that math is simply the only tool economists have available to answer certain questions. Heilbroner differed from his colleagues not over whether math was useful, but over what math was capable of explaining. Where colleagues like Friedman pushed a positivist agenda to avoid “normative” answers to some of society’s toughest questions, Heilbroner tried to show that all decisions carry inherently normative judgments. And when individuals like Greg Mankiw asserted that economists were capable of tackling economics with the same objectivity as that of a natural scientist, Heilbroner pushed back.

“What does it mean to be “objective” about such things as inherited wealth or immissterating poverty? Does it mean that those arrangements reflect some properties of society that must be accepted, just as the scientist accepts the arrangements studied through a telescope or under a microscope? Or does it mean that if we were scrupulously aware of our own private endorsements or rejections of society’s arrangements we could, by applying an appropriate discount, arrive at a truly neutral view? In that case, could one use the word “scientific” to describe our findings, even though the object of study was not a product of nature but of society? The answer is that we cannot.”

Heilbroner also strove for economic conversations that ended the “precipitous decrease” in the presence of the word capitalism. Without referring to the economic system by name, Heilbroner argued, we encourage individuals to forget what the system is for and in whose interests it is working. He looked to Joseph Stiglitz, who penned a 997-paged economic textbook, and found in it a grand total of zero references to the word “capitalism.” These types of absences reinforced Heilbroner’s angst that society was losing sight of a fundamental descriptor necessary to conceptualize modern economics. [11]

If these were Heilbroner’s only academic critiques, perhaps he would not have been so marginalized. But Heilbroner went further in his attempts to push social analysis into economics, suggesting that, “indeed the challenge may in fact require that economics come to recognize itself as a discipline that follows in the wake of sociology and politics rather than proudly leading the way for them.” This suggestion of inverting the disciplinary hierarchies highlighted an epistemological modesty not shared by many other economists in the field. [12]

While Robert Heilbroner never lived to see economics revert to a broader, more social analytical framework, his work nevertheless may have had some tangential influence over areas outside of economics. Cornell sociologist Richard Swedberg observed that “one of the most important developments” for the social sciences in the past few decades “has been the race to fill the void created by mainstream economics’ failure to do research on economic institutions.” For example, a new academic field began to take form in the 1980s—that of economic sociology. In 1985, Stanford sociologist Mark Granovetter published an article entitled, “Economic Action and Social Structure: The Problem of Embeddedness”, laying an intellectual base for the new field. Granovetter’s goal, echoing Heilbroner’s rhetoric, was to push economics from its knee-jerk emphasis on rationality towards a greater focus on the ways in which social structure and social relations factor into economic systems and power hierarchies. As Granovetter said, “there is something very basically wrong with microeconomics, and that the new economic sociology should make this argument loud and clear especially in the absolutely core economic areas of market structure, production, pricing, distribution and consumption.” [13]

New programs within graduate history departments have also emerged, designed to focus more specifically on the relationship between historical events and economics. Duke University’s Center for the History of Political Economy was founded in 2008 and Harvard University’s Joint Center for History and Economics was founded in 2007.  And, just this past springthe New School launched a new center, the Robert L. Heilbroner Center for Capitalism Studies, which seeks to blend “the history of capitalism, economic sociology, international political economy, heterodox economics, critical theory, economic anthropology, and science and technology studies.”[14]

There is some evidence that suggests that even the economics profession might be changing. When Thomas Piketty published Capital in the Twenty-First Century, in the spirit of the worldly philosophers, he advanced an argument for a global wealth tax not only based on his analysis of quantitative data, but also from his engagement with philosophy, history, and even 19th century literature. And the Institute for New Economic Thinking, founded in 2009, is meant to support economic projects and research that challenge the traditional paradigms of rational models and markets.

More aspects of Robert Heilbroner’s work deserve revisiting. His attentiveness to history and his fundamental humility led to some very fascinating writings about the future, technology, business civilization and the capitalist order. His rich 40-year career leaves us much more in which to sift and question.

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[1] The best, albeit limited, secondary sources I could find included Loren J. Okroi’s Galbraith, Harrington, Heilbroner: Economics and Dissent In an Age of Optimism (Princeton: Princeton University Press1988), Mathew Forstater’s “”In Memoriam: Robert L. Heilbroner The Continuing Relevance of The Worldly Philosophy” in Economic Issues 10.1 (March 2005) and Robert Pollin’s “Robert Heilbroner: Worldly Philosopher” in Challenge (May/June 1999).

[2] Pollin, “Heilbroner”, 34.
[3] Okroi, Heilbroner, 183.
[4] Ibid.
[5] Heilbroner, Robert L. The Worldly Philosophers. (N.p.: F. Watts, 1966.) 16.
[6] Backhouse, Roger and Philippe Fontaine. History of the Social Sciences Since 1945. (Cambridge: Cambridge University Press, 2010) 39, 40, 46, 52.
[7] Friedman, Milton. Essays in Positive Economics.(Chicago: UChicago Press, 1953) 4
[8] Backhouse, History of the Social Sciences, 42.
[9] Dieterle, David Anthony, Economic Thinkers: A Biographical Encyclopedia. (Greenwood, 2013) 131.
[10] Backhouse, Roger; Bateman, Bradley. “Worldly Philosophers Wanted.” New York Times.November 5, 2011.
[11] Heilbroner. The Worldly Philosophers. 314, 318, 315, 318.
[12] Heilbroner, Robert L., and William S. Milberg. The Crisis of Vision in Modern Economic Thought. (New York: Cambridge UP, 1995) 126.
[13] Swedberg, Richard. “A New Economic Sociology: What Has Been Accomplished, What is Ahead?” Acta Sociologica.(1997), 161, 163, 164.
[14] Ott, Julia, and William Milberg. “Capitalism Studies: A Manifesto.” Public Seminar RSS. Graduate Programs at NSSR, 17 Apr. 2014.

FLOTUS Is More Than a Charming Wife and Mother

Originally published in the JHU Politik on March 4th, 2013.

Last week a video of Michelle Obama “mom dancing” on Late Night with Jimmy Fallon went viral on the Internet. She also made an appearance at the Academy Awards to present the award for Best Picture. These recent events reinforce what we know so well about her: Michelle is a classy, fit, and stylish woman. A devoted wife and a loving mother, she fills the First Lady position with grace.

And yet, when I think about her role in the White House, I can’t help but feel, on some level, real disappointment.

Michelle Obama attended Princeton University and Harvard Law School. She then worked in a Chicago law firm and on behalf of Chicago mayor, Richard M. Daley. Yet this side of Michelle—the impressive, ambitious intellectual—is too often concealed from the public. If it’s acknowledged at all, it’s merely to show that she appreciates first-hand the promise of the American Dream and how hard it can be for individuals to make ends meet. But really, that’s about the full extent.

We could say everyone behaves like that—we live in an anti-intellectual society and everyone minimizes his or her scholarly side. And to some extent, we do. One needn’t look further than a few years back to recall President George W. Bush publicly criticizing his Ivy League pedigree in an attempt to gain a more populist appeal. However it’s undeniable that President Obama portrays himself as a thoughtful, smart and reserved leader. This is his public image. He’s known for being a constitutional law professor, a reader of Philip Roth and Herman Melville, and the President of the Harvard Law Review.

Michelle, like her husband, is an eloquent speaker; we saw this with her moving remarks at the Democratic National Convention. But even that speech, like so many of her speeches, downplayed her professional achievements and emphasized her role as a wife and a mother. She concluded with, “You see, at the end of the day, my most important title is still mom-in-chief.” This is her public image.

Perhaps this is all strategic: have Michelle be the endearing figure to provide her husband the space to work on more difficult goals. But , even if this is so, it should not be accepted without scrutiny.

When I think about inspirational First Ladies I think of Hillary Clinton and Eleanor Roosevelt. Hillary Clinton took on one of the most politically challenging obstacles of the day—health care reform. Eleanor Roosevelt fought for racial equality and labor standards. Both women were vociferously attacked, but I admire them for their bravery. They worked hard to bring light to uncomfortable topics.

Michelle’s path has followed Laura Bush’s and Nancy Reagan’s. Laura Bush worked to promote literacy, while Nancy Reagan counseled children to “Just Say No” to drugs. Michelle is working to combat obesity and promote healthy nutrition. It’s not that these things are unimportant, but they aren’t particularly “brave” either.

I’d like to see the smart and accomplished Michelle speak out on some of the tougher issues we face. Low-income housing? Parental leave policy? Education reform? The list could be very long, and there is certainly room (and need) for her to tackle something else alongside her nutrition campaign. Besides, sociological determinants such as quality housing, income-level, and education contribute to the choices people make in nutrition. By taking on the battles of deeper disparities, Michelle could not only meet the goals of her nutrition campaign, but also address inequities that permeate society.

Michelle is darling, but I want her to be bold. She is arguably the most powerful woman in the country, and has a real opportunity to use her influence, intelligence, and popularity to bring some political attention to hard issues. She has the approval and good will of the public. She should use it.

We know she loves her husband. We know she loves her children. But we also know there is a whole lot more to her than that and her chic demeanor. I hope in the future to read fewer headlines about her bangs, cool dresses, and shades of nail polish.

Call me crazy, but I believe there is much more to Michelle Obama than we have been privileged to see.

photo credit: usmagazine.com

photo credit: usmagazine.com