Imagine this: the richest country in the world also has some of the poorest cities. Places like Detroit and Cleveland show a big gap between wealth and poverty¹. We’re going to explore these “poorest cities in America” and see the big numbers, the reasons, and the plans to help²³.

Key Takeaways

• The United States, the world’s largest economy, is home to numerous impoverished urban areas, defying the nation’s overall economic strength.
• Philadelphia, with a poverty rate of 22.7%, is the poorest among the top 10 most populous cities in the U.S.
• Poverty in these cities is often concentrated within the urban core, with significant disparities between city and suburban poverty rates.
• Factors such as income inequality, affordable housing shortages, and the legacy of postwar policies contribute to the persistence of urban poverty.
• Addressing the root causes of poverty, such as systemic racism and economic forces, is crucial for revitalizing these struggling communities.

America’s Wealth Disparity

The United States has the world’s biggest economy but struggles with big wealth and income gaps. In 2018, the median household income was $74,600, up 49% from 1970’s $50,200⁴. Yet, this growth wasn’t even, with fewer Americans in the middle class now than before.

Income Inequality and Poverty Thresholds

The U.S. sets a “poverty threshold” to define poverty. In 2018, a family of four needed at least $25,700 to get by. Despite being a rich country, 11.8% of people, or 38.1 million, lived below this line⁴. This shows how big the economic gaps are in the U.S.

The wealth gap is getting wider. Now, the richest families have 71 times more wealth than the middle class, up from 107 times in 2016⁵. This gap is even bigger for racial groups, with white families having much more wealth than Black and Hispanic families⁵.

Household Income	Ratio to Bottom 20%	Top Cities
Upper 80%	Over 4.5 times	New Orleans (7.8), Boston (7.81), Atlanta (5.79), Memphis (5.57), Arlington, VA (3.99)

More than one-fifth of households in some cities earn over $200,000 a year, yet poverty is still high⁶. This big economic gap affects social mobility, opportunities, and well-being across the country.

Measuring Urban Poverty

To find the poorest cities in America, researchers used data from the U.S. Census Bureau’s 2013-2017 American Community Survey⁷. They looked at the 293 largest cities with more than 100,000 people. They focused on three main things: poverty rate, income, and unemployment rate⁷.

The U.S. poverty rate went up from 12.3% in 2019 to 12.6% in 2022. Over 60% of the increase happened in the suburbs⁷. In 2022, about one in 10 people in the suburbs lived in poverty, while one in six in cities did⁷.

Major suburbs saw a faster rise in poverty, three times faster than cities, from 2019 to 2022⁷. Yet, 19 major metro areas saw fewer people living in poverty, but only 12 suburbs did during that time⁷.

Poverty Metrics	Inner Cities	Suburbs	Rest of USA
Poverty Rate	32%	9.7%	15.7%
Unemployment Rate	14%	N/A	9%
Land Area Coverage	Less than 1%	17%	N/A

The American Community Survey gives us deep insights into poverty levels and factors in different areas⁸. By understanding how to measure urban poverty, we can make better plans to help the poorest cities in America⁹.

Top 10 Poorest Cities

The U.S. Census’s 2013-2017 American Community Survey lists the top 10 poorest cities in the United States. These cities are Detroit, Michigan; Cleveland, Ohio; Dayton, Ohio; Hartford, Connecticut; Rochester, New York; Newark, New Jersey; Jackson, Mississippi; Syracuse, New York; Birmingham, Alabama; and Springfield, Massachusetts¹⁰. The highest median income in these cities is $37,118, which is much lower than the national median of $63,179 in 2018¹⁰.

Detroit, Michigan, is the poorest city, with a median income of $27,838. It also has a poverty rate of 37.9% and an unemployment rate of 19.8%, which is much higher than the national average¹⁰. Factors like urban renewal, highway construction, and discriminatory loan policies have led to people moving to the suburbs. This has left behind a poor population and reduced the city’s revenue¹⁰.

Poverty and Unemployment Rates in Top Poorest Cities

City	Poverty Rate	Unemployment Rate
Detroit, MI	37.9%	19.8%
Cleveland, OH	34.1%	12.3%
Dayton, OH	31.4%	9.7%
Hartford, CT	29.8%	11.2%
Rochester, NY	32.9%	10.4%

The statistics on poverty and unemployment in these cities show the big challenges they face¹⁰. To help these cities, we need to tackle issues like deindustrialization, discrimination, and the loss of social support¹⁰.

Poorest cites in America

The United States is a wealthy country but has cities struggling with poverty. The U.S. Census’s 2013-2017 American Community Survey lists Detroit, Michigan; Cleveland, Ohio; Dayton, Ohio; Hartford, Connecticut; Rochester, New York; Newark, New Jersey; Jackson, Mississippi; Syracuse, New York; Birmingham, Alabama; and Springfield, Massachusetts as the poorest cities¹¹.

These cities face big economic problems like high poverty, low incomes, and high joblessness. This shows the big issue of income inequality in the country¹¹. In 2022, the supplemental poverty rate (SPM) went up by 4.6%, the first increase since 2010¹².

Poverty affects different groups in the US, with Black Americans seeing a record low of 17.1% in poverty¹². But, child poverty rates went up from 5.2% to 12.4% in 2022¹².

Cities like Detroit and Cleveland have high poverty rates, especially for children and young adults¹². In Cleveland, more children fell into poverty, making the situation worse¹².

The economic issues in these cities show a big problem with income inequality in the US. The top 1% get nearly 20% of the income, and the top 10% get almost half¹¹. Fixing the root causes of poverty, like better education, healthcare, and jobs, is key to helping these cities.

Urban Decay and Fiscal Crises

Many cities in America face urban decay and fiscal crises. Local governments are making tough choices to avoid financial disaster. They’re cutting costs by closing schools, hospitals, and police stations. They’re also firing workers and reducing services like park upkeep and road fixes¹³.

This has created tension among the poor and working-class people. They’re fighting over limited resources, causing social and racial conflicts. Over 38 million poor people live in cities, where poverty and racism are big problems¹³.

Cities are facing big financial issues because they get less money from the federal and state governments. They’re now depending more on local taxes and fines¹⁴. This has led to strict rules to make money from residents and drivers¹⁴.

As cities try to manage their money, they’re cutting services and reducing budgets. This makes the urban decay worse¹³. It’s a big challenge for city leaders to improve their cities and help their people¹⁴.

“Four years after the Los Angeles riots in 1992, the urban crisis remains marginal to the political debate in the United States.”¹³

Racial Disparities and Segregation

Poverty and racism are big problems in America’s cities. The U.S. has 38 million poor people¹⁵ living in crowded areas. Racial discrimination is a big part of this issue.

Almost two-thirds of non-Hispanic blacks live in very black areas. And 40% of Hispanics live in areas mostly Hispanic¹⁶. But, most white Americans live in areas that are almost all white¹⁶.

The gap in urban poverty between races is huge. One in four Black Americans are living in high-poverty neighborhoods, while only one in thirteen white Americans are¹⁷. This leads to worse life chances for kids and more crime in these areas¹⁶.

Discriminatory housing and lending have widened these racial gaps. Middle-income Black families often end up in poor, high-poverty areas¹⁶. Zoning laws and gentrification push out long-time residents of color from improving neighborhoods¹⁶.

Fixing these deep racial issues and ending segregation is key to making cities better for everyone.

Economic Globalization and Deindustrialization

The world economy has changed fast, affecting America’s cities a lot. The U.S. economy losing manufacturing jobs has hit many cities hard¹⁸. For example, Youngstown, Ohio, lost 50,000 jobs in the steel industry in the 1980s¹⁸. Ohio saw its worst job losses since the Great Depression in 2000¹⁸.

Now, jobs are moving overseas, making things worse for city jobs¹⁸. Forrester Research says 3.4 million white-collar jobs will go overseas by 2015¹⁸. This includes 542,000 computer jobs and 1.6 million back-office jobs¹⁸. Alan Blinder thinks 30 to 40 million high-end service jobs could also leave the U.S¹⁸..

Manufacturing jobs have dropped by 5 million since 2000¹⁸. This is happening all over the world, with jobs and value in manufacturing going down in many countries since the 1980s¹⁹. Losing these jobs has made life tough for city folks, causing poverty and decline in many cities.

Even though manufacturing jobs are fewer, they’re still key in the U.S. economy¹⁸. They employ 9% of workers and 9% of scientists and engineers¹⁸. They also make 12% of the GDP and fund 60% of research and development¹⁸. But, the move to a service economy and automation has taken away many good jobs, making city economic gaps bigger.

Not all places feel the effects the same way¹⁹. Some, like Mexico, see jobs moving there for cheaper wages and being close to the U.S¹⁹.. Other places are losing manufacturing jobs too soon, moving workers to low-paying jobs¹⁹. China’s rise has also changed the game, affecting jobs in less developed countries¹⁹.

Understanding how globalization and deindustrialization affect cities is crucial¹⁹. We need to tackle these issues with many solutions, like creating jobs, training workers, and making local economies more diverse.

Federal Policies and Urban Decline

After World War II, federal policies greatly hurt many American cities²⁰. Cities lost people and jobs due to suburban growth, job losses in industries, and the focus on cars²⁰. Some cities started to get better in the 1990s, but places like Detroit and Cleveland still struggle²⁰.

Postwar Policies and Their Impact

Since 1949, the federal government has tried to help older cities²⁰. But, these efforts haven’t been well-planned or long-lasting²⁰. The government could really help by planning better, using city land well, and fixing up neighborhoods²⁰. It’s important to work together to use federal programs well²⁰.

State policies also affect how cities can get better²⁰. Local governments often struggle to improve cities on their own and need help to get stronger²⁰.

In the past 20 years, many big American cities have lost people, but some are still growing²¹. About one-fourth of big U.S. cities are really struggling²¹. Even with higher gas prices, people and businesses are unlikely to move back to city centers²¹.

“The federal government can play a major role in strategic planning, reutilizing urban land, investing in transformative change, revitalizing neighborhoods, and addressing affordable housing in distressed older cities.”

The federal government’s actions have really hurt many American cities²⁰. We need a better plan to help these cities²⁰. With the right investments and policies, the government can help fix these cities and make them better²⁰.

Rethinking Suburbia

America’s suburbs have changed a lot in recent years. The old idea of wealthy, same-race suburbs is. Now, many middle-class Americans are stuck in older suburbs facing urban-like problems²².

Demographic Shifts and Inner-Ring Suburbs

Suburbs are getting more diverse, with more Black, Latino, and Asian people living there. These areas are often segregated by race²². Suburbs usually have higher incomes than cities, but things are changing. Jobs in real estate, retail, construction, and manufacturing are dropping in suburbs²².

Low-income people are moving to suburbs for cheaper housing, jobs, and schools. This has led to more poverty in suburbs²². Suburban governments are struggling to meet the needs of these new residents, who want safety nets and services²². We need a new way to help people get food stamps or job training in suburbs²².

Suburban folks drive more and live in bigger homes, which means more pollution²³. Yet, many Americans still love living in single-family homes with a yard²³. We need to change our design and planning to make suburbs more sustainable²³.

“Discounting the importance of suburbia is elitist, as suburban areas contribute significantly to providing goods and services relied upon by urban dwellers.”²³

The line between city and suburb is getting blurry. We need new solutions for inner-ring suburbs and their growing needs²². A broad, regional plan is key to help everyone, no matter where they live, get the support they need²².

Seeking Progressive Solutions

Progressive activists know that policy is key to solving America’s city problems. They often prefer community or labor organizing over politics, hoping it will push the government to be more progressive²⁴. But, making real change is hard because Congress often blocks efforts to invest in public projects and social spending²⁴. Progressives need to understand the real causes of city issues and the political challenges. They should look for new strategies and policies to help urban areas get more attention nationally.

One way to tackle this is by looking at cities that already have strong liberal policies. For example, in Boulder, Colorado, most people voted for the Democrats in the last election²⁴. Or in Minneapolis, Minnesota, it has a lot of Fortune 500 companies and a liberal vibe²⁴. Cities like Austin, Texas, with a low unemployment rate, and Seattle, a liberal area, could show us how to improve urban policy²⁴.

Places like San Francisco, Madison, Wisconsin, and Asheville, North Carolina, are also good examples²⁴. They are known for being liberal and have shown how to organize communities and make political moves²⁴. Austin’s high education level and Ann Arbor, Michigan’s cultural spots highlight the value of education and arts in city improvement²⁴.

By studying these progressive cities and understanding politics, we can find new ways to fix urban problems and inequality²⁵. We need a full plan that looks at city history and the struggles of the urban poor²⁶. It should also tackle housing costs and homelessness. With a progressive, data-based, and community-focused approach, we can make cities better, fairer, and more prosperous for everyone.

Revitalizing America’s Cities

The Need for an Urban Marshall Plan

After the 1992 Los Angeles riots, many thought it would spark a big effort to fix America’s cities. They wanted something like the Marshall Plan that rebuilt Europe after World War II²⁷. With the Cold War ending and talk of a “peace dividend,” it seemed like the time was right to focus on our cities’ needs²⁷. But, sadly, the issue of city problems faded away, leaving our urban areas in tough spots²⁷.

Progressives say we need big public investment and a detailed plan to help our cities²⁸. Studies show that more money spent by Community Development Corporations (CDCs) on programs and less on admin can help reduce poverty²⁸. Also, more CDC spending can lead to fewer empty homes in cities²⁸.

CDCs are good at making plans and moving resources around to improve neighborhoods²⁸. Progressives believe an urban Marshall Plan could tackle big issues like poverty, joblessness, and city decay with enough public support and a solid plan²⁸.

Engaging Suburban Constituencies

Most Americans now live in suburbs, making it key to win over suburban voters and their Congressional reps for a federal urban policy²⁹. The working class moved to suburbs for better jobs, fewer public services, and more space²⁹. By 2010, three-quarters of Americans called suburbs or exurbs home²⁹. Suburbs are no longer just for the wealthy and white; they face city-like problems³⁰. Poverty is spreading to suburbs, far from jobs, healthcare, and services³⁰. For the next two decades, suburbs will grow around walkable, mixed-use centers, attracting educated, affluent, and mostly white people.

Progressives need a new plan to connect with suburban voters and build coalitions that help both cities and suburbs³⁰. Poverty in suburbs went over city levels in 2012 and has jumped 70% since 2000³⁰. Cities have more resources to fight injustices, offering a chance for progress and unity.

Metric	Change
Visitors to Willow Creek Care Center	Increased by over 300% in the past 5 years31
Visitors to COOL Ministries food pantries	Risen by 80% in the last 2 years31
Suburban poverty growth	53% between 2000 and 2010, surpassing urban poverty growth31

Suburban poverty has changed, showing that poverty isn’t just an urban or rural issue³¹. Poverty in suburbs jumped 53% from 2000 to 2010, more than in cities, says Brookings³¹. The growing suburban population and economic shifts, like job losses, have led to more poverty³¹. The housing crisis made things worse, increasing poverty and economic gaps in suburbs³¹. More kids in the free lunch program, homelessness, and unstable incomes show the poverty rise in suburbs³¹. Immigrants moving to suburbs add to the poverty issue, showing the area’s changing demographics³¹. Lake County in Chicago shows how wealth and poverty coexist in suburbs³¹. Scholars often miss suburban poverty due to old views on poverty locations³¹.

Addressing Root Causes

Progressive scholars and activists say that poverty and racism are the main problems in America. These issues lead to poor living conditions in cities. The black and Hispanic poor often live in areas with high poverty rates because of racial discrimination³². To fix this, we need to work on economic policies and fight against racism.

Tackling Poverty, Racism, and Economic Forces

We also need to look at how globalization and losing jobs have hurt cities³². We need policies that tackle poverty, racism, and economic issues together³³.

• Implement comprehensive economic policies to tackle poverty and inequality, such as increasing the minimum wage, expanding the Earned Income Tax Credit, and investing in affordable housing and job creation programs.
• Develop targeted initiatives to combat systemic racism, including fair housing policies, anti-discrimination measures, and efforts to address educational and employment disparities.
• Address the broader economic forces of globalization and deindustrialization, through initiatives to support traditional industries, promote economic diversification, and invest in workforce development and training.

By focusing on the root causes of poverty, racism, and economic issues, we can find better solutions for our cities³²³³.

“We must confront the root causes of urban decline – poverty, racism, and the broader economic forces that have hollowed out our cities. Only then can we truly revitalize and rebuild America’s struggling communities.”

Conclusion

America’s poorest cities face big, complex challenges. Cities like Cleveland have high poverty rates³⁴. States like Mississippi struggle with deep economic issues³⁵. These cities also deal with racial disparities and spatial segregation.

Yet, we need bold, progressive solutions now more than ever. We must tackle the root causes of poverty, racism, and economic issues. This will take a big, ongoing effort. It will need to involve suburban areas and build strong political groups for change.

Public transportation and local government actions play a big part in this issue³⁶. The future of urban policy must focus on new ways to solve these problems. This includes investing in affordable housing, public transport, and creating jobs. It also means breaking down barriers that hold people back.

We can change the way we think about city growth and development. By doing so, we can work towards a future where cities are fair, strong, and prosperous for everyone. The challenges are big, but the need for action is clear. We must act with urgency and bring forward progressive solutions.

FAQ

What is the status of poverty and income inequality in the United States?

The U.S. has the biggest economy globally but also a big gap in income. Poverty is defined by a government-set line below which a family can’t meet basic needs. In 2018, 11.8% of people, or 38.1 million, lived below this line. The median household income was ,179, showing the economic gaps in the country.

How are the poorest cities in the United States determined?

Data from the U.S. Census’s 2013-2017 American Community Survey was used. It looked at poverty rates, income, and unemployment in the largest cities. The 293 cities with over 100,000 people were ranked based on these factors.

What are the top 10 poorest cities in the United States?

The top 10 poorest cities are Detroit, Michigan; Cleveland, Ohio; Dayton, Ohio; Hartford, Connecticut; Rochester, New York; Newark, New Jersey; Jackson, Mississippi; Syracuse, New York; Birmingham, Alabama; and Springfield, Massachusetts.

What are the key factors contributing to the economic challenges faced by these poorest cities?

These cities face high poverty, low incomes, and high unemployment. Urban renewal, highway projects, discriminatory loan policies, and job losses due to globalization have hurt these areas.

How have fiscal crises and budget cuts impacted the delivery of essential services in struggling cities?

Cities cut services like schools, hospitals, and police stations to avoid bankruptcy. This has left the poor and working-class fighting over fewer resources. It’s made governing these cities harder and increased social tensions.

How do racial disparities and residential segregation contribute to the concentration of poverty in urban areas?

Racial discrimination has led to poverty being concentrated in cities. Black and Hispanic people are more likely to live in poor areas. This segregation has made economic problems worse in these communities.

What role have federal policies played in the decline of America’s cities?

Federal policies have pushed people out of cities and into suburbs. Policies like highway building and tax breaks favored whites in suburbs over city residents. Urban renewal destroyed working-class areas, making way for business developments.

Since the late 1970s, cuts to social safety nets have made city challenges worse.

How are demographic shifts and the changing nature of suburbia impacting urban revitalization efforts?

Most Americans live in suburbs now, with many in older suburbs facing city-like problems. These suburbs are often diverse but can be segregated. This change means new challenges for city revitalization efforts.

What progressive solutions have been proposed to address the challenges facing America’s cities?

Progressives suggest a big public investment and a comprehensive policy plan, like the Marshall Plan, to help cities. They also aim to engage suburbs and build coalitions to tackle city and suburb issues. Addressing poverty, racism, and economic forces is key to city revitalization.

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