BY: Nathan Kessler, Tax Policy Advisor, Guest Writer
Introduction
In 1951, Oliver Brown and twelve other parents sued the Board of Education of Topeka, Kansas over its policy of racial segregation in schools. Three years later, on May 17th, the Supreme Court of the United States ruled in favor of the plaintiffs in Brown v. Board of Education of Topeka, marking the beginning of the end of racial segregation in the United States. In this landmark decision, Chief Justice Warren held that segregated schools are “inherently unequal,” and therefore violated the equal protection clause of the 14th Amendment.1
Today society remains segregated, not by race but by class, and we are all worse off because of it. Lost opportunities, gated communities, and concentrated poverty are all symptoms of one of the greatest issues of our time: economic segregation.
In a nation that embodies the promise of equal opportunity for all, children should not have to worry about their safety at school or if there is food at home; people who want to work should not be denied the opportunity because their neighborhood lacks employers and public transportation; and nobody should live in food and health care deserts marked by adverse outcomes from the moment of conception.
Diversity of income, experience, and opinion provides for a greater sense of community and a more attractive return on each dollar invested in the neighborhood. Economic integration of neighborhoods would lead to better outcomes and lower costs for the whole community while delivering on the sacred promise of equal opportunity.
Invest
The benefits of economically integrated neighborhoods stem from a single word with profound meaning for the community: investment. Mixed income communities are attractive for prospective businesses and investors because of the diversity of consumers and a robust labor force. By setting up shop in a neighborhood that has been integrated across class, businesses are able to insulate themselves from economic shocks by tapping into a broad base of consumers and a broad workforce.
This attractive climate for investors is equally beneficial for residents. The diversity of goods and services offered in economically integrated neighborhoods makes the neighborhoods themselves a better place to live and work. In these communities, the residents have access to the variety of services that are critical to a prosperous life, including adequate health care and food for the kitchen table.
This symbiotic relationship can serve to reduce costs for businesses, consumers, and property owners in the neighborhood through competition and tax burden-sharing across incomes and property types.
As businesses compete for market share, they must provide an increased value proposition to consumers in the neighborhood. This competition for neighborhood dollars will drive businesses to lower their prices or run sales as they try to appeal to the broadest income base possible.
Wallets are further padded by the property and sales tax savings these neighborhoods can experience; according to the Tax Foundation, “a broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates.”2 For this reason, local governments would derive more revenue at a lower rate from economically diverse neighborhoods where property values are stable and personal consumption is strong.
Improve
The broad property tax base and bustling commerce resulting from economic integration and business investment provides for a diverse revenue stream for the local government, ensuring that costs are covered and improvement is possible. The local potential fostered by neighborhood investment is the foundation on which a prosperous community is built.
Well-funded schools will provide an opportunity for children of all backgrounds to secure a good education and participate in a wide range of extracurricular activities, fostering a sense of community early on that transcends class. Well-maintained public parks offer a place for members of the community to gather and learn from one another. And well-kept infrastructure ensures that the neighborhood remains an attractive target for future investment.
All of this is made possible by public services that are equipped to provide for the residents that live in the community. Well-funded schools can attract the best teachers. Public health and safety have the tools to ensure that the people feel safe and stay healthy. And adequately staffed local governments ensure the necessary upkeep so that the community doesn’t crumble from mismanagement.
Studies have shown that economic segregation reduces concerns of inequality, which can lead to so many falling through the cracks.3 In an economically integrated neighborhood, nobody is left behind and nobody is forgotten. In these neighborhoods a rising tide truly does lift all boats, and everybody is given the chance to prosper.
Prosper
Topeka is where racial segregation in the U.S began to die, and the city should uphold that legacy by taking on the issue of class segregation as the next step in pursuit of a better society. Economies should be built from the bottom-up to ensure broad-based prosperity.
In an economically integrated neighborhood, plentiful jobs, good schools, and sound infrastructure provide an environment filled with opportunity. In these communities, the American Dream can be more than just a legend. In these communities “equal opportunity” is more than just a talking point.
Safe, tight-knit neighborhoods with diversity of income, race, skillsets, and beliefs is the very promise of the United States. The end of racial segregation began in Topeka, Kansas more than 70 years ago and the end of class segregation should begin in the same place today.
Works Cited
1) https://www.history.com/topics/black-history/brown-v-board-of-education-of-topeka
2) https://taxfoundation.org/taxedu/glossary/tax-base/
3) Davidai, S., Goya-Tocchetto, D. & Lawson, M.A. Economic segregation is associated with reduced concerns about economic inequality. Nat Commun 15, 5655 (2024). https://doi.org/10.1038/s41467-024-49778-w