### **A Multi-Dimensional Framework for Evaluating City Wealth**
This framework assesses a city's wealth across three key dimensions: **Individual & Household Wealth**, **Public & Infrastructure Wealth**, and **Economic & Business Wealth**. Each dimension is scored individually, and the collective scores determine the city's overall wealth level.
### **The Four Wealth Levels**
1. **High Wealth:** The city is a net creator and magnet of capital. It has a strong, resilient economy, excellent public services, and high quality of life, attracting more investment and talent.
2. **Medium Wealth:** The city is stable and functional. It may have a mix of wealthy and less wealthy areas, but it is not in crisis. The trajectory can be positive, stable, or slightly negative.
3. **Low Wealth:** The city faces significant challenges. Poverty is visible, public services are strained, and the economic base may be eroding. It lacks the resources for major self-funded improvement.
4. **Negative Wealth:** The city is in a cycle of decline. Liabilities (debt, decay, social costs) outweigh assets. There is a net outflow of capital and people. Recovery requires massive external intervention.
---
### **Dimension 1: Individual & Household Wealth**
This dimension focuses on the financial health of the city's residents.
| Metric | High Wealth | Medium Wealth | Low Wealth | Negative Wealth |
| :--- | :--- | :--- | :--- | :--- |
| **Median Household Income** | Significantly above national average. | Around the national average. | Below national average. | Severely below national average. |
| **Wealth Inequality (Gini Coefficient)** | Low to moderate inequality. | Moderate inequality. | High inequality. | Very high inequality; a small elite amidst widespread poverty. |
| **Homeownership Rate & Value** | High ownership; high and rising property values. | Moderate ownership; stable or slowly appreciating values. | Low ownership; stagnant or declining values. | Very low ownership; severely depreciated, abandoned properties. |
| **Poverty Rate** | Very low (<10%). | Moderate (10-20%). | High (20-35%). | Very high (>35%). |
| **Debt-to-Income Ratio** | Low; manageable debt levels. | Moderate; debt is a concern for some. | High; debt is a burden for many. | Severe; widespread defaults and predatory lending. |
---
### **Dimension 2: Public & Infrastructure Wealth**
This dimension assesses the assets and financial health of the city itself.
| Metric | High Wealth | Medium Wealth | Low Wealth | Negative Wealth |
| :--- | :--- | :--- | :--- | :--- |
| **Municipal Bond Rating** | AAA to AA (Strong). | A to BBB (Adequate). | BB to B (Junk, speculative). | CCC or below (High risk of default). |
| **Quality of Public Services** | Excellent schools, parks, libraries, safety. | Adequate but not exceptional services. | Underfunded, struggling services. | Crumbling, unreliable, or non-existent services. |
| **Infrastructure Condition** | Modern, well-maintained roads, bridges, public transit. | Functional but aging; maintenance is deferred. | Poor condition; frequent failures. | Critical state of disrepair; safety hazard. |
| **Public Debt per Capita** | Low, sustainable. | Manageable but a concern for future budgets. | High, crowding out other spending. | Unsustainable, leading to bankruptcy or state takeover. |
---
### **Dimension 3: Economic & Business Wealth**
This dimension evaluates the strength and vitality of the city's economy.
| Metric | High Wealth | Medium Wealth | Low Wealth | Negative Wealth |
| :--- | :--- | :--- | :--- | :--- |
| **Unemployment Rate** | Very low (<4%). | Near the national average. | Above national average. | Persistently high, chronic unemployment. |
| **Business Environment** | High business formation, HQs, innovation hubs. | Stable mix of small and medium businesses. | Business closures outpace openings. | "Food desert"; few employers beyond essential services. |
| **Major Employers & GDP** | Diverse, high-value industries (tech, finance). | Mix of manufacturing, services, logistics. | Reliant on a few volatile or low-wage sectors. | Economic base has collapsed; no major employers. |
| **Vibrancy of Downtown/Core** | Thriving, high occupancy, vibrant nightlife/culture. | Functional but not booming. | High vacancy rates, declining foot traffic. | Abandoned, high blight, significant safety issues. |
---
### **How to Use the Framework: A Scoring System**
1. **Assess Each Metric:** For each of the ~12 metrics above, assign a score:
* High Wealth: **4 points**
* Medium Wealth: **3 points**
* Low Wealth: **2 points**
* Negative Wealth: **1 point**
2. **Calculate Dimension Scores:** Add the scores for each dimension and divide by the number of metrics in that dimension to get an average dimension score.
3. **Determine the Overall City Wealth Level:**
* **High Wealth City:** Average score **> 3.5** (Mostly High, some Medium)
* **Medium Wealth City:** Average score **2.5 - 3.5** (A mix of Medium, with some High or Low)
* **Low Wealth City:** Average score **1.5 - 2.5** (Mostly Low, some Medium)
* **Negative Wealth City:** Average score **< 1.5** (Mostly Negative, some Low)
### **Illustrative Examples**
* **San Francisco, CA (High Wealth):**
* *Individual:* Very high income, but high inequality. (Score: ~3.5)
* *Public:* Excellent services, but high cost/debt. (Score: ~3.5)
* *Economic:* Powerful tech hub, low unemployment. (Score: 4.0)
* **Overall: High Wealth**
* **Cleveland, OH (Low to Medium Wealth):**
* *Individual:* Below-average income, high poverty. (Score: ~2.0)
* *Public:* Struggling schools, aging infrastructure. (Score: ~2.0)
* *Economic:* Some revitalization, but legacy issues remain. (Score: ~2.5)
* **Overall: Low/Medium Wealth**
* **Detroit, MI (Pre-Bankruptcy - Negative Wealth):**
* *Individual:* Very low income, extreme poverty. (Score: 1.0)
* *Public:* Bankrupt, failed services, crumbling infrastructure. (Score: 1.0)
* *Economic:* Collapsed industrial base, high unemployment. (Score: 1.0)
* **Overall: Negative Wealth**
then we get closer to the micro: Here is a framework for defining the four levels of wealth within a city.
### **A Framework for Neighborhood & Household Wealth Levels**
This framework defines the four levels based on a combination of **Financial Capital** (income, assets) and **Social Capital** (safety, environment, opportunity).
### **The Four Intra-City Wealth Levels**
1. **High Wealth (Prosperous & Influential)**
2. **Medium Wealth (Stable & Comfortable)**
3. **Low Wealth (Strained & Vulnerable)**
4. **Negative Wealth (Crisis & Exclusion)**
---
### **Defining Characteristics & Indicators**
| Aspect | High Wealth | Medium Wealth | Low Wealth | Negative Wealth |
| :--- | :--- | :--- | :--- | :--- |
| **1. Housing & Physical Environment** | | | | |
| **Housing** | Large single-family homes, high-end condos. Gated communities. | Well-maintained single-family homes, townhouses, modern apartments. | Older, smaller homes; dense, aging apartment complexes. Poor maintenance. | Dilapidated or abandoned housing; high-density public housing; squatters. |
| **Lots & Green Space** | Manicured lawns, private gardens, proximity to premium parks. | Small private yards, access to community parks. | Minimal private outdoor space; poorly maintained public spaces. | No private outdoor space; vacant lots filled with debris; unsafe parks. |
| **2. Commerce & Amenities** | | | | |
| **Retail & Dining** | Boutiques, luxury brands, gourmet grocery stores, fine dining. | National retail chains, reliable supermarkets, popular casual restaurants. | Discount stores, dollar stores, fast food, check-cashing services. | Liquor stores, pawn shops, absolute food deserts. No sit-down restaurants. |
| **Services** | Wealth management, private clubs, high-end salons. | Banks, dentists, community centers, standard salons. | Payday lenders, laundromats, storefront churches. | Predatory lenders, no traditional banking services. |
| **3. Education & Opportunity** | | | | |
| **Schools** | Highly-rated public schools, exclusive private schools. | decent public schools, some charter school options. | Underperforming, underfunded public schools. | Persistently failing schools; high dropout rates. |
| **Social Mobility** | Strong professional networks, legacy admissions, internship opportunities. | Access to state universities and community colleges. | Limited social capital, first-generation college students. | Intergenerational poverty; crime as a primary perceived opportunity. |
| **4. Health & Safety** | | | | |
| **Health Outcomes** | High life expectancy, low obesity rates, easy access to specialists. | Average health metrics, access to primary care and hospitals. | Higher rates of chronic disease, food insecurity, emergency room as primary care. | Crisis-level health outcomes, high infant mortality, "hotspot" for disease. |
| **Safety & Policing** | Very low crime rates, private security, police as a responsive service. | Moderate crime, police presence is generally visible and trusted. | Higher crime rates, police presence is seen as either neglectful or oppressive. | High violent crime, open drug markets, deep distrust of police. |
| **5. Financial Profile** | | | | |
| **Income & Source** | High salary, significant investment income, capital gains. | Wages, salaries, small business income. | Low-wage jobs, unstable hours, gig economy. | Government transfers (welfare, disability), informal or illegal economy. |
| **Assets & Debt** | Significant home equity, diverse investment portfolio, manageable debt. | Some home equity, a retirement account, car loan, student debt. | Little to no savings, underwater on mortgage, high-interest consumer debt. | No assets, unbanked, burdened by predatory debt (payday loans). |
---
### **A Simple Scoring Matrix for a Household or Neighborhood**
You can use this matrix to get a quick, intuitive score.
| Question | High Wealth (4 pts) | Medium Wealth (3 pts) | Low Wealth (2 pts) | Negative Wealth (1 pt) |
| :--- | :--- | :--- | :--- | :--- |
| **What is the primary housing type?** | Owned single-family home in high-demand area. | Owned home or market-rate apartment in a stable area. | Old, rented apartment; small, owned home in declining area. | Dilapidated, subsidized, or overcrowded housing. |
| **Where do you grocery shop?** | Whole Foods, specialty grocers. | Kroger, Safeway, Publix. | Dollar General, Walmart, discount grocers. | Convenience store / liquor store / food pantry. |
| **What is the perceived quality of the local public school?** | "Excellent, a key reason we live here." | "It's pretty good, gets the job done." | "We have concerns; we're looking at other options." | "It's dangerous and failing; we avoid it." |
| **How is public space/maintenance?** | Immaculate; landscaping, no litter. | Adequate; occasional litter, but maintained. | Noticeable litter, graffiti, broken equipment. | Pervasive trash, abandoned cars, unsafe structures. |
| **What is your financial safety net?** | 6+ months of expenses in savings/investments. | 1-3 months of savings, some retirement funds. | Living paycheck-to-paycheck, no savings. | Reliant on family/friends or charity to meet basic needs. |
**Scoring:**
* **15-20 Points: High Wealth**
* **11-14 Points: Medium Wealth**
* **6-10 Points: Low Wealth**
* **5 Points or Below: Negative Wealth**
### **Illustrative Examples (Using the Matrix)**
* **Beverly Hills, CA (High Wealth):**
* Housing: Owned mansions (4 pts)
* Grocery: Erewhon / Gelsons (4 pts)
* Schools: Renowned public/private schools (4 pts)
* Public Space: Immaculate (4 pts)
* Safety Net: Significant investments (4 pts)
* **Total: 20 - High Wealth**
* **A Stable Suburban Neighborhood in Columbus, OH (Medium Wealth):**
* Housing: Owned single-family home (4 pts)
* Grocery: Kroger (3 pts)
* Schools: decent public schools (3 pts)
* Public Space: Adequate (3 pts)
* Safety Net: 3 months savings (3 pts)
* **Total: 16 - Medium/High Wealth**
* **A Struggling Urban Neighborhood in Baltimore, MD (Low/Negative Wealth):**
* Housing: Rented, aging row house (2 pts)
* Grocery: Corner store / food desert (1 pt)
* Schools: Failing, unsafe (1 pt)
* Public Space: Pervasive trash, vacant lots (1 pt)
* Safety Net: No savings, relies on SNAP (1 pt)
* **Total: 6 - Negative Wealth**
No comments:
Post a Comment