Charlotte’s Economic Mobility Improves from 50th to 38th in National Rankings

Charlotte’s Economic Mobility Takes a Leap Forward

In an inspiring turn of events, Charlotte, North Carolina has made noteworthy strides in economic mobility, according to a recent study by Harvard economist Raj Chetty and his research team. The city improved its ranking from 50th to 38th among the nation’s metropolitan areas, showcasing a marked shift in financial outcomes for disadvantaged children. This is significant progress considering that just a decade ago, the “Chetty study” became synonymous with the city’s struggles regarding economic opportunity and the impact of systemic racism.

The Backstory

When Chetty’s original study was published in 2014, it served as a wake-up call for the community. It revealed that Charlotte ranked not just poorly, but was the worst among the 50 largest cities in the United States concerning economic mobility. This alarming statistic ignited a wave of responses from local government, nonprofits, and businesses aimed at tackling the root causes of these economic disparities.

A Special Review at Mint Museum Uptown

Recently, Chetty returned to Charlotte to present an updated version of his study during a panel discussion at the Mint Museum Uptown. He and a team of local leaders discussed the results, which reflect a significant improvement in economic circumstances for children born into low-income families in Charlotte.

Among the notable figures joining Chetty was Andrea Smith, interim CEO of the Charlotte Regional Business Alliance. She lightheartedly kicked off the conversation with a nod to Chetty’s association with the city, humorously asking him how it felt to be at the center of the local economic discussions. Her remarks were met with laughter, but they also underscored the heavy weight the study carries in civic dialogues about opportunity.

Collaborative Efforts Making a Difference

As the panel delved into the details, Charles Thomas, the Knight Foundation Charlotte Director, reminded everyone of the importance of investment in the city, particularly in the majority Black neighborhoods of west Charlotte. He highlighted the collaborative efforts between local agencies, United Way of Greater Charlotte, and private developers, emphasizing the need to invest in existing residents rather than displacing them through gentrification.

Chetty’s updated study has encouraged a comprehensive approach to tackling economic issues, rather than the piecemeal strategies of the past. Smith attributed this shift to the impact of the initial 2014 findings, which encouraged local leaders to see that issues like affordable housing, healthcare, and education are all interconnected.

Catalyst for Change

The panel continued with Astrid Chirinos, YMCA of Greater Charlotte’s community engagement executive director, expressing her excitement about the implications of the new findings. She noted that economic progress isn’t a zero-sum game; it benefits everyone, not just one group. This refreshing perspective adds hope to a challenging narrative.

Diving Into the Data

Prior to the panel discussion, Chetty presented the updated study, emphasizing the significant changes observed over the past 15 years. The improvement from 1978 to 1992 for children born into low-income households was noted as “a remarkable amount of change.” This raises the question: what specific actions have contributed to this positive shift?

Commitment to Change

Retired Bank of America CEO Hugh McColl Jr. also shared his journey towards committing to economic mobility. After witnessing the unrest in the city following the tragic shooting of Keith Lamont Scott in 2016, he dedicated himself to improving the opportunities for lower-income residents, particularly within historically marginalized communities. He founded Bright Hope Capital, a company focused on investing in minority-owned businesses, further solidifying his commitment to affecting change.

Looking Ahead

McColl pointedly noted that the key to true economic mobility is not just about money. It’s about building social capital and connections that give people a fair shot at success. He stressed that while financial resources are important, the real challenge lies in helping individuals navigate their paths to success.

Conclusion

As Charlotte continues on this upward trajectory, there’s a renewed energy in the community. The study’s findings are not just numbers; they represent real change and hope for future generations. With strong partnerships and a commitment to addressing systemic inequities, the city stands to make even more significant progress in the years ahead.