A new study by Stanford University shows that the percentage of American families living in middle-class neighborhoods has declined, while the share of families living in either wealthy or low-income neighborhoods has greatly increased since 1970. According to the data, an estimated 44% of families lived in middle-income neighborhoods in 2007, compared to 65% in 1970. While the percentage of families living in wealthy or low-income areas increased from 15% to 33% between the years of 1970 and 2007. In addition to the decline in middle-class neighborhoods, the study also showed that wealthy families are increasingly moving to exclusively affluent neighborhoods. More isolation could lead to issues with public policies; the wealthy may be less willing to vote for policies that would benefit families from every income level. The presence of income inequality in the United States is affecting more than the nation's neighborhoods; the gaps between rich and poor in regards to standardized test scores and college completion are widening even more. The effects of the widening gap between the upper and lower classes in the United States are far reaching.
This blog compiles the thoughts of UCLA undergraduates on the connections between economic history and current events. All contributors to this blog are enrolled in Ec183, The Development of Economic Institutions in the United States. The premise of this course is the history matters. The careful application of economic theory and quantitative reasoning can help us understand the past.
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