Chart of the Day: The Housing Bubble Increased Racial Segregation

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Via Suzy Khimm, here’s an interesting bit of research from Amine Ouazad and Romain Rancière. During the housing boom of the aughts, it became easier for low-income families to buy more expensive homes. Since African-American families have lower incomes than average, this suggests that the housing boom, on average, should have allowed them to move into less segregated neighborhoods.

And it did. But it also allowed white and Hispanic families to move, and it turns out that Hispanic families mostly moved into Hispanic neighborhoods:

Hispanic families have used the easier access to credit to buy houses in predominantly Hispanic neighbourhoods with the consequence of enrolling their children in schools with fewer black peers, and more Hispanic and white peers. We estimate that, because of the credit boom, black students in 2006 had 2% fewer Hispanic peers….Credit markets enabled a substantial fraction of Hispanic families to live in neighbourhoods with fewer black families, even though a substantial fraction of black families were moving to more racially integrated areas.

The chart below shows the impact of the housing boom on black household segregation. In 1997, black students in public schools had an “isolation” of 50.5%. That is, 50.5% of their peers were black. By 2007, that had dropped to 49%. But the housing boom actually slowed the rate of decline. The authors conclude that if the housing boom had never happened, black isolation would have dropped to 48%. Their conclusion: “The net effect is that credit markets increased racial segregation.” 

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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