Local organizations host first meeting for community collaborative effort, ‘The Columbus Empowerment Network’

Local organizations host first meeting for community collaborative effort, ‘The Columbus Empowerment Network’

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Local organizations host first meeting for community collaborative effort, ‘The Columbus Empowerment Network’

Representatives from Cure Violence Columbus and the Georgia Center For Opportunity are bringing what they call The Columbus Empowerment Network to the city, and they say having a collaborative like this will help the people in the community get involved and make the changes they want to see in their communities.

According to the Columbus Police Department, this year in Columbus there have been 36 murders, 25 rapes, 185 robberies, 465 aggravated assaults, 683 burglaries…..these are just a few statics from January 1st of this year through October 16th.

Columbus resident James Stokes said he saw a shooting earlier this year near Fuel Tech on Ft. Benning Road and he says it’s a normal thing…

We must rein in violent crime to help those who need economic opportunity

We must rein in violent crime to help those who need economic opportunity

We must rein in violent crime to help those who need economic opportunity

Originally appeared in the Chicago Sun-Times

 

Key Points

  • The rise in crime rates and the following fear around such crimes is impacting the stability of many communities.
  • Studies have repeatedly found that increases in violent crime reduce economic mobility and hamper private sector job growth.
  • A city can substantially reduce crime by focusing law enforcement, corrections and social service resources on a relatively small number of people.

The rise and fear of crime

Americans are more worried about crime than they have been in decades. A recent poll found that 8 in every 10 Americans say they worry about crime either “a great deal” (53%) or “a fair amount” (27%).

This fear is driving businesses large and small out of cities and neighborhoods with rising crime rates. By abandoning these high-risk locations, these businesses take with them any job opportunities they provide to poorer residents.

Local and state governments must focus on reducing violent crime, not just as necessary to protect human life but also because doing so is a prerequisite to real economic opportunity in poor communities.

Increased concern about crime has followed a sharp increase in violent crime, especially homicides over the last six years. In 2021, 12 major cities saw their deadliest year on record. Chicago had its deadliest year in a quarter century.

In recent comments to the Economic Club of Chicago, McDonald’s President and CEO Chris Kempczinski noted that out-of-control violent crime, homelessness and drug overdoses in Chicago were negatively impacting both McDonalds’ restaurant locations and corporate recruitment to the city. He’s committed to staying in Chicago, but other companies across the country are already closing down retail locations in areas experiencing surges in crime.

 

Kevin had just climbed out of the prison system only to be faced with another challenge…finding work and seizing opportunity. Kevin’s inspirational drive to overcome his situation and to pursue opportunity reminds us of the need for systems that expand opportunity to all.

Kevin had just climbed out of the prison system only to be faced with another challenge…finding work and seizing opportunity. Kevin’s inspirational drive to overcome his situation and to pursue opportunity reminds us of the need for systems that expand opportunity to all.

Impact on Business

Starbucks announced it would close 16 locations in Portland, Seattle, Los Angeles, Philadelphia and Washington, D.C., over safety concerns. Walgreens is closing five stores in San Francisco due to rampant crime. Small businesses from Seattle to Minnesota are citing crime as the reason they’re closing their doors.

While large businesses may not be the most sympathetic victims of the nation’s dramatic increase in violent crime, the people this crime hurts the most continue to be those from the most socially isolated and economically disadvantaged communities.

Studies have repeatedly found that increases in violent crime reduce economic mobility and hamper private sector job growth. One study found that changes in the rates of violent crime substantially impacted the economic mobility of children raised in low-income families. As crime went up during childhood and adolescence, their level of economic mobility went down.

Another study found that increases in violent crime cause existing businesses to downsize and discourage new businesses from entering the marketplace. No amount of economic incentives the government can provide will entice businesses to open in dangerous areas with low-recruitment potential. As a result, increasing crime will reduce the economic opportunities for lower-income residents.

 

A solution exists

Thankfully, while the problem of violent crime is large, it is not insurmountable. But reversing these trends will require understanding how we got here and what works to reduce crime.

Don’t expect crime to abate with the pandemic. Those who yearn for “pre-pandemic” crime rates ignore that in many cities, these increases began in 2015 when American cities had a more than 10% increase in murder over 2014, and 2016 saw another 8% increase on top of that. Gangs continued to operate unabated during government-ordered lockdowns, and given the retaliatory nature of so much street violence, increased violent crime often begets increased violent crime.

Next, crime, especially serious and violent crime, is concentrated among a very small number of gang members in any given city. Typically, about 0.6% of a city’s population is involved with these kinds of groups, while they’re responsible for 50% of a city’s homicides. It also tends to concentrate around certain areas; about 3% to 5% of specific addresses are responsible for about 50% of a city’s crime.

This means a city — even one plagued by gang violence like Chicago — can substantially reduce crime by focusing law enforcement, corrections and social service resources on a relatively small number of people. Strategies that do so have substantially reduced homicides from Boston, Massachusetts, to Stockton, California.

Failure to do so will only make our poorest neighborhoods poorer. Large and wealthy corporations like Citadel can leave for greener and safer pastures with relative ease. But failure of local and state officials to rein in violent crime will leave those with no means to leave with fewer opportunities to improve their lives.

 

 

Georgia non-adjusted unemployment numbers increase as economy dips into possible recession

Georgia non-adjusted unemployment numbers increase as economy dips into possible recession

In The News

Georgia non-adjusted unemployment numbers increase as economy dips into possible recession

 A week after reporting Georgia’s June seasonally adjusted unemployment rate hit an all-time low, new numbers show the state’s unemployment rate increased.

Last week, officials said Georgia’s preliminary seasonally adjusted unemployment rate for June 2022 was 2.9%, below the national rate of 3.6%. The state’s rate decreased from 5.4% in June 2021…

“There has never been a time when the Business Cycle Dating Committee did not declare a recession when real GDP declined for two consecutive quarters since the availability of quarterly GDP data,” Erik Randolph, director of research for the Georgia Center for Opportunity (GCO), said in a statement. “In fact, the opposite is true. There have been two times, since the availability of the data, without two consecutive real GDP declines when the Committee declared them to be recessions. This happened with their declared 1960 and 2001 recessions.

“Who knows if and when the NBER Committee will declare whether we’re already in a recession, and for how long,” Randolph added. “But if it doesn’t declare so despite the real GDP data, it would be unprecedented and require a good explanation. In the meantime, GDP gives perhaps the broadest measure of economic activity, giving a strong signal that we’re in a recession until such time economists work out their various methodologies to affirm or deny.”

Georgia non-adjusted unemployment numbers increase as economy dips into possible recession

Biden denies recession after GDP decline, but economists say otherwise

In The News

Biden denies recession after GDP decline, but economists say otherwise

The U.S. economy has shrunk for six consecutive months, according to federal data released Thursday. which led many economists to declare a recession. But the Biden administration is pushing back, arguing the U.S. is not in a recession after all…

“There has never been a time when the Business Cycle Dating Committee did not declare a recession when real GDP declined for two consecutive quarters since the availability of quarterly GDP data,” said Erik Randolph, the Georgia Center for Opportunity’s director of research. “In fact, the opposite is true. There have been two times, since the availability of the data, without two consecutive real GDP declines when the Committee declared them to be recessions. This happened with their declared 1960 and 2001 recessions.”

Randolph said not declaring a recession this time would be “unprecedented.”

“Who knows if and when the NBER Committee will declare whether we’re already in a recession, and for how long,” he added. “But if it doesn’t declare so despite the real GDP data, it would be unprecedented and require a good explanation. In the meantime, GDP gives perhaps the broadest measure of economic activity, giving a strong signal that we’re in a recession until such time economists work out their various methodologies to affirm or deny.”

 
Georgia non-adjusted unemployment numbers increase as economy dips into possible recession

Amid Recession Fears, Economically Free States Continue to Outperform

In The News

Amid Recession Fears, Economically Free States Continue to Outperform

 

Florida Gov. Ron DeSantis recently responded to questions about California Gov. Gavin Newsom’s ads airing in Florida, “It’s almost hard to drive people out of a place like California given all their natural advantages, and yet they are finding a way to do it.” He noted that California is hemorrhaging its population because of bad progressive economic policies so that they could be more free

Florida ranks third in the nation for economic freedom, according to the Fraser Institute. And California ranks second to last…

What the June inflation numbers mean for the poor

What the June inflation numbers mean for the poor

rising prices for gas

What the June inflation numbers mean for the poor

Key Points

  • BLS reports, some of the biggest increases in prices were soon for essentials like gas for your car and groceries for your kitchen table.
  • A new price floor has been established.
  • A way forward involves, curtail federal deficit spending and adopting supply-side economic policies. 

The inflationary environment in the U.S. and around the world continues to go from bad to worse. On July 13, the U.S. Bureau of Labor statistics announced that in June the Consumer Price Index (CPI) rose by 1.3%, not seasonally adjusted. That means, year over year, the CPI is now up 9.1%, which is the fastest pace of inflation in over four decades.

As the BLS reports, some of the biggest increases in prices were soon for essentials like gas for your car and groceries for your kitchen table: 

“The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors. The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index.”

 

The poor are hit hardest

The sad reality is that inflation shows few, if any, signs of lessening anytime soon. As we’ve said so many times before, the hardest hit are the poorest among us. 

For example, a recent survey revealed the alarming truth that some families are skipping meals to deal with raging inflation. While inflation is inconvenient for the upper middle class and wealthy and concerning for the middle class, it’s downright devastating for the working class and poor.

Meanwhile, wage increases are lagging behind price increases. People are falling further and further behind.

 

A new floor for prices

What’s even more devastating than spiking inflation month-in, month-out is the new price level. As the Georgia Center for Opportunity’s director of research Erik Randolph points out, inflation is only part of the equation. We should also be focusing on the price level, which is defined as the new “floor” for the prices we all pay in the economy. 

A gallon of milk might’ve cost $2.99 a year ago, for example, but now it’s $3.99. That new price is not going down, even as inflation eventually abates. A new price floor has been established and it becomes ingrained in our minds that a gallon of milk simply costs $4.

Simply put, leaving the price level elevated means we are leaving the economically disadvantaged further behind, exacerbating the economic divide in our nation.

 

A way forward

There are a number of public policy prescriptions that Randolph suggests for curbing inflation:

  • Curtail federal deficit spending.
  • Adopt supply-side economic policies, ones that cut red tape to reduce unnecessary government regulations, making it easier for entrepreneurs to start and expand businesses and for investors to take risks investing in business.

In our communities, initiatives such as BETTER WORK in the Atlanta and Columbus metro areas are also foundational to helping people find meaningful work, work that pays a living wage to better cope with highly inflationary times.