Rising Inequality Within American Cities – Municipal Overview

The pandemic’s effect on American cities yields much uncertainty of the sociological impact on individuals and communities. The economic correlation to social matters draws a big concern on the pandemic’s impact on worsening social inequalities as lower class Americans continue to experience the largest impact.

As businesses continue to adapt and transition, cities will face decisions regarding money allocation, which is suspected to be shifted away from social programs that have the greatest impact on poorer communities. These efforts to mitigate budget deficits will greatly impact the lower class population and expand the socioeconomic divide in major cities. The effects of the pandemic and changes to business structures are suspected to permanently change mobility shifts and opportunities for low to mid skilled workers in these larger cities.

Municipal labor cuts and infrastructure closures due to budget concerns remain a major topic of discussion for big cities as they navigate changing budgets and money allocation. The transition into telecommunication amidst the COVID-19 pandemic in coordination with structural budget cuts creates less opportunities for inner city living and expands the geographic bounds due to work-from-home abilities.

The National League of Cities projects a $360 billion budget fall through the following two years leading to an inflow of mutual funds into municipal bonds as a response. The minute disparity between muni bonds and U.S. Treasuries considers cities remaining optimistic for economic recovery.

The lasting effects of the pandemic pose a major threat to city communities as well as a long-term impact on progressive efforts surrounding inequality and social injustices as illuminated by the growing disparity of differing socioeconomic classes.

Source: National League of Cities

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