The bottom line: income inequality today is the largest it has been since the government began measuring it in 1967. America’s poorer neighborhoods are largely recipients of aid and top-down investment, often more akin to the approach used in emerging markets rather than mature economies. That’s the bad news.
The good news: over the past decade, a new system has begun to emerge. This system, which we label “Community Wealth” in a just released paper, is a radical shift in how private capital invests in distressed neighborhoods.