Martin Pool's blog

The Business of Drug Dealing in Milwaukee

John Hagedorn of the Wisconsin Policy Research Institute writes:

How have poor people responded to changes in the economy and in social welfare programs? It should surprise no one that there has been no one kind of response: some have gone back to school or enrolled in various training programs; others have found good jobs and struggle to keep them; many others settle for temporary service jobs, hoping to land a permanent job by working hard; an undetermined number have moved, looking for work or an easier life elsewhere; still others have stayed, but have given in to despair and find solace in alcohol or drugs. One lesson of economic restructuring is that without better education and training, workers in poor communities will not be directly helped by the "good jobs" being created by today's information-driven economy.

There is, however, another, less talked about response, that has far-reaching implications for our society. It is fundamentally a lower-class response by men and women with little formal education and few formal skills. Thousands of poor people across Milwaukee are forming their own businesses and through diligence and hard work have been creatively struggling to "make it." A few of these businesses are legal ventures, like small stores or other tax-paying companies. But those few minorities who form legal businesses are typically better educated and have at least limited access to capital.

By contrast, most businesses being started today in poor neighborhoods are off-the-books. These small businesses include streetside car-repair operations, hair-cutting and unreported child care in private homes, street vending, sales of questionable goods, ad hoc house painting companies, and dozens of other types of businesses entered into by enterprising young men and women. Being poor and not finishing high school does not mean a person is lazy or dumb and doomed to go nowhere. If the jobs won't be created by either the public or the private sector, then poor people will have to create the jobs themselves. And they are doing just that.

[from The Economist]

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