What is gentrification and why is considered bad?
In: Economics
Imagine two communities of low income people.
In the first community, the local government invests in education and infrastructure. Eventually, the standard of living of the younger generation goes up, and instead of leaving the community, they stay and improve it. Over time, it eventually becomes a middle income neighborhood, with the same inhabitants still living there, but now with a higher standard of living.
In the second community, wealthy outsiders move into the neighborhood. They start opening fancy shops, restaurants, expensive apartments, etc. None of this money goes to the low income inhabitants. Eventually, the lower income people can no longer afford to live in the neighborhood because everything got too expensive, so they are forced to leave.
The latter is gentrification. It is seen as bad because while on the surface it seems like the neighborhood is getting cleaned up, in reality the lower income people are simply pushed out with no benefit.
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