Study shows New Orleans in poverty crisis

| | Comments (0) | TrackBacks (0)

By: Eileen Fleming
August 15, 2012

Study shows New Orleans in poverty crisis

A new study says New Orleans in a poverty crisis. The review, commissioned by the Greater New Orleans Foundation and conducted by the Greater New Orleans Comunity Data Center, finds financial trouble extending to the middle class.

The report, entitled "Assets and Opportunities," shows 37 percent of all New Orleans residents don't have enough assets to support a household for three months at the federal poverty level if the main source of income is lost. That's 10 percent higher than the national average.

Foundation President Albert Ruesga says recovery dollars haven't reduced the poverty level.

"It went down shortly after Katrina because there were so many low-income people who left the region. But really, we're at the same place we were before the storms, and I think that's just a great shame."

Measuring poverty by assets is a new method. Those assets include home ownership, savings accounts, insurance and credit. The study found 71 percent of New Orleans consumers have subprime credit scores. Using Census information, the GNOCDC found 22 percent of the white population faces asset poverty. That number is about double for African Americans and Hispanics in New Orleans.

GNOCDC demographer Allison Plyer says New Orleans' poverty rate has dropped in national rankings, but only because the recession has slammed other cities.

"We are still 27 percent. Our poverty rate has not changed. But because Detroit, Cleveland and so many other cities' poverty rate has gotten worse, our ranking has fallen to about 18."

Leaders in non-profits, business, banking and government are now working on a strategy to fight poverty on several fronts, starting with helping people build good credit ratings and helping them take advantage of government and private funding now available to help build assets.

0 TrackBacks

Listed below are links to blogs that reference this entry: Study shows New Orleans in poverty crisis.

TrackBack URL for this entry:

Leave a comment

About this Entry

This page contains a single entry by CFED published on August 15, 2012 7:05 PM.

Microfinance is down, but not out was the previous entry in this blog.

Asset poverty is a big problem in New Orleans, where many have no cash cushion is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.