If you want to end the affordable housing crisis, pay real wages
The Economic Policy Institute reports that from 1978 to 2018, CEO compensation rose 940% compared to 12% for the average worker. In 1965, the CEO/worker pay ratio was $20/1, but now is $278/1. In his book “Winners Take All: The Elite Charade of Changing the World,” Anand Giridharadas discusses these last 40 years being defined by: peak wealth and income inequality; stagnant worker wages; hoping markets “solve” problems they often exacerbate; businesses prioritizing investors over employees; and overdependence on philanthropy leading small groups with the greatest wealth to determine what societal solutions are “palatable.” In this period, we’ve come to see clear economic winners and clear losers.
What personifies this better than Charlotte-Mecklenburg, a land of economic prosperity for some and economic paralysis for others?
In 2004, I graduated from UNC Chapel Hill with relevant degrees in Psychology and Sociology and took a job working directly to address trauma, behaviors, and education with highly traumatized youth ages 5 to 16. I had amassed relevant work experience, intentionally working in communities directly impacted by trauma and was ready for my first real adult salary.
My reward following a counteroffer: $23,500 with a likely 3% annual raise.
Under $25,000 to work with children who had the most traumatic upbringings, including those from Russian orphanages, many who battled suicidal thoughts, and most whose stories were too horrific for Law and Order SVU.
Five years later, I got my master’s degree in Social Work and two provisional licenses (LCSWA and LCASA) to go work in Stanly County co-running a Substance Abuse Intensive Outpatient Program. My reward: $34,500. Two years later in 2011, now with two full licenses, seven years experience and a master’s degree, my community mental health agency job paid $38,500. When I told friends in more lucrative sectors what I did for a living, I got the dreaded backhanded compliment, “That’s so noble … that must be so rewarding.” Translation: Your pay must be horrible.
On social media, there’s currently a 10-year challenge where people post pictures of themselves in 2009 and in 2019. A North Carolina teacher did the challenge for salaries of teachers with 32-plus years of experience — the 2009 and 2019 salary images were identical at $52,000. Another image depicted the U.S./N.C. minimum wage of 2009 and 2019 where the images were also identical — $7.25/hour. But if you did a 10-year challenge on Charlotte housing costs, most neighborhoods would be unrecognizable.
Our affordable housing crisis is one-part skyrocketing housing costs and one-part stagnant wages. So, why is Charlotte journalist Pam Kelley one of the few discussing the second half of the equation?
If I had kept my original job, my year 16 annual salary would at best be $35,545.86 or 45% of our community’s $79,000 area median income for a family of four. This would make a two-parent income necessary, and while my wife prefers to work outside of the home, child-care costs would neutralize most gains. Let’s be clear, however: many residents face much worse fates. At $7.25/hour, $79,000 requires 209 hours of work per week with no vacation and likely no health care.
Martin Luther King Jr once said, “Philanthropy is commendable, but it must not cause the philanthropist to overlook the circumstances of economic injustice which make philanthropy necessary.”
We must stop starving people, shaming them for being hungry, and congratulating ourselves for feeding them crumbs during the holidays. We must push for systemic change on things like wage inequality, health care access, and inclusionary zoning. Otherwise, we’re doing a performative charade when our community needs a transformative movement.