Catoosa's Real Economic Picture
Catoosa's Real Economic Picture
Beyond the Rich vs Poor Divide: An Uplifted Community With Big Challenges Ahead
“The rich get richer, and the poor get poorer!” It’s a popular phrase we’ve all heard. This age-old adage is often repeated and accepted as accurate by many when someone says it when discussing local governments. It was the caption on a chart I saw on social media last week that inspired me to write this article. The chart (which I can no longer find) depicted a growing inequality trend in Catoosa County. It showed the annual Gini index score over the past twenty years. The Gini index is a popular measure used to describe economic inequality for a population or place. A score of zero represents perfect equality, and a score of one represents perfect inequality. The trend for Catoosa over the past couple of decades has been from a score in the mid-.30 range to .44 last year. So, has income inequality or wealth inequality in Catoosa County indeed worsened? Well, yes.
But, is that a bad thing?
Take a look at the household income distributions for Catoosa in 1999
Now, for 2012
And for 2022. Notice The Shift?
While the previous visuals showed the percent change, this one shows the absolute change in the number of households in each income range from 1999 to 2022
The Gini index presents a simplistic view, neglecting the complex reality of income or economic distribution. After looking at the data more thoroughly, a more complex and detailed story emerges. Over these two decades, we've witnessed not just a shift, but a seismic migration in household incomes in Catoosa. The rich are, in fact, getting richer. But so are the middle and lower classes.
More households have moved into higher income brackets. It doesn’t matter that inequality has worsened because everyone has gotten richer. Who cares if there are more millionaires or billionaires if there are also fewer people in poverty and everyone has a higher standard of living?
Claims about income or wealth inequality often cloud the more significant achievement: a reduction in poverty and an overall elevation in income. The reality is that even those in lower income brackets today are better off than they were two decades ago. This isn't to gloss over the challenges they face, but to acknowledge that individual or household economic situations aren’t static. They are evolving, which means we need to look at more data.
Demographic Shifts and Their Impacts
To get a more complete picture of the economic situation in Catoosa County, it's important to consider data regarding the age distribution of households and income distribution across various age groups.
Changes in Household Income Distribution Across Age Groups 2012 to 2022
The charts and data make the demographic shifts clear. Over the years, the community has aged. The young parents of 1999, who once juggled mortgages and school runs, are now approaching retirement. Their children, the new blood of the workforce, are embarking on their careers. It is no surprise that often they want to live and work in the very place they grew up and near their family. This generational shift and the desire to locate near home isn't just a sentimental narrative; it has real economic repercussions.
An aging population, being the largest group, brings with it a change in spending patterns, investment priorities, and workforce dynamics. It can also lead to a more cautious or even restrictive and controlling approach to development, often manifesting in resistance to change — stifling the dynamic vitality provided by younger generations that is essential to a prosperous community.
The demographic shift towards an older population has inadvertently contributed to a growing problem: a housing market that struggles to meet the needs of its younger residents. This issue is compounded by zoning laws and a 'not in my backyard' mentality that resists development, inadvertently constricting the housing supply and inflating costs. The following chart displays the number of private structure building permits authorized each year alongside the resident population of Catoosa County. Notice that the rate of permits issued has slowed down significantly since 2010, compared to the late 90s and early 00s. The resident population has increased steadily and has increased sharply in the wider region. What this means is a lack of housing supply and a housing market that is unaffordable to many.
With a growing and aging population and rising housing costs, working to make a hotter and hotter housing market means higher home values. The growth in population leads to increased demand for local government and school services, resulting in higher property tax bills. Additionally, governments have at times used increasing home values as an excuse to raise property taxes while deflecting blame.
While inequality is not a problem and Catoosa’s story is one of progress and prosperity, looking at the whole economic landscape, it’s plain to see that there is no shortage of challenges at the moment and looming on the horizon.
This situation calls for thoughtful, curious leadership at both the local and state levels. This calls for involvement from everyone – from local government to individual citizens to the highest levels of state government. We must advance and advocate for policies that foster economic opportunity, support housing initiatives that cater to all segments of our population, and encourage a community mindset that embraces growth and dynamism.
Communities need nuanced policies and open-minded approaches that balance the preservation of community character with the needs of a changing and growing population. This means things such as mixed-use developments, affordable housing initiatives, denser residential developments like condos and townhome projects, walkable communities, and wholesale local zoning reforms that encourage variety in housing options and reduce regulatory burdens. Governance solutions are needed as well in service delivery, infrastructure maintenance and replacement, property tax reform, as well as a new education funding formula are needed now more than ever.
To that end, here are some relevant resources and articles to learn more about the topics and issues discussed in this article. If you want more or have questions about something, comment below or send me an email.
Charlie Harper: To Grow Or Not To Grow? That Is Not The Question
Charlie Harper: Local Governments Are Building Barriers To The American Dream
Chris Denson: Will the Georgia legislature cap property tax increases?
GA Policy Foundation: Government Regulation in the Price of a New Home: Georgia
Chris Denson: County Code Cements Tension Between Regulators, Homebuilders
Kyle Wingfield: Home affordability lags in Georgia because of too little supply
"This means things such as mixed-use developments, affordable housing initiatives, denser residential developments like condos and townhome projects, walkable communities, and wholesale local zoning reforms that encourage variety in housing options and reduce regulatory burdens."
Yes, yes, yes. This is exactly how I feel, but you said it more eloquently.