Many of these unkempt dwellings reside in the inner city of large urban areas, such as Los Angeles, Philadelphia or Chicago. According to our textbook, Urban Economics, (page 338) "Poverty rates in the central city are about two times higher then the poverty rates for suburban areas. In some metropolitan areas, the differences in poverty rates are even higher."

Poor people reside in the central city for two different reasons, according to discussions on various economic models from lecture. First, the farther away that you get from the central business district, the higher your transportation costs to get to your job (assuming that the job is located in the CBD). If you can not afford to commute to your work, you will be unable

To help reduce the problem, the government has implemented programs to ensure everyone has access to adequate housing. One of the government's ventures includes employment and job training programs. Our text tells us on page 357 that, "Employment programs operate on the demand side of the market, providing direct employment for the poor. Job training programs operate on the supply side of the market: they increase the labor skills of the poor, making them more attractive to private industry." By offering poor people these services, they are better able to obtain the funds needed to live in decent housing through employment.

The effect that these vouchers have on the market is a negative one. By giving people 'free money" for housing the government is pushing up the average market price of housing. These vouchers shift the demand curve for housing to the right. The supply of housing does not change therefore the new equilibrium is a higher price then without the vouchers.

Now, it seems terrible to allow people to live in low quality homes, and some people feel that the way to get poor people into nicer homes is to require the building owners to upgrade their buildings. First, in order to revamp the building, the owner would have to charge the tenants a higher rent to pay for these changes. The poor are barely able to pay the rent at the current price, and most will be unable to afford a rent hike. Upgrading these buildings would place them in a diffe

Some common words found in the essay are:
Urban Economics, , Angeles Times, poor people, Chicago According, poverty rates, middle class, public housing, job training programs, Neighborhood Watch, Los Angeles, central business district, job training, housing projects, programs operate, section 8 certificates, pay rent, training programs, business district,
Approximate Word count = 987
Approximate Pages = 4 (250 words per page double spaced)