Are Big Companies Responsible For Creating The Underclass?

A Case In Point Is the VT-NH Upper Valley

From Valley News

https://www.vnews.com/Column-Hidden-under-the-Upper-Valley-s-affluence-58974327

Hidden under the Upper Valley’s affluence

Last year, Valley News investigative reporter Jim Kenyon wrote a heart-wrenching story about Jennifer Kahn, a 59-year-old school secretary at Mascoma Valley Regional High School who also worked as a restaurant waitress in Lebanon. Working on the dinner shift and depending upon her minimum hourly wage and tips, Kahn worked hard to “pay for everything from utility bills to her kids’ college educations … mostly as a single mom.” It wasn’t a sob story but a wage-tip-sharing legal case with her employer that drew the reporter’s probing attention.

There must be hundreds of thousands of single moms like Jennifer Kahn all over the country who work multiple jobs to raise kids and put them through schools, I thought. A friend of mine, Jim Wilson, a Yale economist who lives in Strafford and teaches at the Osher Institute at Dartmouth, keeps reminding me about the stark economic and social inequalities and their invisible and corrosive consequences. But living in the Upper Valley, you don’t feel this way unless you come across stories of people like Jennifer Kahn.

The Upper Valley is a region of stark contrasts. Home to prestigious institutions like Dartmouth College and Dartmouth-Hitchcock Medical Center, as well as thriving businesses and picturesque ski resorts, the area presents an image of affluence and prosperity. However, beneath this veneer of wealth lies a complex reality of economic inequality and its far-reaching consequences.

On one end of the spectrum, the region boasts communities with high median household incomes. Hanover reports a median household income of $111,958, while Norwich reports a median income of $138,750, and Lebanon, home to DHMC, $90,911, according to Data USA (2022). These figures far exceed the state median income for both New Hampshire ($43,353) and Vermont ($38,194). Moreover, many towns in the region report median household incomes well below the state median. This economic divide is further exemplified by poverty rates, with some towns experiencing poverty levels more than twice the state average.

Despite the region’s overall affluence, poverty and its associated challenges are very real in the Upper Valley. The school secretary working a second job at a restaurant is not an isolated incident but rather a symptom of a broader issue. Many residents, even those in traditionally middle-class professions, struggle to make ends meet in a region where pockets of extreme wealth drive up the cost of living. The wealthy suck up most of the oxygen.

A few years ago, The Upper Valley Haven, a nonprofit organization in White River Junction that’s committed to alleviating rural poverty, commissioned a report from the Dartmouth College’s Rockefeller Center for Public Policy to better understand homelessness in the region. The report underscored the severity of the issue, highlighting that rural areas like the Upper Valley are not immune to the challenges of homelessness and extreme poverty.

While the region is home to major employers that provide stable, well-paying jobs, many residents work in lower-paying service sector positions. This creates a two-tiered employment structure that fuels income inequality. The presence of wealthy institutions and residents drives up housing costs, making it difficult for lower-income families to find affordable housing. This can lead to situations where individuals, like the aforementioned school secretary-restaurant worker, struggle to afford basic necessities despite full-time employment.

The economic divide in the Upper Valley often follows geographic lines. While towns like Hanover and Norwich enjoy high median incomes, other communities, particularly those farther from the economic centers, experience higher poverty rates and lower incomes. The rural nature of much of the Upper Valley means that public transportation options are limited. This can make it difficult for lower-income residents to access job opportunities or essential services.

The impacts of economic inequality in the Upper Valley are far-reaching and multifaceted. Average rent for a two-bedroom apartment ($1,800-2,200) requires an hourly wage of about $35-42 an hour, yet many service jobs pay $15-20 an hour. Despite the proximity to DHMC, many lower-income residents are likely to delay health care because of costs. The cost of early childhood education ($12,000-15,000/year per child) creates barriers for working families and discourages young couples from starting families. Local food banks report serving 5,000-6,000 Upper Valley residents monthly.

What could be done? Expanding affordable housing options is crucial. Programs that help residents acquire skills for higher-paying jobs could help bridge the income gap. This could include partnerships with local educational institutions and businesses. Enhancing public transportation options could help lower-income residents access job opportunities and essential services more easily. Expanding support services, such as those offered by the Upper Valley Haven and Listen can help provide a safety net for residents struggling with poverty or homelessness. Local and state policies that address income inequality, such as minimum wage increases or earned income tax credits, could help alleviate some of the financial pressure on lower-income residents.

The stark contrasts within the Upper Valley serve as a microcosm of broader societal challenges, highlighting the need for concerted efforts to bridge the gap between prosperity and poverty, even in affluent areas.

John Sloan Dickey, Dartmouth’s 12th president, told the academic community in 1946, “The world’s troubles are your troubles,” a moral vision intended to guide the school’s global reach. Perhaps Dartmouth should look at the troubles in its own neighborhood and accept its moral responsibility to lift the people who live at the bottom of the pyramid in the Upper Valley.

As has been said: Somebody’s Gotta Do It.

Narain Batra is affiliated with Norwich University’s College of Graduate and Continuing Studies. He lives in Hartford.