Basic HTML Version
December 1971
The
PLAIN TRUTH
Crisis
in
lewark
o-
of
n
a curtailment of almost every service
if the financia! situation does not
improve dramatically. With city ex–
s- • penses running up to 25% above
income, the financia! outlook doesn't
appear too bright.
l's
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–
.1
In its attempt to increase income,
Newark has Jevied one of the highest
personal property taxes in the nation
on its citizens. Many have Red the
city just to avoid this tax.
Most directly affected by this
added burden are the sJum landlords
who overcharge those who can least
afford it - the poor and economic–
ally deprived blacks.
But even the well-off citizens must
face a crushing tax burden. The
owner of a $25,000 house in Newark
must pay about $2500 ayear in taxes
to the city, or almost $1000
more
than the owner of a $50,000 house
in a nearby suburb.
Unemployment in central Newark
is particularly rife. Latest statistics
show that 14% of the city's populace
are without jobs, about two and
a half times the national figure. Be–
tween 25 and 30% of the blacks in
the central city are in this category.
Partially blamed for the high unem–
ployment rate is the loss of sorne
20,000 manufacturing jobs in the
past 15 years.
Few Available J obs
Unemployment among ghetto
youths is particularly acute. Since the
riots, the number of black teen-agers
without jobs has doubled. In addi–
tion, there are virtually no summer
jobs and few recreational programs
for Newark's 80,000 school children.
Blacks complain of being unable
to secure jobs in business Newark,
"where the money is." Many com–
panies admit to being unwilling to
hire large numbers of workers from
minority groups. They cite figures
sbowing high turnover cates and low
productivity levels. As one spokes–
man for a Newark-based firm
pointed out: "We spend two months
to a year to train someone as a com–
puter specialist, and then one day he
just leaves without notice."
To secure and provide jobs, sorne
blacks attempt to start their own
businesses in the downtown district.
Of those few who succeed, many end
Ltp
moving into the suburbs as soon
as they have accumuJated the capital.
The "Underemployment"
Problem
According to sorne experts, an
even more serious problem than that
of unemployment is that of
rmder–
employment. Many ghetto-residents
have been "forced" out of part-time
jobs in order to qualify for higher–
paying welfare compensation. The
welfare system ends up, in such
cases, encouraging unemployment
and the elimination of part-time jobs
which often serve as stepping stones
to higher-paying positions.
Newark is also the nation's leader
in per capita welfare enrollment.
One in every three Newarkers
receives sorne forro of aid. In the
past four years, the welfare rolls
have more than doubled. Today, the
terms "welfare" and "Newark" have
become synonymous. The city has be–
come, as one offi.ciaJ put it, "a basic
training camp for the poor."
Many urbanologists label Newark
the "most financially crippled city in
the nation." Little wonder, with
health and welfare costs averaging
up to 20 times higher for the metro–
politan area than in the surrounding
environs. Many have concluded that
Newark's financia! plight has gone
far beyond the potential resources at
hand. O
27
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