I’ve always been vocal about the need to fight inequality in our own backyards. As a resident of New York’s Capital Region, I built my marketing business here. And in 2020, I founded Business for Good Foundation, a nonprofit philanthropy organization focused on closing the growing wealth gap and providing a hand up to underserved entrepreneurs. The inequality is blatantly real.
The 23.3% poverty rate is more than twice as high in Albany versus the 11.1% national average. In fact, New York is one of the most economically unequal states in the country. While local and state government have made promises to help clean up the city, reduce crime rates, and create more affordable housing, the reality is that we haven’t seen much movement and things aren’t getting better.
If we truly hope to level the playing field and tackle these inequities, then those of us driving change in the private sector will simply need to keep our eyes on the ball, and step in where government officials are not.
The growing wealth divide in the U.S.
While those in political power might not always care to acknowledge it, income inequality remains one of the greatest challenges facing our country, to the point that the U.S. continues to boast a significantly larger wealth gap between the rich and poor than any other developed nation in the world.
To put the issue into perspective, according to the Peter G. Petersen Foundation, the income of the 20% of wealthiest U.S. households rose 165% between 1981 and 2021, whereas middle and low income households have only seen growth of 33% and 38%, respectively. And if our political leaders aren’t even willing to recognize, much less take action to address the nation’s growing wealth divide, then making a real impact will require the collective effort, dedication, and resources of private advocacy groups and philanthropists in our communities.
The compounding threat of housing inequality
Sadly, for the millions of people living in underserved communities across the nation, overcoming income insecurity isn’t about striving for the American dream, but rather ensuring they can feed their families and keep a roof over their heads. And as the U.S. economy continues to grapple with an ongoing housing shortage and affordability crisis, this growing sense of anxiety and desperation has the very real potential to result in further increases in poverty, crime and social unrest.
The state of housing affordability in America today is frankly appalling. According to the National Low Income Housing Coalition, there is currently an estimated shortage of over 7 million affordable homes in the U.S., not even close to enough to accommodate the nearly 11 million extremely low income families throughout the country. I’ve witnessed this devastating reality firsthand while living in the Capital Region.
To address these issues, Albany announced an executive budget proposal earlier this year that would include a $400 million investment toward revitalizing the community. However, Albany’s government has once again been slow to act, and the commitment has not been seen through, further underscoring the need for community and business leaders to work together to drive meaningful change, with or without state or federal institutional support.
Relying on the private sector
As someone who’s been lucky enough to have a successful career as an entrepreneur, and who recognizes how the unfair advantages provided to certain groups prevent others from getting ahead, I’ve frequently struggled to understand the state’s unwillingness to step in and put an end to the widespread inequalities that have been plaguing this country for so long.
This is exactly the issue I set out to address when I founded the Business for Good Foundation. And if there’s one thing I’ve learned in my experience, it’s that providing those who are less fortunate with equal access to resources and opportunities is often all it takes to uplift an entire community.
Going forward, I won’t simply sit on my hands any longer and wait for state leaders’ support to do what’s right. Instead, I plan to double down on our work in New York’s Capital Region through a heightened focus on fostering business growth, economic inclusion, housing stability, and community development to build a better, more equitable world for all. It’s my hope that other business leaders across the private sector will do the same.
Ed Mitzen is cofounder of Business for Good.
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