Baltimore Development Falters

As part of the economic downturn caused by the burst of the housing and construction bubble, the city of Baltimore finds itself struggling to maintain momentum in its redevelopment program. Many residents come from working class and middle class backgrounds, although there has been growth in financial services and the jobs supplied by the city’s biggest employer, the Johns Hopkins University & Hospital.

The fact that the city is growing in financial services and higher education-related jobs could spell success for Baltimore. If it continues to grow in those sectors, the would-be bedroom community outside of Washington, D.C. could develop into a city like Boston. Indeed, Baltimore already reflects some of the basic infrastructure that Boston has, with its active port, major research & university industry, and financial services work. And if it can capitalize on the eco-friendly aspects of its development, it may be able to keep its revitalization hopes alive. For instance, the city has experienced some housing growth around its downtown train station, where the MARC train runs a 50-60 minute commute to Washington; that growth seems to be stalling out these days, according to the New York Times. But if middle-class D.C. workers are reminded that their drive from the nearer suburbs of Maryland and Virginia can take just as long (or longer) than the MARC train, they may be more inclined to see Baltimore as the best bedroom community option. With a major baseball team, an already-revived downtown area in the Inner Harbor, and the other cultural allures that a city can offer - plus, the bonus of taking a more environmentally-friendly, low-stress, sleep-on-your-way-to-work commute - Baltimore arguably has a lot more to offer than the suburbs outside the D.C. Metro system.

That’s why it will be vital for the mayor, city council, and governor’s office to take an aggressive approach to halting the flood of problems that have come in the wake of the subprime mortgage crisis. There’s a host of policies that they could employ, starting off with a cap on payday loan interest rates that is exacerbating the problems of the low-income and working class families who are already struggling to hold on to their home loans. The District of Columbia recently capped payday lenders like Check N’Go at 23% interest, effectively putting the predatory lending industry out of business in the District. (Special thanks to Roosevelter Ben Lazarus, a Yale student who testified for that particular piece of legislation.) The city of Baltimore should take a similarly aggressive stance, partly because there is virtually no political gain to be had from siding with payday lenders (a singularly sleazy industry). Debt-ridden, vulnerable students in the city would also gain from such a change, especially if the city invested some resources in earmarks for responsible lending organizations who counsel people on getting out of debt and provide invaluable financial literacy programs to low-income communities.

Background material from the 25 Ideas for Working Families at http://rooseveltinstitution.org/publications/25ideas

and

http://www.nytimes.com/2007/10/04/business/04baltimore.html?pagewanted=2&th&emc=th