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The Invisible People of the 1950s:Explaining the Cause of Poverty During Prosperity
Jean Cabral
HI 460 Senior Research Seminar in HistoryDr. Tona HangenNovember 6, 2013
At the end of the 1950s, as the Cold War was beginning to truly escalate, the United
States was met with another growing problem- poverty. After an era of economic success and
technological advancements, it came as a shock to many that the country had a poverty rate
between 16 and 36% (depending on the threshold determinant). Not only were Americans
looking for ways to solve the issue of poverty, they were also looking for ways to explain the
problem. Who exactly is poor? Where do the poor live? Why are they poor? What keeps them
poor? Why can’t they raise themselves out of poverty? What can be done to eradicate this
problem?
The 1950s is commonly referred to as a decade of prosperity, and often follows nostalgic
sentiments. Many believe the 1950s were a time of stability, morality, and amicable social
environments. Because of the popularity of consumerism and a steady rise in wages and
employment rates over the course of the decade, poverty seemed to be nonexistent. However,
when further examining the socioeconomic structures of the 1950s, it is easy to gain different
insight. By the end of the decade, nearly a third of the nation’s children were poor, as were
nearly half of all married African American couples.1 The poor in the 1950s were invisible, kept
that way by society, which had inadvertently created a social culture that both ignored and
perpetuated poverty. Technological advances and the rebirth of the middle class had somehow
distracted the country with most people believing poverty had been alleviated.
It came as a shock to many in the early 1960s that the country’s poor had grown
astronomically over the prior decade. However, the development of the middle class over the
decade was so impressive that, for many, poverty simply didn’t seem to exist. The sad truth of
the matter is that the reemergence of the middle class in the 1950s actually caused poverty
1 D. Bradford Hunt, “How Did Public Housing Survive the 1950s?,” Journal of Policy History 17, no. 2 (2005): 193–216.
2
issues. The old working poor had joined unions, and moved into the middle class. The new
working poor, however, were now extremely unskilled. Most did not graduate high school and
were forced into low wage jobs. If these workers had unions, they were likely taken advantage of
with dues and ineffective representation. The rising middle class had left massive groups of
people in poorly paying careers, with little hope of moving to the next income tax bracket.
In 1958, J.K. Galbraith published The Affluent Society, in it arguing that the ‘new’ poor
of the 1950s were unlike any other. Since the “working poor” of previous decades had largely
moved comfortably into territory of middle class, these poor were a minority. Unable to mobilize
any political movement, the poor were easily ignored. Galbraith believed there were two main
components to poverty: case poverty and insular poverty. Case poverty was derived from mental
or physical disability, making economic advancement impossible. Insular poverty refers to areas
such as Appalachians, where a vast area of the country becomes obsolete.2 Galbraith essentially
attributed poverty to depressed economic regions, addiction to alcohol, and mental illness. There
was no counting the Americans who did not belong to those groups, such as the poor in isolated
urban areas, public housing and ghettos, or the uneducated poor, among others.
Michael Harrington set out to define poverty and make America aware of the grave
problem in his book The Other America: Poverty in the United States (1962). The 1950 census
gives a population total of 151,000,000 total Americans, and the 1960 census gives a population
total of 179,000,000.3 Harrington illustrates the hard truth that 50,000,000 Americans were living
at or below the poverty level, a much larger percentage than they were previously led to believe.
Because of this, he heavily disagrees with Galbraith’s argument of insular poverty, as insular
poverty could not explain such a high number for poverty. Harrington argues that there are
2 J.K. Galbraith, The Affluent Society (Houghton Mifflin, 1969), 17.3 U.S. Census Bureau, “History Fast Facts,” U.S. Department of Commerce, n.d., http://www.census.gov/history/www/through_the_decades/fast_facts/1950_fast_facts.html.
3
indeed enough poor people in the country to be their own “subculture of misery,” and that is
what the country had indeed created for them.4
While Galbraith’s book was one of the first to call poverty to the attention of the rest of
the country, his analysis has come under scrutiny. The idea that poverty became a culture in the
1950s is more than accurate, other historians and researchers in poverty, including Michael
Corcoran and Carole Marks have followed that train of thinking, delving into the idea that the
problem is explained by the culture of poverty5 and study of the models that create and
perpetuate poverty.6 However, these authors differ from Galbraith in that they believe poverty to
be a major problem. While admitting many Americans were still impoverished, Galbraith tended
to glaze over the subject, stating that the poor were in a “comparative minority,” and that largely
poverty had been successfully battled.7 Since then, those who study poverty have agreed that it is
an ever-present problem in society, and needs constant attention. Poverty is now believed to exist
in cycles and can even have caste systems.
In the late 1940s, congressional committees had set the poverty line at $2,000 for an
urban family of four. Because of the disagreements over the figure of the poverty line, the $2,000
level was never adjusted for inflation over the course of the decade, and was not revisited until
1961.8 Many believed the basic needs of the nation were sufficiently met, and human needs were
now more commercial. In 1958, the lowest fifth of Americans shared just 4.7% of total income,
with an average family income of $1,460. The second lowest fifth of Americans, however, was
increasingly better off, holding 11.1% of total income, with average family income at $3,480.9
4 Michael Harrington, The Other America: Poverty in the United States (Macmillon, 1962), 9.5 Michael Corcoran, “Rags to Rags: Poverty and Mobility in the United States,” Annual Review of Sociology 21 (1995): 237–239.6 Carole Marks, “The Urban Underclass,” Annual Review of Sociology 17 (1991): 463.7 Galbraith, The Affluent Society, 261.8 Harrington, The Other America: Poverty in the United States, 181.9 Ibid., 183.
4
This measurement shows that even though they were considered the second lowest fifth, the
middle class was still prospering at a level much higher than the lowest fifth of Americans.
America’s poor came from many minority groups that were routinely ignored. They were the
uneducated, the mentally ill, the disabled, the young (under 18) and the elderly (over 65), and
racial minorities. These were the majority of the poor. These groups held little political power or
lobbying power, leading them to be ignored, much as in the same way as racial discrimination
during the era.
Harrington argues that there were even more cultures of poverty in the country, defined
as subcultures. While significantly smaller than the classically poor groups, understanding and
calling attention to poverty involved shining light on all of the country’s poor. The first, and
smallest, culture being the rural poor. Due to agricultural and technological advances, rural areas
had become unsustainable, and were largely abandoned. Those who decided to stay were poor
and alone. More often than not, these families were found in the Southern belt of the United
States. Many, like the family pictured below, were resigned to houses without electricity and
running water, and made severely less in income than their white urbanite counterparts.
5
A rural poor family from Montgomery, AL. Their home has no heat or running water. Because they are lacking in basic human needs, they are considered to be in "extreme poverty." This is a common condition of the poor in more rural areas during the decade.10
Harrington then described a small subculture of poverty that could be spirited and
enthusiastic, uncharacteristic of the other cultures. These were the intellectuals, beats, and
bohemians. While they lived in poor neighborhoods, they did so willingly and were likely to
achieve mobility into the middle class. The final, and most debilitating and destructive, culture of
poverty are the group of alcoholic and otherwise addicted poor. Ascribed to the nature of their
poverty, the alcoholic poor have the smallest chance of mobilizing out of poverty.11
As the poor adapted to their culture, their offspring became immune to the idea of life
without poverty, and a cycle of intergenerational poverty emerged within them. To attempt to
understand poverty and how it becomes such a debilitation for millions of Americans, studies
including models and theories on poverty began to emerge after the decade ended. Generally,
there were three theoretical perspectives, or ‘models,’ to explain poverty and its subsequent
culture: the resources model, the correlated disadvantages model, and the welfare culture
model.12
The resources model states that parental resources are a major factor of intergenerational
poverty. This model is rather lacking in depth or detail, and instead is quite blunt. The higher the
parental income, the higher chance their children had for achievements. Parents with incomes
below the poverty line cannot provide for their children to achieve accurately, leaving the
10 "Extreme poverty has existed throughout the United States for many years. Some families, like this..." American Social Reform Movements Reference Library. Ed. Carol Brennan, et al. Vol. 4: Primary Sources. Detroit: UXL, 2007. U.S. History In Context. Web. 9 Oct. 2013.
11 Harrington, The Other America: Poverty in the United States, 81–82.12 Corcoran, “Rags to Rags: Poverty and Mobility in the United States.”
6
children in poverty. The believed solution in this explanation of poverty was an increase in
welfare benefits for those living below the poverty level.13
The correlated disadvantages model argued that it was not parental poverty, but parental
disadvantages that kept children in poverty. As a result, it was not classified as intergenerational.
Because socioeconomic disadvantages were vast, this perspective of explaining poverty touched
much more thoroughly on the personal facets of poverty. Common disadvantages to escaping
poverty included single-parent households (typically headed by a female), low intelligence, and
lack of education. Children in these households are more likely to have higher rates of high
school drop out, teen pregnancy, and joblessness. Actions to improve education and schooling
practices are proposed as the solution to this type of poverty.14
The final model is the welfare culture. This theory of explaining poverty underscores
deviant values, attitudes, and behaviors. However, this theory also contends that these are fueled
by the government welfare system. Arguably, Galbraith believed in a welfare culture of poverty,
and was not wrong in this interpretation.15 In this model, family members and neighbors rely
heavily on welfare, causing the social stigma associated with collecting welfare to disappear.
Eventually, these people develop self-defeating attitudes and lack work ethic. Parents and
children become trapped in poverty because of their dysfunctional behaviors.16 The solution of
eliminating welfare or setting time limits is proposed, as welfare is the reason for this poverty.
These models try to accurately explain the causes of poverty, and even attempt solutions.
To truly explain poverty in the 1950s, it is impossible to avoid the idea of isolationism as a major
cause of poverty. During this era, it was common for the impoverished to be in public housing
13 Marks, “The Urban Underclass.”14 Ibid.15 Galbraith, The Affluent Society.16 Corcoran, “Rags to Rags: Poverty and Mobility in the United States. ”
7
settlements and other slums and ghettos, away from the rest of the population. The rise of
suburban life in the 1950s not only separated the poor from the middle and upper classes, but it
also cemented them in being ignored by others. Yes, all of the conditions of the models above
cause poverty and discourage movement away from poverty. However, these models cannot
fully explain the 1950s. Unfortunately, besides Galbraith’s, no other model was theorized during
the decade, and the previous models did not cover the unique condition of the 1950s.
Fortunately, the emergence of a fourth model in 1987 by William J. Wilson spoke of an
“underclass model,” which states that the ‘urban underclass’ (the poor in ghettos and public
housing) adapt and grow in their culture due to their logistical drawbacks.17
The underclass model attributed poverty to the structure of society at the time.
Neighborhood isolation caused segregation and poor social status of the poor. The loss of well
paying jobs that employed the less educated left small chances of residents of urban or rural poor
areas ever being able to escape poverty. In this model, it is likely that there are high rates of male
unemployment locally, along with highly concentrated poverty in certain neighborhoods.18 The
model implies that class is more important than race in terms of poverty and mobility. To reverse
these effects, a change in social behavior of the middle class is necessary. Reintegrating
neighborhoods to combat social isolation and macroeconomic policy to provide jobs is thought
to lead to a reduction in negative attitude and behavior.19
The 1950s, a time of such progress for so many Americans, is also remembered as a time
that was centered on family and values. There was a consumer culture that had never existed
before, modern luxuries were becoming readily availably to larger groups of people, and higher
education boomed for men who would later receive well paying jobs to support their families.
17 David Whitman, “Unemployed Underclass,” The Washington Monthly, November 1996.18 Marks, “The Urban Underclass.”19 Whitman, “Unemployed Underclass.”
8
With the most visible parts of the country advancing so steadily, it is easier to understand how
poverty during this time was overlooked. The problem of the 1950s is unique to the following
decades, since it was the first decade of overwhelming prosperity and the beginning of a new
consumer culture. Because of the era’s following of the most serious economic depression and
war the country had ever faced, the intricate anomalies of the time caused it to be difficult to
understand using the first three models. Using the underclass model of poverty as a guide, the
cause of poverty in the 1950s can be explained since the idea of isolationism, as a perpetuator of
poverty, is key to this model.
While trying to properly affix the poverty issues of the 1950s to the underclass model, it
is important to explain the conditions of the decade. Due to simultaneous changes in society,
such as the rise of higher education, the popularity and new affordability of single-family homes
in suburbs, and opposition to social welfare projects, the poor slipped through the cracks while
the new middle class rose steadily. Social blindness regarding poverty in the decade is also a
cause, as were the technological advances that secured jobs for those who received post
secondary education. Just as middle class culture rose, so did poverty as a culture.
The socially blind of the time believed that the poor chose not to work and live off of
taxpayers instead. Even if not overt in statement, the lack of attention to poverty in the 1950s
illustrates the feeling of the wealthier ‘classes’ during this time. This blindness caused much
public opposition to social welfare attempts to integrate public housing, which created slums and
ghettos.20 Many urban areas during this decade had opposed the efforts of the local Housing
Authority to try to integrate public housing. Somewhat ironically, in the late 1940s, public
housing had stringent qualifications attached to entry, which led to a predominantly white
20 Richard Rothstein, Race and Public Housing: Revisiting the Federal Role (Washington, United States: Poverty & Race Research Action Council, December 2012), ]
9
settlement in public housing. In 1949, President Harry Truman unveiled his new domestic policy,
called the Fair Deal. In this deal was the 1949 Housing Act. This act thoroughly expanded the
federal role in mortgage insurances and issuances, as well as development of public housing.
Under this act the federal government would provide for: (1) slum clearance programs tied to
urban renewal, (2) authorization of Federal Housing Administration for providing mortgage
insurance, (3) funding for more than 800,000 public housing units, (4) greater research into
housing and housing techniques, and (5) FHA financing of rural homeowners.21
From the Great Depression to the early 1950s, cities were faced with housing shortages
and an influx of returning war veterans. To meet the new population demands, cities began to
construct public housing, or ‘projects,’ for working and middle class families. These projects
were highly desirable, as this affordable housing was difficult to attain. Only two parent families
were allowed to apply, and some states required proof of marriage licenses. With preference
given to war veterans, the white middle class quickly occupied these units while the men utilized
government subsidized college education.22 As the decade advanced, those who enjoyed free
college education and higher paying jobs were afforded the opportunity to move into a single-
family home. Because of the rising economic conditions for middle class families, single-family
home settlements called suburbs emerged and became wildly popular. The creation of those
suburbs left many vacancies in the public housing market, and left cities less inhabited.23 In
Detroit, for example, there were 3,000 vacant public housing units by 1950 as suburbs
expanded.24
21 Anonymous, “Provisions of the Housing Act of 1949,” Monthly Labor Review (pre-1986) 69, no. 000002 (August 1949): 155.22 Alma Taeuber, “Making the Second Ghetto: Race and Housing in Chicago, 1940-1960. by Arnold R. Hirsch (A Review),” American Journal of Sociology 91, no. 1 (July 1985): 194–197.23 Nicholas Dagen Bloom, “Manhattan Projects: The Rise and Fall of Urban Renewal in Cold War New York: [1],” Contemporary Sociology 41, no. 1 (January 2012): 115–116.24 Rothstein, Race and Public Housing.
10
Even though the middle class had once both treasured and relied on housing provided by
the government, the opposition to such projects rose greatly after the rise of suburbs and single-
family homes. In New York City, public housing units were built privately and paid for with
levied taxes, and run by the New York City Housing Authority. Most public housing was
developed in white neighborhoods, with at most only a few black residents. Low-income projects
also existed, but were mostly in black neighborhoods, with 12% white residents by the 1950s. In
Los Angeles, where in 1947 public housing had been 55% white and 30% black, by 1959 had
completely changed to a demographic of 14% white, 65% black, and 19% Hispanic.25
Shortly into the start of the decade, the Housing Act came up against significant
opposition. Afraid of government competition, the U.S. Savings and Loan League and National
Association of Home Builders began to mobilize members to speak out against public housing.
Suddenly, the backlash was in the voters’ hands with a slew of ballot referenda. California was
even so outraged by the Housing Act that Los Angeles removed a mayor over the issue, and
voted that any new housing project had to be approved through local referenda.26 Of course,
since the decade precedes the Civil Rights Act, racial discrimination is also an abundant issue in
public housing:
Racially discriminatory siting and leasing policies have also helped concentrate the
poorest people in certain developments. In most large cities, the poor are
disproportionately composed of racial minorities. …discrimination in assigning tenants to
public housing was official government policy in many cities.27
25 Don Parson, “The Decline of Public Housing and the Politics of the Red Scare: The Significance of the Los Angeles Public Housing War,” Journal of Urban History 33, no. 3 (2007): 400–417, doi:http://dx.doi.org/10.1177/0096144206297135.26 Hunt, “How Did Public Housing Survive the 1950s?”.27 Michael H. Schill, “Distressed Public Housing: Where Do We Go from Here?,” The University of Chicago Law Review 60, no. 2 (Spring 1993): 497.
11
In California, public housing had come to be known as “negro housing,” and whites
protested locations for projects in their neighborhoods. Public officials were forced to concede
and relocated projects designated for white neighborhoods to the predominantly black area of
Watts in southern Los Angeles. Projects designated for Santa Monica (on the attempt of racial
integration) were also relocated to Watts. In 1952, the Los Angeles Public Housing Authority
attempted to build an integrated project northwest of downtown, away from Watts. City Council
called a meeting and cancelled the project, sponsoring a referendum. Voters overwhelmingly
rejected the projects. Between 1953 and 1955, three neighborhood projects were built in Watts,
transforming the area from a predominantly black area to an isolated ghetto struck with
poverty.28 Other cities experienced their own struggles with this idea of urban renewal. John
Bauman, author of Public Housing, Race, and Renewal: Urban Planning in Philadelphia, states
that in Philadelphia, “all of the projects planned and built from 1956 to 1967 were sited in ghetto
or 'transitional' neighborhoods."29
The opposition to integration of public housing is the first decision made by most of the
country to ignore poverty throughout the decade. The middle class was able to take advantage of
their newfound vocal power, in the process creating ghettos and isolating the poor. These
conditions made economic mobility for the poor extremely unlikely. Cold War fear had not
helped the poor in their endeavors either, as public housing was rebranded as ‘socialist,’ an Anti-
American value. Even though these same families likely lived in the very same housing projects
a decade earlier, public housing was now a government program that came with a heavy social
stigma. While better off families were caught up in a culture of consuming, buying television
sets, cars, going on vacation, etc., the poor were trying to survive in quickly deteriorating
28 Rothstein, Race and Public Housing.29 John F. Bauman, Public Housing, Race, and Renewal: Urban Planning in Philadelphia, 1920-1974 (Temple University Press, 1987).
12
housing projects.30 In 1956, the introduction of Eisenhower’s federal highway system would be
another failure for the poor, as this made their urban neighborhoods (likely close to highways)
even more undesirable. Cast away from the rest of society, the poor begin to adjust to their
isolation and adapt lifestyles.
Once living in isolated ghettos, or isolated and economically depressed rural areas,
residents began to adapt to their lifestyles and become complacent. Without pushes either from
within or from society, they were likely to remain poor. Disadvantages had sent them to join the
other ranks of impoverished, and the failure of society to recognize and address their problems
had left much of the poor without any realistic hope of leaving their ghettos. Certain behaviors
and lifestyles influenced by living in an isolated ghetto emerge. For the sake of staying on topic,
crime and gang violence are going to be ignored as lifestyles and instead classified as social
deviances. The appearance of an environment that fosters crime and violence is considered the
biggest failure of public housing.31
According to the underclass model, it is difficult to gain a sense of community in ghettos.
It is theorized that communal groups and activities can lead to greater overall wellbeing and
lower crime in the community. Why were communities unattainable in ghettos and housing
units? Harrington explains this with a rundown of the groups of people commonly found in such
projects. 32A small group of people in the ghetto would typically work to advocate with the
Tenant’s Association. These were the most adjusted to the world outside the ghetto. Because of
this, their incomes rose faster than the rest of the project, causing them to be candidates for
30 Rothstein, Race and Public Housing.31 Even though it is hard to separate crime and gang activity from ghettos and projects, the emergence of inner-city crime is much too involved to explain or categorize without focusing on gang violence and crime exclusively during this time. I personally argue the isolation of ghettos (away from whites and other civilization) creates an opportunity for gang formation. Since the impoverished of the ghetto see no chance of leaving, gang activity emerges as a way to create solidarity and protect the ghetto. 32 Harrington, The Other America: Poverty in the United States.
13
eviction from the very neighborhood that they once worked so hard to improve. These people
have a tendency to believe themselves elite, causing little interaction with the rest of the
neighborhood. Another group of people has lived in the ghetto for a long period of time, likely
before it was a project. These people find religious or ethnic reasons to stay, such as a church
than can only be found in their neighborhood, or an ethnic group that only resides in that
neighborhood. These people stick to themselves and are unlikely to have any social interaction
outside the group they have chosen to identify with. Finally, the third group withdraws. These
people purposely isolate and alienate themselves in their own apartments. Typically, these people
become faceless to the other members of the ghetto.33
Projects are typically large and impersonal, with frequent supervision and checking for
possible violations. Combining the impersonal atmosphere with the lifestyles of the people that
live inside the project creates a drab experience. The characteristics of living in ghettos make the
possibility of any type of “community” feeling extremely doubtful. Those who come from
environments with a communal connection (slums, perhaps) will get no satisfaction from the
projects and seek community in other ways, such as joining a gang. Denied of any sense of
community from both their projects and the segregation from better off areas, the poor are aloof
from the rest of society. The poor have been forgotten about, and truly isolated.34
Another factor leading to the isolationism in projects is the lack of well paying jobs.
Many members of projects suffer from poor education or low intelligence, or both. After the
return of veterans from World War II and went to a college paid for by the G.I. Bill, the supply
of higher educated workers in the labor market increased. Because of the increases in technology
and consumerism, the better paying jobs of the 1950s were fast paced and required either
33 Ibid., 150–151.34 Taeuber, “Making the Second Ghetto: Race and Housing in Chicago, 1940-1960. by Arnold R. Hirsch (A Review).”
14
educational or technological knowledge. Living in poverty in a project is not typically conducive
to either of those skills. For millions of Americans who couldn’t afford education and whose
skills either went extinct with technological advances or never existed to begin with, better
paying jobs are unattainable unless there is some change in their situation.
Now that the aspects of the 1950s that parallel the underclass model have been specified,
the correlation between the model and poverty in the 1950s can be deduced. The underclass
model argues, above all, that social isolation of the poor and the lack of well paying jobs are the
root causes of poverty. The 1950s exhibited both of these situations to an extreme degree. Higher
wage and good union jobs went to men with education levels of high school and beyond. Public
housing projects that used to house the middle class now housed the poor, and those
neighborhoods became isolated ghettos. At a time when the country was going through a
complete upheaval of old cultural and economic constants, the underclass model developed in
America and progressed significantly until finally called to attention towards the end of the
decade. From comparing the conditions of the 1950s to the conditions to the underclass model,
an explanation can be found. Poverty in the 1950s became an alarming problem because of the
development of the underclass model, which really classifies as an epidemic model.35 Residents
become socially isolated from the mainstream society and trapped in a cycle of poverty and
dependency, and the problem only escalates the longer it exists. However, there is a more precise
explanation for why poverty existed in the 1950s.
While the underclass model of poverty does fit to explain the poverty of the 1950s, it is
still not satisfactory. Instead, admitting what caused the underclass model to exist in the 1950s
accurately explains poverty. The rise of the middle class as a self-sufficient group without need
for much government assistance had “left behind” the poor who did not have the same
35 Corcoran, “Rags to Rags: Poverty and Mobility in the United States.”
15
advantages, especially minorities. As the economic situation of the rest of the country improved
steadily over the decade, the poor shared little of the rest of America’s optimism. Physically
separating the poor from the rest of the classes simply caused the country to forget poverty
existed. And if poverty existed, the new middle class believed it to be a personal choice. Since
the middle class found themselves with so many advantages, why didn’t the poor bother to work
harder for those same advantages? Though the involvement of the middle class was largely
unintentional and ignorant, it is impossible to explain the condition of poverty in the 1950s
without attributing it to the middle class. In economic standards, it is often improbably to be able
to make groups of people better off without making other groups of people worse off.
Unfortunately, the strides of the regenerated middle class during this decade were at the expense
of the debilitated poor.
16
Word Count: 4612
Bibliography
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Corcoran, Michael. “Rags to Rags: Poverty and Mobility in the United States.” Annual Review of Sociology 21 (1995): 237–239.
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no. 2 (2005): 193–216.Marks, Carole. “The Urban Underclass.” Annual Review of Sociology 17 (1991): 460–465.Parson, Don. “The Decline of Public Housing and the Politics of the Red Scare: The Significance
of the Los Angeles Public Housing War.” Journal of Urban History 33, no. 3 (2007): 400–417. doi:http://dx.doi.org/10.1177/0096144206297135.
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