Restoring the Balance between People, Places, and Profits: A Psychosocial Analysis of Uneven Community Development and the Case for Placemaking Processes

Recent years have seen a paradigm shift from individualistic, market-based models of community development to more sustainable and human-centered approaches that emphasize inclusion and participation. Yet processes of privatization in the era of neoliberalism threaten these efforts by concentrating profits for elites while impoverishing everyday people and the environments they inhabit, resulting in profoundly uneven access to resources, inclusion, and participation. This analysis examines the psychosocial processes that produce and are produced by these unequal and segregated settings, as well as the causes and correlates of this imbalance in the context of the United States. Then, empirical literature is reviewed exploring the harmful consequences that inequality entails for individual and societal wellbeing, arguing that inequality (a) undermines opportunity by limiting access to resources and constraining upward mobility, (b) undermines community by dissolving trust and cohesion, (c) undermines ecosystems health by accelerating environmental degradation, and (d) undermines democracy by reducing the political power of the non-wealthy relative to the wealthy. Finally, four placemaking principles are proposed as a way to promote more sustainable, equitable, and inclusive community development.