Systemic Challenges In The Chicago Area: Past & Present

Chicago is a city rich in culture, innovation, and resilience. Yet, beneath its vibrant neighborhoods and iconic skyline lies a long and complicated history. Among which are countless systemic challenges that have shaped—and continue to shape—the lives of its residents. At The 1937 Foundation, we believe it's essential to reflect on this history. Not just to understand where we’ve come from, but to inform the work we’re doing today to drive meaningful, long-term change.

By acknowledging the deep roots of inequality, we aim to foster healing, spark critical conversations, and invest in solutions that uplift our communities. From redlining and disinvestment to modern-day disparities in education, health, and opportunity, the challenges in Chicago demand action. This action needs to be grounded in both historical awareness and forward-thinking strategies. 

With that in mind, let’s dive deeper into Chicago’s history with systemic challenges and reflect on where we’re at today.

A History That Can’t Be Ignored

Systemic inequality in Chicago didn’t happen by accident—it was designed. During the 20th century, discriminatory policies like redlining, restrictive covenants, and urban renewal projects intentionally excluded Black and Brown communities from opportunities to build generational wealth and access essential resources.

The year 1937—our namesake—marks a significant era when the federal government, through the Home Owners’ Loan Corporation, helped institutionalize redlining practices. These deemed minority neighborhoods as “hazardous” for investment. As a result, residents in these areas were denied access to mortgages and fair lending opportunities, reinforcing cycles of poverty and segregation that persist to this day.

The consequences were devastating. Entire neighborhoods were cut off from the financial and infrastructural support needed to thrive. Public housing policies further concentrated poverty. Simultaneously, discriminatory policing practices and disinvestment led to limited educational and employment opportunities for generations of Chicagoans.

Present-Day Echoes of the Past

While some of the policies that created these barriers have been dismantled, their impact continues to ripple through Chicago’s present. The city remains one of the most segregated in America. Disparities in income, health, education, and life expectancy often fall along racial and geographic lines.

Take the education system, for example. Public schools in predominantly Black and Brown neighborhoods are often underfunded, overcrowded, and lack access to the same extracurricular programs, advanced coursework, and technology as schools in more affluent areas. This disparity sets the stage for lifelong challenges in opportunity and mobility.

In healthcare, South and West Side neighborhoods report significantly higher rates of chronic illness, mental health concerns, and lower access to quality care. Food deserts—areas with little access to fresh, healthy food—are prevalent in many of these communities.

Gun Violence & Over-Policing Persist

Gun violence and over-policing remain persistent issues, fueled by decades of trauma and divestment. Incarceration rates are still disproportionately high for Black and Latinx residents, contributing to the disruption of families and communities.

The systemic challenges faced in Chicago today are not new. These challenges result from compounding injustices that have gone unaddressed for far too long.

How The 1937 Foundation Is Creating Change

At The 1937 Foundation, we’re committed to doing more than just talking about these problems—we’re actively working to dismantle the systems that uphold them. Our mission is rooted in justice, equity, and opportunity for historically marginalized communities in Chicago.

We take a multi-faceted approach to systemic change:

1. Community Investment

We provide direct funding and support to grassroots organizations, entrepreneurs, and initiatives working at the ground level to uplift underserved neighborhoods. From educational programs to small business development, we aim to help communities build sustainable, self-determined futures.

2. Storytelling and Education

Knowledge is power. We create spaces to amplify the stories of those impacted by systemic injustice—past and present—so that others can better understand the issues and join us in taking action. Through storytelling, we help reclaim narratives and foster deeper empathy and understanding.

3. Policy and Advocacy

We work with local partners to advocate for policies that address economic inequality, criminal justice reform, housing access, and education equity. Change doesn’t happen in isolation—it requires challenging institutions and systems to do better.

4. Youth Empowerment

Young people are the future of Chicago, and they deserve the tools and opportunities to lead. Our youth-focused programs prioritize mentorship, creative expression, and leadership development to inspire the next generation of changemakers.

5. Partnerships for Progress

Collaboration is at the heart of our work. We build bridges between community members, organizations, and allies who share our vision for equity and transformation. Together, we go further.

A Call To Consciousness—and to Action

Systemic challenges won’t disappear overnight, but with intention, education, and community-driven action—change is possible. Chicago’s history is painful, but it also tells a story of resilience, resistance, and rebirth. Every neighborhood has people working every day to build a better future. Our role is to listen, support, and stand alongside them.

The 1937 Foundation invites you to walk this path with us. Follow along with our journey, engage with our stories, support our programs, and consider where your actions can create ripple effects. Whether it’s learning more about Chicago’s history, volunteering, donating, or simply starting conversations in your own circles, your involvement matters.

We’re not just confronting the past—we’re building the future. A future where all Chicagoans have equal access to opportunity, security, and joy. Join us in that mission today.