Understanding The Black Economy Pt. 2

Our communities were suffering many financial disparities well before the rest of the country declared that all of us are in a recession. Many of us have been in a recession for generations and that unfortunate fact is why we have come together. Our communities need an opportunity to be educated on the underlying and generational financial issues that concern us the most. There has been a major mis-education in regards to the black economy and how our financial system works and many of us have come to realize that the black economy is not rooted in Wall Street.

The legacy of the African American leaders of past generations is one of strength, fortitude and faith. Everything they stood for and at times sat down for could have cost them their lives and for many, it did. They were selfless and gave themselves for the sake of the generations that will continue to come well after their moments of remembrance have passed. Their contributions changed history for those who have come to walk in the trails they blazed. It was for our sake that they braved unthinkable horrors that had no promise of reward. So as we stand on the brink of celebrating the first black history month with an African American president at the helm of this great country of ours, and as we prepare to navigate through this socio-economic mess, we must ask ourselves; for whose sake have we given our contributions and what is the new promised land that we working towards? In other words, where are we going and who are we going there for?

To answer this we must first establish our starting point and acknowledge exactly what we are facing as our challenges.

Challenge number one is Health & Insurance. The Black community has gone from fighting for equal rights as Negro’s to fighting against self segregation as African Americans. Our families have been mutilated through the exploitation of drugs, sexual immorality, derogatory music and dishonorable lifestyles, to the point that over 90% of African Americans are blood related to a current or former drug abuser, alcoholic, sex offender or ex-offender. As a people, we are at the gold medalists of every major deadly disease list that no one wants to be on. We haven’t embraced the full value and cost of being healthy and understanding the importance of insuring every area of our households.

Challenge number two is Saving & Investing. Black America makes up the world’s number one supply of resellers and not originators of products, ideals and cultural practices. In light of the current economic situation, we found ourselves making financial decisions that we knew should not have been made. We bought vehicles and homes we had no business purchasing. We bought $500 handbags and didn’t have $5 left to put in them, bought $400 shoes and walked to the bus stop because we couldn’t pay the car note on time, bought $300 video games but didn’t purchase life insurance, spent $200 on a date, but didn’t pay child support for the month, bought $100 tie to wear to church, but couldn’t pay tithes. The average African American household not only does not save, but spends over 1% beyond of its income, creating a constant cycle of increasing debt. The average African American household net worth is $6,000 versus the average Caucasian household of $88,000. We have some work to do if before we can claim that the dream has been realized. Until there is economic equality, the dream will not be realized.

Challenge number three is Retirement. For many of us Social Security is a line item on our paystub. For others it’s a life line to surviving in these economic times. I liken Social Security to gravity. You don’t need to understand how it works to feel its effects. Come 2018, the Social Security Administration will begin paying out more in benefits than they take in as revenue. This fact may be accelerated due to the massive unemployment numbers of which the SSA is receiving less income from FICA tax revenue. Disability insurance, Medicare for those 65 and older and state run Medicaid programs are essential to the survival of the community. Our seniors are our history; the voices of wisdom, the lives that helped shape the lifestyles and opportunities that we are able to enjoy today, whether or not we take advantage of those opportunities. The only guarantee that we have is that we are one day older than we were yesterday. For those who are fortunate to see those days turn into years, we must do all that we can to educate and support their consistency of living and when needed, the increase in standard of living. In reality, living on $1,500 a month isn’t a goal that any of us have in mind for our retirement and our golden years. Yet too many us will experience the tarnish and oxidation of unmet expectations if we do not choose to take action on every financial level of our lives to work towards a better legacy and it’s never too late to do so.

I find that there isn't much difference between post-Egypt Israel and the 21st century African-American community at large. We were delivered into a new land called Equal Rights, a land flowing with free speech, the right to worship and the right to vote. The blood of men like Dr. King, Nelson Mandela and Malcolm X has stained the gateway to this land. And unfortunately, like Israel, we didn't think to capitalize on what we truly had from the onset. We have become the greatest spenders of all time with the least ownership of any race. We possess an unprecedented 90 billion dollars in spending power as a community. Yet 1910 seems to be the magic number. Only 45 years after the 1865 abolition of slavery, land ownership among African Americans was 19 million acres with over 40% being heir property. By 2005, with the highest number of African American millionaires and billionaires in history, our total land ownership dropped to 7.7 million acres and 80% of the heir property owners having no plan for property succession. Those 7.7 million acres represents 1.0% of land ownership in the United States.

President Barack Obama may or may not be around 50 years from now. Attorney General Designate Eric Holder may or may not be around 50 years from now. In 2008 alone we lost many great community leaders here in Metro Atlanta. Who will our children be speaking of that made great sacrifices for the issues plaguing the African American populous? Whose names from this generation will be etched into history and printed in the textbooks that our grandchildren will read about? Who will be a source of inspiration to a college senior yet to be born into the earth? We have received an awesome blessing in a true American President. However, one man cannot stand alone to be the one glimmer of hope and change for our community.

S.F.