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.

Redefining & Rebuilding Main Street (Pt. 2)

Allot has transpired since part one of this series on rebuilding our communities. The global economy has been through an incredible series of events whose undulations have had far reaching effects. On one hand we can debate about who did what, when and how it was done and cast blame externally. However we cannot leave out the truth that putting our own selfish desires and having them in the mix with rampant temptation played a major role in this crisis. As a people we have been in the habit of having a false sense of priority when it comes to our spending habits and we’ve been sinning in the midst of abundance. At the end of the day, the rules of man will always fall in submission to the word of God. This crisis isn’t simply about the poor decisions of any administrations or the greed and corruption of high ranking executives in the financial markets.

Times such as these are centered on the fact that God is the source and he supplies our needs and that we’ve lost our focus. In a 21 century society, Christians included, we have taken on the position of being self sufficient. “I got it” has been the resounding theme from music to television and the portrayal of success in the business community. Shaking your head in disbelief? Let’s take a look at what has been transpiring over time. In part one of this article, we discussed specific areas that need to be addressed as a community, but now we’re going to address areas that need to be revealed individually. This is the time for reprioritization of self.

The Christian community outspends almost every demographic in the United States reflecting an increasing shortfall in the area of contentment. We’ve come to a place that has our fear of God being trumped by our fear of being without money and material things. We’ve become removed from the biblical accounts that define humility in finances. Instead some have followed the actions of the world and even those “Pas-stars”, whose actions and lifestyles are far from humble. Understand that there is absolutely nothing wrong with the economy if you understand that the Earth and everything in it belongs to God. Maybe God is taking a radical step to get the attention of his people in the one way that is guaranteed to do so. We’ve been idolizing real estate, vehicles, unreasonably expensive clothing and merchandise that our blessing of a job allowed us to buy. But we have a book full examples that show us how to do more with less and how if we come together we can do more than if we are separate.

In rebuilding our communities, we need to rebuild ourselves. Over the years I’ve run across many homeowners that were in such a rush to buy a large, beautiful home. Yet as time passed and the reality of homeownership sank in, I heard many of them say I wish I would have waited. I also heard them say, they weren’t ready. Growing up my parents always told me that my eyes were bigger than my stomach. I ate allot, not necessarily because I was hungry, but because great food was readily available. Many of us have made life changing purchases simply because we felt we could afford it and it’s available. We didn’t consider the long term effects of indulging our short term wants. We didn’t count the costs of ownership when we left the dealership in a brand new Chrysler 300 or BMW 3 series. We didn’t count the cost when we decided to get the 5 bedroom house versus the 2 bedroom condo. Though they may have costs the same price upfront, in both instances there is a severe difference in the cost of ownership.

At the end of the day, we need to adjust our own financial habits. One may feel that all the stars are aligned and the deal is so on time and that you have to make that purchase right away. We need to pause in the midst of our desires being tempted and ask for direction and guidance. Every analyst and tv commercial is telling us to buy, buy, buy. Buy a home because it’s the best time to buy. Buy a car, because it’s the best time to buy one. Buy stock because it’s the best time to do. The truth is, it’s anytime is the best time to buy real estate, automobiles and investments.

The question you need to ask yourself is whether or not it’s the best time for me. How will it affect my household, my finances, my piece of mind, if I do this now. You can never go wrong waiting if you’re waiting on god to tell you what to do. We need to develop a stronger ability to say no to the things we want and say yes to the things God has for us. As always, I welcome your thoughts and comments.

Thoughts on Unemployed Husbands

2.9 million Americans are out of work, so I know that somebody knows a family that is dealing with the husband being unemployed and the wife working. I've had the opportunity to speak with several men since June 08 on the topic of heading up their household in the times that they were unemployed. It's hard enough being a husband, an earthly provider to the physical and spiritual needs of your family. Being unemployed, adds an undeniable sliver of uncertainty and anxiety in the heart and mind of any man, but it's brings a different dynamic for husbands. I'd like to share with you those dynamics. Now fellas, keep in mind that I'm assuming that you know what kind of woman your wife is and what kind of husband you are. And ladies, vice versa.

My wife and I discussed and prayed over me stepping away from my previous employer for weeks. It wasn't easy to talk about for me because I know that a short or long employment gap would mean a that biblical fact and worldly ideology would meet at center field. 2 Thessalonians 3:10 states "that if any would not work, neither should he eat." Modern day thinking has taken this scripture, out of context to a degree and I'd like to present the complete picture so that we're either on one accord or you understand a different point of view on the matter.

At that time, the Thessalonians were being persecuted by their own countrymen for some time. Paul wrote to them twice, the second time to reinforce the necessity of the Thessalonians to live in ways that are pleasing to God. Some had stopped working because they believed that Christ was returning soon. Paul reiterated the signs of the coming of Christ and commanded the Thessalonians to stay away from any Christian who lives in idleness and that does not follow the new traditions of hard work. In verse 11, he states the very things that those that are not working SHOULD NOT be doing. Living idle lives, refusing to work and wasting time being all up in other peoples business. As a husband and wife, the two have become one. What I own, she owns. What I owe, she owes and what I earn, she earns, vice versa. Whether you agree with this is open to another discussion however the bible is the final word, Ephesians 5:31 to be exact.

The two shall become one. I along with the men that I've dialogued have all had different circumstances under which unemployment came about. Layoffs, downsizing, terminated and resignation. In all instances, the writing was on the wall and we were wise enough to have our households managed so that we can still be OK on one income. However, it's not easy seeing your wife off to work everyday, being her listening ear, her support, her rock, her chef and maid (if you're smart) and come face to face with denial letters, interview after interview and bouts of depression, uncertainty and fear.

We're husbands that are not living idle lives, we're certainly not refusing to work and don't have the time to be in any one else's business.

So can we eat or is it a problem for us to get a meal being unemployed husbands??

As always, I value your thoughts and feedback...

Rebuilding & Redefining Main Street Part 1

Allot has transpired since part one of this series on rebuilding our communities. The global economy has been through an incredible series of events whose undulations have had far reaching effects. On one hand we can debate about who did what, when and how it was done and cast blame externally. However we cannot leave out the truth that putting our own selfish desires and having them in the mix with rampant temptation played a major role in this crisis. As a people we have been in the habit of having a false sense of priority when it comes to our spending habits and we’ve been sinning in the midst of abundance. At the end of the day, the rules of man will always fall in submission to the word of God. This crisis isn’t simply about the poor decisions of any administrations or the greed and corruption of high ranking executives in the financial markets. Times such as these are centered on the fact that God is the source and he supplies our needs and that we’ve lost our focus. In a 21 century society, Christians included, we have taken on the position of being self sufficient. “I got it” has been the resounding theme from music to television and the portrayal of success in the business community. Shaking your head in disbelief? Let’s take a look at what has been transpiring over time. In part one of this article, we discussed specific areas that need to be addressed as a community, but now we’re going to address areas that need to be revealed individually. This is the time for reprioritization of self.

The Christian community outspends almost every demographic in the United States reflecting an increasing shortfall in the area of contentment. We’ve come to a place that has our fear of God being trumped by our fear of being without money and material things. We’ve become removed from the biblical accounts that define humility in finances. Instead some have followed the actions of the world and even those “Pas-stars”, whose actions and lifestyles are far from humble. Understand that there is absolutely nothing wrong with the economy if you understand that the Earth and everything in it belongs to God. Maybe God is taking a radical step to get the attention of his people in the one way that is guaranteed to do so. We’ve been idolizing real estate, vehicles, unreasonably expensive clothing and merchandise that our blessing of a job allowed us to buy. But we have a book full examples that show us how to do more with less and how if we come together we can do more than if we are separate.

In rebuilding our communities, we need to rebuild ourselves. Over the years I’ve run across many homeowners that were in such a rush to buy a large, beautiful home. Yet as time passed and the reality of homeownership sank in, I heard many of them say I wish I would have waited. I also heard them say, they weren’t ready. Growing up my parents always told me that my eyes were bigger than my stomach. I ate allot, not necessarily because I was hungry, but because great food was readily available. Many of us have made life changing purchases simply because we felt we could afford it and it’s available. We didn’t consider the long term effects of indulging our short term wants. We didn’t count the costs of ownership when we left the dealership in a brand new Chrysler 300 or BMW 3 series. We didn’t count the cost when we decided to get the 5 bedroom house versus the 2 bedroom condo. Though they may have costs the same price upfront, in both instances there is a severe difference in the cost of ownership.

At the end of the day, we need to adjust our own financial habits. One may feel that all the stars are aligned and the deal is so on time and that you have to make that purchase right away. We need to pause in the midst of our desires being tempted and ask for direction and guidance. Every analyst and tv commercial is telling us to buy, buy, buy. Buy a home because it’s the best time to buy. Buy a car, because it’s the best time to buy one. Buy stock because it’s the best time to do. The truth is, it’s anytime is the best time to buy real estate, automobiles and investments. The question you need to ask yourself is whether or not it’s the best time for me. How will it affect my household, my finances, my piece of mind, if I do this now. You can never go wrong waiting if you’re waiting on god to tell you what to do. We need to develop a stronger ability to say no to the things we want and say yes to the things God has for us.

© 2008 The Joseph Consortium, LLC