June 2016


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Socioeconomic Development of African Americans: An Exploration of the History, and a Prescription for the Future


BY RAE WILLIS


Bois once said, “There


W.E.B. Du exists


today a chance for [blacks] to organize a cooperative State within their own group. By letting Negro farmers feed Negro artisans, and Negro technicians guide [black] home industries [black]


and thinkers


plan this integration of


while artists


cooperation, [black]


dramatize


and beautify the struggle, economic independence


can


be achieved. To doubt that this is possible is to doubt the essential humanity and the quality of brains of the [African American].” What Du Bois is describing is a system of collective economics, in which African Americans support each other as business owners and consumers for the benefit of the entire race.


Today, African Americans face


many of the same economic issues that they faced a century ago, not to mention the long road that separates the Black community from the day of racial equality in the justice system. Economic empowerment of African Americans is the most effective way to uplift the race, and eradicate racial injustice in the United States. African Americans’ constant state of socioeconomic inequality in this country has been a hurdle for centuries, but we can overcome these challenges by finding strength in cooperation, and embracing collective economics, and investing in ourselves.


There can not be racial equality


in the United States, without socioeconomic equality, and the current economic state of African Americans’ is bleak to say the least. Though the United States is becoming more diverse, minority groups face steep economic disparities when compared to Whites. According to Forbes Magazine, a typical Black household has about 6% of the wealth found in a white household: $7,113 and $111,146 respectively. Economists agree that the main cause for this disparity is a lack of access to wealth building opportunities and resources, like owning a home, which is the biggest asset for most Americans. 73% of White Americans own a home, compared with 45% of African Americans, and on average Black homes are worth about $35,800 less than White homes. Mortgage discrimination has had an impact of African Americans being able to get these homes; African Americans that obtain mortgages have higher interest rates (Shin, n.p.). Financial institutions like Wells Fargo have admitted to steering Black borrowers into subprime mortgages but had offered White people with similar credit backgrounds


prime mortgages, as recently as 2012 (Shin, n.p.).


Despite the fact that studies


show that entrepreneurial success is a major contributor to the economic empowerment of local communities, less than 7% of all small owned businesses are owned by Black people, even though we account for 13% of the population. African Americans are more likely to start a business that Whites, but that business is more likely to go under once it is started (Kennedy, n.p).


Another economic issue facing


African Americans is that once we attain money, we do not hold on to it. According to the NAACP, when a dollar comes into an Asian community, it circulates within that ethnic economy for a month, in a Jewish community the circulation lasts approximately 20 days before leaving, and for White communities, it’s 17 days. An African American dollar only stays in the community for about 6 hours (Kennedy, n.p). This is the most damaging disparity so far, and the one that we, as Black people, should focus on, because it is the statistic that is totally and completely within our control.


In addition to poverty, there are


many other side effects of economic inequality. A broken justice system is one of those side effects. We live in a capitalist society that respects money, and those who have it. For example, if you are Black, you are 32% more likely to be stopped by the police. Poor people have to rely on public defenders, and the bail system is set up to penalize the poor (Quigley, n.p.).


Health disparities are another


side effect of economic inequality. According to the Center for Disease Control, though Blacks account for about 13% of the US population, we make up and about half (49%) of the people who get HIV and AIDS. And African Americans do not live as long as other races with the disease. Twice as many African Americans die from heart disease each year, when compared to Whites. Blacks are 1.5 times more likely to have diabetes


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than Whites. African Americans have the highest rates of obesity in the


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country, and the list of disparities goes on and on.


Education problems are also a


major side effect of economic inequality. In 2012, African American students were over three times as likely to attend a school where less than 60 percent of teachers meet all state certification and licensure requirements (Lindsey, n.p.). In addition, according to Essence Magazine, “If the endowments of all 105 HBCUs were added up, they'd still amount to less than 10 percent of Harvard University's endowment” (Lindsey, n.p.).


Throughout history, African


Americans have used economic cooperation as a tool for uplifting the race. As 21st century people of color, we can look to the past as a guide to overcome economic inequality, and eradicate racial inequality. The economic activities of African Americans date back to slavery. The book “Collective Courage,” by author and African American scholar Jessica Gordon Nembhard, details the economic practices of African Americans in the 18th century and beyond. The book explores how marginalized Blacks were able to work around cruel, unjust and racist systems, that denied them access to basic goods and services, to help each other in a “boot-strap” manner (Nembhard, n.p). This research confirms the belief that African Americans adopted collaborative economies as


DEVELOPMENT PAGE 10 HRM's Photos of the Month


◄ Congratulations to Kenneth Alexander on becoming the first African American mayor of the majority African Ameri- can city of Norfolk. In this photo, Alexander speaks with Reginald McDonald on election night.


▼ The Hampton Roads Messenger recently host- ed a career and business opportunity fair in NC.


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