Backtalk T
PATRICE ONWUKA / GUEST COLUMNIST Reforms, Not Reparations
he news cycle has been littered with talk about reparations lately. The concept of cash transfers to every descen- dant of slaves in America is no longer a pipe dream
of a few disillusioned academics on the periphery but a mainstream policy idea now being debated in California. Now, the Biden administration is lending credence to
the reparations movement by revising census demographic questions to segment the Black population between those who are immigrants, or descended from immigrants (like this writer), and those who trace their ancestry back to American plantations. We must ask a fundamental question: What outcome do
they seek with reparations? If the goal is ensuring that everyone has equal access to opportunities and economic mobility, a massive cash infu- sion may not be the right solution. Reparations will not wipe poverty out for good or make
the generational fi nancial situations of the most disadvan- taged Black Americans materially better in the long run. If that were the case, fi ve decades of government cash and
non-cash transfers would have eliminated ghettos and other impoverished areas ages ago. Government policies have a debilitating impact on the
economic prospects of Black Americans that reparations won’t solve. Smart reforms can empower individuals without further
dividing Black people from white people and even among each other. California has pioneered a reparations task force to help
the state compensate Black residents for past racial animus and continued injustices. Black residents comprise about 6.5% of California’s popu-
lation, and their household median income is $63,000, below the state median income of $83,000. A reparations plan would be staggering. San Francisco is considering paying Black residents
$5 million each as well as a guaranteed income of at least $97,000 and personal debt forgiveness costing each non- Black family at least $600,000. Economists estimate that Black residents statewide are
owed $800 billion — more than 2.5 times the state’s annual $300 billion budget — for overpolicing, housing discrimina- tion, and disproportionate incarceration rates. Add to that a recommended $1 million per older Black
resident for poor health outcomes. All of this cash would only be an “initial down payment,” suggesting a never-ending gravy train. The fi nancial implications of sinking the state’s entire
98 NEWSMAX | MAY 2023
budget (and likely some from the federal government) into reparations are nightmarish. In turn, the businesses and residents that would fl ee Cali-
fornia because they could not aff ord or would refuse the tax increases would drain the state of taxpayers, employers, and economic activity. Cash alone will never solve the fi nancial issues that Black Americans face, and it can trigger new problems. These payments would create the same kind of disincen-
tive to work that excessive stimulus checks sparked during the pandemic. Without fi nancial education to make good choices, that money will quickly be spent.
E
nergy should be directed at encouraging work and removing obstacles from an individual experiencing
economic mobility. That begins with a solid educational foundation. If 67% of California’s Black children do not read or write
at grade level and just 77% of Black students graduate high school, Black kids are already set on a downward trajectory. Investing in educational choices and programs that help
those struggling to catch up is critical. Next, these kids must be enlightened on fulfi lling and lucrative careers that do not require a four-year college degree. Encourage schools and businesses to partner in provid-
ing hands-on learning, training opportunities, and post- high school vocational programs that open up pathways to millions of middle-skilled occupations. States like California and private employers should audit
their positions to remove college degree requirements from positions that simply do not need them and instead focus on skills and experience. In addition, excessive occupational licensure is a costly
and time-consuming hurdle for many minorities to work in particular career fi elds or start their own businesses. According to the Institute for Justice, California is the
third most burdensome state for these government hurdles. In some occupations, those with criminal records are
unfairly prohibited from even obtaining a license, especially in fi elds unrelated to their previous criminal activity. Want to address recidivism? Start by giving people a
chance to work. By pursuing smart reforms, from education to the work-
force, we can unleash opportunity for all disadvantaged Americans without triggering the unintended consequences that will only set them back further.
Patrice Onwuka is a political commentator and director of the Center for Economic Opportunity at the Independent Women’s Forum.
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