"The negro has been so busy doing what he is told to do that he has not stopped long enough to think about the meaning of these things. He has borrowed the ideas of his traducers instead of delving into things and working out some thoughts of his own:
Carter G. Woodson
Introduction To My Thoughts On The Question
There are symptoms of old problems in today's chaotic world brought on by Civil protest, high Black unemployment, and the COVID-19 Pandemic. If we are not careful, we will end up where the challenges put forth during these times will have gained roots to start again. The push for social and civil equality is most important, and all U.S. citizens are entitled to it. The current conversation is articulated as an expression that Social Justice will solve the Black-white economic issue. However, Black folk have been down this road fighting for the same and similar concerns before, namely civil rights, and here we are today, still deficient. Do we not find that the same modern problems are still being struggled with today, even with Black folks' gains in America?
Here we are in 2022, facing a newer version of the same issues, proving almost nothing has changed. Yet, we occupy important positions and can virtually go anywhere and do anything, even with challenges. However, our Black communities and the general Black population economically fall further and further behind.
Thought #One: Economic Status
According to the Brooking Institute: " Centuries of racism and discrimination mean that this divide is much wider for black households that are denied access to the opportunities and resources available to white households. "No progress has been made in reducing income and wealth inequalities between black and white households over the past 70 years," according to economists Moritz Kuhn, Moritz Schularick, and Ulrike I. Steins, who published a 2018 paper on U.S. incomes and wealth since 1949. The Brookings Institution points out that the ratio of white family wealth to black family wealth is higher today than at the beginning of the century.
How do a community and its residents build wealth without an enterprise base leading the way? Black people must overcome facts such as 18.2% of Black are unbanked, and 62% of working-age Black households do not have any assets in a retirement account versus 37% of whites. And challenges such as the median home value in U.S. urban neighborhoods that are less than 1% black is $306,000 — or more than double the median home value in more than 50% black ($149,000). Civil and Social improvement and protests are necessary, yes! Still, we must help our communities increase their wealth ratios. It is mandatory and vital that Black institutions begin providing the essential resources to improve the quality of life while simultaneously fighting systemic racism! Jobs are apparent but only part of a solution, not the answer.
Thought #2: Benefits Denied
Make no mistake; this country was built on economic wealth. Slavery was a part of the wealth-building system, and repression was about economics. Diversity is about economics (market share and competition). These realizations and the policies and practices of many past variations have been continually adjusted to keep our people in the same spot and undervalued. Variations include slave patrols, lynching, slave codes, Jim Crow, job discrimination, and housing differentials to today's prison-industrial complex. The Black community has been held back, and individual and community wealth opportunities have been held down. Every chance to grow Black wealth and support our self-determination has been dissipated. Examples are any Black Wall Street, i.e., Tulsa, Richmond, Raleigh Durham, Rosewood, all have been burned down or otherwise destroyed, or how designing the Eisenhower Interstates to go through the Black communities across the U.S. resulted in decimated Black markets and industries.
Thought #3: Stark Reality
Economic progress may be the most difficult challenge to overcome. It was and is the recognized basis for the success of this country. However, those majority-white businesses that led and led our communities are unwilling to share or reduce their hold on the local economy. For example, when the City of Atlanta implemented a "Joint Venture"(J.V.) program and ownership, the end game was to produce similar Black businesses. Joint Ventures are equity relationships. This program was soon ignored, and the more controllable sub-contracting program replaced joint venturing. This action reduced new business competition opportunities in most partners' marketplace. With subcontracting, the more significant white business can control who makes gains and who does not, thus maintaining the status quo. J.V.'s shared the profits after paying the subcontractors.
Another recognition must be made of the employment value of a Black business. Black companies are in the "essential business" arena in this COVID economy. Moreover, 41% of Black-owned businesses were closed during these times. A recent survey revealed that 35% of Black enterprises report worsening business conditions. These businesses naturally affect Black unemployment numbers with or without employees. One simple fact is that 66% of the employees of a Black company will be Black. Therefore, Black business closures and ultimate restarting are essential factors in the economic uplifting of their communities.
Coupled with the fact that the fault line between upper-middle-class Black people and lower-poor Black people has not only gotten more expansive, it has become a lightning rod when discussing Black economic issues within the Black community. This fact is further exacerbated by the newly-rich Black people who have made it and moved on. These folks have become accustomed to the system requirements of their positions. They end up practicing the ways of the taught systems to survive without thought. But as Carter G. Woodson famously said: "When you have successful Black people imitating whites and are considered successful in their eyes, nothing new is accomplished. You have a larger number of persons doing what others have been doing". Besides, we have made no demands on the younger and older generations, so we have a leadership gap and a communications problem.
Given that understanding, any attempt by Black people to underwrite their systems, such as healthcare, criminal justice, social services, or education, has been thwarted.
Thought #4: Undiscussed Hurdles
I offer a thriving Black community that is built upon 3 Pillars:
1) Economic Growth--Dynamic, innovative-led Black business. Businesses are grounded in job creation, public investment, and broad opportunity.
2) Economic Security--Protection for businesses, workers, their resident families, the environment, and community stability.
3) Democracy--Democratic voice, inclusivity, and accountability.
In other words, our communities and most Black people have gained nothing but mobility. We are still fighting for Democracy. What we have fought for and are still missing---BLACK ECONOMIC PROGRESS!
What I am afraid of is "Stakeholder Fatigue." Stakeholder Fatigue is when "People become tired of things that do not work." When we experience significant disappointments in our relationships, we become jaded and no longer objective about what happened. These emotions lead to feelings (often negative) that lead to actions associated with relieving the anticipated pain. They lose the enthusiasm to participate. "This lack of objectivity (created by past errors) impedes people from participating in future transactions or offers and must be addressed going forward. When an offer to the community uses familiar language associated with inactivity, loss, or waste of time, people will not actively engage with the offer due to "Stakeholder Fatigue.' I believe I see signs of this fatigue in people today. Signs that people are frustrated at the lack of progress and asking what to do next. They are so frustrated they end up asking themselves, why fight? Let's just join in and get along.
Another critical point is that all life and production systems are built upon an economic base in this country. At all costs, this economic base is protected by these same systems! No matter the type of system, there is money sharing that Black folk have not been a part of. For example, the Healthcare system has funds for personnel, hospital suppliers, insurance, equipment, drugs, etc. This money sharing provides other means of widening the wealth gap between whites and Blacks due to the absence of Black businesses within the industry. There are few significant Black players within these systems due to systemic or institutionalized racism and protectionism. These systemic economic opportunities must also be recognized and dealt with if a change is truly an opportunity rather than a discussion.
Thought #5: System Redesign To Increase The Resources For The Battle Ahead
Dr. Claud Anderson says, and I paraphrase: If we increase the individual and community wealth resources, we can begin to address controlling those social and civic systems that even today do not favor the Black community. They are first- Economics, second Politics, third- Courts & Police, fourth- Media, and fifth- Education.
This tells me that the systems through which program activity and spending exist were not designed with Black people in mind. Therefore, they must be redesigned to understand that "if it doesn't benefit the Black community, it doesn't benefit the city as a whole." Today's critical point of economics is the dividing line between winners and losers at the economic table. We must fight for our position at the table of economic recognition! If we win, our communities begin to win!
Thought #6: Achievement Through Planning
So, as we move forward with the battle surrounding economic, social, and civil equality, our systems' leadership must also add opportunities to create and sustain the wealth of our communities. They must design system responses that answer the following:
ü Are Black businesses marginalized?
ü What is expected of Black businesses, and how can they more effectively participate in the overall economic gains of the Metro Region?
ü What is this Black-dominated region trying to achieve over the next five years, and how can Black businesses play a role?
ü Does our Black-led City have a ten-year economic plan for utilizing and supporting Black and disadvantaged businesses—Not just contracting?
ü How can Black businesses be represented in regional discussions about growth and development? Or is it "Out-of-sight, Out-of-mind?"
ü Why did the entire process of minority contracting quotas fail? Legal technicalities can be overcome when there is a will to do so. Can they, or should they be reinstalled or redesigned?
Thought #7: Black Leadership Must
Black leadership must bring Programs and Outcomes into the modern era by doing such things as:
1) Changing the conversation:
· The old conversation around socioeconomic principles in the civil rights era is hard to accept. It appears to be an entitlement and infers gifts or support from others, not self-earned benefits. When using the language of economics, the production of a Value can be understood as how it brings good to the order of all accommodated. Economic attainment is war!
· New conversation –Changing the Paradigm must articulate the VALUE and economic benefits of supporting Black business. Those in power do not give up their money or the associated control. They must see the use.
o A different investment strategy positions Black businesses as important community economic engines driving community development because of their transactions.
o A Return-on-Investment Strategy (ROI) leading to an INHERITANCE for future generations and better communities.
· The acknowledgment that Black businesses produce economic returns. Economic returns that all parts of the community can recognize. The ROI approach recognizes that spending with Black Businesses is an investment, not an entitlement, with returns that lead to the achievement of Community Economic Value-Add (CEVA).
2) Developing a 5-10-year plan for Black business inserted into community development---what activities are needed to make a specific community healthy
· A Self-help determined strategy for improvement
· Utilizes the assets of the Black community to create economic activity
· Uses a Return on Investment (ROI) Economic Strategy
· Recruiting Black businesses is necessary to fill gaps in industries
· Uses Black Business as an Economic Engine
· Bringing together various community elements to create a community-specific strategy: Consumers, Black Businesses, Black Organizations, and more.
4) Promoting and educating the community on opportunities from within our Culture and Heritage (Tourism)
· Involve a broader community in understanding the economic benefits gained, in dollars and cents, of the Black community tourist dollar and their heritage.
· Ask Alabama if a Black tourism attraction can become a serious community income producer.
· Black tourism has the capability of employing those deemed unemployable
5) Leading Black businesses must become a voice for the community in other arenas and quit hiding in the bushel, afraid to ruin their business relationships with whites.
6) Clarifying Publicly Financed Projects, which at times "Rape" our communities by requiring:
· A need for ALL projects to be assessed to ascertain if they are delivering the promised community economic benefits and making the report public. Not merely signing on based upon vague promises and no penalties stated
· There is a need to design a process to deliver and measure specific community benefits.
· Cities to incentivize those attempting to create projects to develop Black business support programs for the local noncontracting businesses, for example, coaching emerging companies, supporting the local arts, or helping create relevant community organizations.
· The City helps supply the necessary businesses within a given community to help stabilize them and not allow the area to deteriorate.
7) Letting corporations know that merely contributing to the NAACP or Urban League and having a variety of diversity programs will not cut it! Blacks on Boards, but not in positions that produce systemic policy, are transparent and provide little Systemic change. They are expected to act! As Carter G. Woodson says, "When you have successful Blacks imitating whites and are considered successful in their eyes, nothing new is accomplished. You have a larger number of people doing what others have been doing."
Thought #8: That Ain't All
Further,
1. Black communities must recognize business development is a collaborative process. We must work with the white and other communities and their leadership. We must pay attention to everyone who contributes to the process, not just the entrepreneur.
2. Our Churches must use some portion of the $420B, since 1980, in tithes to encourage the 1.8M Black businesses to hire one person—the Black unemployment rate would drop 64%
3. Our HBCUs should actively seek ways to put more money into the coffers of Black businesses or create new ones in uncharted market territories. They should be leading the way in entrepreneurial preparation and development. Anything less than an all-out renaissance in Black business development only hastens our path to community marginalization and destruction.
4. Our business organizations must begin representing Black business in the business and public marketplace and lead the efforts to define growth and development within Black communities. Atlanta is the land of Black Milk and Honey. Still, one does not find too much milk or honey outside the local government. You cannot find a business community-appointed and accepted leader who is the "Go-To" representative.
The objective: To make our cities and their leaders understand the Value of their Black communities. Make Black businesses a part of the planned growth and development opportunities. With an intentional strategy of inclusion, these communities can contribute to the aggregate Value of the City, along with social and civic progress. Also, Black businesses' support and their communities must be understood that they are not an entitlement but an investment with a predictable return!
Epilog: The Future Challenge Will Not Be Pretty, but it's POSSIBLE!
In summary, even with the marching and protesting for social change. If we do not address the economic/wealth needs of the Black community, we will repeat history. The Black community will remain in its unvalued equity position or have lost further ground far into the future. This is not a good place for our children's children or a base for future leaders!
Remember--"You don't climb a tree to look for fish."
So let us go forward and utilize any method that enables everyone in the Black community to participate no matter where they live, work, or play. All people, businesses, and organizations can help raise the Black community's local exchange of dollars by installing the 5% Solution at a minimum!
With the 5% Solution, we oblige ourselves to:
1. Personally, I will SPEND 5% more with Black Businesses annually!
2. Black businesses & organizations SPEND 5% more with other Black Businesses!
3. Black companies GIVE 5% more to Black community organizations!
We are talking about OUR BLACK COMMUNITY MONEY and A BLACK COMMUNITY MARKET!! These are Our BLACK BUSINESSES, CONSUMERS, and INSTITUTIONS!! This is NOT A Set-Aside or Privileged Market!! This is NOT A SOCIAL PROGRAM or ENTITLEMENT!! Therefore We DO NOT NEED PERMISSION!! Why? Because We are Using our BLACK COMMUNITY ASSETS to establish the Value by helping vitalize the Black community and highlighting the importance of all Black communities as economic instruments.! We also must utilize our resources as a financial advantage to create competitive opportunities over other communities.
It has been said that people who pay their own way through college seldom flunk out!
"We must build a new visionary model to address Black community issues and Black Community Economic Development. Suppose something is not recognized as contributing to the community. In that case, it must be exploited and extracted from the offer, not simply accommodated because it was offered. Consider the source and the system utilized for involvement. Unless we create the systemic offer, it might be more of the same in a different guise.
This VISION…requires a total transformation of the current economic relations and a vastly different program than the traditional responses by city governments, local government agencies, and local fiscal interests, whose approach has resulted in economic development at the expense of the Black community. It represents the Black community regaining its ability to provide for itself and for this support to be undergirded by appropriate public and corporate participation. It also compels the Black community to spend and promote doing more commerce with Black businesses and industries as an equal opportunity to demonstrate the excellence within the Black community."
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