An ideal community that is free of poverty or suffering is a utopia. An economically powerful Black community is thought of as a utopia where the imagination of achieving such empowerment is considered as a thought experiment. However, progress will start with such wishful thinking(an idea/ imagination). When it comes to wealth generation, black families need to have generational wealth, which will act as an indicator of economic security. The financially independent community has better education, has emergency savings, prioritizes having a stable source of income, and have an actual plan for the retirement.
The black community has economic dependency rather than economic empowerment when it comes to wealth, considering the community has made no progress in the last 50 years. Federal Reserve’s Survey of Consumer Finance research indicates that a typical black family has 10 cents for every dollar that a typical White family holds. This disparity in wealth accumulation sheds light on how the Black community lags in terms of economic development. By 2020, a black individual is 2.5 times likely to be in poverty, forcing them to rely on welfare programs such as Food Stamps and Housing Assistance in US or income support in the UK. Black communities’ families living below the federal poverty level indicate that they cannot afford a nutritious diet, better healthcare, or the ability to enroll their children in school.
3 Systems that hinder
Other than inheritance and short of winning the lottery Some of the faster ways to generate wealth is by having a consistently high income or multiples income streams coming in from various business or investment activities however
Economic empowerment for the Black community has struggled to achieve these things as it has had to navigate through historical injustices such as racial-divides or bad policies which have led to black people being denied many of the tools that others, have used to thrive and generate significant wealth.
In addition to this, racial inequality in the work place means that black people are less likely to get hired for those higher paying jobs. Research by USA Today indicates that the black community in Milwaukee, Wisconsin, has an unemployment rate of 13.9% while that of the white population is at 3.9%. In addition to this Discriminatory lending practices that still exist today have contributed to income and wealth segregation. A typical black household in Milwaukee earns $29,928, while white households has an average of income over double at $66,097, indicating the wealth gap between these communities.
- Economic theory Explained
How do we change things? Well first of all we need to look at what an economy is and how it works
So, what is an economy? An economy is basically made up by the total amount of buying and selling that goes on within it.
What helps the economy to grow? well the more money that is spent within an economy, the more likely the economy is to grow; so, in short, the total spend within the economy is what drives it.
So, what’s wrong with the black economy?
Well since total spend drives the economy the more money spent the more the economy grows the fact that the black economy has not made much progress in the last 50yrs this is a major indication that money spent withing the black economy doesn’t stay withing the black economy for long. The actual exact amount of time that money spent within the black community stays there is unknow however some sources estimate that it may be anywhere from 6hours to a few days. This makes it difficult for businesses to grow, and improves the quality of goods and services, create jobs or even give back to the community (By….). In light of this compelling case can be made to support black businesses.
Research shows that if consumers within the black community were to spend just 10 percent of their total spending — with black companies this could create almost a staggering 1 million new jobs.”
Whereas that same 10% spent outside of the black community could have some very different results. As some private corporations and financial institutions have been known to invest this money in unethical practices like building private prisons which have a direct conflict of interest with the black community as despite making up only 13% of the US population black people make up almost 40% of the total inmates in prison population.
So, you may be wondering how do we grow the black economy well,
We firstly we need to understand what a market is and how they work.
All the buying and selling activity that happens within an economy is separated into things called market
And so, a market is a way to categories the buying and selling of a particular item.
So… you might have a meat market, a fish market or jam market or perhaps coffee market.
In order to grow black economy, we first need to create business that serve these markets. So, this could be a business making jams or baked goods like breads cakes and pies or even accessories basically all the things that are needed within the black economy
So how do we change things?
Well First of all for any economy to thrive it will need to have a number of healthy markets that cater to the needs of communities and beyond.
Therefore, we will need to have a stake in:
- Ethnic hair and beauty products
- toys, games
- Women’s fragrances
- whiskey, wine, and beer
- Feminine hygiene
- Men’s toiletries
- Soaps and bath products
- Meat and fish
- Juices and drinks
- Spices seasonings and extracts
- Bottled water
- Insecticides and repellants
- Shortening oil
- Household cleaners
- Charcoal logs & accessories
Tech repair and maintenance
Business that sell and distribute these goods like grocery stores
We also going to need a strong services sector to support the black
Internet and web services
- Example/case study of a community that does this successfully
Some of the world’s fastest growing economies have used these types of strategies to successfully overtake some of the world largest economies
- What this means for the individual
So once the black economy is doing well this means that the family who used to depend on government subsidies and food stamps has been able to grow their business employ people from the community take some time of enjoy a holiday or two with as a family buy a few nice things and even have some money left over for savings.
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