POST BY IFA SANGO
Contributor
Is there ? …. Should there be? … such a concept as Black Economics? Isn’t the paradigm of “Economics”, universal like music and science? Many of my African/American peers … “peeps” are asking these same questions. And, I’m happy to say that, they are acting on their conclusions in a way that I find very exciting. I find this exciting; because I’m seeking for either myself and/or other like minded “New Afrikans” the ultimate prize of SELF-DETERMINATION and ECONOMIC SELF-SUFFICIENCY. I say this in the interest of transparency about where I want to take these thoughts and what I’m attempting in inspire in others.
Let’s Begin. Economics is the exchange of goods and services between two or more people or providing for oneself. A lot has been made of the fact that spending power of the African/American community is around $1.2 Trillion dollars annually. Many say this would make us POTENTIALLY the Ninth(9th) most powerful nation on the planet.
If this is true, then why is our impact on domestic and world policy so minimal? Are we locked out? Or, have we failed to participate making us “minorities” by default? Because MINORITY status is more about economic and political IMPACT than about Race. Here’s a economic snapshot. The NET WORTH of the average African/Americans household is only 10% ($7,000) of the average White household in America ($110,000). Black land loss over the last the last few decades is also very significant. Black land ownership during the 1920’s was around 15 Million Acres, (mostly farmland) compared to 1.9 Million acres today. You can’t have REAL economic stability without land and resources. But some of us have jobs! Right? Hmmmm, African/Americans in the US labor force number 18.7 million people. But! Only .005% work for Black Businesses. (about one-half of one percent) If over 99% of Black jobs come from White America, we are in essence STILL SLAVES? I consider this a major reason for limits on the unity, and love in the Black Community. Yes!…Economic Oligarchy rules white America too. Which lead to the Rise of the “Occupy Wall Street” White rebellions. But this is about US!
And, when Blacks are in business, there is an imbalance in overall structure and composition. If one looks at self-sufficiency and our present capacity to TAKE CARE OF EACH OTHER;
Based on the chart below, ask yourself the following question.
Would Blackfolks survive an American economic meltdown? One that many well placed experts are predicting will ultimately happen.
If one considers Agriculture, Manufacturing, Construction, Financial Services as critical endeavors, you can see we are under-represented in the world economy. And, what are “OTHER SERVICES”?
Almost 20% of Black Business talent (Other Services) are in areas that may not strengthen our development as a people. This is OUR fault because our Black economic AGENDA is not recruiting the talent we need to revitalize the Black experience . People should be free to follow their business dreams as an entrepreneur. However, if the objective is to make money, we should help them make that money, by creating a sustainable economic SUPPLY AND DEMAND scenario. “Revitalization” .. does the Black community in America need it? I think so, with over 26% of Blacks in America living at or below poverty. What should be a BLACK ECONOMIC AGENDA ? That should be easy … The same economic agenda that others (like the Chinese, Germans, and Swedish people) have used.
* How Much Land do WE need?
* How Much food can WE produce?
* How Many Houses do WE need to Construct?
* What Manufacturing Operations should WE engage in ?
* How Many More Doctors do WE need in OUR community?
* Pan-Africanism …When and How?
* Blacks in Science and Technology. What’s in it for US ?
* Do WE have the ability and desire to create our own money and currency?
* Black Finance, Capital formation, and debt management.
Answering the questions above, while at the same time making Blacks in America the focus of those question, should create unprecedented economic growth if one uses the economic basics of supply and demand. Mobilizing those first one million Black pioneers will make it all happen. Since we live in a modern economic era, money will be needed to accomplish many of the above economic line items. Where can we get it ? In Part 2, I will outline economic details in much more dept. However, here is one idea.
As you know, a lot of that $1.2 Trillion dollars in Black spending power is tied up in debt, mostly consumer debt. This is why Black Banks and Credit Unions are so important. What if Black Banks United; creating a Black Central Banking System? They could buy all the Black notes held by commercial banks and Mastercard/Visa to Black people. Black Banks would pay off the outstanding balances and refinance those balances back to the Black community at lower discounted interest rates.
Example. Tyrone and Keisha each owe $10,000 in credit card, Auto, and other consumer debt. They each have accounts in “The Coalition” of Black Banks. They each are paying 23.8% interest to White Banking and Financial lenders, (18% – 23%) is typical for Black people, who are overcharged for everything. The terms are 60 monthly payments. The monthly payment at 23% would be $282.00 a month. If Black Banks come in and buy the notes to refinance that debt at a discounted rate of 11% Tyrone and Keisha would have a monthly savings of about $65 dollars a month. Now instead of popular commercial banks and Master Card getting all that money (interest payments) are now going to Black Banks. THIS WOULD TRANSLATE INTO HUNDREDS OF BILLIONS OF DOLLARS $$$ IN BLACK BANK WINDFALLS FOR RE-INVESTMENT BACK IN THE COMMUNITY FOR EXPANDED GROWTH, JOBS, AND BUSINESS OPPORTUNITIES.
BUT, THERE IS ONE CATCH! … Tyrone and Keisha will have to take the refinanced savings the banks have given them and open Three Accounts in the same bank, and it can’t be touched until after the 60 month refinance period matures. At the end of the 60 month period there would be a total savings on $3,900, divided equally between three(3) accounts would translate into about $1,300 utilized for the following purposes.
$1,300 Emergency reserve fund. (for family emergencies)
$1,300 Collective Real Estate Investment Fund ( REIT)
$1,300 Investment Purposes including Technology & Foreign currency (If the dollar collapses).
BUT WAIT ! …. THERE’S MORE …. EMAIL ME AT _ [email protected]
SUBJECT “Mo Money” for more details.
I hope, this sounds like a plan …. If so, Let’s make it happen.