Wealthy Democrats Are in Denial About Inequality – The Atlantic

The Democratic Party’s establishment is in denial about the ways in which concentrated riches are warping society and contributing to the disunity it seeks to heal.

” . . . Just as the 2008 recession ushered in the election of the first black president, a subsequent white backlash, and a rebirth of left-wing populism led by figures such as Warren and Sanders, the economic hardships of the late 1870s inspired both worker activism and racist retrenchment. In times of economic hardship, it was not a difficult matter to discredit Reconstruction as an attempt to raise ignorant black laborers above white men who were entrepreneurial, responsible, and refined. Nor was it difficult to justify government intervention on behalf of Big Business while condemning such intervention on behalf of workers. The rich, after all, had earned it, or they wouldn’t be rich.

Foner documents how former antislavery figures such as Horace White of the Chicago Tribune “condemned agrarian and labor organizations for initiating ‘a communistic war upon vested rights and property,’ and insisted that universal suffrage had ‘cheapened the ballot’ by throwing political power into the hands of those influenced by the ‘harangues of demagogues.’” Antislavery publications such as The Nation “linked the Northern poor and Southern freedmen as members of a dangerous new ‘proletariat’ as different ‘from the population by which the Republic was founded, as if they belonged to a foreign nation.’” With Reconstruction ended, capital took advantage of the stability of its aftermath to expand convict leasing, a new regime of forced labor that white southerners would impose to replace slavery and keep the region’s black labor force captive and subordinate. Big industries—lumber, railroads, mining, and others—would take eager advantage of this system of neo-slavery to boost their profit margins.

The end of Reconstruction coincided with the Republican retreat from civil rights. But that retreat was precipitated by deep-seated fears over workers in the North and South seeking labor reform, income redistribution, and regulation of industry. “The South sensed the willingness of Big Business, threatened by liberal revolt, labor upheaval and state interference, to make new alliance with organized Southern capital if assured that the tariff, banks and national debt, and above all, the new freedom of corporations, would not be subjected to mass attack,” wrote W. E. B. Du Bois in Black Reconstruction in America. “Such a double bargain was more than agreeable to Southern leaders.” Racism not only threatens democracy and prosperity; it accrues tremendous benefits for those already leading lives of plenty.

America’s political parties are now as polarized as they were at the end of Reconstruction. And just as at the end of Reconstruction, a multiracial party whose ranks include both frustrated workers and wealthy capitalists finds itself at a crossroads, with no certain options for healing the nation’s divides or its own. As ever, America’s gilded class regards the possibility of higher taxes and redistribution as a greater threat than a resurgent racist authoritarianism that imperils America’s still-young experiment in multiracial democracy. The latter, after all, does not jeopardize its profits.

Into this divide steps Patrick, a man who went from poverty on Chicago’s South Side to the heights of both business and politics, practically an avatar of the old free-labor ideal that animated the 19th-century Republican Party, an ideal whose blindness to how concentrations of wealth warp politics and society leaves it ill-equipped to deal with the threats to democracy and prosperity America currently faces. The paradox for Democrats is that the candidates who understand this appear less likely to prevail in the general election, and those who have yet to grasp it may be better positioned to unseat the president.
In Polarized America, Nolan McCarty, Keith Poole, and Howard Rosenthal argue that economic inequality and polarization reinforce each other. Economic suffering and ideology foment anger toward minorities, who are blamed for that economic suffering. The very wealthy exploit those divisions to sustain their streams of income, which in turn makes it less likely that redistributive legislation addressing that economic suffering can be passed . . .”

Source: Wealthy Democrats Are in Denial About Inequality – The Atlantic

How One Million Black Families Lost 12 Million Acres Of Farm Land In America [Report]

It is a shock to many that about 1 million Black landowners in the South of America have lost 12 million acres of farmland in the last 100 years. Even as we write this, we are shocked beyond reactions as to how a system can frustrate a people over the span of a century, without any plan to let go.

The loss of farmland of Black landowners started around the 1950s and has lasted to date. According to reports from The Atlantic, the black families which have lost their farms were victims of a war that is waged by the “deed of title” system which is said to be promoted by white racism/supremacy and local white power.

In our bid to dig into history to find the causes for Black poverty, economic and social decline, we find that Black people in America have suffered social injustice so much that it will take hard work (unity and power) for Black communities to rival white communities and businesses which are fed with finances of white privilege in America.

Our findings show that 98% of black farm owners in America have been dispossessed of their land. This is a direct indication of the systemic prejudice, and racial injustice perpetrated against the people of African descent in America.

History holds it that the vegetative and arable farmlands in the South of America, especially those along the Mississippi River, was forcefully taken from Native Americans, by the first Europeans who came to America. These Europeans would later venture into the enslavement of Africans for the cultivation of those lands. The Africans would later become owners of some of those lands after the abolishment of slavery and their emancipation.

A report by the U.S Department of Agriculture says that from the year 1900 till 1910, that there were 25,000 black farm operators. This figure increased by 20% in the space of those ten years. The report from ‘The Atlantic’ which we draw our information from, states clearly that the research was carried out on black farmland in the Mississippi area. The lands in question were found to be 2.2 million acres as of 1910. This number was about 14% of the total lands owned by Black people in America.

How Black People Lost Their Lands – The Plots And Twits

What was later realized about how Black people lost their lands was that it was somewhat a well thought out plan, and it was well executed over a long span of years. Some others would say that it was a collection of racist events that drove the wheel of white supremacy in one direction. Through legal, violent, and coercive means, the farmlands which were legally owned by people of African descent in America were transferred to white people. They started the land grab and transfer by aggregating them into large holdings, then aggregated them again, before attracting the profit-seeking eyes of ‘Wall Street.

The operation started with New Deal agencies in 19937. These agencies were federal agencies with white administrators, who were exceptionally targeting Black people. They denied Black landowners’ loans, and in turn channeling the sharecropping jobs to white people majorly. These agencies were systematically made to be in charge of the prices, investors, and regulation of the agricultural economy in America. This led to the failure of small farms and gave way for the rise of huge industrial mega-farms, which were formerly large plantations. The mega-farms and their new owners were then given the power to dictate and influence the policies of the agricultural sector.

 

The Black landowners suffered numerous illegal pressures through USDA loan programs. The USDA loan was originally designed to give rural people in America, an opportunity to take loan with zero down payment. It also offers low-interest-rate on the down payments.

Instead of these loans to be given proportionately to Black and white farmers, it was not. More white people got loans thereby frustrating the Black landowners and caused an enormous wealth transfer just after the 1950s. In a space of 19 years, black farmers had lost about 6 million acres of land by 1969. The effects were catastrophic on Black wealth. This saw a failure of half a million Black-owned farms across America. The cotton farms that were owned by Black farmers were almost non-existent at that point.

‘The Atlantic’ puts the loss of black farmers in Mississippi, to be around 800,000 acres, amounting to $3.7 billion (in today’s dollars), between 1950 and 1964.

The Legal Push To Grab Black Lands

Read the full article below.

Source: How One Million Black Families Lost 12 Million Acres Of Farm Land In America [Report]

Inside the “Most Incarcerated” Zip Code in the Country | The New Republic

Inside the “Most Incarcerated” Zip Code in the Country 53206, a heavily African American neighborhood north of downtown Milwaukee, suffers from all manner of ills—not least of which are the myths of criminality that continue to surround it.

Robinson’s family came to Milwaukee from Chicago in the 1980s because, as Robinson put it, “Chicago was getting out of pocket.” With crime rising and jobs disappearing in the Windy City, she told me, “my mom wanted a better place for us to live.” But Robinson’s mother could never have anticipated the crucibles awaiting her daughter in Wisconsin—the array of social and political deficits associated with the five numbers that came at the end of her listed address: 53206, now notoriously known as the most incarcerated zip code in the country.

The neighborhood’s rectangular outline sits like a brick just north of the Fiserv Forum, home of the NBA’s Milwaukee Bucks in downtown Milwaukee, where the 2020 Democratic National Convention will be held next summer. In addition to its high incarceration rates, 53206, a heavily African American district, suffers from every manner of social ill, from socioeconomic stagnation to poor health. The Democratic primary field is teeming with proposals to address these ingrained injustices, and the party’s eventual candidate will also have a personal incentive to pay attention to what is happening in 53206: Its residents, among others in Milwaukee, may well prove to be the key to Democrats’ hopes of winning the battleground state of Wisconsin and unseating Donald Trump in the presidential election.

As long as those residents can gain access to the ballot, that is.African Americans represent nearly 40 percent of Milwaukee’s population, but their political clout has been diminished by laws that suppress the black vote. There is also the problem of African Americans choosing not to vote: Black turnout in Wisconsin dropped nearly 19 percent between the 2012 to the 2016 elections—a clear sign that, despite their historic need to mobilize black voters, Democrats haven’t been meeting the challenge especially well of late.

Source: Inside the “Most Incarcerated” Zip Code in the Country | The New Republic

Bad Romance | Boston Review

Capitalism twists our God-given love for neighbor and world into a force of estrangement, and it transforms our God-given desire to work into forms of exploitation.

McCarraher contends that this whole story is disastrously misguided; it keeps us from seeing how capitalism functions, and why it continues to exert so much appeal. Disenchantment, he argues, never happened. Our world is still soaked with meaning, just as it was in the Middle Ages. We are not abandoned to a universe of moral relativism and nihilism, because capitalism and its prophets have offered an astonishingly stable set of alternatives. “Capitalism,” McCarraher insists, “is a love story.” What he means is that the market translates the poetry of our desire into the prose of institutions and exchange. (And isn’t this the structure of any love story, or at least those ending in marriage?) Our world, in other words, is just as “enchanted” as the one of our medieval forebears: the human frame is such that it could not survive otherwise. Capitalism offers us community, faith, ritual, nature worship, and everything else that we imagine in the enchanted worldview of the past.

The trouble is that it is black magic. It twists our God-given love for neighbor and world into a force of estrangement, and it transforms our God-given desire to work into forms of exploitation. The problem with capitalism isn’t that it lacks values, but that it values the wrong things. If McCarraher is right, the salvation we seek will not come through technological breakthroughs or even the creation of new political coalitions. The first order of business, he thinks, is to learn how to love again, and to love better.

Source: Bad Romance | Boston Review

Contract Buying Robbed Black Families In Chicago Of Billions | WBEZ

“The takeaway is that we have a history that so many Chicagoans are really not aware of that has really shaped the city and shaped the racial politics of the city. It shaped the economy of the city. In order to move forward and address issues that confront us in terms of poverty and racial discrimination, we have to have a common understanding of what happened in the past,” said Duke University’s Bruce Orenstein, the study’s project director who is doing a documentary series on Chicago’s housing segregation.That past has roots 100 years ago with white people not understanding that they created black ghettos, he said.”

Source: Contract Buying Robbed Black Families In Chicago Of Billions | WBEZ

INCREASING PUBLIC POWER TO INCREASE COMPETITION: A FOUNDATION FOR AN INCLUSIVE ECONOMY

INCREASING PUBLIC POWER TO INCREASE COMPETITION:  A FOUNDATION FOR AN INCLUSIVE ECONOMY

ISSUE BRIEF BY WILLIAM DARITY JR., DARRICK HAMILTON, AND RAKEEN MABUD
MAY 2019

Executive Summary

The United States needs an economy grounded in justice and morality, where everyone, free of undue resource constraints, can prosper. To achieve this, citizens ought to have universal access to undeniable economic rights, such as the right to employment, medical and health care, high quality education, sound banking and financial services, or a meaningful endowment at birth (Paul, Darity, Hamilton 2018). Currently, our system provides these rights primarily through the “free market” by private providers, but these private companies often fail to meet the following criteria:

•   Quantity: Are goods adequately supplied?
•   Quality: Are the goods high quality?
•   Access: Do people have adequate access to these goods?

Because of the failure of America’s markets-first approach to policy, the federal government should intervene by introducing public options that provide these essential goods and services in direct competition with private firms. Doing so will set “floors” on wages and quality and “ceilings” on price for private actors who are intent on providing important economic rights at a cost. In employment, this might mean providing a federal jobs guarantee (FJG); in financial services, this could mean access to bank accounts and safe, nonpredatory loans. Throughout this issue brief, we explore what public options might look like in employment, health, housing, education, and financial services. We argue that in these sectors, public options are necessary to combat high-cost, low-quality provision by private actors and ensure universal and better quality access to all Americans.

Full Report here.   https://rooseveltinstitute.org/wp-content/uploads/2019/04/RI_Increasing-Public-Power-to-Increase-Competition-brief-201905.pdf

CREATIVE COMMONS COPYRIGHT 2019 | ROOSEVELTINSTITUTE.ORG

The report features the work of OUR COMMON GROUND Voices, Drs. William “Sandy” Darity and Darrick Hamilton

Darity Hamilton

Establish a Public Credit Registry | Demos

 

 

“Credit reports and scores directly impact Americans’ economic security and opportunity. Credit history can affect the way Americans are treated by lenders, landlords, utility companies, hospitals and employers. Having a poor credit history or a “thin file” with insufficient credit information to generate a credit score can mean a consumer will end up paying more for loans and insurance (or have trouble even getting them in the first place). Misuses of credit history are prevalent and harmful: Job seekers can be denied work based on their credit history, and the Trump administration has even proposed using credit history to determine whether immigrants should be eligible for permanent residency. Most harmfully, our credit system is built on—and continues to reinforce and expand—deep racial inequities.  Generations of discrimination in employment, lending, education and housing have produced significant racial disparities in credit history. Past discrimination is baked into current determinations of creditworthiness: Credit scores and other lending algorithms disproportionately represent black and Latino loan applicants as “riskier” customers. As a result, decisions drawing on credit data reproduce and spread existing racial inequality, making it harder to achieve true economic equity.”

Source: Establish a Public Credit Registry | Demos