“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.”
. . . Between 1983 and 2016, the median net worth for Black Americans actually went down by 50 percent. Paired with a growing Latinx population that also lags far behind whites in household wealth, the U.S.’s overall median wealth trended downward over those decades, even as median white wealth increased.These trends go hand-in-hand with the rigging of the overall economy. Over the last 30 years, the wealthiest 20 percent of households have captured almost 97.4 percent of all increases in wealth, leaving only scraps for the rest.To repair these breaches — between Black and white, as well as between the rich and the rest — we must restore the wealth of communities that were literally used as a foundation of the nation’s wealth, while being prohibited from building their own.
As Ta-Nehisi Coates wrote in his groundbreaking case for reparations in The Atlantic, reparations are “the price we must pay to see ourselves squarely.”It won’t be an easy task. But it’s by no means insurmountable.”
INCREASING PUBLIC POWER TO INCREASE COMPETITION: A FOUNDATION FOR AN INCLUSIVE ECONOMY
ISSUE BRIEF BY WILLIAM DARITY JR., DARRICK HAMILTON, AND RAKEEN MABUD
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
The deep and persistent racial wealth divide will not close without bold, structural reform. It has been created and held in place by public policies that have evolved with time including slavery, Jim Crow, red lining, mass incarceration, among many others. The racial wealth divide is greater today than it was nearly four decades ago and trends point to its continued widening.
A group of “contrabands,” between 1861-1865. A stereograph showing a group of seven African American men, former slaves, dressed in old Union uniforms standing in front of a wagon and shack. (Library of Congress Prints and Photographs Division)By Gillian Brockell September 11, 2014On a rainy night in early 1865, Secretary of War Edwin Stanton arrived in Savannah, Ga. — which the Union had captured weeks earlier — with a question: What should become of newly free black people? It was a question that many in power had been asking for some time. What was different this time was to whom the question was posed: the newly free black people themselves.It was a visit born of a massacre about a month before, and it launched a debate that continues to this day.The issue of where these people should go had dogged Maj. Gen. William T. Sherman, too, as he marched through Georgia in the fall of 1864. Sherman had expected to pick up able-bodied black men to assist his troops (but not to join them; Sherman would not allow that). An unintended consequence of his scorched-earth policy was that all manner of freed slaves — including women, children and the elderly — abandoned the plantations and fell in behind him.More than 10,000 black refugees followed Sherman’s March to the Sea. That many mouths to feed would have proved challenging for a well-stocked force, but for an army that survived by foraging, it was nearly impossible. James Connolly, a 21-year-old major in the Illinois Volunteer Infantry (and future congressman), wrote that the refugee camps were so numerous that they often ringed the camps of the corps. The “contrabands,” as they were called, regularly wandered into Union camps to beg for food. And as Sherman’s force approached the sandy and less fertile Georgia coast, it became even more difficult to accommodate them.There was one corps, however, the refugees seemed to avoid: the 14th Corps, led by a brigadier general with a most unlikely name: Jefferson Davis. Davis — derisively called “General Reb” not only for having the same name as the Confederate president but also for his hatred of black people — had become notorious two years earlier when he shot dead a superior officer, Maj. Gen. William “Bull” Nelson, during an argument at a hotel. He escaped punishment only because the military couldn’t afford to lose an experienced field commander.Davis blamed the 600 or so black refugees following his unit for slowing down his 14,000 men in the closing weeks of the march. But from other accounts, it seems that the problem was the relentless winter rain. “At one time an officer counted 24 wagons sunk to their beds in mud,” writes Jim Miles in “To the Sea: A History and Tour Guide of Sherman’s March.” “He witnessed several mules sink out of sight.”Speed was vital. Davis knew that Lt. Gen. Joseph Wheeler’s Confederate cavalry was hot on their heels.For several days in early December, Davis drove the 14th Corps nearly nonstop, resting for two or three hours a night. One soldier reported falling asleep in the middle of “a fearfully hard march” and found himself in lock step upon jerking awake. Little more than coffee sustained them.On the night of Dec. 8, the corps arrived at the western bank of Ebenezer Creek. The bridge had been destroyed, in anticipation of their arrival, and the frigid waters had swollen to 10 feet deep and 165 feet wide. Scouts from Wheeler’s cavalry harassed Union troops in the rear.A pontoon bridge was in place by midnight, and Davis ordered the corps to cross the creek in silence and under the cover of darkness. According to Miles, a single Confederate cannon could have destroyed the bridge and stopped the entire corps, then only 18 miles from Savannah.But in this tenuous artery, Davis saw an opportunity.“On the pretence that there was likely to be fighting in front, the negroes were told not to go upon the pontoon-bridge until all the troops and wagons were over: a guard was detailed to enforce the order,” recalled Col. Charles Kerr of the 16th Illinois Cavalry in a speech 20 years after the incident. “As soon as we were over the creek, orders were given to the engineers to take up the pontoons and not let a negro cross. . . . I sat upon my horse then and witnessed a scene the like of which I pray my eyes may never see again.”Just before sunrise, the refugees cried out as their escape route was pulled away from them. Moments later, Wheeler’s scouts rode up from behind and opened fire. Hundreds of refugees rushed forward into the icy current. Several Union soldiers on the eastern bank tried to help, pushing logs out to the few refugees still swimming.Some of the refugees were crushed under the weight of the stampede. Most slipped under the water and drowned. Those who remained onshore were either shot or captured and re-enslaved.And when Wheeler’s men began shooting across the creek, the Union soldiers helping the black people were ordered to rej
(Photo by John Phillips/BFC/Getty Images for BFC/ Kevin Tachman/Getty Images for Vogue)
Black-owned cosmetics company Pat McGrath Labs lands a $60 million investment deal with Eurazeo Brands has put the two-year-old business’ valuation in excess of $1 billion. That accomplishment, according toWomen’s Wear Daily, launches her ahead of Kylie Cosmetics, a brand that Forbes controversially said put reality star Kylie Jenner on track to become the youngest self-made billionaire.
A press release issued on behalf of Pat McGrath Labs, which was founded in 2016 by the world’s number one makeup artist Pat McGrath, said the investment will build on the British brand’s success. It will also expand the company’s U.S. distribution to 90 Sephora stores in the fall as well as increase worldwide demand. Eurazeo Brands will become a minority shareholder in the company. Additional terms of the deal were not disclosed.
“It has always been my dream to create an iconic beauty brand that goes beyond the usual limitations, that lives outside the parameters of what is expected,” McGrath said in a statement of her company that swiftly transformed modern beauty with its must-have, straight-from-the-runway makeup experience. “I am thrilled to be working with the unique and expert team at Eurazeo Brands.”
Her brand has become a major staple at Sephora stores, where it’s available online and in 54 stores and became the top-selling SKU brand. It also has attracted more than 30 billion social media impressions since launching.
“The next phase is to continue our incredible trajectory,” McGrath told Fashionista of expansion plans. “We have been so blessed to have such an engaged and passionate customer base and the aim is to continue to provide them with more groundbreaking, straight-from-the-runway products and a makeup experience that they cannot get anywhere else. I get so much joy and satisfaction when I see how much our loyal customers love the products, it fuels us to come up with even more innovative creative ideas.”
Baby Bonds: A Plan for Black/White Wealth Equality Conservatives Could Love?
Darrick Hamilton calls for spreading the benefits of asset-ownership to all Americans.
The inheritance of black poverty: It’s all about the men
Black Americans born poor are much less likely to move up the income ladder than those in other racial groups, especially whites. Why? Many factors are at work, including educational inequalities, neighborhood effects, workplace discrimination, parenting, access to credit, rates of incarceration, and so on.
Black men, stuck in poverty: Chetty’s latest
But gender is a big part of the story too, as detailed in a new paper from the Equality of Opportunity Project, “Race and Economic Opportunity in the United States: An Intergenerational Perspective” by Raj Chetty, Nathaniel Hendren, Maggie Jones, and Sonya Porter. As always, there is a huge amount of data and analysis in the new paper. But the big finding is that race gaps in intergenerational mobility largely reflect the poor outcomes for black men. The report is another contribution to the growing literature showing that race gaps in the intergenerational persistence of poverty are in large part the result of poor outcomes for black men.
“We conclude based on the preceding analysis that the black-white intergenerational gap in individual income is substantial for men, but quite small for women. It is important to note, however, that this finding does not imply that the black-white gap in women’s individual incomes will vanish with time. This is because black women continue to have substantially lower levels of household income than white women, both because they are less likely to be married and because black men earn less than white men.” (p. 23)
In an attempt to estimate the impact of different marriage rates, Chetty et al. calculate the intergenerational mobility rates of black and white men raised in both single parent and married families, and find little difference. As they conclude, “parental marital status has little impact on intergenerational gaps” (p. 25).
In a new paper published today, we examine the same question in a different way. (See our longer Technical Paper here, and full Results here). We confirm the stark differences in upward earnings mobility for black men compared to both black women and whites. We also confirm that black women, despite their solid earnings mobility, have very low family income mobility. We then estimate the impact of racial differences in marriage rates by simulating higher marriage rates among black women: like Chetty, we find no significant effects.
Specifically, Chetty et al. show that black men born to low-income parents are much more likely to end up with a low individual income than black women, white women, and—especially—white men. As they write:
Black and white Americans, on different starting blocks
Black and white children are born into very different economic circumstances. Almost half of black boys and girls are in households in the bottom fifth of the income distribution, compared to just over one in ten white children:
There are, then, huge race gaps in the chances of being born to or raised in a poor family—gaps that were scarcely lower among children born in the early 1980s than they were among those born in the years around 1960. But what about the chances of escaping poverty as an adult?
Gender and race gaps in upward mobility
Using data on 4,200 black and white Americans from the NLSY97, we find that over half (54 percent) of black men born into households in the poorest fifth of the family income distribution end up, as individuals, in the poorest fifth of the earnings distribution for their respective gender, between the ages of 28 and 35, compared to the minority of white men (22 percent), white women (29 percent), and black women (34 percent).
In terms of their individual earnings, black women have similar odds of escaping poverty as white women, though both these groups lag behind the upward mobility of white men. These analyses don’t consider the income of other family members, however. What happens when we look instead at adult family income, as opposed to individual earnings? A very different picture emerges for black Americans:
Black women face a very high risk of being stuck in poverty (62 percent), surpassing even the 50 percent risk faced by black men. For whites, the odds of remaining stuck in poverty remain relatively low, for both men (28 percent) and women (33 percent), when we use a family income measure.
The headline finding here is that, among those who grew up poor, black women are the only group showing a marked difference between the risk of being in the bottom quintile of the individual earnings distribution (for each gender), and the risk of being in the bottom quintile of the family incomedistribution (for the whole age cohort). Whites do well on both counts; black men do poorly on both counts. Black women do reasonably well on the first and very poorly on the second. This result is probably driven by the fact that black women tend to create families with black men who do poorly on both counts and thus bring down the family income results for black women.
Lower marriage rates aren’t hurting black mobility
Why? Various explanations could be given. The most obvious is that, assuming marriages or cohabitation mostly occur within racial groups, black women’s family position is damaged directly or indirectly by the poor outcomes for black men. If white women end up with white men, who in terms of their earnings are more than twice as likely to escape poverty as black men, their family income will be higher. Equally, if black women are more likely than white women to end up as single, they will also record a lower family income.
We set out to model the impact of household formation by artificially equalizing the marriage rates of black women and white women. The results will of course depend not just on whether they marry, but also on whom they marry. In our simulation, we assume that the additional women who are married have a husband with the same economic characteristics as their brother (see the Technical Paper for our detailed methods). The intuition here is that most people are likely to marry someone with a broadly similar background as themselves, and siblings, by definition, have an almost identical one. The results of this equal-marriage-rate simulation are as follows:
Help black men to help black families
Our results strongly echo those of the Chetty team. So what conclusions can be drawn? Chetty’s team are blunt, writing that “the key to closing income disparities for both black and white women is to close intergenerational gaps in income between black and white men.”
This is certainly one of the most important implications of both their study and our own. Breaking the cycle of intergenerational poverty for black Americans requires a transformation in the economic outcomes for black men, particularly in terms of earnings. One important point here: the relationship between earnings and marriage runs in both directions. Married men tend, other things equal, to earn more: one study of identical twins suggests that being married raises earnings by one-fourth. Married men may feel more responsibility to provide economically for their families, and especially their children. Low marriage rates may therefore have some impact on earnings.
It is also clear that the vast inequalities by race cannot be alleviated by upward mobility alone. Black girls are, relatively speaking, more likely to move out of poverty in terms of their own earnings. However, we should keep in mind the sheer number of black children being raised in low-income households in the first place. Closing the race gaps in upward mobility will require wholesale shifts in economic outcomes, perhaps above all for men’s earnings.
Scott Winship is a former Brookings Institution fellow, now at the Joint Economic Committee. His contributions to this report ended before he took his current position. The authors did not receive financial support from any firm or person for this article or from any firm or person with a financial or political interest in this article. Winship is an honorary advisor for the Foundation for Research on Equal Opportunity and the Archbridge Institute. Other than the aforementioned, the authors are currently not an officer, director, or board member of any organization with an interest in this article.
Students in Detroit Are Suing the State Because They Weren’t Taught to Read
CARLOS OSORIO / AP
What to do when a school is infested with vermin, when textbooks are outdated, when students can’t even read? Perhaps the answer is sue the government.
That’s what seven students in Detroit have done. Their class-action suit filed against the state of Michigan asserts that education is a basic right, and that they have been denied it.
The lawyers filing the suit—from the pro bono Los Angeles firm Public Counsel—contend that the students (who attend five of Detroit’s lowest-performing schools) are receiving an education so inferior and underfunded that it’s as if they’re not attending school at all. The 100-page-plus complaint alleges that the state of Michigan (which has overseen Detroit’s public schools for nearly two decades) is depriving these children—97 percent of whom are students of color—of their constitutional rights to liberty and nondiscrimination by denying them access to basic literacy. Almost all the students at these schools perform well below grade level in reading and writing, and, the suit argues, those skills are necessary to function properly in society. It’s the first case to argue that the U.S. Constitution guarantees the right to become literate (and thus to be educated) because other rights in the Constitution necessarily require the ability to read.
Jani Tillery thought she would be a homeowner by now.
Her parents bought a house in the Detroit suburbs in the late 1970s while living on a modest income. Her mother was a teacher. Her father worked in the automotive industry. They raised their children in the house and paid off the mortgage. They will probably live there in retirement and possibly pass the house — not only a home with rich sentimental value but also a sizable financial asset — on to their children.
Tillery, 42, hoped this would finally be the year she, too, could buy. She’s a lawyer at a nonprofit in Washington, and she recently got a promotion and raise.
Yet, she says, this part of the American Dream seems out of reach for her, as it is for many other African American workers despite notable strides in other aspects of their finances.
In many ways, African Americans have regained the ground lost during the financial crisis. Many are finding jobs and getting raises.
But the holy grail of homeownership remains elusive. Forty-three percent of blacks owned homes in 2017, according to an annual report from the Joint Center for Housing Studies of Harvard University. In contrast, 72 percent of whites did, a gap that has mostly widened during the past three decades.
“The overall frustration is, I am a working citizen. I pay my taxes. I’m doing a job to help kids,” said Tillery, whose nonprofit helps children with disabilities. “It’s better for me to own a home. I’m 42. I don’t want to continue renting.”
There aren’t many homes in the area that fall into her price range of $200,000 or less. When she sees a listing she can afford, she either loses out to a buyer who will pay more or waive contingencies or learns that the property isn’t approved for Federal Housing Administration mortgages, which she is relying on because they require lower down payments than conventional loans.