“You can’t talk about solving the economic problem of the Negro without talking about
billions of dollars.... [W]e are treading in difficult waters, because it really means that we are
saying that something is wrong... with capitalism. There must be a better distribution of
wealth and maybe America must move toward a democratic socialism.”— Malcolm X
Interdisciplinary changes within our evolving society has fostered a modern examination highlighting the mass corruption of black bodies and experiences in America. This is superseded by previous historical examinations stemming from the nation’s tumultuous political legacy of redlining. This is concurrent to a longstanding grapple with the economic development, freedom, empowerment, and radicalized interests of black Americans; a recurring American pastime. Overcome by exploitative measures, this conceptual issue not only calls attention to the enduring impact of redlining, but the perpetuation of systematic racism in this country. On the grounds of white supremacy, race, and ethnicity, they simultaneously represent a structural foundation for the adversity that prevails within contemporary politics. Particularly as it pertains to economic disempowerment and equality in housing and real estate.
In acknowledgment of America’s perplexing history, black Americans' rights to fully express their freedom and autonomy have continuously been obstructed and not fairly recognized. As it regards their economic rights and liberties, black Americans have not had equal economic rights and liberties as compared respectively to their white counterparts. Enlisting the placement of responsibility upon black Americans' generational endurance in a life of poverty and instability. But rather than examining and understanding a simplistic analysis between black/white relations— it is pivotal to recognize the subsequent economic disadvantages that conceptualize the fate of black suffering at present.
Historically, systematic issues such as redlining and discriminatory lending practices have created barriers for the economic advancement of black Americans. These factors have resulted in a cyclical pattern of poverty that has been passed down through generations. Leading to the detrimental socio-economic landscape plaguing black communities and resulting in poignant developments such as the #BankBlack movement. A movement that emerged to dismantle this systematic barrier and work towards fostering an equitable environment for the generational wealth and stability of the black American community.
The term redlining was used during the 1950s by the U.S. government to explicate surveyors that graded neighborhoods from different cities in America based on a color coded system. The color green was referred to as “best’, the color blue was referred to as “desirable”, the color yellow as “declining” and red as “hazardous.” Thus, the areas that were “redlined” were discounted as credit risks for their hazardous nature, largely based on the racial and ethnic demographic groups that comprised those neighborhoods. These areas were not seen as desirable and were more or less considered to be “a detraction from the value of the area.” Therefore, the economic downfall of black Americans is made possible by a futile political climate.
A climate that simultaneously negates economic policy and shapes the economic success for all demographic groups that comprise America. Regarding the absence of generational wealth that stems from historical injustices, opportunities for financial stability within this community have been hindered. This is supported by the lack of resources along with limited access to well-paying jobs and business opportunities that exacerbates all forms of economic hardships. However, significant amounts of political determinants inherently impact the economic advantages that are available to the black community; where political and economic power are synonymous as it pertains to influence and control along with decision making authority. Political power often translates into a decision-making authority that allows groups to shape laws, policies, and regulations— whereas economic power similarly provides control over decisions that influence production and distribution. Additionally, both economic and political power involve the ability to influence and control resources. In politics, power is exercised through government, laws, and policies, while in the economy, power manifests through control over financial resources and markets. Consequently, the lack of resource further deepens the barrier that exists between white and black Americans and establishes a common thread of economic inequality.
Prior to the 1950s, the policies associated with redlining have created numerous hurdles for Black Americans entering the real estate market. Homeownership is coined as the number one method for groups to accumulate wealth in America. Consequently, racial discrimination in mortgage lending during the 1950s has shaped the wealth patterns of Black Americans today. A study by the National Community Reinvestment Coalition shows that 75% of the neighborhoods that were “redlined" approximately 80 years ago still maintain their economic struggle. The findings from this study implicate some of today’s most infamous political debacles over banking, housing, finances; planting intersectionalities that connect back to the civil rights movement.. This is evident as the role Congress plays is vital to the withstanding power held by the government to implement fair-lending requirements for housing that either weaken or strengthen residual patterns. Access to capital and credit have proved to present lasting effects on the economic growth and accumulation of wealth in households.
A soaring racial wealth gap continues to perpetuate economic disempowerment , as white Americans have nearly quadrupled the net worth of black Americans. Despite the Fair Housing Act that banned racial discrimination in housing, the Federal Housing Administration has institutionalized the system of discriminatory lending for housing. Cities that host more neighborhoods populated by minority residents show signs of greater economic inequality, falling in the lower-middle percentile income. Contrarily, the neighborhoods that host predominantly white residents remain in the upper-middle percentile for income. This applies on a state to state level within other various cities towards the south—from Denver, Montgomery, to Michigan.
A solution to desegregate the problems stemming from economic disempowerment is seemingly the #BankBlack movement that has gained momentum in recent years. The movement whose motto is “make your money do more” was formed given the legacy of black communities subjected to limited financial services and capital directly connected to indicators of poverty, income, or lack of homeownership. Inasmuch, black communities, and black Americans as a whole have been plagued by the injustices of economic inequality for centuries—from the segregation and rise of black wall street, collapse of economic powerhouse Greenwood, to Dr. Martin Luther King Jr. and the bank-in movement. #BankBlack aims to create transparency while eliminating bias as it regards ownership of black-owned financial institutions. By harnessing the economic power of the collective, banking black has the opportunity to facilitate change within Black communities. That is to go far beyond the promotion of financial advocacy, but to undo the economic disempowerment spilt into the DNA of previous generations in order to close the substantial racial wealth gap.
At the outset of economic inequality and injustice for black Americans, from the opposing view, a book by George Parkin Grant, English Speaking Justice offers the conceptualized meaning of modern justice as perceived by white Americans. Grant takes their conception of equality into a justice meant to be prescribed as an applicable and meaningful meditation for the minority— but he reaches the conclusion that it may be inevitable:
“How, in modern thought, can we find positive answers to the questions: (i) what is it about human beings that makes liberty and equality their due? (ii) why is justice what we are fitted for when it is not convenient for White property interests? Why is it our good? The inability of contractual liberals (or indeed Marxists) to answer these questions is the terrifying darkness which has fallen upon modern justice”
[p. 86 ; Grant, G. P. (1985) English-Speaking Justice. Notre Dame, IN: Univ. of Notre Dame]
To suggest that such an economic calamity exists given the topic of black/white relations, the interplay between power, politics, economics, and race— concern “the terrifying darkness which has fallen upon modern justice.” This segment undeniably supports the economic disempowerment of Black Americans. But it is also evident that both liberals and Marxists have failed to address their economic exploitation. Despite advocating for social justice and equal opportunities, liberal policies don't go far enough in dismantling structural barriers that contribute to the economic disparities that exist. Additionally, from a Marxist perspective which focuses on class struggle and the critique of capitalism, addressing the economic exploitation of Black Americans would require the restructure of the entire economic system. This is because Marxist solutions often promote practical challenges that would hinder the relief in economic struggle for black Americans. Nonetheless, there are distinct strategies to address their economic exploitation that are seemingly complex and multifaceted from various perspectives.
Although belatedly conceded, the very obvious implications that contribute to black suffering simply cannot be challenged. While differences in opinion may prevail as it regards the specific economic factors, policies, and political power as reasons for the disempowerment— the outcome is unmoving. It may very well be a plethora of economic processes in addition to those that knowingly exist, but the exploitation of black Americans as forces of economic inequality and disempowerment are now beyond dispute. As a collective, in order to dismantle the economic exploitation of black Americans, it is necessary that we advocate for the protection of stakeholder interest with initiatives such as the #BankBlack movement. Black Americans should have equity and ownership of initiatives that are aimed to uplift them. Without these protections the cyclical pattern of instability will have the opportunity to perpetuate these communities.