This diary grows out of frustration with race, the President and economic policies. I want a frank discussion over his policies and race rather than a situation in which I feel like issues are being manipulated for the President's interest rather than those of the greater African-American communities in the U.S.
Toward the goal of frank discussion, I have included in this diary some basic economic data that you can use to understand why I find debates about racism that do not include the impact of the President's economic policies on African-African to be frustrating. Its like discussing the furniture while ignoring the 2 ton conservative elephant in the room.
I may, at at later date, write a deeper discussion of conservative economic policies such as neo-liberalism and race in both the U.S. and abroad. However, for now, I want to cover a few hot button economic issues that appear at Daily Kos as they related to African-Americans.
Foreclosure
"The study by the Center for Responsible Lending found that whites made up the majority of the 2.5 million foreclosures completed between 2007 and 2009 -- about 56 percent -- but that minority communities had significantly higher foreclosure rates.
While about 4.5 percent of white borrowers lost their homes to foreclosure during that period, black and Latino borrowers had 7.9 and 7.7 percent foreclosure rates, respectively. That means that blacks and Latinos were more than 70 percent more likely to lose their homes to foreclosure during that period, the study found...
Housing experts have pointed to a variety of factors to explain the disparity, including higher unemployment rates in minority communities and traditionally fewer financial resources for black and Latino borrowers to fall back on."
LINK
There are those who believe the foreclosure issue has nothing to do with racism. However, this argument is false. Research into the matter indicates that African-Americans are affected by limits in lending options that grow out of race. Even when credit worthiness and other contributing factors toward foreclosures are eliminated, the rate for African-Americans are still higher.
LINK
Here's the reality about just one of the President's programs, and its impact on African-Americans:
"According to NCRC's findings, white homeowners eligible for the HAMP program are 50 percent more likely than blacks to receive a loan modification, which can lower monthly mortgage payments and help homeowners keep their homes. Loan servicers, the poll finds, foreclosed on black homeowners who were late on their mortgage payments noticeably faster than white or Hispanic borrowers. The poll's finding here "suggests that lenders and servicers push delinquent Black or African-American borrowers into the foreclosure process much sooner than borrowers from other racial and ethnic groups." Black homeowners who did receive modifications also saw smaller reductions in their loan's interest rate—an average drop of 2.84 percentage points—than did whites and Hispanics—3.32 and 3.35, respectively. So telling is NCRC's finding relating to racial differences that the group calls for "fair lending investigations of [the] HAMP program and participating servicers."
LINK
This is part of the reasons I find it galling to read people defend the President's policies here as far as race is concerned. Racism exists. Guess what? His policies aren't helping to prevent economic racism. Now, I think that is a byproduct of the policies themselves. But, it doesn't change the fact that criticism of these programs and policies from a racial perspective is even more deadly serious than one would suspect. The proof is in the numbers above.
Savings for Retirement
As you may imagine, if the savings rate to overcome an economic downturn issues like foreclosures are s not enough due to racism, then, the impact regarding savings for retirement is also likely to be bad.
Here's a view from the upper income African-American earners:
"Regardless of age or income African-Americans and Hispanic workers contribute less often, and less money, to a 401k than white and Asian-Americans, according to a just-published study. Among the surprising findings: that African-American employees who earn $120,000 or more have saved $154,902 in their 401(k)s on average, versus $223,408 for their white counterpart—a $68,000 deficit that worries retirement experts.
“Without a significant effort to improve savings and investing behaviors, African-American and Hispanic workers are in danger of retiring into poverty,” says Mellody Hobson, president of Ariel Investments, an investment firm that sponsored the study along with benefit consultants Hewitt Associates."
LINK
Here's more on the subject of retirement:
"The report found that a typical white family had six times the wealth of a black family in 2001. And more recent surveys show the savings and investing gaps between blacks and whites continue. Even black professionals earning six figures fall short when it comes to building a nest egg ...
According to the 2003 Minority Retirement Confidence Survey, only 59 percent of African American workers say they have saved for retirement, compared to 77 percent of white workers.
One reason: The lack of access to employer-sponsored retirement savings plans, according to Dallas Salisbury, president of the Employee Benefit Research Institute."
LINK
When you read here discussion of the President's economic policy or racism, and no one seems terribly concerned about the fact that a conservative assault on Social Security will have a disportionate harmful impact on people of color, this should raise flags.
Here again is a policy discussion of the topic versus the rhetoric about "racism" you see at this site:
"Social Security is a critical program for African Americans. Some 4.8 million African Americans currently receive Social Security benefits, and African Americans benefit disproportionately from many of Social Security’s features, including a progressive benefit structure and survivors and disability benefits. Proposals to scale back the traditional Social Security system and replace a portion of it with private accounts are unlikely to maintain these protections for African Americans to the same degree. As a result, such a shift is likely to have an adverse effect on the African American community."
LINK
I encourage you to really read the above report. It covers the details in depth. Although the above report applies to attempts to privatize social security, it also applies, by logical extension, to attempts to shift the age at which one can obtain benefits and cuts in benefits. Here is more recent analysis on the subject:
LINK
Unemployment
Nor can African-American count on jobs to produce the income to fund retirement or any other economic needs:
"November's unemployment rate edged up to 9.8 percent, up from 9.7 percent in October. However, the unemployment rate for African-Americans is nearly double that rate, at just under 17 percent, the highest of any ethnic group in the country, based on recent reports."
LINK
That's right: 17 percent. If it's a jobs recession for Whites, its a jobs depression for Blacks. You will not see that by any of those who wish to defend the President's economic policies.
That's why you see criticism of the President's policies from the Congressional Black Caucus, Cornell West, Harry Belafonte and many others. They are looking behind the curtain to see the economic truth of the President's policies on people of color rather than relying on his race as a proxy.
Speaking of the CBC.
Tax Cuts
"The Congressional Black Caucus today said it is overwhelmingly opposed to President Obama’s proposed deal on tax cuts, with members criticizing the plan’s inclusion of an extension for high-income Bush-era tax cuts and an estate tax cut provision as a “bad deal for African Americans” and a scheme that “disproportionately hurts the poor.” At a press conference earlier today, Rep. Barbara Lee, the chairwoman of the CBC, emphasized the message she says she told Vice President Biden Wednesday that “the overwhelmingly majority of the Congressional Black Caucus members are opposed to the current tax plan.” “The vast majority of CBC members are opposed to the estate tax provision, and to extending the Bush-era tax cuts for the wealthiest two percent of Americans,” Lee, D-California, said. “We are extremely concerned that the cuts that could be made should this package pass would disproportionately hurt the poor, and low income communities and further erode the safety net. We don’t want to create a situation today that will exacerbate the conditions for Americans who are already hurting. That would be unfair and that would be unwise.”
LINK
This does not mean racism is a thing of the past. It exists. Its forms are complicated. The idea that we can come up with a simple rule as some suggests here to address it is dangerous. However, there are legitimate discussions, and there are attempts to silence discussions. If we are going to discuss racism, we must discuss the impact of the President's economic policies on African-Americans. He didn't create racism. However, his policies exist in the context in which racism exists.
The best thing that can be done is to be honest with the Black community. Explain why one has policy differences with the President. The solution is not to shut up about those policy differences. I trust that other Black people can think for themselves without me having to tip-toe around their feelings regarding President Obama. If I am wrong, that's fine. However, the alternative is that we all lose rather than some of us wins. Therefore, I would rather be wrong in trying to reach out to them with honest criticism rather than fearing that they are somehow incapable of such an exchange of ideas.