Another fantastic posts

Jobs / Workers / Unemployment

Black Workers at Risk for ‘Last Hired, First Fired (Federal Reserve Bank of Dallas)

Governor Raimondo (Rhode Island) announces $45 million, first-of-its-kind workforce development initiative to get people back to work (Operation Hope Press Release) – Using CARES act money, they guarantee a job at the end of training.  Only 7,000 people though.

Ivanka Trump’s Find Something New career campaign is more hype than help (Washington Post) – by Michelle Singletary.  We ask ourselves everyday: “Are they really that incompetent?”  And every day they answer with a resounding “Yes we are.”

Top Black Economic Stories for the Week of July 27th to August 2nd

We have 76 stories this week related to Black Business or Black Economics. We also have our first editorial, at the bottom, urging a NO vote on California Proposition 22.

Top Stories

  • Does $600 a Week Make People Shirk? The Evidence Is No (Bloomberg)
  • Coronavirus could widen black wealth gap (Washington Post) – Michelle Singletary
  • Business Owners Talk About Triumphs, Challenges As National Black Business Month Begins (CBS Chicago)
  • US Gross Domestic Product (GDP) fell 9.5% in the second quarter (Bureau of Economic Analysis) – The US GDP dropped by 9.5% in the second quarter.
  • Discussion of Residential Segregation (CNN) – Nice, long well sourced article.
  • Meet the 29-Year-Old Woman Running One of the Most Successful Black-Owned Airlines In The World (Essence) – In the Bahamas.
  • California’s Black Winemakers Navigate the Barriers of a Lily-White Industry (Mother Jones) — Can’t publish without a Black wine story.

Jobs / Workers / Unemployment

  • Black Workers at Risk for ‘Last Hired, First Fired (Federal Reserve Bank of Dallas)
  • Governor Raimondo (Rhode Island) announces $45 million, first-of-its-kind workforce development initiative to get people back to work (Operation Hope Press Release) – Using CARES act money, they guarantee a job at the end of training.  Only 7,000 people though.
  • Ivanka Trump’s Find Something New career campaign is more hype than help (Washington Post) – by Michelle Singletary.  We ask ourselves everyday: “Are they really that incompetent?”  And every day they answer back with a resounding “Yes, Yes we are.” Read about the latest example.

Coronavirus / COVID-19

  • COVID-19 Pandemic Hitting Low-Wage Workers Hardest (Urban Milwaukee)
  • US: Covid triggers a boom in debt collection (Verdict / Cards International)
  • State Unemployment Officials Unite Against Wage-Replacement Plan (Bloomberg Law)
  • Black Neighborhoods Miss Out on Stimulus and Fall Further Behind (Bloomberg)
  • Does $600 a Week Make People Shirk? Evidence Is No (Bloomberg)
  • Coronavirus could widen black wealth gap (Washington Post) – Michelle Singletary
  • Coronavirus causes a new gentrification crisis (Washington Post)
  • The pandemic may cause 40 million Americans to lose their homes (CNBC) – Just 26% of African Americans are confident they can continue to pay rent.  Good video on how evictions work.
  • WATCH NBC4 Report: Los Angeles Sentinel Closes Office Due to COVID-19 Diagnosis (LA Sentinel)
  • The Greater Milwaukee Foundation is promising $30 million for an ‘equitable economic recovery’ from coronavirus (Milwaukee Journal Sentinel)
  • Protecting American Consumers in Crisis (Center for American Progress) – The CFPB should be more active during the Covid-19 crisis.
  • Marcio Rubio Stresses the Importance of Capital Access for Minority Small Businesses (Florida Daily)
  • The Coronavirus Pandemic Has Intensified Systemic Economic Racism Against Black Americans (New Yorker) – Good summary of where we are. By Steven Greenhouse, ex-labor reporter for NY Times.  Yes, there used to be reporters that covered labor and worker issues. Ha, ha.
  • What is a phase III drug (vaccine) trial? (FDA) – It a trial with 300 to 3000 diverse volunteers to check if the drug works in a large population, check for side effects and check for long-term issues.

Protest

  • SF Mayor Breed’s Proposed Budget Redirects $120 Million From Police to City’s Black Community (KQED)
  • San Francisco: Roadmap To Guide Transformative Change And Investments In African-American Community (SF Patch)

Black Business

  • Uncle Bobbie’s opened to build community. Now that community is helping it reopen (Philadelphia Tribune) – Someone broke in and robbed Uncle Bobbie’s in Philadelphia. Twice.
  • Business Capital, Knowledge Remains Out Of Reach For Many Minority Entrepreneurs (WBHM – Birmingham Public Radio) – Discusses the general Black business climate and entrepreneurs learning from each other.
  • Organizers expand ‘BlackOut Tuesday’ into a monthly event in Carbondale (Southern Illinoisan)
  • New Black-owned businesses emerging in NC despite COVID-19: Kenan-Flagler expert (WRAL TechWire)
  • Race in America: Diversity in Corporate America (Washington Post) – Long interviews with John Rogers of Ariel Investments. Lots of interesting business details. Rogers seems to be the most prominent Black business leader in the media these days.
  • Philadelphia Based Black-led Private Equity Fund TPP Capital Seeks One Billion for Black Health (BusinessWire PR)
  • California’s Black Winemakers Navigate the Barriers of a Lily-White Industry (Mother Jones)
  • Business Owners Talk About Triumphs, Challenges As National Black Business Month Begins (CBS Chicago)

Hispanic / Latino Business News

  • Recession Led by Services Sector Is Particularly Painful for Latino Workers (Wall Street Journal) – A lot of personal service jobs performed by Latino women are hurt by Covid-19.  Cleaning, restaurants and elective surgery services are way down.

Small Business

  • Small business funding sources amidst the COVID-19 pandemic. (CreditCards.com) Small-business owners are leaning on credit cards to survive (American Banker) – Thirty (30) percent said they received a PPP loan/grant and 24% said they used credit cards or a business savings account.
  • One-Third of New York’s Small Businesses May Be Gone Forever (NY Times)

Big Business

  • Super-sized racism: former McDonald’s execs strike back in explosive race discrimination lawsuit (North Dallas Gazette) – Good detailed piece on a discrimination law suit against McDonald’s filed by two Black women former executives.
  • Good Quote: “For those that did take a strong position, it was, and is, important that it was for the right reasons and not seen as capitalizing on a sensitive issue,” said Katie Harvey, CEO of KGB Texas, a San Antonio firm.
  • Assets no more: Racial justice risks in municipal bonds (Generocity) – This is kind of unique.  They are arguing racialized policing puts municipal bond holders at risk in three way: Over spending on prisons, fines as a revenue source and police misconduct settlements.

California Proposition 22

Please read the news summaries before reading the description and editorial.

  • Proposition 22: Employee classification (Politico)
  • What is proposition 22? (Ballotpedia)
  • What is AB5? (Ballotpedia)
  • Fight for Uber and Lyft Drivers to Remain Their Own Bosses Heats Up as November Vote Approaches (Richmond Pulse)

In September 2019, the California Assembly passed assembly bill AB5 which would classify most independent contractors as employees. 

The classification is based on how “independent” the workers actually are: are their working conditions largely determined by the company, do they control when and where they work, and do they have multiple clients.

Large “gig-worker” companies like Uber, Lyft and Doordash opposed the bill beliving it would hurt profits. They said it would also reduce employment and raise prices for services for consumers.

Proposition 22 would overturn CA Assembly Bill 5. AB5 was passed in September 2019 without an exemption for app-based services like Uber, Lyft and DoorDash.  The big companies have pledged $110 million to pass proposition 22 and stop AB5.

Some Black business and contractors have tried to rally support for Prop. 22.  The California State NAACP and the California Black Chamber of Commerce support the measure.

  • The National Black Chamber of Commerce also endorsed Proposition 22 (NBCC) – The editorial is called “Ridesharing is the Path to Wealth”

The Sacramento Observer, a Black newspaper, published an independent editorial by the President of CA national Action Network supporting Proposition 22.

  • Proposition 22 Protects Independent Contractors (The Sacramento Observer) — The editorial’s author is Dr. Tecoy Porter Sr. who is president of the California State National Action Network.

Sports and Entertainment

Straight Up Econ

  • US Gross Domestic Product (GDP) fell 9.5% in the second quarter (Bureau of Economic Analysis) – The US GDP dropped by 9.5% in the quarter compared to last quarter (Q1/2020) and 9.5% against (Q2/2019). What’s interesting is that Personal Income is up 7%, Transfers from the government are up 75% and Personal Consumption Expenditures are down 10%.  So with all that money coming in and not being spent: Savings is up 200%. 
  • GDP drops by 33% Annualized (CNBC)
  • Powell Says Fed Lacks Tools for Fighting Black Employment Gap (Bloomberg)

Interesting People

  • Meet the 29-Year-Old Woman Running One of the Most Successful Black-Owned Airlines In The World (Essence) – In the Bahamas.
  • 7 African American Designers on How They’re Pushing The Design Industry Forward (Interior Design)

Careers

  • Blacks, Latinos feel unwelcome in STEM careers. And that’s a big problem for our economy. (USA Today)
  • Arts2Work: New program aims to help people of color find media jobs (Philadelphia Tribune)

In passing

  • Herman Cain, Ex-CEO of Godfathers Pizza and Former GOP presidential candidate dies of COVID-19 (AP News)

Inequality / Structural Racism / Positive Action

  • ‘Too little, too late’: Why BET’s founder doesn’t like Joe Biden’s plan to tackle inequality (Yahoo Finance)
  • Want to fight racism? Break out of your school network (Greensboro News and Record) — “Dream Hoarders,” Richard Reeves
  • The Universal Income Grant: An old idea that may have a new impetus in South Africa (Daily Maverick, SA)

Desegregation / Integration / Race / Class

Editor’s Note: We are providing extra coverage of Trump’s Racial appeal to suburbanites. Residential segregation based on race and income is one of fundamental problems in the US. It limits access to jobs, networks, schools, parks and neighborhoods with a higher quality of life. Suburbanites are hoarding opportunity and transferring difficult problems out of their neighborhoods all while paying less proportional taxes.  They are shirking their responsibility for major problems in society by limiting integration and affordable housing in the suburbs.

  • Discussion of Residential Segregation (CNN) – Nice, long well sourced article.
  • Trump in trouble revisits his tried-and-true — protecting your neighborhood from ‘them’ (RollCall)
  • Seeking Suburban Votes, Trump To Repeal Rule Combating Racial Bias In Housing (NPR)
  • What Trump’s Campaign against ‘Abolish the Suburbs’ Was Actually About (Bloomberg CityLab)
  • Trump’s tweets about saving the “Suburban Lifestyle Dream,” explained (Vox)
  • A Brief History of Housing Discrimination in Fullerton and North Orange County (Fullerton Observer) – It would be great if every community research a similar article. It answers the question: “Oh but I didn’t personally benefit”

Real Estate / Gentrification/ Evictions / Urban Planning

  • Chicago develops local grocery store to help a neighborhood (Bloomberg CityLab) – Not sure what they are doing at this location when they have a Whole foods five blocks east in Englewood Square at 63rd and Halsted.
  • Freed Slaves Built Dallas’ 10th Street District. Gentrification Threatens To Tear It Down. (Spectrum Local News – Dallas)
  • ‘The early warning signs are not pretty’: Eviction Lab researchers study end of federal moratorium (Daily Princetonian)
  • Urban planning as a tool of white supremacy – the other lesson from Minneapolis (Minneapolis Post)

Government – Federal / State / Local

  • Lack of aid to states could hit Black and women workers hard (marketplace.org)
  • A Blueprint for Revamping the Minority Business Development Agency (Center for American Progress)
  • City of DeSoto, TX takes aim at increasing minority business opportunities (North Dallas Gazette)
  • St. Louis unveils plan to attract more residents, investments in the city (KSDK – St. Louis) – A heavy lift. Includes closing the wage gap between Black and White residents plus adding 35,000 new people to the city.
  • Proposed Oakland Tax Hike Concerns City’s Office Sector (BisNow) – This is another tough one. Cities need to raise revenue without driving away businesses. Now with Covid-19.

Politics

  • Joe Biden’s plan for economic racial equity (Joe Biden) – We have to use direct quotes because the language is non-specific and word-smithed.  It says “  Collectively, Biden will leverage more than $150 billion in new capital and opportunities for small businesses that have been structurally excluded for generations.”
  • Joe Biden’s Racial Economic Equity Plan Would Invest $150 Billion in Minority Businesses (The Black Chronicle)
  • Biden proposes Fed focus on closing racial wealth gaps (Yahoo Finance)  — Actually, fairly interesting since fed does not have this role now. Plan actually calls for more reporting of activities by race and income. The Fed will also report what they are doing to close gaps in jobs, wages and wealth.
  • Slotkin Secures Funding to Revive Annual Report on Systemic Racism in Michigan (Slotkin.house.gov)

Reparations

  • Exclusive: Bob Johnson lays out his solution for wealth inequality (Axios)
  • As Redress for Slavery, Americans Oppose Cash Reparations (Gallup) – Sixty seven percent oppose direct cash payments.  Democrats are evenly split on reparations.  The issue was so important to Gallup that Mohamad Younis wrote up the survey results.
  • Reparations for slavery: Is Asheville a national model? (ABC News)

Conservative / Alternative

  • Five reasons economic inequality remains all-American (NY Daily News)

History

  • Polling: Most Americans say the legacy of slavery still affects black people in the U.S. today (Pew Research Center) – Sixty Three Percent (63%) of people in the survey believe slavery has impacted Black people in the US.

Education

  • Report finds a drop in Black enrollment at most top public colleges and universities (Hechinger Report)
  • Medical Schools Need to Get Better at Addressing Structural Racism (Scientific American)

Science

  • Racial disparities in innovation (Nesta UK) – Good report on small numbers of Black scientists and inventors.  References Lisa Cooks paper.
  • What is a phase III drug (vaccine) trial? (FDA) – It a trial with 300 to 3000 diverse volunteers to check if the drug works in a large population, check for side effects and check for long-term issues.

Black Economic and Business News Editorial

AB5 is great legislation.  Proposition 22 is raw, naked corporate power.

Black Economic and Business News supports AB5. AB5 is a natural legislative exercise to check corporate power over gig economy workers.  Society has an interested in protecting workers pay, benefits and working conditions.  There needs to be a basic floor of acceptable conditions that define a job and when companies fall below that floor, government must act.

Corporations have long classified some workers are temporary or brought in experts for very specific jobs.  Companies have always rented talent or expertise for things like IT, design, HR or legal.  Then in 1990, Prahalad and Hamel promoted the concept of “Core Competency” and many companies outsourced all non-core activities. Millions of “non-essential” employees lost their jobs.  Worker incomes stagnated. Corporation increased their profits and power. The country has never been the same. 

One consequence of outsourcing was an explosion of part-time, freelance independent contractors called “gig” workers. These workers were employed on an as need basis by companies and were paid piece rates or job rates rather than actual wages. They receive few benefits. They don’t pay or receive unemployment insurance.

But, then along came Uber, Lyft, Doordash, Amazon Delivery, Seamless and Instacart where the business model was based on using huge large numbers of “independent” contractors.  These workers are not really independent because the company controls all of the working conditions. The company decides when and where they work, how they dress, and how they perform the work. The company treats them like employees except when it comes to wages, benefits and taxes.  

During the creation of AB5,   The App-based companies ask for special treatment under the original bill but were unable to come to agreement.  During the negotiations, they threaten to fund proposition to over turn the law so they could force the legislature to back down.  When they could not reach agreement, they put Proposition 22 on the ballot and pledged $110 million to support it.

These same companies have a long record of high fees, low wages and abusive employment practices.  Their Prop. 22 ad campaign uses many of same people (hostages) they have treated poorly in the past. It also threatens job losses like a union busting campaign. What they are really afraid of is CA AB5 setting the standard for the rest of the United States. Treating workers better would affect their profits.

Some argue that AB5 will reduce contractor unemployment or lead to higher consumer prices.  Both effects exist but are tiny compared to the benefits the workers will receive. The employment effects are close to zero: nobody’s meal or package is going to go undelivered. The consumer price effects would be in pennies. But the upside is, AB5 also gives workers higher pay, more benefits, collects unemployment taxes and supports possible future unionization of the workforce.

Companies have used phony “independent contractors” to cheat workers of wages and benefits and the society out of taxes for too long.  In September 2019, the large scale abuse of that classification caused the California Assembly to act.

We cannot support companies whose fundamental business model is to pay employees below minimum wage with no benefits and then skip out on taxes.  The business model leaves the rest of us pay more in taxes and social benefits to help our fellow citizens.

So, for all of the above reasons, The Black Economic and Business News, supports a NO vote on California proposition 22.

Top Stories for the Week of July 20th to July 26th

We have about 70 Stories this week we a large number of economic stories

Top Stories

Protest

  • Strike for Black Lives – On July 20th,  In many cities across the US, essential workers protested working conditions. (Philadelphia Inquirer) (NPR) (USA Today) (NBC New York) – The video and descriptions do not show a very large crowds.
  • Carmelo Anthony, Chris Paul and Dwayne Wade Launch Fund to Support Black Community (Hollywood Reporter) (Social Change Fund)
  • African-American businesses need more than “buy black” campaigns (Economist) – One man finds his niche in guitar pedals

Coronavirus / PPP

  • Evictions are likely to skyrocket this summer as jobs remain scarce. Black renters will be hard hit (Washington Post)
  • Faulty data collection raises questions about Trump’s claims on PPP program (Washington Post)
  • How will minority-owned businesses fare in CARES 4.0? (MarketPlace)
  • Capital Access for Minority Small Businesses: COVID-19 Resources for an Equitable and Sustainable Recovery (US Senate)
  • Extra unemployment aid expires as virus threatens new states (Philadelphia Tribune)

Systemic Racism

  • New initiative hopes to fix systemic racism in Central PA (News 21 Harrisburg)
  • Senate Democrats Propose $350 Billion Plan To Invest In Communities Of Color (Forbes)

Jobs / Workers / Labor / Unemployment

  • Coronavirus Unemployment Calculator (Propublica)
  • Why unions are crucial to empowering Black workers (Fortune)

Inequality

Straight Up Econ

  • Employment and Earnings of African Americans Fifty Years After: Progress? (Institute for New Economic Thinking)
  • Black Economist’s Research Finds A Blindspot On A Theory Of Innovation (NPR) – Dr. Lisa Cook’s story about trying to publish a paper on racial violence stifling Black innovation.
  • Top 100 online Economists (2020)  (Richtopia) – Large number of Black US economist are listed: Darrick Hamilton (62), William Darity(83), Lisa Cook(84), Trevor Logan (92) and William Spriggs (95), Arnan Walker (99).  The list is based on online followers and press mentions. You can check the ranking methodology here.
  • What are Top Economists worried about now? (World Economic Forum)
  • Chicago Booth School of Business has a similar survey (IGM Forum) – July 20th 2020. Unemployment will remain at 10% or higher for the rest of the year and the economy won’t return to normal until the first half of 2022.
  • Americans Are Drowning in a Sea of Monopolies (Medium)
  • America’s Monopolies Are Holding Back the Economy (The Atlantic)

Old Econ

Black Business

  • In Baltimore, a struggling, black-owned nursing home keeps covid-19 at bay (Washington Post)
  • Behind the Fall of Ebony: Accusations of Fraud and a Fight Over Control of a Black Media Dynasty (Wall Street Journal)
  • Magic Johnson’s EquiTrust insurance and MBE Capital Partners (MBECP),  an asset-based lender, are funding over $100 million in PPP loans to Minority and Women Owned businesses. (BlackPressUSA)
  • Hippin Hops Brewery, Atlanta’s First Black-owned Brick-and-mortar Brewery unloading tanks in East Atlanta Village Today (Reddit)
  • Fred McKinney (opinion): Why white consumers should buy from Black-owned firms (CT Post)
  • Study: Black entrepreneurship in the United States (University of Nevada, Las Vegas) (Phys)
  • This entrepreneur wants to bring the 21st century economy to 52nd Street (WHYY Philadelphia)
  • These Black Women In Wine Are Redefining The Industry (Zoe Report)
  • Yelp report 18 times more searches for Black Businesses (Yelp Economic Average)
  • BizSense Assembly recap: Black Entrepreneurship in Richmond (Richmond BizSense)

Minority Business

  • First Ever Minority Owned Stock Exchange — Dream Exchange (Business Wire)
  • Black Economic Alliance endorses minority business resiliency act (BEA Press Release)

Agriculture / Farming

  • Why a new generation of Black farmers is getting into the business (CNN) – Soul Fire Farms

People

  • Ahmad Thomas is the New CEO of the Silicon Valley Leadership Group  (SF Gate) – First African American. (The Almanac)
  • Princell Hair named President & CEO of the Black News Channel (North Dallas Gazette)

Big Business

  • Target raises minimum wage to $15 an hour months before its deadline (CNBC)
  • Black artists feel used by big businesses in Blackwashing campaign (NY Times)

Banking / Finance / Fin Tech

  • MoCaFi To Launch Revolutionary Banking Platform Targeting Communities Impacted By Economic Shifts (AIthority) — Also a Black business
  • Sammons Financial Group Pledges $100,000 to The Directors Council. Contribution provides seed money to grow Black-owned small businesses (Global News Wire)

Discrimination

  • Black Business Owners Had a Harder Time Getting Federal Aid, a Study Finds (NY Times) – White customers got better treatment when asking for PPP loans.

Reparations

  • Reparations to Black Americans for Slavery Gain New Attention (Wall Street Journal)
  • It’s Time for U.S. Business Leaders to Talk About Reparations (Harvard Business Review) – Good high-level summary of reparations discussion.
  • Why we need reparations for Black Americans (Brookings) – Older reparations discussion with detailed proposals. All of the proposal are for descendants of the enslaved. The reparations include direct payments, free college tuition, student loan forgivness, housing down payments, and business startup grants.
  • Money won’t fix US racial problems. We must first change the belief that White people matter more than others (Marketwatch)
  • Los Angeles activists drill down who deserves reparations for slavery and why (Onmenews)      

Affirmative Action

Editors Note: We are keeping a close eye on ACA5, a California constitutional amendment to overturn the ban on Affirmative Action. The measure will overturn proposition 209 passed in 1996. Californians will vote on November 3rd.

  • Ballot Measure To Overturn State Ban On Affirmative Action Moves Forward (LAist)
  • UC Board of Regents unanimously endorses ACA 5, repeal of Prop. 209 (University of California)
  • California effort to restore affirmative action divides Asian Americans (San Francisco Chronicle)
  • In California, A Vocal Minority of Asian Parents Helped Defeat Affirmative Action Once Before. This Time It Could Be Harder. (LAist) – While a majority of people favor affirmative action, a vocal group of Asian Americans was able to defeat proposals in the past.

Education / Teaching

  • Occupational wages in Animal Crossing: New Horizons (Bureau of Labor Statistics)
  • N.C. A&T among 11 universities to share in Dominion Energy’s $35 million initiative (Triad Business Journal)
  • Number of teachers of color disproportionate to students of color in North Carolina (News 11 Raleigh Durham)
  • Black Lives Matter Protests Spawn Push for Athletes to Attend Historically Black Colleges (NYTimes)

Real Estate / Segregation

  • Leading Civil Rights & Housing Groups Condemn President’s Effort To Gut Fair Housing, Use Of Incendiary Racial Rhetoric For Political Gain (National Community Reinvestment Coalition) – Trump ended the “Affirmatively Furthering Fair Housing” AFFH rule. The rule requires localities to documents steps they are taking to end racial segregation if they receive federal funds.  This site has a good collection of comments.
  • Suburban Americans should reject Trump’s regressive housing offerings (TheHill)
  • How zoning laws exclude Black families from areas of economic opportunity (Fortune)
  • Race matters: Understanding how the Central Area was gentrified (KUOW Public Radio) – How Seattle was gentrified
  • Flawed policies lead to ‘Black exodus’ from California (Orange County Registrer)

Government

  • California may ban menthol cigarettes (Black Voice News)
  • Joe Biden’s infrastructure plan (Joe Biden) – it’s a lot, but very detailed and well thought out.  Someone’s been talking to Elizabeth Warren.
  • Biden can create a ‘new’ New Deal (AlJazeera)

Conservative / Alternative View

  • C.E.O.s Are Qualified to Make Profits, Not Lead Society (NY Times) – Argues that CEO have a responsibility only to shareholders not stakeholder, employees or communities. Otherwise decisions can be confused.

History Lesson

  • The presidential election of 1876 was one of the most contentious and controversial presidential elections in American history, and gave rise to the Compromise of 1877 by which the Democrats conceded the election to Hayes in return for an end to Reconstruction and the withdrawal of federal troops from the South.

Not Black But Interesting

  • Increased Consumer Activity in May Correlates with COVID-19 Hot Spots in June, According to the Yelp Economic Average (Yelp Economic Average)

SBA Paycheck Protection Program Loan Level Data

Paycheck Protection Program Loan Level Data

North American Industry Classification System Files

This PPP data is an amazing snap shot of business in the US.


I see four quick trends without doing a lot of deep analysis.


1. They were handing out money left and right. The shoveled out $4.4 billion in NJ in three months. It looks like anyone who applied for money got money.  

2. The number of self-identified Asian businesses is huge in NJ. Black businesses are minuscule and the number of Hispanic business is small.

3. I looked at my town, Teaneck, and a lot of doctors and doctors offices applied and got money.  In Teaneck, only one Black business got any money.  A barber ship got $25,000.

4. There were a lot of restaurants and beauty salons on the list

5. It’s not clear how many jobs were saved because of self-reporting data inaccuracies.


It also really shows how poorly Black people have done in terms of starting businesses. I looked at the list and we are pretty pitiful. 


The data is dominated by unclassified (white) businesses but some self-identify.  

Editor’s Note: To make the analysis easy, you have to assume people self-identify (or don’t) at a consistant ratio. In other words, people who don’t self report can be split by the same ratios as people who do self report.

The number of Asian businesses in NJ is amazing.  We are probably number # behind CA and NY. 


You will need the NAICS code description to see what the business actually does.

Top Stories for the Week of July 13th to July 19th

We have 47 stories this week related to Black business or Black Economics plus and a summary of William Darity’s discussions about his reparations book: “From Here to Equality

Top Stories

  • The economics behind racial coronavirus disparities (PBS NewsHour) – Nice watchable summary of current economic state of Black America.
  • William Darity discusses reparations in a (TED Talk), and with his co-author A. Kirsten Mullen in a video session (Economic Policy Institute). They cover their new book: “From Here to Equality: Reparations for Black Americans in the Twenty-First Century.”
  • Why are there so few Black owners and workers in central Pennsylvania’s construction industry? (Harrisburg Patriot-News) — Here’s why it’s hard for Black businesses to compete.
  • To Make Orchestras More Diverse, End Blind Auditions (NY Times) – A transparent metaphor for society with no right answer. But there is also a warning that classical music may die off, if it does not diversify.
  • The 15 white coats promotes Medicine as a career choice (Cancer Health)

Employment / Unemployment

  • Half of Black workers in Minnesota have lost work during pandemic (Star Tribune)
  • Stress rises for unemployed as extra $600 benefit nears end (Philadelphia Tribune)
  • Black Workers, Already Lagging, Face Big Economic Risks (NY Times)
  • The Bakery That Makes Ben & Jerry’s Brownies Will Hire Anyone — Yes, Anyone (Daily Meal)

Coronavirus / PPP

  • A $2 Trillion Rescue Leaves America’s Black Neighborhoods Behind (Bloomberg Businessweek)
  • “The everyone economy”: how to make capitalism work for all (Financial Times) – Author argues for automating low wage, low productivity jobs, strong social safety net, higher taxes on the rich and job creation subsidies.
  • The economics behind racial coronavirus disparities (PBS NewsHour) – Nice watchable summary of current economic state of Black America.
  • White Americans got their stimulus checks faster than Blacks and Hispanics (CBS News)

Inequality / Structural Racism

  • African Americans got left out of the urban economic boom (Quartz)
  • US wealth and inequality raises debt risk (Moodys) – Inequality raises event risk to events like coronavirus.
  • Federal Reserve policy has failed Black Americans for decades. Now is the time to fix that. (Business Insider) – At least they are thinking about it, but it’s not clear on what the Federal Reserve can do to combat racism.

Reparations

William Darity discusses reparations in a (TED Talk) and with his co-author A. Kirsten Mullen in a video session (Economic Policy Institute). They cover their new book: “From Here to Equality: Reparations for Black Americans in the Twenty-First Century.” There is also a good overview on (NPR).

Talk/Book Summary

Slavery’s effect is still all around us. Jim Crow segregation still affects us. “Reparations is an acknowledgement, a redress and a closure for a grievous injustice.”

Wealth is the best way to measure the lack of Black economic progress.  Wealth measures economic security. “Wealth captures the cumulative intergenerational effects of White supremacy in the US.” The goal of the redress component of a reparations program is to close the Black-White wealth gap.” A reparations should consist of direct payments to descendants of slavery.

The professor calculates that the US promised 40 million acres of land to former slaves and that, that land, is worth about 3-4 Trillion based on the present value.  That should be the lower bound of the reparations payments. The authors also calculate it would take 10-12 trillion dollars to close the racial wealth gap.

He then answered some common questions.

What type of reparations should be made?

We must provide direct payments. Indirect methods don’t work. Community based efforts don’t work in gentrifying neighborhoods. Reparations must be separate from funding educations and social services.  No social program will close the Black / White wealth gap. Sadly, education will not work to eliminate the Black/White wealth gap.  However, funding HBCUs as part of reparations might make sense.

Reparations would be paid out like a trust account.  The money would be paid over a long time horizon as an income stream. Or they could be structured like a long-term bond with a fixed maturity.

Editor’s Note: Don’t expect to get rich, but you might get a down payment on a house. If you do some quick back of the envelop calculations: There are 47 Million Black People in the US and they divide up 4 Trillion dollars then each person would get about $85,000.  Not really that much money.

Editor’s Note: Another problem is there is no Black business or investment infrastructure, so any money spent would quickly go back to the larger society..

Should rich people, like Oprah Winfrey get reparations?

Reparations are an act of justice not anti-poverty program.  There is no criteria related to current wealth regarding who can receive reparations.  If they want to give away the money, that’s fine. Holocaust and Japanese American reparations had no wealth stipulation.

Who is eligible?

Everyone who can prove they descended from a US slave. This specific reparation is for the formerly enslaved.  It is the cost of the failure to fix reconstruction at the end of civil war. In addition a person must have self identified as Black for 12 years before a reparations bill is passed.

Recent immigrants are not eligible.  Anyone who arrived after the end of the Jim Crow era (post 1960’s) would not be eligible.

Just want to mention another great discussion with Darity and Mullen is available from Economic Policy Institute. They are interviewed by Valarie Wilson from EPI who is a former student of professor Darity.

Finally, NPR has a quick, seven minute interview with professor Darity.

“From Here to Equality: Reparations for Black Americans in the Twenty-First Century” by William A. Darity and A. Kirsten Mullen.

Reparations Again

  • Ashville NC city council approves reparations for Black residents (Ashville Citizen Times) – The resolution apologizes but makes no direct payments. It will fund a host of programs beneficial to minorities. It’s not clear if they even have any money.
  • Evanston, Illinois, finds innovative solution to funding reparations: Marijuana sales taxes (CBS News)

Black Business

  • Why are there so few Black owners and workers in central Pennsylvania’s construction industry? (Harrisburg Patriot-News)

Big Business

Discrimination

  • To Make Orchestras More Diverse, End Blind Auditions (NY Times) – A transparent metaphor for society with no right answer. But there is also a warning that classical music may die off, if it does not diversify.
  • Analytics and AI probably won’t help with Hiring Bias (Datanami)
  • My struggles to get loans despite sterling credentials illustrate how economic systems suppress Black Americans (Des Moines Register) – Flavored popcorn maker describes banking discrimination.
  • Netflix loses move to kill Mo’Nique’s discrimination suit (Deadline). Monique Hicks original suit is described in Hollywood Reporter.

Affirmative Action

  • Equal opportunity is not enough. Equality is in outcomes (Minneapolis Star Tribune) — It’s when success and failure among groups are proportional. Nice recap of recent racial inequality.

Careers / If I can see it, I can be it

  • The 15 white coats provides an example for K-12 student about medical career success (the15whitecoats.org)
  • The 15 white coats promotes Medicine as a career choice (Cancer Health)

Interesting People

Stacy Brown-Philpot, TaskRabbit C.E.O. to Step Down, a Blow for Silicon Valley Diversity (NY Times) – a little old but important.

Finance / Investments / Wall Street

  • Racial inequality could hurt U.S. credit rating, Moody’s warns (CBS News)
  • 5 steps the business community can take to better the lives of Black Americans (MarketWatch) – John Rodgers of Ariel Investments

Real Estate / Housing Discrimination

  • LendingTree Study: Black Homebuyers More Likely to Be Denied Mortgages Than Other Homebuyers (Lending Tree)
  • D.C. Releases New Development RFP With Emphasis On ‘Disadvantaged’ Bidders (Bisnow) – Bisnow covers the commercial real estate industry.

Health and Medicines

Finance / Investing / Wealth management

  • Black investment managers address asset management’s diversity problem (CityWire)

Education

  • How racially representative is your college / university (Urban Institute)
  • Doctor diversity matters: Having more black physicians could lead to better health among black men. (AEA)

Cultural Stuff / Conservative Stuff

  • African American museum accused of ‘racism’ over whiteness chart linking hard work and nuclear family to white culture (The Sun UK) – Does hard work really payoff for Black people?

Straight up Econ

  • 19 Black economists to celebrate and know, this Juneteenth and beyond (Fortune) – Worth repeating.

New / Interesting / Innovative

  • This discount card offers shoppers up to 40% off products from black-owned businesses (Glamour UK)

Apps / Technology / Websites

  • Jamii – Discounts for Black Businesses in the United Kingdom (Jamii)
  • Jumia – African internet site for on-line shopping and home delivery. (Jumia)

Travel

Old but good

Redlining Maps

  • Redlining maps from Home Owners Loan Corporation (DSL.Richmond.edu) – Original redlining maps from HOLC. The maps were commission by the federal government and used by banks to decided where to make loans for home purchases.
  • The World Economic Forum also has maps that compare the redlining maps to current segregated housing populations (WEF)

Top Stories for the Week of July 6th to July 12th

We have 51 stories this week related to Black business or Black Economics

Top Stories

Black Strike Day – July 20th

  • Workers demanding union rights plan to walk off the job in nationwide Strike for Black Lives (CNN) – The strike for Black Lives is planned for July 20th. Works want the right to form unions and push for better wages, health care and sick leave.

US spend $115 Billion on Police

  • The US spends $115 Billion on the Police and $79 Billion on corrections (Urban Institute). While crime fell, the cost of cops has soared to $115 billion (Bloomberg)

DoorDash: The modern economy in one court case

  • Well DoorDash is being sued again. They are accused of stealing tips, misclassifying employees as subcontractors and charging monopoly fees from restaurants. DoorDash has settled lawsuits in 2016 for misclassifying employees. This is a really good example of how the modern economy works.
  • The complaint (Gibbs Law Group) – is a great introduction economics and the law. Its in plain English and very readable. Summary: The Doordash business model uses monopoly power to unfairly take profits from restaurants and delivery people.  The plaintiffs are asking DoorDash to at least pay the equivalent of the state or federal minimum wage. 

Interesting People

  • Jennifer McDonald started Jenny Dawn Cellars, a black owned winery in Witcha, KS. (Cuisine Noir) (KMUW)
  • Eddie Brown, founder of Brown Capital Management describes how Wall Street Works. I’m a black CEO. I’ve been discounted on Wall Street because of my skin color. (Washington Post)

Black Farming

Coronavirus / Covid-19

  • Minority- and Women-Owned Businesses at Risk: Impact of COVID-19 on New York City Firms (NYC Comptroller) – In the survey of 500 Minority and Women owned business, 85% said they could not survive for more than six months. And 35% said they could not operate at all during the coronavirus crisis.
  • Latino And African American Workers In Sacramento Region Face High Economic Hardship, Job Concerns As Pandemic Continues (Sacramento Public Radio)
  • The Fullest Look Yet at the Racial Inequity of Coronavirus (NY Times)
  • Virginia home health aides look for state relief in pandemic (AP / Richmond Times Dispatch)

Protest

  • Workers demanding union rights plan to walk off the job in nationwide Strike for Black Lives (CNN) – The strike for Black Lives is planned for July 20th. Works want the right to form unions and push for better wages, health care and sick leave.
  • While crime fell, the cost of cops has soared to $115 billion (Bloomberg)

Jobs / Unemployment

Sports

  • Patrick Mahomes signs the largest contract ever in the NFL. Here’s how much money Chiefs QB will actually make in ‘half-billion’ dollar deal (Sporting News)

Black Business

  • Even in best of times, Atlanta’s Black restaurateurs must work harder to find capital, earn respect (Atlanta Journal Constitution) – Good, long article about the Black restaurant business in Atlanta.
  • Jaylon Smith: We can close the wealth gap by investing in minority entrepreneurs (Dallas Morning News) — -Jaylon Smith played for the Dallas Cowboys and runs the Minority Entrepreneurship Institute.
  • African American Chamber CEO’s advice to Black-owned businesses as survey shows lag in loan support (WCPO Cincinnati) – Chair of local Black chamber of commerce discusses PPP loans and business.

Big Companies

  • Black Representation in Hospitality Industry Leadership 2020 (Castell Project) – Black workers are 20% of employees but only 1.5% of executives. Black women are only 0.1% of CEO /President level positions.
  • Netflix CEO donates $120 million to black colleges in an effort to ‘reverse generations of inequity’ (CNN)
  • Goya foods CEO praises Trump and triggers boycott (FOX Business) — CEO Robert Unanue said the US was “truly blessed” to have Trump as a leader.
  • Bubble Boy turned Goya CEO Unanue was surprised that his comments led to a boycott (NBC News)
  • Skin lightening in South Asia is why we have an anti-Blackness problem (NBC News)
  • MacDonalds and it’s relationship with Black America (MarketPlace.Org)

Discrimination

  • I’m a black CEO. I’ve been discounted on Wall Street because of my skin color. (Washington Post)

Retail

  • As Black buying power grows, racial profiling by retailers remains persistent problem (CNBC)

Government / Politics

  • Biden releases U.S.-centered economic plan, challenging Trump’s ‘America First’ agenda (Washington Post) – Biden proposes $700 billion plan for R&D and purchasing US made products.
  • Biden’s New Economic Nationalism: Better Than You May Think (American Prospect)
  • Divided Philly risks losing recent economic gains, warns former city commerce director Harold Epps (Inquirer) – This is great example of how things work in big city economic development.
  • SC Sen. Tim Scott: Focus must be on improving Black outcomes, not tearing down systems (The State)
  • Let’s Defund the Pentagon, Too (Scientific American)
  • Missouri will vote on August 2nd on Medicaid expansion (St. Louis American)

Economy

  • Employment won’t recover for a decade, CBO says (Politico)
  • US economy may be stalling out as viral outbreak worsens (AP)
  • The myth of closing the racial wealth gap through personal responsibility (Axios) – It’s inter-generational wealth and opportunity hoarding, stupid. Nice an short summary.

Farming / Agriculture

  • A new generation of Black farmers and faith leaders are cultivating the future of food sovereignty (Rewire)
  • Less than 2% of Kentucky farms are Black-owned. This company is trying to change that (Courier Journal)
  • Black Soil Life is a Black Agrotourism website promoting Black farming.

Affirmative Action

Reparations

  • This Is the Perfect Moment to Push for Reparations (Nation)

New / Interesting / Innovative

Straight Up Econ

  • Economics Journals Faulted for Neglecting Studies on Race and Discrimination (Wall Street Journal)
  • How Violence and Segregation Destroyed African American Innovation (IEEE Spectrum) — Lisa Cook’s paper on racism and violence repressing Black patents is getting traction.
  • A mostly white Federal Reserve can’t fix our diverse economic problems (MarketWatch) – Federal Reserve Board has only one Black female economists. There are none at senior levels.

Law

  • This is the latest class action suit against DoorDash (Gibbs Law Group) – Highly recommended and very readable.  Written in plain English.  Summary: Doordash’s business model is to use it’s monopoly power to take profits from restaurants and delivery people.  The plaintiffs are asking DoorDash to at least pay the equivalent of the state or federal minimum wage. 
  • This is a really good example of how the modern economy works. And it’s a good way to learn a little law and a little economics. It also shows why we need basic regulations like paying the minimum wage, stopping wage theft, stopping employee misclassification, and limiting monopolies. 

Interesting people

Entertainment

  • African American-Focused Networks Embrace Their Mission (MultiChannelNews) — Didn’t know fox has “Soul TV” steaming service

Education

  • HBCUs doubly hurt by campus shutdowns in coronavirus pandemic (CNN)
  • University of California welcomes our next president: Michael V. Drake, M.D. (University of California) – UC regents elected it’s first Black president. (EdSource)
  • Study Shows Excellent Preschool Experience Can Narrow Racial Achievement Gap (Chronicle of Social Change)
  • Local group gets a grant to launch HUSTLE Academy (Local 12 News Cincinnati) – Intersting list of grantees teaching Black business skills.

Other

  • How cycling could help drive racial equality (WE Forum)
  • Yelp has 4678 self-reported Black businesses.

Old but good

  • Living in a poor neighborhood changes everything about your life (VOX)

Top Stories for the week June 29th to July 5th

We have 74 total stores this week related to Black Business or Black Economics.

Top stories

Blackout Day: July 7th, 2020 and 30-Day Buy Black Challenge

  • Blackout Day: July 7th, 2020. Do not spend any money at non-Black owned businesses. (USA Today) (Complex) (Insider)
  • #TheShowMustBePaused or TheShowMustBePaused.  There is a related site called Black Out Coalition
  • Blackout day is related to “The Show Must Be Paused” a national boycott of the music industry. The music industry is a multi-billion-dollar industry. An industry that has profited predominantly from Black art while providing little in return.
  • OneUnited Bank, largest black bank supports Blackout Day 2020 (Atlanta Daily World)
  • Several website are promoting Buy Black Challenges (Official Black Wall Street). The 30-day Buy Black Challenge encourages a purchase a day from minority owned businesses (CBS York, PA)

Black Stocks Surge

  • Investor have bought Black stocks in response to the social justice crisis (BankBlack) – Their investment page lists publicly traded stock for Black owned or operated companies.

The Mess at Essence

  • Anonymous Black female employees allege a culture of harassment, inequality and intimidation. (Medium)
  • Three of the leaders named in the article step down. (PageSix)

Beyonce’s Director of Social Responsibility

  • Ivy McGregor, Director of Social Responsibility at Parkwood Entertainment (Beyonce’s Company) (Oprah Magazine) (Forbes)

Discrimination in Tech keeps Blacks and Latinos out

  • Why are Black and Latino people still kept out of the tech industry? (LA Times) — Why are Blacks and Latinos only 3.5% of the tech workforce? Widespread discrimination.

Wonder what happened to the Black middle class

  • Here is the answer in five papers starting with: How the Disappearance of Unionized Jobs Obliterated an Emergent Black Middle Class (Institute for New Economic Thinking) Summary, Paper

Protest

Hollywood 4 Black Lives

  • Kendrick Sampson, Janet Mock, Idris Elba and 300+ Black Entertainers Demand Proof from Hollywood that Black Lives Matter!(BlackFilm)
  • Official Site for “Hollywood 4 Black Lives” (BLDPWR)
  • Kendrick Sampson, Tessa Thompson and Over 300 Black Artists and Execs Call for Hollywood to Divest From Police (Variety)

Coronavirus

Economy

  • The CBO released it’s economic outlook on July 2nd (Congressional Budget Office).  It’s going to take 4 years to recover from Coronavirus. The CBO projects a drop of 3.4% of GDP. The unemployment rate will drop from 14% to 6% at the end of 2024. The Gross Domestic Product, after dropping by 11% due to Coronavirus, is expected to recover by the middle 2022.

Unemployment

Black Business

  • NAACP promotes Black businesses with Arundel Green Book (Capital Gazette) – Hey, If Anne Arundel County, MD can do it, so can your community.
  • Black-owned businesses see sales surge amid racism reckoning (Philadelphia Tribune)
  • Local Leaders Show Support For Boosting Businesses Owned By Minorities, Women (Wilmington Business Journal)
  • Black business owners in Triangle see more community support in wake of racial protests (WRAL)
  • Meet the 2.5 Percent: Philly’s Black Business Owners in Fashion (Philadelphia Magazine) – Only 2.5% of businesses in Philadelphia are Black owned in a City that is 43% Black.
  • List of 300 Black businesses in Philadelphia (Philadelphia Magazine)

Really interesting people

  • Ivy McGregor, Director of Social Responsibility at Parkwood Entertainment (Beyonce’s Company) (Oprah Magazine) (Forbes)
  • Simon & Schuster names first Black publisher (Philadelphia Tribune) — Dana Canedy was named executive vice president and publisher
  • Four Black Architects You Should Know (The Manual)

Small Business

  • State of Black New Jersey and Black Businesses in NJ (NJTV)
  • Philly business owners express concerns about procurement regulations (Philadelphia Tribune)

Innovation / Entrepreneurship

  • Why it’s important to buy from Black and POC-owned cannabis businesses (WeedMaps)
  • Cannabis employees are in demand (Politico)

Finance / Investing

  • Study highlights the role stock ownership plays in the racial wealth gap (Pittsburgh Post-Gazette) – Black households own only 1.5% of stock market equity.

Careers

Black Wealth Inequality

  • The myth of closing the racial wealth gap through using Black-owned banks (Axios)
  • The myth of closing the racial wealth gap through increased savings (Axios) – Blacks save at the same rate as Whites when you control for income.

Big Business

  • Two MacDonald’s executives allege racism and harassment (Atlanta Daily World)
  • The complicated history of McDonald’s and Black America (Marketplace)  — Discusses the book: Franchise: The Golden Arches in Black America”
  • Edward Jones reviews pay, donates money and offers training for workers (PR Release) – Edward jones, based in St. Louis, is the largest investment company (employees) in the US.  They operate in every small and medium sized town in the US. Edward Jones is a great example of how hard it is to change the economic structure of the US.
  • Imagine a small town where all the business owners knows each and eats lunch together. (Editor’s note: When I was in school at Morehouse, I used to walk by Mary Mac’s tea room on Ponce De Leon Ave. and marvel at the Black waiters serving the White businessmen of Atlanta.)  Those are Edward Jones customers. They want someone they can trust, someone like them, for investments, not the highest rate of return.  We might call that discrimination, but they would call it common sense.
  • We Asked, Financial Advisors Answered: How Can the Industry Increase Diversity? (ThinkAdvisor)
  • Netflix will shift $35 million to Black banks (NetFlix PR) (MarketPlace)
  • The Private Sector Must Lead on Diversity (Barrons)
  • Supplier Diversity and the Black Lives Matter Movement (Spend Matters UK/Europe)
  • Amazon – Amazon is the single most important company in the US. Amazon (Vox Recode) – Long story on Amazon putting the screws to workers.
  • AT&T Nears $3bn Spending Commitment For Black-Owned Businesses (Data Economy)

Reparations

Straight up Economics / Black Economics

  • Blacks face economic inequality: eight charts (Equitable Growth)
  • Black progress has stalled since the civil right era: Charts (CNN) – Good introduction to the end of Black economic progress.
  • Mayors for Guaranteed Income (MGI) released a proposal for a basic income supplement to existing government programs. Eleven mayors support the measure including the mayors of LA, Oakland, Newark, Atlanta, Pittsburgh and St.Paul, MN.
  • What is universal basic income? (Business Insider)
  • Atlanta Mayor Bottoms supports Guaranteed Income Proposal (Atlanta Journal Constitution)
  • INET has taken an indepth look at the shrinking Black middle class in a forthcoming series of 5 papers. Fifty Years After: Black Employment in the United States (Institute for New Economic Thinking)
  • How the Disappearance of Unionized Jobs Obliterated an Emergent Black Middle Class (Institute for New Economic Thinking) Summary, Paper

Community Ideas / Cooperatives

  • How Centuries of Black Cooperative Strength Created a Blueprint for Economic Recovery (Medium)

Real Estate

  • The New Developers: In Harrisburg, PA, African American builders are revitalizing neighborhoods, cultivating community (TheBurg)
  • Black renters face eviction pressure (Bloomberg)
  • Eviction freeze set to expire July 25th (CNBC)
  • Evictions are likely to skyrocket this summer as jobs remain scarce. Black renters will be hard hit. (Washington Post)
  • Black Families Feeling Priced Out Due to Gentrification (Spectrum News Durham NC)

Technology

  • Why are Black and Latino people still kept out of the tech industry? (LA Times)
  • POC in Mobile: Why Jam City’s Michael Raeford believes education is key to diversifying the games industry (PocketGamer)
  • POC in Mobile: The Game Band lead animator Cedric Adams on why we need diverse main characters (PocketGamer)

Government

  • LA Black business leaders want more police (FOX LA)
  • More than 70% of US Fed bank board directors appointed in 2020 are white (Quartz)

Immigration

  • If Black Lives Really Matter, End H1-B Visa Giveaways (Inside Sources)

Labor / Unions

  • A construction company denied Hempstead’s Black residents jobs (NY Amsterdam News) – Hempstead’s Black residents want construction company to know that ‘Black Jobs Matter’

Religion

  • Episcopal Church deepens engagement with Poor People’s Campaign, racial justice work (Episcopal News Service)

NYT / WAPO– The duo that drives the media

  • How Robert F. Smith helped thousands of minority-owned small businesses secure urgent aid in Washington (Washington Post)
  • The big factor holding back the U.S. economic recovery: Child care (Washington Post)
  • Minneapolis had progressive policies, but its economy still left black families behind (Washington Post)

Other

  • What persuades Southerners to take down Confederate symbols? Hearing it’s good for business. (Washington Post)

Top Black Business Stories for the week of June 22nd to June 28th

Top Stories

  • Reparations: Evanston, Illinois is developing a Home Buyer Assistance Benefit as First Reparations Program (Evanston Roundtable).  The city has set aside $10 million from marijuana sales.  It will make $25,000 home buyer assistant grants to any Black resident of Evanston between 1919 and 1969 and their descendants.
  • How Don Peebles Became One of the Wealthiest African-American Real Estate Developers(C Suite Quarterly)
  • The movement for Black Lives has updated it’s policy platforms (M4BL) — It includes many economic proposals.
  • Fact check: Ghana is not offering money or land to lure Black Americans (USA Today)
  • “Black Business” trended up on google, as people searched for Black Businesses to support. Searches increase by 600% during the week of May 31st to June 6th.

Protest

  • The movement for Black Lives has updated it’s policy platforms (M4BL) — It includes many economic proposals.
  • What’s life like in Baltimore right now (Christian Science Monitor)
  • How did companies respond to the killing of George Floyd? (Bloomberg)

Coronavirus / Paycheck Protection Program

  • Black Workers More Likely to Face Retaliation for Raising Coronavirus Concerns (BlackPressUSA)(NELP)
  • Pandemic continues to hurt Black business (Spectrum News One – Cincinnati, Ohio)
  • In Moore County, Black and Hispanic Residents Disproportionately Affected by COVID-19 (The Pilot)
  • Kent County defends hiring Chamber to distribute $25M to businesses after minority groups raise concerns (Michigan Live) – Grand Rapids Black businesses are concerned they will be shut out.

Unemployment / Employment / Wages

  • Coronavirus layoffs have not been equal. Here are the workers that have been hit hardest (Business Insider)
  • Black Professionals Miss Out on Recent Job Gains (Pew)
  • Why Do We Pay So Many People So Little Money? (NY Times)

Big Business / Corporate Misbehavior

  • The Black Lives Matter movement is driving customers to Black-owned businesses. Owners worry it won’t last. (CNN)
  • National Association of Real estate Brokers (here) has some proposal to improve Black home ownership. – Funny and hypocritical coming from the single industry most responsible for limiting Black wealth.
  • AT&T claims $3 billion in Black business spending over five year (PR Newswire)
  • Bank discrimination summary by Bloomberg (Bloomberg)
  • Microsoft promises $573 million in investment with Black suppliers, banks, and partners (Microsoft)
  • Corporations pledge millions for Black-owned businesses. But are they missing the point? (CNBC)
  • SECU supports the African-American Credit Union Coalition with $125,000 donation (Winston Salem Chronicle)
  • Donor list for Racial Justice (Chronical of Philanthropy). Another donor list from World Economic Forum.
  • Uncle Nearest and Jack Daniel’s Join Forces to Launch,  “The Nearest & Jack Advancement Initiative” to Increase Diversity in American Whiskey Industry (BlackPressUSA)
  • Women in Banking A purpose-driven CD and other ideas for advancing economic justice and diversity. (American Banker)

Black Business / Interesting Businesses Stories

  • How Don Peebles Became One of the Wealthiest African-American Real Estate Developer(C Suite Quarterly)
  • Black Business Boom – Entrepreneur creates coupon program for Black-Owned businesses (Chicago Defender) — Black Groupon ?
  • Black-owned businesses in Berkeley demonstrate the city’s economic resilience (Berkeleyside)
  • Black run Founders First Capital in San Diego announces $100 Million social investment fund (NBC News)
  • Maurice “Arkansas Mo” Fayne, who stars in Love & Hip Hop: Atlanta, has been indicted by a federal grand jury.  (US Attorney Northern GA)
  • Black-owned businesses in Baton Rouge see a surge in customers (The Advocate)

Retail

  • The Importance Of Shopping & Supporting Black-Owned Businesses Can’t Be Overstated (Zoe Report)

Small Business

  • L.A.’s ‘social equity’ program for cannabis licenses under scrutiny (LA Times)

Black Technology /Apps / Innovation / Startups

  • Update on Atlanta Black Tech (Atlanta Business Journal)
  • Black woman leads healthcare block chain company (Patientory)
  • Piegon.ly – inmate communications service (Pigeonly) – They are trying to reduce the cost of telephone calls. If you have ever tried to call in or out of a prison, you know how expensive a call is and poor the quality is.
  • Shear Share (ShearShare) is a hair stylist booth rental app.
  • Black, Latino angel fund backed by Rutgers is ready to hear entrepreneurs’ pitches (ROI-NJ)

Racism and Discrimination

  • Fed’s Bullard: U.S. needs ‘structural’ responses to lack of Black economic progress (Reuters)
  • Systemic Racism in Alamance County, NC (The Times News) – Including economic racism
  • Economic disparities in Atlanta (Atlanta Business Journal) — Atlanta show how difficult it is to solve racial economic justice problems. Black incomes remain low.
  • Federal Reserve System makes little progress on diversity (WSJ – Pay wall)
  • How the Democrat-Backed GI Bill Left a Million Black WWII Veterans Behind (CBN News)
  • The Disparate Racial Impact of Requiring a College Degree (Wall Street Journal)

Slavery / Reparations / Affirmative Action

  • Home Buyer Assistance Benefit Being Developed as First Reparations Program (Evanston Roundtable).  The city has set aside $10 million from Marijuana sales.  It will make $25,000 home buyer assistant grants to any Black resident of Evanston between 1919 and 1969 or a descendant of said person.
  • Calls for reparations gain steam as US reckons with racial justice (Reuters)
  • Public more aware of racial inequality but rejects reparations (Union Leader)
  • Reparations (Big Easy Magazine) – good summary of where we are and how and why we got there.
  • “What is Owed” Nikole Hannah-Jones (NY Times) — Reparations
  • Dr. William Darity discusses reparations in his new book and on the radio (WBUR)

People are cataloging the actual economic impact of slavery.

  • Examining the slave trade — ‘Britain has a debt to repay’ (Financial Times – Pay Wall)
  • There are British businesses built on slavery. This is how we make amends (Guardian)
  • Legacies of British Slave-ownership (UCL – University College London) – A database of slaveholder and firms from the UK with holdings in Jamaica, Grenada and Barbados.

Inequality of Income and Wealth

  • Which states have economies with the most racial equality (WalletHub) and racial inequality. They have a points system for calculating the score. It is interesting to see the weightings.
  • Dr. Manual Pastor discusses what and equitable economy might look like. (Forbes)

Housing / Real Estate

  • HBCU graduate buying property in Houston’s Fifth Ward to curb gentrification (We Buy Black)
  • The segregationist history of Palo Alto (Palo Alto Online)
  • Black homeowners pay more than ‘fair share’ in property taxes (CT Mirror)
  • Connecticut has an opportunity to tackle housing segregation. It appears to be taking a pass. (CT Mirror) – Wealthy Whites protest then take a pass on affordable housing and desegregating suburbs.
  • Segregated by design: How the suburbs work (CT Mirror) – An excellent series on how suburban communities keep the poor and minorities out.
  • Home ownership gap among many economic disparities facing Black Arizonans (AZCentral)
  • Black Home ownership gets a Boost in Los Angeles (Hollywood Reporter)

Straight Up Econ

Education

  • Show that black lives matter by funding Maryland’s HBCUs (Baltimore Sun)

Food

Music

  • How to play the rap game while destroying young men (Raprehab)

Investing / Financial Markets

  • Don’t Let Blackwashing Save the Investor Class (Jacobin)
  • Financial education could help bridge America’s wealth gap (CNBC) – Ahhh. No. The real problem is low paying jobs.  When you are in survival mode, you don’t care about saving and investing.  Nice job of compiling financial literacy resources though.

Politics / Government / State and Local

  • Federal Senior Executive Service vows to become more diverse (Federal News Network)
  • Fort Worth spent less than 3% of city contracts with Black businesses in past 5 years. (FW Star-Telegram)

There was No Good News this week

NYT / WAPO – Stories from the dominant news duopoly

Note: We always try to source from Black press, local print, original documents or magazines, but the Times and Post got the newspaper game in a choke hold.

  • Are you willing to give up your privilege? (NY Times) — Which asks if your willing to make a sacrifice to make the country better.

Interesting People

Immigration

Africa

  • Coronavirus accelerates in Africa as economic damage deepens(Axios)
  • Fact check: Ghana is not offering money, land to lure Black Americans (USA Today)

Top Black Business stories for the week of June 15th to June 21st

Top Stories

  • Robert F Smith said large corporations should use 2% of their income to help minority communities (Forbes)
  • Quaker Oats drops racist Aunt Jemima brand (USA Today).  J & J will stop selling skin lightening creams (Reuters). 
  • The history of Black business management (Quartz)  — Really good and interesting
  • Black history and Bourbon (Forbes) – Recommended
  • You Tube accused of discriminating against Black artist (Economic Times of India).  – You Tube is accused of racial discrimination by steering ads to different groups and thus cheating Black artists out of ad revenue.
  • Chase Bank Chicago made only 8% of all loans in Chicago’s Black Neighborhoods (WBEZ).
  • Evanston, Illinois discussed detailed reparations plan including housing policy (Evanston Roundtable) – Evanston is probably further along the reparations path than any municipality in the country.
  • Oakland proposes Black owned NFL Franchise (SFGate)

Protest

  • Google announces $175 Million dollar fund for Black businesses; promises to diversify leadership (CNBC)
  • Walter Williams argues Black people hurt themselves by rioting (Creators)

Coronavirus / Paycheck Protection Program

  • COVID-19 widens racial wealth gap, hitting Black businesses especially hard (Free Press)
  • San Francisco $1.5 million relief fund for Black owned business (San Francisco Business Times)
  • Black Businesses struggle during coronavirus. Black banks help. (LA Times)
  • Fifty-Eight Percent (58%) of Black Businesses at risk or distressed because of Covid-19 (NY Fed) – Forty nine percent of Hispanic businesses were also at risk or distressed. About 60% of all at risk or distressed businesses said they would use personal funds to survive.  Another 45% said they would go into debt, while 30% said they might close or sell. 
  • St. Louis businesses use GoFundMe to survive (St. Louis American)

Large Company Activities / Corporate Misbehavior

  • Lloyds of London apologized for helping slavery (Insurance Journal) — Lloyds insured slaves as “cargo.”
  • Quaker Oats drops racist Aunt Jemima brand (USA Today) (MarketWatch)
  • Johnson and Johnson will stop selling skin lightening creams (Reuters).  – The creams are primarily sold in Asia and the Middle East.  P&G, L’Oréal and Unilever also sell the creams.
  • Comerica Bank Launches $1 million dollar Black Capital Access Program (Comerica Bank)
  • PNC Commits $1B to Support Economic Empowerment for Blacks (Detroit Business)
  • PNC to commit $1 billion to programs to end racism and support black communities (Post Gazette)
  • Economic justice as a path to healing systemic racism (Technically) – VC firm starts a socially conscious fund.

Black Business / Interesting Businesses Stories

  • First Independence Bank (Detroit) reaches 50 years (Free Press)
  • Fayetteville highlights Black businesses (ABC11.com)
  • Yelp lets business tag themselves as Black Businesses. You can try it by signing into Yelp->Business Information->Known for
  • Yelp and MyBlackReceipt promote Black business (Yelp)
  • TruGenomix (MEA Magazine) – A Black veteran owned company with a test for PTSD.
  • The history of Black business management (Quartz) – Very good.
  • Black run PR firm gives discounts to Black Businesses (LA Patch)
  • Essence Communications hopes to raise $100 million dollars for social justice (Business Wire). The initiative is called the “Essence Unstoppable Collective”
  • A online panel discussion on: “The future of the Black Economy” was captured on Vimeo. They also had a panel on the future of the LatinX economy. (Vimeo) .
  • Walker’s Legacy is sponsoring a “Women in Business Digital Summit” (Walker’s legacy)
  • Even the solid waste recycling industry issued a statement on police killings (Resource Recycling)

Discrimination

  • Chase vows to do better in Chicago (WBEZ).
  • Activist was Chase Bank Chicago to pay reparations for mortgage lending discrimination (WBEZ).
  • Chase Bank Chicago made only 8% of all loans in Chicago’s Black Neighborhoods (WBEZ). Definitely looks like redlining. They made only 9% in the Chicago’s Latino hoods.
  • You Tube accused of discriminating against Black artist (Economic Times of India).  Here is the legal brief with details of how the scheme worked (ClassAction.Org). You Tube announced $100 million dollar funds to support Black artists (Variety). – You Tube is accused of racial discrimination by steering ads to different groups and thus cheating Black artists out of ad revenue.

Reparations / Affirmative Action

Straight up Econ

  • Whitewashing Capitalism (Common Dreams) – Discrimination and racism are barely taught in economics but they are fundamental to how US capitalism works.
  • Economist silence on racism is a 100 year problem (Newsweek)
  • Do Black economist matter (Economic Policy Institute)
  • Here is a link to the original “41% drop in Black business” paper that is quoted so often in the press.  The paper is called “The impact of covid-19 on small business owners.” Here.
  • “19 Black economists to know” (Fortune) – Nice roll call of the current top Black economists.  Missing, and rightly so, is Roland G Fryer who was accused of sexual harassment.
  • Old (Dec 2019): Center for American Progress announces council on closing the Black-White wealth gap. (CAP) – Hamilton, Louis Gates, Cook, Baradaran, Kendi, Logan, Price , Rothstein. Funny, don’t even need first names any more, except Gates.
  • Employment in Black and White: Wage differences (The Real Economy Blog)
  • Salary History Bans help Black women (BU School of Law)

Education

  • How to talk to students about racism (Chronicle of Higher Education) – There is some push back on the internet as to whether people are qualified to teach the subject.
  • Texas approve $100 million college scholarship fund for low-income and diverse students (WTAW)

Tech / Apps

  • Goalsetter savings app (UrbanGeekz) (Tech Crunch)
  • MyBlackReceipt launches app, website and Black Business List (MyBlackReceipt) – They are also are partnering with yelp (Yelp Blog) to spend $5 million with Black businesses. Yelp report a 35 times increase in people searching for Black business.
  • MyBlackReceipt also has Black business list. (Black Business List)
  • Ending slavery was a libertarian idea (Cato Insititute) – Just checking if you read this far

Sports

  • Oakland proposes Black owned NFL Franchise (SFGate)

Stock Market  / Investing

  • There is interest in Black owned or Black oriented stocks. Three Black stocks have increased volatility (Benzinga)
  • When venture capitalist try and invest in Black Businesses (Harvard Business Review)

Politics / Government / State and Local

  • WalletHub ranks states by economic inequality (WalletHub) – Interesting but little depth. More like a web ad. Criteria is good for scorecard. 
  • Wisconsin’s economy ranked last on racial equality (Milwaukee Journal Sentinel). Ohio is ranked as one of the worst states for racial economic equality (Columbus Business First)
  • Photo of Raphael BosticAtlanta Fed President Bostic gives views on racial inequality (Bloomberg) – The best discussion of his remarks.
  • We have a Moral and Economic Imperative to End Racism (Atlanta Federal Reserve Bank) — Atlanta Fed President Bostic says racism is holding back the economy
  • Philadelphia could be the first city with Black stimulus package (WHYY)
  • Fed Chariman Powell and other make the case for helping the vulnerable (ThinkAdvisors)

Other

Top Black Business and Economic Stories for June 8th to 14th

Top Five Stories

Protest Related

  • Designer Aurora James has started the “15% Pledge” to get large business to committed to spending more money with Black businesses. They also pledged to carry more products and give more shelf space to Black Business. (Vanity Fair)
  • Sephora has committed to allocating more shelf space to Black owned brands (WWD)
  • 15% Pledge calls on retailers to dedicate shelf space to black-owned businesses (CNN)
  • Five things businesses can do to help Black America (CNN)
  • Corporations pledge $1.7 Billion to fight racism and injustice (NY Times)
  • Pay pal commits $530 Million (Crowdfund Insider)
  • Everyone is trying to figure out how the protests will affect the economy. Maybe we can learn from Hong Kong (Forbes)
  • Connie Evans, from the Association of Enterprise Opportunity, discusses the protest and how society undervalues Black lives (The Hour)
  • The impact of being looted on one Black Owned Businesses (NY Post)
  • Tennessee Urban League Proposes help for Black Businesses (WSMV TV)

Coronavirus

  • Corona has ruined the best Black job market ever (Wall Street Journal). The job market was so good that we even saw wages rise faster than inflation.
  • Black Businesses drop by 41% because of lockdown (Bloomberg)
  • Black community may be affected by mass evictions due to virus (Politico)
  • Kamala Harris wants to give $2000 for rent payments or a tax subsidy for rent above 30% of income (Sacremento Bee)
  • Study: 440,000 Black businesses close during Covid-19 crisis (Vox)

Corporate and Big Business

  • Big business has to try to fix racial injustice (Barron’s)
  • Ariel’s John Rodgers steps corporations could take to address structural racism and inequality (Bloomberg)
  • A Black money manager discusses conversations about race in the workplace (Bloomberg)
  • Byron Allen and Comcast reach a deal to broadcast channels (Philadelphia Inquirer)
  • Corporations have a poor record of supporting Black employees (Washington Post). A nice read on lack of follow through by corporate America.

Black Business Lists and Directories

Racism and Discrimination

  • Infosys, a large outsourcer, faces another racial discrimination suit (The Economic Times of India)
  • Systemic racism slows economic growth says Dallas Fed chief Kaplan (WHTC)

Income and Wealth Inequality

  • The Black wage gap is the problem: Racial economic inequality should sicken our consciences (The New Republic).
  • The Role Of Higher Education In Economic & Racial Inequality on (Poets & Quants). What can business schools do to address racial inequality?
  • Black Americans face huge inequalities (Business Insider)
  • “We’ve Never Had a Purely Capitalist Economy—We’ve Had State-Subsidies for Some and Exclusion for Others.” (ProMarket – Booth) which has Mehrsa Baradaran’s (The Color of Money), comments on racial wealth inequality.

Corporate

  • Black Lives Matter is about both race and class (Financial Times). Low wages contribute to inequality.
  • Blacks are excluded from the Economics field (Houston Chronicle)
  • Steve Ballmer, a Microsoft billionaire, urged CEO’s to close racial economic gaps (CBS News)
  • Corporations Now Love ‘Black Lives’—But What About Their Own Black Workers? (Labor Notes)
  • Jack Daniel’s launchs initiative to increase diversity in American whiskey industry (Pittsburgh Courier)

Politics

  • Biden discusses racism (USA Today). Biden wants to “undo economic racism” and “reform the police.” He also wants to promote Black home ownership.
  • Homeownership gap between Black and White Americans is the larger than in the 1960s (Austin Statesman)

Straight Up Econ

  • To be successful in America, it’s better to be born rich than smart (CNBC) (Center on Education and the Workforce)
  • Dr. Lisa Cooks Paper on Patents and Racial Violence from 1870 to 1940 made (NPR). She had trouble getting the paper published in top journals. The paper is called “Violence and economic activity: evidence from African American patents, 1870–1940” (IDEAS – Economic paper database).  Racial violence led to a decline in patents by Blacks a d lost economic output.
  • Black workers face racism and inequality (Economic Policy Institute). Through, detailed and comprehensive picture of the effect of the coronavirus on Black workers. Highly recommended.
  • Bill Spriggs’ letter to the economic profession (Minneapolis Fed / Howard University).  This one is very powerful. Race is a social construct and discrimination is built in to the system.

Reparations and Affirmative Action

Opinion

  • We can fix poverty and police killings. Why won’t we? (USA Today). What’s lacking is political will.

Good News

  • Black Doctors Covid-19 Consortium won a $1.3 million dollar contract from the city of Philadelphia to offer testing (Philadelphia Tribune)
  • Long Island African American Chamber of Commerce stays active (Patch NY)
  • Community efforts raise almost $1 million dollars for Black Businesses in Oakland (San Francisco Public Press)
  • Ten Black Architects that shaped American cities (Town and Country)

History

  • Economic research documents black Americans’ struggle for equality. History shows that progress towards equality is followed by a racist backlash. (Economist)

Old but good

Bob Herbert’s “Against all odds” on PBS.