Black Business and Economic Stories for August 24th to August 30th

We have 62 stories this week. We have seven stories in our Black economics section and several stories in our people section.

Top Stories

  • Is this the end for America’s mom-and-pop stores? (Financial Times)
  • Erika James, Wharton’s first female dean (Philadelphia Inquirer)
  • The Owners of Fulton-Mecklenburg, a Digital Marketing Agency, Says Black Owned Businesses Need to Collaborate During Pandemic (EURWeb) – Here a good and detailed looking inside a Black marketing agency.
  • Light-Skin / Dark-Skin: How skin-tone bias affects racial equality at work (European Sting) – Very dry but something we all know is true. Society prefers people with lighter skin.
  • The Unequal Future of Consumption: Covid is changing earning and spending (The New Republic) – Good long article if you are trying to figure things out.
  • Rising Black Voices in Wine (Wine and Spirits Magazine)

Covid-19 / Coronavirus / PPP

  • The Unequal Future of Consumption: Covid is changing earning and spending (The New Republic) – Good long article if you are trying to figure things out.
  • Is this the end for America’s mom-and-pop stores? (Financial Times)
  • Report: Poorest Congressional Districts Shortchanged by PPP Program (Accountable.us)
  • Nations poor areas got billions less in PPP aid than rich areas, Report Finds(Tri-City Herald)
  • Chairwoman Maxine Waters Sounds Alarm on Coming Wave of Evictions (Jacksonville Free Press)
  • Report: COVID-19 Now is The Third Leading Cause of Death Among Black People (Jacksonville Free Press)
  • Coronavirus Is Hitting Black Business Owners Hardest (NY Times) – From June 18th.  Uses Fairlie data.

Protest

  • “Jobs, not ‘abstract notion of freedom’ were focus of first March on Washington” (WJLA TV)

Jobs / Workers / Unemployment

Black Business

  • New Black-owned financial center aims to build wealth, promote homeownership in North Omaha (Omaha World-Herald)
  • A New Moment for Black Bookstores (Publishers Weekly)
  • Not just a haircut: Barbershops, salons offer freedom and community (Youngstown Vindicator)
  • Shanel Fields is proving that now can actually be a good time to start a business (NBC News)
  • The Owners of Fulton-Mecklenburg, a Digital Marketing Agency, Says Black Owned Businesses Need to Collaborate During Pandemic (EURWeb) – Here a good and detailed looking inside a Black marketing agency.

Black Business General

  • Minority entrepreneurs at a tipping point as Black-owned banks dwindle in the U.S. (CNBC)
  • Black-owned firms in Boulder County seek inclusion (Daily Camera)
  • Temoura Jefferies, of High Point, creates Buy Black Guide as resource for Black-owned businesses (WFMY TV)
  • Fairfax County EDA forum spotlights access to capital for minority-owned businesses (Fairfax Times VA)

Big Business

  • Black Owned Celldration Premium Water Signs Historic Distribution Deal For 1100 Kroger Stores (Michigan Chronicle) – Interesting idea. Story reads like a press release.
  • Brooklyn Nets owners pledge $50 million to create ‘economic mobility’ in the Black community (CNBC)

Industry Spotlight

  • History of trucking in America (KAKE TV Wichita KS) – Kinda of interesting
  • Black Entrepreneur Creates Platform To Promote Diversity In The Cannabis Industry (NY Beacon)

Finance / Investing

  • How University of Chicago, Howard, & Other Endowments Are Tackling Asset Management’s Big Problem (Institutional Investor)

Discrimination

  • Light-Skin / Dark-Skin: How skin-tone bias affects racial equality at work (European Sting) – Article that confirms what we already know in a dry and boring manner.  Can’t they make this more salacious somehow with a glamourous light-skin woman next to a drab dark-skinned woman?  Oops, I guess that’s the point, huh.
  • Systematic Inequality and Economic Opportunity (Center for American Progress) – August 2019.  One of the defining papers on discrimination.

Inequality

  • Monroeville man saw ’To Kill a Mockingbird’ in segregated theater. Now he’s city’s 1st Black mayor(AL.Com) – Long time Black law enforcement official now mayor, says the key is jobs and economic development.

Reparations

  • California moves to consider reparations for slavery (AP News)
  • Education Subcommittee for Reparations Seeks New STEM School in Fifth Ward (Evanston Roundtable) — Interesting, they are going to use some of the reparations money to build a STEM school.

Gig Economy / California AB5 / Prop 22

  • Why Uber’s business model is doomed (Guardian)

Sports / Entertainment

  • Let’s call athletes ‘workers,’ and let’s call these NBA protests what they were – strikes (The Conversation)
  • NBA issues statement on social justice and racial equality (NBA)
  • Sixers’ $4B arena bid vows 35k jobs; Black and brown inclusion — goals similar projects failed to meet (WHYY Philadelphia)

Black Economics

  • Truth and  Redistribution: How to fix the racial wealth gap, end plutocracy, and build Black power (Yes Magazine) – Darrick Hamilton. Reparations, Baby Bonds, and a Wealth Tax.
  • Is Atlanta really Wakanda? Atlanta is Number one for income inequality. (11 Alive)
  • Democrats Have Failed Urban Black Americans (The New Republic)
  • The State of Black Milwaukee in National Perspective: Racial Inequality in the Nation’s 50 Largest Metropolitan Areas. (University of Wisconsin – Milwaukee Center for Economic Development) – Wow. Milwaukee is not a good place to be if you are Black.
  • Signifyin’: Final Levine Report (Milwaukee Community Journal) – Mikel Kwaku Oshi Holt gives a good summary of the report.
  • Executive Director David Clunie Calls for economic justice for Black Americans during march on Washington. (Black Economic Alliance)
  • Changing the Federal Reserve mandate could provide a down payment to ending racial inequality (The Conservation)
  • Systematic Inequality and Economic Opportunity (Center for American Progress) – August 2019.  One of the defining papers on discrimination.

Co-Ops / Employee Owned / Cooperative Economics(UJamaa)

  • Newark Paper Co., employee-owned cooperative, has ribbon-cutting in city meant to signify new era (ROI-NJ)

Straight Up Econ

Politics / Government

  • Kimberly Klacik Republican ad from RNC convention(Kim Klacik for Congress)
  • Rep. Welch on state opportunities for minority- and women-owned businesses: “The data is abysmal” (Illinois Capital Fax)
  • Racial resentment predicted white Americans’ economic evaluations in the 2012 and 2016 presidential elections (PsyPost)

People

  • Stephanie Chung Joins Wheels Up as Chief Growth Officer (Airline Industry News) (StephanieChung.com) – You aren’t big until you have your own website and can do speeches.
  • Fred Perpall, CEO of The Beck Group, says Blacks and Whites need to be more inclusive (Dallas Morning News)
  • Erika James: Bringing crisis management ideas to the oldest US business school (Financial Times)
  • Erika James, Wharton’s first female dean (Philadelphia Inquirer)
  • Erika James, First Black Woman to Lead a Top Business School, on the Corporate Diversity Problem (Bloomberg) – This profile is from 2014 when she became dean of Emory’s Business school.
  • IU education empowers couple to advocate for equality, give back to community (Indiana University Kokomo)
  • Six Black Female Entrepreneurs Who Are Changing Their Industries For Good  (Harpers Bazaar)
  • Rising Black Voices in Wine (Wine and Spirits Magazine)

Education

  • Black Families Don’t Need ‘Fixing.’ They Need Better School Funding (Education Week) – Andre Perry
  • How much is your N.C. A&T degree worth? (Black Engineer)

Leadership

  • Here’s what it takes for Black girls to become leaders, according to Michelle Obama (CNBC)
  • Six Black Female Entrepreneurs Who Are Changing Their Industries For Good  (Harpers Bazaar)

Real Estate / Real Estate Finance

  • Why Are Billionaires Schwarzman and Palmer Using A Shell Committee to Funnel Big Bucks to ‘No on Prop 21’ Campaign? (City Watch LA) – California Proposition 21 gives local governments rent control power.
  • How federal housing programs failed Black America (Nation) – Discussion of Keeanga-Yamahtta Taylor’s new book “Race for Profit.”

Re-entry / Corrections / Police

Travel

  • Meet The Black Woman Revisioning The Historic Green Book Travel Guide (NY Beacon)
  • The Long Fight for Restitution (Conde Nast Traveler) – African countries try to regain artifacts.
  • Inside Audacity Fest, Where Black Travelers Have an Open Conversation about Travel (Conde Nast Traveler)
  • Conde Nast has struggled with racism
  • Former Condé Nast employees expose racial issues at publishing giant (Page Six)
  • A Reckoning at Condé Nast (NY Times) – June 2020

Conservative / Alternative

  • Belinda Keiser: School Choice is the Secret to Trump’s Strong Economy (Daily Florida)

Law / Legal

  • Black Firm Leaders Drive Big Law Social Justice Efforts (Bloomberg Law)

Non-profits / Philanthropy

  • Local Black-Led Nonprofits Join National ‘Give 8/28’ Day (Sarasota Magazine)
  • Advancing Economic Justice: How the Ford Foundation Is Investing in Diversity (Wharton Magazine)

Classic / Old but Good

  • The Road to Zero Wealth: How the Racial Wealth Divide is Hollowing Out America’s Middle Class (Prosperity Now)

Black Business and Economic Stories for August 17th to August 23rd

We have over 80 stories and links including three conservative stories. The big story is the Robert F. Smith tax avoidance story. Last year, Smith agreed to pay off the debts for one class at Morehouse College.

Top Stories

  • Billionaire Robert Smith Fighting U.S. Criminal Tax Inquiry (Bloomberg)
  • Jay-Z and Pharrell Highlight Importance of Black Ownership In Song ‘Entrepreneur’: ‘For Every One Gucci, Support Two FUBU’s’ (Atlanta Black Star)
  • Pharrell Williams – Entrepreneur (Official Video) ft. JAY-Z (You Tube)
  • Black millennials less likely to own a home than their grandparents were at same age (MarketWatch)
  • Race and Money: The wage gap between Black families and white families in Tampa Bay (WTSP TV) – Pretty good analysis of income from American Community Survey around Tampa.
  • ‘A history of broken promises’: Miami remains separate and unequal for Black residents (Miami Herald) – Another good long piece. Quote: “Cubans jumped the line.”
  • What it would take to end child poverty in America (Vox) – Ezra Klein interviews Rep. Barbara Lee
  • NFL’s first Black team president, Jason Wright, of the Washington Football Team (CBS News)
  • How Burrell Advertising got started (NPR) – The story of the famous advertising agency in Chicago
  • How Do We Save African American Businesses in our country? Part 3 (Post News Group) – By Albert White
  • Meet the Two Sisters Making Wine More Accessible for Black Wine Drinkers (Thrillist)

Coronavirus / PPP / Pandemic

  • Rise in jobless claims reflects still-struggling US economy (Philadelphia Tribune)
  • ‘A pandemic in a pandemic’: Coronavirus deepens racial gaps in America (Reuters)
  • Here are four policies that can help small business as their PPP money runs out (MarketWatch) – We may have an issue with small business owners who are looking to retire and their businesses are worthless.
  • ‘Black businesses are hurting now.’ Racism, inequality, COVID-19 shatter Fresno business dreams (Fresno Bee)

Jobs / Workers / Unemployment

Black Business General

  • How Do We Save African American Businesses in our country? Part 3 (Post News Group) – By Albert White

Black Business Stories

Big Business

Inequality / Systemic Racism / Economic Justice

  • Race and Money: The wage gap between Black families and white families in Tampa Bay (WTSP TV) – Pretty good analysis of income from American Community Survey around Tampa.
  • ‘A history of broken promises’: Miami remains separate and unequal for Black residents (Miami Herald) – Another good long piece. Quote: “Cubans jumped the line.”
  • What it would take to end child poverty in America (Vox) – Ezra Klein interviews Rep. Barbara Lee
  • Here is the report referenced in the interview: Roadmap to Reducing Child Poverty.
  • Here is a summary of the recommendations: How to reduce child poverty. – Really good concrete proposals.
  • How does systemic racism affect Black Americans’ access to capital? (Michigan Public Radio)
  • To narrow racial and economic disparities, Atlanta Fed chief Raphael Bostic is rethinking what the Fed’s mandate means (Washington Post) – No answers yet, he’s just thinking.
  • Op-ed: The Fed has a ‘responsibility’ to help reduce high unemployment in the Black community (CNBC) – We might just have to accept a little inflation in exchange for full employment
  • What the story of Soul City, N.C., can teach us about fixing systemic economic racism (MarketPlace.org)
  • Cory Booker: Racial wealth gap is the “American wealth gap” (Axios) – Super short
  • Black millennials less likely to own a home than their grandparents were at same age (MarketWatch)

Discrimination

  • Why are there still so few Black executives in America? (USA Today) – Long read

Affirmative Action

  • California Proposition 16 will overturn the ban on Affirmative Action
  • Prop. 16 on November Ballot Would Reinstate Affirmative Action in CA (Spectrum Local News) – Best quote: “Because of Prop. 209, Assembly Woman Shirley Weber said California can’t develop special programs for girls in STEM. “
  • The Bay Area’s pro teams are all endorsing Prop 16. What is it? (San Jose Mercury News)
  • Ending California’s ban on affirmative action could show how far it’s come (Washington Post)

Reparations

  • Black pastors announce support for Asheville racial justice efforts (Ashville Mountain Express)
  • County Commissioners approve resolution to create Economic Reparations Committee (WKZO Kalamazoo)
  • Column: Reparations are about economic stability, not a looted pair of $120 Nikes (Chicago Tribune) – Is looting a form of reparations.
  • Repaying the debt owed to Black people requires a democratic and reparative economy (Institute of the Black World)

Universal Basic Income

  • Here’s one way to fight poverty. Give poor people $500 a month, says NC councilman (Charlotte Observer)

Diversity / Inclusion (if you can’t get Affirmative Action or Reparations)

  • Square Diversity and Inclusion Report (Square)
  • Arizona Central Diversity Scorecard (AZ Central)

Rehab / Re-entry

  • American Rehab (Reveal) – Detailed account of work practices in rehabilitation industry. Interesting, but a little bit sensationalized.
  • City Startup Labs gives returning citizens tools for entrepreneurship (QCity Metro – Charlotte) – Teaching ex-prisoners about computers.

Black Economics

The impact of an uneven economic playing field (Milwaukee Independent)

Straight up Econ

  • Monopoly Power Lies Behind Worst Trends in U.S., Fed Study Says (Bloomberg)
  • Larry Summers: Who’s Afraid of Budget Deficits? (Larry Summers) – Old but you have to keep an eye on Larry even with his past, anti-woman behavior.
  • It’s time to be up front about the 3 neoliberal arguments that help keep racist economic systems in place in the US (Business Insider)
  • To narrow racial and economic disparities, Atlanta Fed chief Raphael Bostic is rethinking what the Fed’s mandate means (Washington Post)

Education

  • California ballot proposition 16  could boost racial equity among university faculty (CAL Matters)

Other / Interesting

  • The Harlem Week panel: Hon. Charles B. Rangel Systemic Racism & Economic Justice Summit (Harlem Week) had no expert nor discussion on Economic Justice.  What’s up with that? Looks like we don’t even have the capacity to discuss economic justice in any detail. Yikes.

Sport / Media / Entertainment

  • NFL’s first Black team president, Jason Wright, of the Washington Football Team (CBS News)
  • Allen Media Group Buys Hawaii TV Station for $30M (Multi-Channel News)
  • Thunder Underscores Its Commitment to Tulsa’s Historic Greenwood District (NBA)
  • Jay-Z and Pharrell Highlight Importance of Black Ownership In Song ‘Entrepreneur’: ‘For Every One Gucci, Support Two FUBU’s’ (Atlanta Black Star)
  • Pharrell Williams – Entrepreneur (Official Video) ft. JAY-Z (You Tube)
  • NBA strikes sponsorship deal with DoorDash, will help black businesses (SportsNaut) – Gotta watch this one.  Doordash is notorious for paying low wages and stealing tips. Probably not someone I would partner with.
  • Sixers parent company commits $20 million to fighting systemic racism and championing equality (Philadelphia Inquirer) – Quick peek into how team owners got their money.

Industry Watch: Beer / Wine / Liquor / Alcohol

  • Meet the Two Sisters Making Wine More Accessible for Black Wine Drinkers (Thrillist)
  • South Africa opens as virus cases fall, allows liquor sales (Philadelphia Tribune)
  • Six ways the drinks industry can support racial diversity (The Spirits Business) – Short, click bait.

Real Estate / Housing / Segregation

  • Rent control is a disincentive to build affordable housing (CAL Matters)
  • How systemic racism flares up in housing and neighborhoods (Michigan Public Radio)
  • ‘You Know God Didn’t Forget about You.’ What Tiny Homes Offer the Homeless (The Tyee Canada)
  • Housing will test white support for Black lives (Boston Globe)
  • Cincinnati passes taxes to support transit (Cincinnati Enquirer)
  • How the U.S. Government Promoted Housing Segregation in America’s Cities (US News & World Report)
  • New York City may take a decade to recover from coronavirus pandemic, says developer Don Peebles (CNBC)

Finance / Investing

  • Bloomberg Gender-Equality Index. Invest in a more equal future. (Bloomberg)
  • Commentary: Diversity and inclusion – the role of business in what happens next (Pensions & Investments)
  • Fintechs Were Supposed Improve Equality – What Happened? (Forbes)

People / Motivation

  • Billionaire Robert Smith Fighting U.S. Criminal Tax Inquiry (Bloomberg)
  • GROUPM NAMES KIRK MCDONALD NORTH AMERICA CEO (GroupM PR). WPP Taps AT&T’s Kirk McDonald to Run GroupM in North America (WSJ) – Paywall. Kirk McDonald Will Become North American CEO of GroupM (Variety) – GroupM buys $17.6 billion in ads.  He will lead the North America division which has 6500 employees.  Advertising is probably the single “Whitest” industry in the US.
  • How Burrell Advertising got started (NPR) – The story of the famous advertising agency in Chicago
  • Ivey names Port Authority picks, including 1st African-American woman (AL.com)
  • Black Voices Matter: Tiffany Spencer, President of Black Orlando Tech (Orlando Magazine) – Black Orlando Tech
  • Johnny Bailey Explains Why The Key To Black Liberation Is Economic Power (Forbes)

Politics / Government

  • Racial Diversity Among Top Staff in Senate Personal Offices (Joint Center for Political and Economic Studies)
  • New report finds top Senate staffers are more diverse than in 2015 but still predominantly white (The Hill)
  • Democratic convention: $4 trillion infrastructure bank would create 25 million jobs (Peoples World)
  • Financial Regulators Address Financial Inclusion, Expansion of Credit, and Protection from Discrimination (JD Supra) – Good, long description of steps financial regulators are taking to address financial discrimination.
  • To close the racial wealth gap, we need more Black regulators (MarketWatch) – Important but boring

Career / Industry News / Businesses You Can Start

  • Energy Secretary Brouillette’s Remarks to the American Association of Blacks in Energy National Conference (Energy.gov)
  • Buffalo Black Achievers CEO talks access and opportunity (Buffalo Business First)
  • Profile of Capital Good Fund (a CDFI) (CNBC)
  • Pittsburgh development chief Marty LaMar on fostering change for a more inclusive city (Pittsburgh Business Times)
  • Black babies are more likely to survive when cared for by Black doctors, study finds (USA Today)

Taxes / Tax Policy

  • Column: Task force adviser says consolidation would create property tax relief. Will anyone listen? (Chicago Tribune) – Black suburb is over taxed and consolidation would reduce the burden.  Neighboring towns could care less.
  • St. Louis set to vote on raising taxes to expand child care (St. Louis American)

Technology / Apps / Innovation

Travel

  • Black Historian Jefferson Talks Bruce’s Beach, Manhattan Beach (Patch)

Conservative / Alternative

International

Old, but good

  • The Resegregation of Jefferson County (NY Times)

Black Business and Economic Stories for August 10 to August 16th

Top  Stories

  • K-Shaped “Recovery” Widens Gulf between Haves and Have-Nots (Non Profit Quaterly)
  • Us against them’: Workers cite racial divide on front line of long-term-care fight against COVID-19 (Richmond Times-Dispatch) – Nice, long article of what it’s like to work in the nursing home industry
  • There Is No Equality Without Affordable Childcare, but Little Is Being Done About It (Good Housekeeping)
  • More than 1 in 3 Black women are on the front lines of the pandemic, but they aren’t even close to equal pay (CNBC)
  • Black women with natural hairstyles are less likely to get job interviews (CNN)
  • Veteran Reporter DC Livers Launches First Black Woman Owned/Led Sports Network (EUR Web) (Black Sportz Magazines)
  • How decades of US welfare policies lifted up the white middle class and largely excluded Black Americans (Business Insider)

Special Topic: Crown and Hops Craft Beer Brewery

  • The Crown and Hops website is here.
  • The Crowns & Hops Founders Saw No Black People In Taprooms. Here’s What They Are Doing About It (Forbes)
  • Marketplace extended interview with the founders of Crown and Hops:  Beny Ashburn and Teo Hunter (Marketplace.org)

Covid-19 / Coronavirus

  • The recession is over for the rich, but the working class is far from recovered (Washington Post)
  • How housing patterns may partly explain coronavirus’s outsized impact on Black Louisianans (New Orleans Times-Picayune) – Daily life with Covid-10. Cramped quarters and working conditions explain high covid-19 rates.
  • Chicago Urban League to provide emergency grants to Black small businesses (Chicago Crusader)
  • Local Sacramento Arts organizations crushed by Coronavirus (Sacramento Bee) – Art’s and Entertainment experienced a 35% drop in activity.
  • Tenino, Washington is printing wooden money to help residents through the pandemic (CNN).
  • Here are the rules from the Tenino, WA. Web-site. – The script is given in $25.00 amounts and only 99 cents in change can be returned. No alcohol, tobacco or cannabis 
  • President Trump suspends the payroll tax despite lack of bipartisan support (National Academy of Social Insurance)
  • More Signs Coronavirus Exacerbates Economic Inequality. Here’s How. (Barrons) – Another recap.  Jobs, wealth and health cause higher outbreaks in the Black community.

PPP / Coronavirus

  • Only 130 Black-Owned Restaurants Received PPP Loans Over $150,000, According To A Report (Delish)
  • 785 Michigan restaurants got $150K or more in federal loans. Only 1 listed as Black-owned (Detroit Free Press)
  • Only 130 Black owned restaurants received large PPP loans. (Restaurant Business)
  • Small business loan program data has little information about race (Center for Public Integrity)
  • K-Shaped “Recovery” Widens Gulf between Haves and Have-Nots (Non Profit Quaterly)
  • Business leaders work to include minority-owned businesses in economic recovery (Philadelphia Tribune)

Protest

  • Minnesota and private partners need to support rebuilding inner-city commercial corridors (Minneapolis Star-Tribune) – Some good reporting coming out from Minneapolis.
  • ‘Decolonizing your bookshelf’: students, alumni, and local businesses turn to books — and buying practices — to combat racism (Daily Princetonian) – Buying Black and anti-racist books helps Black bookstores.
  • Turn the Page helps readers by from Black bookstores (Turn the Page)
  • City of Arlington’s New Unity Council Will Examine Racial and Economic Inequality (Spectrum-San Antonio)
  • SoCalGas Launches Restaurant Recovery Program Donating $75,000 to Black-Owned Restaurants in Los Angeles County & Inland Empire (PR Newswire)
  • 27 CEOs Launch program to hire 100,000 workers from NYC (CUNY) (NY Jobs Council)
  • C.E.O.s Pledge to Hire 100,000 Low-Income and Minority New Yorkers (NY Times)

Jobs / Workers / Unemployment / Economy

  • Us against them’: Workers cite racial divide on front line of long-term-care fight against COVID-19 (Richmond Times-Dispatch) – Nice, long article of what it’s like to work in the nursing home industry.
  • Opinion: Time to raise the minimum wage (Philadelphia Tribune) – Pennsylvania minimum wage is $7.25, the lowest in the country.  Alabama of the North.
  • There Is No Equality Without Affordable Childcare, but Little Is Being Done About It (Good Housekeeping)
  • How to Rescue the Economy and Help Black Workers at the Same Time (Politico) – Darrick Hamilton want a paycheck guarantee

Inequality / Racial Inequality

  • A Most Dangerous Intersection: Revisiting Race and Class in 2020 (Non Profit Quarterly) – How structural is racial economic inequality?
  • American Cities Brace for a Future With Even Greater Inequality (Bloomberg)
  • Cities no longer provide opportunity (Bloomberg) – Black males fared the worst – david autor
  • NUL’s Annual Report Shows Blacks in Pandemic’s Grip (Washington Informer)
  • The National Urban League released it’s “State of Black America” report August 14th, 2020.  The report data was pre-Covid-19 and showed a small increase toward equality most likely due to the low Black unemployment rate. All of the report commentators discussed the damage Coronavirus is doing to Black communities.
  • Some “Essential” Jobs Are Still In The Queue to be Automated (Medium) – We know there is a coming job shortage.
  • How racism leaves a lingering economic ‘glass ceiling’ for Fresno’s Black residents (Fresno Bee) – Fresno is about 7% Black, 45% Hispanic, 60% White and 10% Asian. 
  • How powerful is financial inclusion? The Freedman’s Bank story suggests bank access is not enough to close the racial wealth gap (Chicago Booth)
  • How decades of US welfare policies lifted up the white middle class and largely excluded Black Americans (Business Insider)
  • Making billions versus making ends meet: how the pandemic has split the US economy in two (Guardian)

Special Topic: Black Women’s Equal Pay Day

  • August 13th is Black Women’s Equal Pay day. (American Association of University Women) Black women make 62 Cents for every 1.00 dollar White men earn in a year,  so Black women would have to work until August 13th of the following year to make the same money.  The gap is expected to widen because of Coronavirus uneven impact on the workforce.
  • Equal Pay Day for Black women is today, August 13th. There’s a reason for that (CNN)
  • Today is Black Women’s Equal Pay Day. Here’s why it matters more than ever (Fast Company)
  • How the pandemic will affect Black Women’s Equal Pay Day for years to come (NBC News)
  • More than 1 in 3 Black women are on the front lines of the pandemic, but they aren’t even close to equal pay (CNBC)

Black Business Stories

General Black Business

  • Supporting Black Business is Supporting Black People (Bloomberg BusinessWeek)
  • How to Find and Support Black-Owned Businesses (Yes Magazine)
  • Founder Keenan Beasley On Why Black Business Month Matters (Essence)
  • The Fight for the McDonald’s Franchise (Business Insider) – Interesting podcast transcript of Black ownership of McDonalds franchise.
  • Sixers’ Ben Simmons and singer John Legend are part of a group backing Philly credit card startup with $18M (Philadelphia Inquirer) – by Joseph N. Distefano.  So this is a great peak into the consumer credit card business.  No one seems to be able to break the Visa / MasterCard high fee, high interest duopoly.  So this is another card with an app and extra features.  We see, if there is some actual  value add by the Black athletes and entertainers or are they just paid endorsers and passive investors.
  • Viewpoint: CDFIs look for help to close lending gap (Washington DC Business Journal)
  • Black leadership group continuing financial literacy series Saturday (Courier)
  • UNLV professor Tiffany Howard, identifies Black entrepreneurship as a way to bridge racial wealth gap (The Nevada Independent)
  • UNLV Black Entrepreneurship Study is here.

Big Business

  • What Does Real Action Toward Achieving an Equitable Profession Look Like? (Architect)
  • Diversity pledges alone won’t change corporate workplaces – here’s what will (The Conversation) – The problem is unconscious bias
  • Why Do Boards Have So Few Black Directors? (HBR)
  • US Bank to provide USD 1 mln grants to black-led CDFIs (The Paypers)
  • Bank Initiatives Promise to Address Inequalities
  • Wells Fargo Names Kristy Fercho to Lead Home Lending (NNPA Newswire)
  • U.S. companies vow to fight racism but face critics on diversity (Reuters) – old but good summary of actions after George Floyd killing.
  • Bristol-Myers Squibb Invests $300 Million to Diversify Trials (The Street)

Special Topic: Crown and Hops Craft Beer Brewery

  • The Crown and Hops website is here.
  • The Crowns & Hops Founders Saw No Black People In Taprooms. Here’s What They Are Doing About It (Forbes)
  • Marketplace extended interview with the founders of Crown and Hops:  Beny Ashburn and Teo Hunter (Marketplace.org)

Discrimination

Black women with natural hairstyles are less likely to get job interviews (CNN)

  • SFFD ‘Whites Only’ Policy on Fire Boat (Post News Group NNPA Black Press) – I don’t think I have ever seen a municipal fire department where Whites were not over represented.  We must be paying too much.
  • Do You See Me Now? – Founders Reels After Leaked Deposition in Discrimination Case Causes Closures, Resignations (Good Beer Hunting) – Nice long article about discrimination at Founders Brewing Company in Detriot.
  • The Time Is Now, Part One — Understanding the Origins of Beer’s Inequity (Good Beer Hunting)

Reparations / Affirmative Action / Diversity and Inclusion

  • Six questions about slavery reparations, answered (CNN)
  • DOJ: Yale Discriminates Against Asian American and White Applicants In Admissions (NPR) – Looks like an election ploy. The Supreme Court has already ruled that race can be used as a factor in admissions.
  • U.S. companies should consider slavery reparations, Vista Equity CEO says (Reuters)
  • Nation’s wealthiest Black man says corporate America should consider slavery reparations (ABC News)
  • Should Charleston be talking about reparations? (Charleston City Paper)
  • Diversity and Inclusion is a growth industry. These experts explained why. (NBC News)

Careers / Business Startups / Motivation / Success / Ideas

  • Two Nashville Entrepreneurs want to uplift and encourage Black residents to enter tech industry (WSMV Nashville). Pivot Technology School (PTS)
  • Changing the face of architecture (KCRW) – Second article
  • Black psychiatrists are few. They’ve never been more needed (Washington Post)
  • The Coronavirus Pandemic, Police Brutality Have Black Therapists In High Demand (St. Louis Public Radio)
  • Racial equity in clean energy should be a key differentiator for the industry (PV Magazine)

Tech / Innovation / apps

  • Equal access to tech can reduce poverty and increase diversity (The Hill)

Sports / Entertainment / Media

  • Veteran Reporter DC Livers Launches First Black Woman Owned/Led Sports Network (EUR Web) (Black Sportz Magazines)
  • Oprah Winfrey ending print edition of ‘O’ magazine after 20 years (NY Post) – Magazine has more than 2 million subscribers but single copy print sales were just over 200,000.
  • Integration came at a cost for Negro Leagues (MLB)
  • After NFL Career Ends, Black Players Suffer More Health Woes Than Whites (US News)
  • Golf Digest Partners With the African American Golf EXPO and Forum to Continue Efforts to Grow the Game (PR Newswire)

Charity / Philanthropy

Education

  • The Black-White Wealth Gap Will Widen Educational Disparities During the Coronavirus Pandemic (Center for American Progress) – It looks like about 10% of kids do not have access to internet or a smartphone.
  • Black college grads end up with $25,000 more in loans than whites. Cancel that debt. (Hechinger Report) – Andre Perry

Conservative / Alternative

  • Black salaries matter: Efforts to close the wage gap are working (Washington Times)

Books

  • Caste by Isabel Wilkerson. Disparity in Jobs Goes Deeper Than Racism, According to New Book (Bloomberg)
  • Advice from Successful Black Lawyers (BlackNews.com)

Travel

Straight Up Econ

  • Coronavirus spending is test whether deficits really matter (The Conversation)
  • Monetary Myth-Busting: An Interview With Stephanie Kelton (Dissent) – Heard her a couple of times. Deficits don’t matter as much as we think. 
  • Changing the Federal Reserve mandate could provide a down payment to ending racial inequality (The Conversation) – By William Rodgers, former chief economists at the Labor Department
  • Fed monetary policy didn’t cause racial inequality and can’t do much to cure it (Washington Post)
  • Economist’s research cited in bill to strengthen federal minority business agency (UC Santa Cruz)
  • John Jay’s economics department earns a high score on NY FED’s education inclusion index.  (John Jay College)
  • Who is Being Trained in Economics? The Race, Ethnicity, and Gender of Economics Majors at U.S. Colleges and Universities (NY Fed) – They have a nice analysis plus interactive charts that show women and minorities in economics.
  • Did You See It? Check Out NewsOne’s Panel On ‘Dismantling the Effects of Economic Racism (NewsOne)

Politics / Government

  • Wilson Passes the Commission on the Social Status of Black Men and Boys Act (Congresswoman Frederica Wilson) – Create a 19 member commission under the US Commission on Civil Rights.
  • Failed KingSoutel Crossing CRA Benefits Salaries of Office of Economic Development (Florida Star)
  • Consumer Financial Protection Bureau Gives a Green Light to Predatory Payday Lenders (Oakland Post)

Real Estate / Segregation / Redlining

  • The Black Lives Next Door (NY Times) – Richard Rothstein writes about solutions to residential segregation. Rothstein wrote “The Color of Law” about how the government helped redline US cities.
  • Quicken Loans IPO Could Help Fight California’s Homeownership Crisis (Post News Group) – So this is kind of interesting, is Quicken / Rocket Mortgage make more loans to minorities or less ?  Did not have time to research.
  • Callaloo pivot at Manhattan Casino draws debate over protecting interests of Black residents in South St. Petersburg (St. Petersburg Catalyst)
  • How Blockbusting and Real Estate Profiteers Cash In on Racial Tension (Dwell)

Taxes / Sausage Making

  • Commentary: Black Chamber to Gov. Pritzker: Listen to our tax concerns (Chicago Tribune) – Conservative
  • Finance / Investing / Fintech
  • Ariel Investments’ John Rogers Shares Insight About Stocks, Racial Relations (Investors Business Daily)

Law / Legal / Justice

  • We Need to Throw More Criminal Businesspeople in Jail (Jacobin Magazine) – White collar prosecutions are down 30%.

People

  • First Black Student to Receive a Doctorate in Computer Science at the University of Florida (Florida Star)
  • Dr. George Brooks, Aquaponics Researcher — ‘Grow it if we can’: Aquaponics pioneer reimagines food in victory gardens, ‘edible landscapes (Arizona Republic)

Opinion

  • The best way to boost our economy after the pandemic is to invest in renewable energy programs (Sun Sentinel)

History

Top Black Business Stories for the week of August 3rd to August 9th

We have over 110 stories this week. In addition to the regular Black business and economic links, we have features on how much money the NBA makes ($8.8 Billion) and the Freedman’s Bank plus Jay-Z opened a school.

Top Stories

  • Beyonce introduces Black Parade: a Black Business Directory (Beyonce.Com) (Good Morning America)
  • Jay-z’s Roc Nation and Long Island University establish the Roc Nation School of Music, Sport and Entertainment (Roc Nation Press Release)
  • Democrats introduce bill to give the Federal Reserve a new mission: Ending racial inequality (Washington Post) – Joe Biden has proposed something similar
  • The frustration of trying to invest in my hometown of Birmingham AL (BBC) — A nice story about a developer in Birmingham AL.
  • Gallup announces it has collected Black opinions for 100-Years (Black Voice News) — Some interesting surveys on Black people.
  • Income Inequality among Philadelphia’s Workforce: An Update (Economy League) – Standard picture of what’s going on across America in cities.
  • The NBA’s Business Model (Investopedia) — Pretty interesting if you want to learn about business.
  • The BLS released the July unemployment report (Bureau of Labor Statistics) – Non-farm payrolls increased by 1.8 million and the unemployment rate fell to 10.2. There are more than 16 million people are currently on unemployment and 47 million have filed an unemployment claim. That’s about 30% of the total labor force.
  • The Black unemployment rate dropped to 14.6% as compared to the White unemployment rate of 9.2%. The Black rate is usually about 50% more than the White rate.
  • Freedman’s Savings Bank or Freedman’s Savings and Trust Company was run by White to help former slaves after emancipation.  If failed in 1874 due to mismanagement. (Blackpast.Org)

And out usual beer and wine story

  • Breaking down craft beer’s diversity issue: NJ has 100+ breweries — just 3 are Black-owned (New Jersey Herald)
  • Diversity lagging in craft beer industry (Ellwood City Ledger) – Fresh Fest will be online this year.

Coronavirus / PPP

  • Why Black workers will hurt the most if Congress doesn’t extend jobless benefits (Philadelphia Tribune)
  • Loss of extra $600 in jobless aid worsens layoff nightmare (Philadelphia Tribune)
  • US: Why were Black-owned businesses the hardest hit by pandemic (Al Jazeera)
  • Why are Black-owned businesses twice as likely to close during the pandemic? (Fortune)
  • Double Jeopardy: Covid-19’s Concentrated Health and Wealth Effects in Black Communities (NY FED)
  • Black firms in NYS closed at higher rate than white firms during pandemic, NY Fed says (Newsday) – Here is a write-up of NY Fed paper.
  • Black-owned businesses hit hardest during coronavirus shutdowns (KXXV TV)
  • Side hustles, liquidating 401(k)s: Here’s how jobless Californians are getting by without the extra $600 (CAL Matters) – What happens when you lose the $600 unemployment payment? Here are some stories from California.
  • AmPac lands $500,000 to help Inland small businesses (San Berndino Sun) — Black own Community Development Financial Institution

Protest / Injustice

  • NBA Board of Governors launch first-ever NBA Foundation with NBPA to support Black communities and drive generational change (NBA Press Release)
  • NBA owners commit $300 million to new foundation dedicated to economic empowerment in Black community (USA Today) — $30 million for 10 years; not really much money.
  • LeBron James Says NBA Board of Governors’ $300M Pledge ‘Means a Lot’ (Bleacher Report)
  • The NBA earns about 8.8 billion dollars per year according to Statistica (Statistica)
  • States, local governments increasingly declare racism a public health crisis (Fox 28 Spokane WA)
  • Mayor London Breed and Supervisor Shamann Walton release roadmap to guide transformative change and investments in African-American community (San Francisco Bay View)
  • A detailed report of the planned investments in the San Francisco Black community is here.
  • Local organization works to make Milwaukee better for African Americans within five years (WTMJ-TV Milwaukee)
  • National, local Urban League initiative will target needs of Indianapolis’ Black community (Indianapolis Star) – Lilly Pharmaceuticals will give a $100 million
  • Governor Whitmer signs executive directive recognizing racism as a public health crisis (WBKB) – Goal is to equalize health outcomes.
  • Birmingham’s Largest Companies Announce Their Plans to Fight Injustice (Birmingham Times)
  • Birmingham Area Black Business Leaders on Dealing with Systemic Racism (Birmingham Times)
  • Democrats introduce bill to give the Federal Reserve a new mission: Ending racial inequality (Washington Post) – Joe Biden has proposed something similar
  • Remember the Public Sector in the Fight for Black Lives (LaborNotes)

Jobs / Workers / Unemployment

  • The BLS released the July unemployment report (Bureau of Labor Statistics) – Non-farm payrolls increased by 1.8 million and the unemployment rate fell to 10.2. There are more than 16 million people are currently on unemployment and 47 million have filed an unemployment claim. That’s about 30% of the total labor force.
  • The Black unemployment rate dropped to 14.6% as compared to the White unemployment rate of 9.2%. The Black rate is usually about 50% more than the White rate.
  • Trump, Biden Tout Plans to Close the Racial Unemployment Gap (Spectrum News) – Black White employment gap is due to discrimination.
  • How Public Transit Affects African-Americans’ Upward Mobility (Spectrum Local News)
  • In These Neighborhoods, the Jobless Rate May Top 30 Percent (NY Times)
  • California labor commissioner sues Uber and Lyft, alleging wage theft (LA Times)

Black Business Institutions / Groups / Support

  • Killer Mike Wants to Save America’s Disappearing Black Banks (Bloomberg)
  • 75% of Black Business Owners Have Seen an Increase in Business in Recent Months, Study Says (People) – Data from Groupon.
  • Illinois State Rep. Ford honors local legends in celebration of National Black Business Month (Chicago Crusader)
  • 2020 NATIONAL BLACK ECONOMIC CONFERENCE: THE ROAD TO GENERATIONAL WEALTH (Black PR Newswire) – also at National Black Economic Conference.  Formerly South Florida Black Economic Forum.
  • AACCNJ is Empowering African American Businesses (NJ Business)
  • Pittsburgh Black business leaders create ‘Executive Action & Response Network’ (Pittsburgh Tribune)
  • Breweries and wineries are easy to find in Indiana but minorities don’t see much representation (Indiana Minority Business)
  • Man brings bike movement for economic reform for Black people to Tacoma (Tacoma News Tribune)

Black Business Stories

  • Beyonce debut’s Black Parade: a Black Business Directory (Beyonce.Com) (Good Morning America)
  • With the Power of One PO, Everything Can Change for Black-Owned Apparel Businesses (Apparel News) – Sadly, getting an order from a big company is like hitting the lottery.
  • Breaking down craft beer’s diversity issue: NJ has 100+ breweries — just 3 are Black-owned (New Jersey Herald)
  • Diversity lagging in craft beer industry (Ellwood City Ledger) – Fresh Fest will be online this year.
  • These minority-owned restaurants are feeding the NBA Bubble (ClickOrlando.com)
  • Fourth annual Black Business Expo goes virtual on Sept 26 (Augusta Free Press) – Waynesboro, VA — at BlackBusinessExpo.com
  • The 2020 Taste Makers: Meet the Black Culinarians Powering the Detroit Food Scene (Hour Detroit)
  • Black-Owned Businesses Still Lack Resources—Here’s How The Foundation For Business Equity Is Stepping In To Help (Forbes)
  • NOIR Black Chamber of Commerce certified for community development (Louisville Business Journal) – So this is interesting.  Waiting to see if a AACC can do development.
  • Black-Owned LavenderPop Greeting Cards Makes History In Striking Partnership With Jewel-Osco (CBS TV Chicago)

Big Business

  • Black owned media companies call for advertisers to start spending (Black Enterprise)
  • Alicia Keys’ new brand is ‘not another celebrity beauty line’ (CNN) – Alicia Keyes will partner with e.l.f. cosmetics.  Lot of interesting angles.  Keyes has said she does not wear make-up. E.l.f. cosmetics are made in China and have low retail prices.
  • Facebook has Black Business Seminar series (Facebook)
  • If corporations want to stop racism, here’s where they can start (Washington Post)
  • If Corporations Really Want to Address Racial Inequality, Here Are 9 Things That Actually Make a Difference (Time)
  • Coca-Cola Accelerates Commitment to Black-owned Businesses (Web Wire Press Release)

Africa / Caribbean

  • Ghana Looks to Long Relationship With African Americans for Investment (Council on Foreign Relations)
  • IDFA Encourages Trump Administration to ‘Stay the Course’ in U.S.-Kenya Negotiations (Hoard’s Dairyman) (Feedstuffs) – If you want to see how trade policy sausage is made.  They clearly don’t give a crap about local dairy farmers in Kenya.
  • Gallup announces it has collected Black opinions for 100-Years (Black Voice News)

Government / Politics

  • Abrupt change to census deadline could result in an undercount of Latino and Black communities (Washington Post)
  • Minnesota DEED Announces Cultural Mall Operator Grant Award (Red Lake Nation News) – Minnesota is giving money to small ethnic mall operators.
  • Charity / Philanthropy
  • The Philadelphia Black Giving Circle supports Black-led, Black-serving nonprofits (Philadelphia Citizen)
  • In August we will be focusing attention on Black philanthropy, philanthropists (Generocity)

Careers

  • America’s Black brain drain: Why African-American professionals are moving abroad—and staying there (Fortune)
  • Rx for health care inequities: More health professionals of color (CAL Matters)
  • Website and Hashtag, #HireBlackWomenJournalists, for Black Women Journalists – Only two business journalist so far.
  • Certified Financial Planning – The Association of African American Financial Advisors (AAAA) is a non-profit group founded by LeCount R. Davis, Sr. In 1978, Davis became the first Black advisor to earn the Certified Financial Planner designation. Editor’s Note: 1978 is like crazy, right?

Police / Corrections

  • Overtime at California’s prisons swelled to almost half a billion dollars last year (CAL Matters)

Discrimination

  • The frustration of trying to invest in my hometown of Birmingham AL (BBC)

Reparations / Affirmative Action

  • Reparations a debt owed and an investment in equal America (Boston Herald) – Guest editorial. Whites are focus on money rather than fixing society.
  • Five Questions about Reparations, with Stephanie Seguino (University of Vermont)

Inequality / Wealth / Income

  • Inside the Income Gap for some Black Virginians (University of Virginia)
  • How U.S. Structural Racism Robs Black Wealth (Gallup Podcast) – A little old but with Andre M. Perry.
  • Income Inequality among Philadelphia’s Workforce: An Update (Economy League) – Standard picture for a large American city. I can’t believe Montgomery Country, a northern suburb of Philadelphia with half the population, has almost the same number of businesses and jobs as the city itself.  Talk about White flight.
  • Wolf calls on General Assembly to raise minimum wage in Pennsylvania (Pittsburgh Tribune-Review)  – Pennsylvania’s minimum wage is still $7.25 while all neighboring states are at least at $8.25.
  • Gov. Wolf Proposes Minimum Wage Increase for Sixth Time (PA Governor)

Real Estate / Housing

  • Homeownership for Black families in Milwaukee is worse now than 50 years ago. Could a regional approach to affordable housing help? (Milwaukee Journal Sentinel)
  • Urban League launches $5 million effort to boost Black homeownership in Madison (Madison State Journal)
  • Harlem will be the National Urban League’s new headquarters (St. Louis American) — $242 million dollar development.  We will see how much Black participation there is.
  • Fair housing still a distant journey for Black America (Atlanta Daily World)
  • This Kansas City plan can fight racial inequity with practical, affordable housing (Kansas City Star)
  • The housing problem: How housing became a privilege rather than a right (Architect Magazine)
  • The Low-Wage Mothers of Color Who Want to Become Suburban Moms (The American Prospect)
  • Study: Mortgages for Black, indigenous, Hispanic applicants in NC denied at higher rate (Winston-Salem Journal)
  • FIVE STEPS TO PREVENT DISPLACEMENT (Sightline Institute) – Long discussion of affordable housing
  • Senate Bill Seeks To Remove Major Barrier To Black Homeownership (Cision PR Newswire)
  • Improving Black Homebuyers’ Access to Capital (MReport)
  • The American dream while Black: ‘Locked in a vicious cycle’ (NBCNews) – Looks at Black home ownership

Energy Industry

Entrepreneurship / Business Ideas

  • Last Call for Entrepreneurs: Walmart Annual Open Call for U.S.- Manufactured Products Deadline Monday, August 10 (Chicago Crusader)
  • The program called Wal-Mart Jump is here. – Even if the program is closed, you can learn a lot from what wal-mart is looking for.
  • Chicago Police Officer Launches Group to Support Black-Owned Startups (Network Journal)
  • Social Justice & Beyond: Where’s the opportunity in the Marijuana Industry (Greenway)

Travel

  • Black beaches that broke barriers (Daily Mail UK) – Interesting. September 2017
  • Study Exposes Racial, Economic Gap In Access To Nature (KCBS)

Taxes

People

  • AmPac’s Hilda Kennedy — Hilda Kennedy, Founder and President of AmPac Business Capital, shares about the mission of AmPac:  To make communities better and families stronger, as champions of job makers
  • Mayor Appoints Alejandra St. Guillen to Boston Cannabis Board (Charlestown Patriot-Bridge) – Boston

In passing

  • How Whitney Young Jr., advisor to three US presidents who enabled Blacks to enter corporate America Dr. Gus T. Ridgel’s legacy inspires Black students to resist the status quo (Missourian)

Tech / Innovation / Apps

  • Nolafrique sources fashions from Ghana and Senegal. – So you have to wonder if some one could make a US – Africa supply chain work.
  • The WeatherCheck app selected for inaugural Google for Startups Accelerator for Black Founders (Louisville Business First)
  • You can track information about the economy in real-time with track the recovery (Track The Recovery) – Raj Chetty was involved.
  • Kingdom Pay is another Black mobile financial app (Kingdom Pay)

Straight Up Econ

  • Why Do Economists Have Trouble Understanding Racialized Inequalities? (Institute for New Economic Thinking) – Economists focus on individual, rational behavior and believe discrimination is inefficient and irrational.  What they are ignoring is group behavior over a long period that has create political, historical and structural institutions that perpetuate racism.
  • The built-in biases in economics that feed systemic racism (Washington Post) – From July
  • You can track information about the economy in real-time with track the recovery (Track The Recovery) – Raj Chetty was involved.
  • In These Neighborhoods, the Jobless Rate May Top 30 Percent (NY Times)

Old but Good — Economics

In March, 2017, Peter Temin published The Vanishing Middle Class: Prejudice and Power in a Dual Economy which describes US society as really two worlds: a rich, elite society and a developing economy for everyone else.

Welfare / Safety Net / Universal Basic Income

  • Coronavirus pandemic puts a spotlight on Stockton’s guaranteed income experiment (CAL Matters)

Sports / Entertainment

  • NBA Team Values 2020 (Forbes) – From February, 2020
  • How Do NBA Franchises Spend Their Revenue? Team Executives Reveal Financial Info (Sports Illustrated)
  • The NBA’s Business Model (Investopedia)
  • A confidential report shows nearly half the NBA lost money last season. Now what? (ESPN) – From 2017, more than half the teams “lost” money on paper.
  • The NBA earns about 8.8 billion dollars according to Statistica (Statistica)
  • Alternative / Conservative
  • A Conversation with Sen. Ted Cruz (Washington Post) – Not much new here. Did I mention that we had “the lowest Black unemployment rate ever.”

Education

  • Jay-z’s Roc Nation and Long Island University establish the Roc Nation School of Music, Sport and Entertainment (Roc Nation Press Release)
  • Equity in Illinois higher education: ‘We are failing our African American students.’ (The Southern Illinoisian)
  • Carson Group to Give $500K for Next-Gen Black CFPs (ThinkAdvisor) – Fund certified financial planners at HBCU’s.
  • Black students pressure UC San Diego to expand their tiny presence on campus (San Diego Union-Tribune)

Opinion

History / Black Business History / Black Economic History

  • Freedman’s Savings Bank or Freedman’s Savings and Trust Company was run by White to help former slaves after emancipation.  If failed in 1874 due to mismanagement. (Blackpast.Org)
  • The Freedman’s Savings and Trust Company and African American Genealogical Research (National Archives)
  • The Freedman’s Savings Bank: Good Intentions Were Not Enough; A Noble Experiment Goes Awry (Office of Comptroller of the Currency)
  • Freedman’s Savings Bank (Freedman’s Savings Bank) – I think this is the website for the tour of the Freedman’s savings bank in DC.

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)