Another Plantation (A Status Quo Of Black America)

Is falling, and the economic gap between black families and other communities is expanding exponentially. The contributing factors present stark disparagements in the black community which may never balance out. Education, underemployment, gentrification, and housing are some of the factors affecting comprehensive wealth building. Despite strides toward equality, the reality remains that black households continue to face significant barriers to growing and preserving wealth. The perpetual social, economic, and educational disparities apparent in the black community, have had debilitating effects and deep historical roots. The failing of black wealth equality stands as a reminder of the legacy of systemic racism and economic inequality in the United States. In this article, we will deep-dive into the complex factors contributing to the black wealth gap, examining the historical context, systemic challenges, and potential pathways toward economic empowerment and equity. By understanding the dynamics at play and advocating for meaningful change, we can work toward a future where all communities have equal access to economic opportunity and prosperity.

        Historically, Black Americans have faced a plethora of systemic barriers to wealth accumulation and the transfer of generational wealth and assets. The common rationales; slavery, segregation, discriminatory housing policies, unequal access to education and employment, have fared out to be very efficient disruptors of growth. These complexities, have crescendoed beyond “dog-whistles” and allegation. The following generations acquired the stresses of productivity and accomplishment against systemic impediments. Obstacles assessed, the economic equilibrium required for intra-communal growth within the Black community, have substantially deteriorated. Years of defunct social programs, social and infrastructural decay, and failed public funding, have diverted prosperity away from the community, perpetuating wealth disparities and stagnating black economic growth in the US. However, these are not the latest blockades stifling the growth of Black wealth. The housing crisis and economic recession of 2007-2009 disproportionately affected Black Americans and their assets. The latest trend of gentrification and redevelopment, has had complicated and disorienting effects on Black wealth, quality of life, and home ownership. Gentrification has tornadoed through inner-cities in the 2010s’, resulting in a mixture of meagerly positive, mostly negative impacts. Black households and establishments that were longstanding through generations of communal history were swept up, displacing black residents from their family homes and neighborhoods. Rising property costs and taxes, compiled amongst the calamitous results of harrowing gentrification. The resulting decline in homeownership rates among black families, have deprived following generations of transferable assets. More recently, the COVID-19 pandemic has exacerbated existing economic inequalities, with Black Americans, experiencing higher rates of job loss, income instability, and housing insecurity compared to other communities. Studies have consistently shown that black households dropping to lower levels of wealth compared to White, Asian, and Latino households steadily over the past 10 years. Data from the Federal Reserve’s Survey of Consumer Finances states, the median wealth of White and Asian households has been consistently higher than that of Black households, with Latino households overtaking that of African American. While there have been efforts to address racial disparities in wealth, through policies aimed at promoting homeownership and entrepreneurship among black Americans, progress remains uneven.

Black Home ownership in the United States has fluctuated, but dropped steadily since 2009. The notion that generations following the “Baby Boomers,” would do increasingly worse than those preceding it, seems to be more of a concerning reality than speculation. Influenced by economic, social, and policy factors the black community (especially youth between ages 25 to 35) is experiencing receding numbers of homeownership. Whether young black American’s do not financially qualify, or are disenfranchised by the market, young black adults are finding it increasingly difficult to obtain permanent housing. Following the Civil Rights Movement and the passage of anti-discrimination housing laws, there was an increase in black homeownership rates across the US. Government programs, such as the Fair Housing Act of 1968 and the Community Reinvestment Act, aimed to promote fair lending practices and expand access to homeownership opportunities for minority communities. The strictures to homeownership, racial discrimination in housing policies, redlining, and limited access to mortgage credit have overcomplicated Black homeownership. The decline in manufacturing jobs, lack of professional training, and the increase in menial employment, are compounding problems that reflect broader challenges to obtaining a home. These factors have contributed to substantially lower homeownership amongst Black families over time. Black homeowners were also disproportionately impacted by the subprime mortgage crisis of the 2000s, as they were more likely to receive high-cost, predatory loans. This contributed to a widening wealth gap between black and white households. Addressing the root causes of housing disparities, through affordable housing initiatives and homeownership counseling programs, have done little for the recovery of Black homeownership rates following the Great Recession of 2007. This post-recession recovery for Black Americans has been far slower compared to other demographic groups. Efforts to promote homeownership and address racial disparities in housing continue to be challenged by discriminatory lending practices, economic instability, and systemic barriers that continue to negatively impact black homeownership in America.

The Black Church has been the cornerstone of religious expression and communal worship for black people. Black churches have also been at the center of social issues, political resistance, and economic initiatives directed at stabilizing communal growth and development. AMEs’ (African Methodist Episcopal) and Black churches pioneered the revitalization of underserved neighborhoods, and stimulated intra-communal relations; establishing community development corporations, credit unions, and investment funds to support affordable housing and economic empowerment. During Civil Rights, these black religious institutions were integral to the movement, supporting and hosting black leaders and organizations, and providing a safe haven against racial persecution. In spite of the different ideologies, black religious institutions supported the causes of the Black Panther Party, including their free breakfast and free healthcare programs. The extensive history of Black churches supporting social and political causes, is well documented and shouldn’t be discredited; the Civil Rights era, highlighting it’s most influential and effective period. Over the past 15+ years, there has been a gradual shift away from what is conventional worship in a black institution, for alternate forms of spirituality and practices. “Prosperity gospel,” leadership scandals, and social exclusion have turned-off, many young people who’ve become disenfranchised by the black church. Some youths have “deconstructed” their Christian beliefs, and opted for more African diasporic religions, while others turn to other secular practices like Islam or Buddhism. But AMEs and black churches have yielded incomparable benefits of a collective and communal essence, for which there is no replacement. Black-owned businesses and entrepreneurship have benefited greatly, from incubator programs and networking opportunities provided within their church congregations. Estate planning seminars, will-writing services, and discussions on inheritance and wealth preservation, black churches helped congregants navigate the complexities of estate planning and ensure the preservation of family assets for future generations. Black churches still remain at the forefront of social justice movements, advocating for economic equity and racial equality. They continue to engage in activism, and coalition-building efforts to address systemic barriers to economic opportunities, fair housing, and anti-poverty resources. They continue to encourage congregants to budget effectively, and build wealth. Black churches continue to play a vital role in financial resilience, communal interconnectedness, and most importantly, spiritual health within Black communities. By providing resources, support, and advocacy, the Black church helps to address economic disparities and build pathways to prosperity for generations to come.

Gentrified neighborhoods have seriously impacted the social fabric of communities. Gentrification comes with heavy consequences, including cultural displacement discombobulating crime, and the loss of neighborhood cohesion. As neighborhoods undergo drastic demographic shifts, longtime black residents may feel marginalized or excluded from the changing social dynamics. Additionally, gentrification has led to the erasure of black cultural institutions, businesses, and community spaces, further diminishing the sense of belonging and cultural identity. Gentrification has caused a multi-layered crisis, the expanding deprivation worsening desperate circumstances of hunger and homelessness across major cities. The Black church has historically played a significant role in the economic development, empowerment, and stability of Black communities in the United States. The inclusion of the Black church was an integral part to the accumulation of wealth, and fostering financial literacy and entrepreneurship. As wealthier, predominantly White residents moved in, the stability provided by black religious institutions began to dissipate, as lifelong congregation members were forced to move further and farther away. As a result, many historical Black churches have moved from their founded areas, or closed their doors altogether. Contrarily, some opportunities can be created for black homeownership. Amidst the rise in property value, some black homeowners, whom may still own their homes, could see increased equity in their homes, enabling them to sell at a profit or refinance their mortgages. Additionally, new housing developments or revitalization efforts may provide opportunities for black families to purchase homes in formerly neglected or divested neighborhoods that have yet to be penetrated by developers. However, these circumstances are rare and fleeting, and there’ continues to be growing disparities in homeownership, even in gentrifying neighborhoods. Black residents continue face barriers to purchasing homes or accessing mortgage credit, including predatory lending practices, or insufficient financial resources. As a result, they will be far less likely to benefit from rising property values and homeownership opportunities. Gentrification will continue to disrupt and disfigure communities without a commonsense and humane response to rising housing costs.