Juneteenth is Official! Now Do the Same with Black Wealth.
As of this week (!) the federal government has acknowledged that yes, ending slavery should be something celebrated. It took until 2021 for that to become an official holiday, but hey, baby steps amirite?
Having Juneteenth officially On the Books marks a symbolic victory for anti-racist ideals. “Symbolic” is the key word in that last sentence. While people of all races suffer in this country, Black people are most disproportionally affected. These roots stem back to when Black bodies were sold as chattel, and continue on through the next few centuries with inadequate assistance or compensation for that horrifying chapter in American history. To this day the Black community has to bear this cross; surprise, generational trauma is real and unresolved grievances will continue to plague the descendants.
As a white person, I see this plain as day. I’m not interested in softly approving these symbolic victories while ignoring the continued double standards perpetuated based on skin tone. As a finance writer, I’m especially interested in seeing Black people elevated through financial compensation long denied to them. What else should be done to advance Black wealth and begin to right the wrongs wrought by systematic racism?
Black activists and other people of color are dramatically shifting the conversation and national culture. These should be reflected on the political front as well. Juneteenth becoming a federal holiday is long overdue, but so are many more impactful and needed policies. Here’s four such policies I see as making the most sense after listening to Black perspectives. To my fellow white readers out there: if you don’t know what policies towards racial justice and equality you’d support, start with one of these:
Reparations
“Duh, Darcy,” I know. Reparations are the foremost obvious answer from a financial standpoint. Fun fact: there’s a historical precedent in America for reparations done due to “race prejudice” and “a failure of political leadership”. Thing is, it wasn’t for Black slaves and their descendants in the 19th century. This precedent came later in the 1980s. In 1987 the US government elected to distribute over a billion dollars to Japanese-Americans forced into internment camps. In 2020 dollars, each person in the settlement received roughly $42,500.
Forty thousand dollars. That’s the amount for just over three years of suffering. I’m putting aside my issues with this paltry amount to drive my main point home: if that’s the amount of money the government has deemed appropriate for three years of unjust suffering, where’s that money for Black Americans? Also, why is it taking so long to distribute?
While I ask this question, I sort of know the answer already. For all of the national and international crimes the US government has committed against groups of people, there are remarkably few examples of attempted reparations. The amount of impactful and equitable reparations is, possibly, zero. Our government has, time and time again, demonstrated a flamboyant reluctance towards sharing the wealth of the privileged upper echelons with those whose oppression made most of that wealth possible in the first place. And with the United States more representing an oligarchy than a democracy, there will be many a roadblock parting with their bloodstained money.
And if that’s not enough…
If at some point reparations for Black Americans do, in fact, make it into law, they’re not going to define it in a way that will benefit everyone. They will likely be a one-time payout that will exclude the majority of people who should receive it. It will also be unpopular amongst Fox viewers, which seems to be anathema in this day and age. Hell, it was unpopular back in the 1860s, when the “40 acres and a mule” promise was rolled back in a matter of months. White plantation owners were very grateful to get their land back and not face the music for crimes against humanity. Much to the chagrin of the victims ever since.
If you believe reparations are the way to go as I do, be ready to see this only after a long, long battle. Reparations is by far the most difficult to achieve; this is thanks to other policies being more “palatable” (ugh) like investments in sectors instead.
Affordable, Accessible Education
No, America, this does NOT mean something in the vein of residential schools. This means significant investment into schools and communities of predominantly people of color. This also means college education reform to lessen the skyrocketing costs that make a degree all but impossible. College debt cripples the majority of Black graduates before their professional career even begins. Substandard educational resources in childhood further kneecap future earning potential and successful money management. These kind of policies have a positive ripple effect for other non-POC communities as well; access to information and resources is well-established as the path to better economic standing.
Obviously this should include educational initiatives towards financial literacy. I’m talking understanding how credit cards work; how to build and stick to a budget; what the basics of investing are a la The Simple Path to Wealth; what money can do for you as a tool for spending, saving, and growing.
Paving the way for improved education of BIPOC communities is a must. The main challenge against this is that better education doesn’t automatically translate to better opportunity for Black people. Those systemic barriers are still in place, whether you’re a Black tradesperson or white-collar executive. Said barriers severely hurt your ability to amass wealth at any life stage. This means education reform isn’t the be-all, end-all; it needs to be paired with other reforms to reach its maximum impact.
Affordable, Accessible Housing
The American dream is literally wrapped up in housing, and only a subsection of our population could pursue it freely. Black Americans have had to deal with decades of hard barriers to homeownership – or having a home at all. Practices like redlining seem like they’re from yesteryear, but they’ve still got their modern counterparts in devaluing Black homes and pushing Black families out of neighborhoods.
The current housing crisis is only exacerbating this hell. I want to move to New Hampshire and have been casually looking for months to find a place that makes financial sense; to date I haven’t found it, and that’s coming from a white person with more money than most of the country. I don’t have to deal with racism from landlords, neighbors, realtors, loan officers, bank employees, moving companies, or tax assessors. I also don’t have to limit the towns I look at to places with an established BIPOC community; there is safety in numbers, along with more established opportunity, and this radically limits the places where Black people can safely settle.
No matter where they are in the country, Black people have to keep this in mind and navigate with this lens. Housing reform will change that for the better. Maybe this could translate to strengthening the reach of the Federal Housing Administration (FHA) in their supporting minority homeownership. Invest in neighborhoods that have historically suffered from segregation. Change zoning laws to better diversify towns on the local level. Housing reforms are one of the most immediately impactful changes in the fight towards racial justice. And like educational reforms, it helps non-POC who also struggle with the hurdles in place.
Baby Bonds
Out of everything else I’ve mentioned, baby bonds might be the most cost-effective initial approach to closing the racial wealth gap. I also love the name from a marketing perspective – refreshing alliteration!
Here’s how it would work: every child born in the United States would automatically receive a bank account seeded with some amount of money. Senator Cory Booker is spearheading a bill that specifies this amount would begin at $1,000, with more each year until the child turns 18 and gains access to the funds.
It’s got some overlap with reparations because both involve payouts to Americans. The difference is that it’s for all Americans who are born regardless of race. Like the rest it’s also going to help people of all colors and credos; this would seriously help queer youth kicked out of the home, minors with abusive families, and young people with disabilities. Besides these positives, implementing these baby bonds could dramatically narrow the racial wealth gap for future generations. Take it from me: having that advantage as a young adult means you can suddenly afford the college program, job training, or down payment you most wanted. It still means your more privileged peers will get the same help, but it levels the playing field by bringing you closer together. Check out the graph to the side to see my point: it’s one hell of a promising policy.
This one is also the hardest to argue against implementing.
Come on, newborn babies are the least problematic subgroup in the world of politics. They’re already perfect political fodder for emotional appeals and as symbols for a prosperous future. It’s going to take a hell of a lot more muster to argue against giving little helpless babes a better chance at success.
Again, this also has a precedent in American history. That precedent is arguably the most popular government program of the 20th century in Social Security. Baby bonds would be like SS, except helping Americans at the beginning of their working careers instead of the end. Hell, baby bonds could end up revolutionizing Social Security in the years to come if that seed money is used for retirement investing.
How Does Any of This Happen?
While writing this article I kept noticing the same thing with each policy: their impact wouldn’t be limited to Black Americans. Every single reform or policy aimed at increasing Black wealth would ultimately help the rest of the country too. Really, any effective government programs towards financial racial justice will have a positive ripple effect throughout our economy, bar none.
Now comes the work that needs to be done to push our elected officials into focusing on putting this together. There are five main ways you, as an American, can push this through:
Awareness
Being ignorant of how to fix the racial wealth crisis helps absolutely no one in the long run. Keep reading and keep learning about how to progress as individuals and as a society.
Education
Take what you’ve learned and share that wealth. Discuss your opinions and viewpoints with others, giving emphasis to BIPOC voices who will be the most directly affected.
Activism
Five years ago, most of white America had no idea what Juneteenth was. Now it’s one of a dozen federal holidays – no small feat for a country obsessed with capitalism and keeping you in the office as much as possible. This is thanks to the work of activists nationwide, whose work you should support and amplify in the campaign towards more reform.
Civic activity
Call your representatives and tell them what you want them fighting for. Attend your local town halls; join (or give your support to forming) special boards and commissions for advancing Black wealth at the local level. Donate your money or time into campaigns for the policies you want to see. It pays dividends to wield the power you have as a citizen or resident.
Persistence
This is the most important of all. No change this significant happens overnight. After a year plus of protests nationwide the most significant victory is, I repeat, largely symbolic. Like in your career and in your investment portfolio, consistency and persistence is the key to getting the policies best suited for America’s future.
Hope everyone’s enjoying the newest American holiday. Use it as a day to remind you of the incredible progress a country can take with people most passionate about lifting their fellow humans up from below. That’s what is needed to do the same now for Black wealth, a move any decent person can tell you is long overdue.
Cover image credit: Only in Boston via Twitter