Is capitalism for blacks possible? | Business

Rochester (New York) – 200,000 residents and 40% of the black population – is the poorest after Detroit and Cleveland in the United States. It wasn’t always like this. For nearly 60 years, the presence of Xerox and Kodak has made her an example to follow. It was the black vanguard of “community capitalism”. A strategy linked to the two, then, is the enormity of creating businesses that are led and run by the black community. Today’s black capitalism (“provides state and federal governments various solutions exclusively to blacks and black businesses: wage subsidies, secured purchases of products or manufactured goods, tax incentives, low interest rates on credits, secured loans, and aids to black entrepreneurship”), summarizes Ryan Ferry Professor at Boston University) who wants to get back to being an economic hope.

In his 1968 address, I Was on Top of the Mountain, Martin Luther King Jr. called for a Banks Rebellion. Simple idea. Let black residents withdraw their savings from white banks and put them in Tri-State Bank, a black-owned enterprise. A way for them to access mortgages, loans for studies, better financial conditions…a way to bridge the gap with white privileges. But that same year, Nixon himself felt a political regression in that black capitalism. “Instead of government jobs, government homes, and public social insurances, let the administration use taxes and credits to recruit them into battle. [contra la pobreza] Using the greatest engine of progress in human history: the American Special Project,” he was sent.

The strategy was a Republican treasure. “I’ve always viewed black capitalism as a concept promoted by American rights to accommodate black Americans’ demands for economic equality,” explains William Dariti, professor of African American studies at Duke University. He specifies: “They could not be much afraid of the concept, because it was the segment of the population most hostile to the well-being of black Americans who actually invented the term.”

But these two words, black capitalism, were so politically attractive that they have moved, since Nixon, from administration to administration. Ronald Reagan called Black Arcadia’s projects “Entrepreneurship Zones”; Bill Clinton, “Tax Credits for New Markets”; Barack Obama (more lyrically), “Areas of Promise”, and Trump “Areas of Opportunity”. All these excuses and ideas have failed because no one is based on economic justice: they are tax cheats. He strongly describes that the word ghetto “refers, above all, to economic depression, and to urban blacks, who live in areas separate from whites”. Difficult existence. A report by the Association for Enterprise Opportunities revealed that 2.58 million black-run businesses generate only $150 billion in revenue.

Gap de Requera

Another work, from October, from consulting firm McKinsey proposes a vision based on the goodwill of words and econometrics. “Black-owned businesses could close the wealth gap between blacks and whites in the United States, which according to our projections will cost the economy between $1 and 1.5 trillion (between 884,000 and 1.3 trillion euros) per year in 2028, he argues. Although in the middle of Way, the virus could widen the racial rift.This gap includes an opportunity for about $290 billion to increase public prosperity and achieve income equality that separates black and white businesses.Despite the fact that a black businessman is still 20% less likely than another white person. To get a loan from a big bank.

An circumstance always touches the bone of certainty. “Black monarchy may seem a potential path to a more dignified, self-sufficient, and prosperous life,” says Catherine K. Chin, director of the Department of Sociology at City University of New York. “However, some believe that it will be difficult for them to thrive if other collective goals are not pursued, such as the recognition of interdependence and the good of growing together.”

But blackness flows as a major social problem. Nicole Hannah Jones, a journalist covering racial injustice, launched Project 1619, which dates back 400 years after slavery began. The goal is for this shame to remain at the heart of the current American narrative.

The question arises whether the “best” parts of this black capitalism can move to Spain. Immigrants, Disadvantaged Ethnic Groups, or Disgraced Settlement of Madrid in La Cañada Real. Economists disagree. The sounds leave different vibrations in the air, like helium balloons. “The fact of living in a situation of exclusion should not be the reason: you have to attract institutions, venture capital, who know how to find out where the entrepreneurial energy is flowing. It is a very valuable resource: it cannot be overlooked,” explains Emilio Ontiferros, President of AFI. But the system is not designed to maintain fragility.

For example, if there is a law in Spain for equal credit opportunities as in the United States. In this case, the rule prohibits the use of race, gender, country of origin, and marital status to assign credit risk. “Although it is not so simple, even if you do not include these properties in the algorithm [que concede el préstamo], there are many other variables that could be Agents [en la práctica, aportan idéntica información]”, warns José García Montalvo, Professor of Economics at Pompeu Fabra University (UPF). Other economists read reality through the hard pages. “The main problem for these people who are subjected to racism is racism and capitalism, not obstacles to the creation of companies,” emphasizes Carlos Martin, Chief Economic Officer at CC OO.