Plight of the Black Middle-Class

There is a common theme that runs through the following stories:

The New York Times lays out the disproportionate impact that public sector layoffs have had on African-Americans. Historically, the federal government discriminated less than other sources of middle-class jobs, making public sector work the backbone of the black middle class for generations. Now, that backbone is taking hit after hit. Even before this wave of government layoffs, the African-American middle class was struggling to stay middle class:

A study by the Brookings Institution in 2007 found that fewer than one-third of blacks born to middle-class parents went on to earn incomes greater than their parents, compared with more than two-thirds of whites from the same income bracket. The foreclosure crisis also wiped out a large part of a generation of black homeowners. source

The second article was written by Al Sharpton:

In June of 2009, the economic recession was officially declared over. Despite the fact that millions remained unemployed, families were still foreclosed upon in record numbers and more children went hungry than most of us could have ever imagined, many had us buy into the notion that the worst was behind us and things were on an upward trajectory. Well, for the African American community, nothing could be further from the truth. In fact, Black layoffs have only skyrocketed since that time as the public sector - heavily comprised of a Black workforce - continues to slash jobs. And as a result, not only has Black wealth diminished, but so too has the existence of much of this nation's Black middle class itself. Black, White or Brown - that is a startling reality that should have all of us deeply concerned.

According to a study released earlier this year by the Center for Labor Research and Education at the University of California, Blacks were 30% more likely than other workers to be employed in the public sector. And while the private sector has added 1.6 million jobs as reported in a recent New York Times piece, public employment has seen massive layoffs across the board. Whether it's teachers, firefighters, police officers, or any other form of municipal work, the public sector has been under attack from Wisconsin to NJ and everywhere in between. From losing their bargaining rights to bearing the brunt of city and state budget cuts, public service employees are watching their entire life savings disappear. And because about 1 in 5 Blacks work in civil service, we are disproportionately suffering yet again during these tough times.

In the U.S. postal service alone, about 25% of employees are Black. It is precisely because of work in this industry and in other government entities that we were finally able to climb the economic and societal ladder, and eventually begin to achieve the proverbial American dream of home ownership. An entire Black middle class emerged via civil service jobs, and we are now tragically close to witnessing the greatest stumbling block to progress that will literally set us back decades. But we can - and we must - do something to halt this injustice that so clearly threatens our immediate future.

On December 9th, my organization, National Action Network, will do its part to address this issue and more as we mobilize a 25-city simultaneous day-of-action around Jobs and Justice. A follow-up to our October 15th rally in Washington, D.C., the December 9th march will continue to focus on growing economic disparity, lack of employment, and equality issues surrounding our current economic state. We will call attention to disproportionate layoffs of Blacks, Latinos and other oppressed groups, attacks on the public sector and the ever-growing wealth gap. We will push for economic growth, job creation and concrete, substantive ideas that truly begin to get people back to work. And we will call out all those who stand in the way. source

The common theme is that - bottom line - African Americans do not create enough jobs for other African Americans; therefore, we overly depend on government and the public sector for employment (on this point I agree with my GOP black conservatives friends).

And placed in the position of economic dependency, we remain far too vulnerable to forces outside of our control. As a case in point, whenever America suffers an economic trauma, the black community is disproportionately affected - as the time-tested and proven saying goes:

When white America catches a cold, black America gets pneumonia.

African Americans have reached the buying power of one trillion dollars. This vividly illustrates that the problem is not money or income - the problem is lack of a comprehensive wealth building strategy. The problem is - in the year 2011 - we still do use our dollars and resources to nurse our community to fiscal health.

And with all do respect to Rev. Sharpton, we do not need another march begging for jobs. In fact,many of the jobs being erased are gone forever. For example, Rev. Al takes issue with Postal Service layoffs.

However, with more people texting and sending e-mails as opposed to writing letters, the Postal Service will continue to trim more jobs. These jobs are Gone With the Wind.

In lieu of marching/begging, we would be better served to host self-empowerment symposiums or educational conferences in city after city, region after region (starting with February- black history month) on the following topics:

1. Research data on goods & services blacks purchase on a daily basis
2. How can we develop alternate sources of capital, e.g. asset holding companies to finance business growth in our community
3. Value and power of the black dollar
4. How to mainstream financial literacy
5. The value of good credit and how to maintain good credit
6. How to create a job
7. How to build wealth

No Argument From Me

Corporate America and Wall Street are running roughshod on Main Street America. Agreed.

Corporate America could do more to alleviate the economic hardship of the average family. Agreed.

Government needs to intervene to protect the average American taxpayer from Wall Street's criminal behavior. Agreed

Government with the private sector should create more jobs by investing in the Greening of American and improving our infrastructure. Once again, agreed

By agreeing to the validity of the above statements does not mean we should just wait on sound government to do its job. No, quite the contrary, we should not relinquish the power we have in our own hands to transform our present and future.

At the end of the day we have to live with the results of our action or inaction.