Racial Justice Reparations
What would it look like and why should this country give reparations specifically to Black americans?
Central to the idea of the American Dream lies an assumption that we all have an equal opportunity to generate the kind of wealth that brings meaning to the words “life, liberty and the pursuit of happiness,” boldly penned in the Declaration of Independence. The American Dream portends that with hard work, a person can own a home, start a business, and grow a nest egg for generations to draw upon. This belief, however, has been defied repeatedly by the United States government’s own decrees that denied wealth-building opportunities to Black Americans.
Today, the average white family has roughly 10 times the amount of wealth as the average Black family. White college graduates have over seven times more wealth than Black college graduates. Making the American Dream an equitable reality demands the same U.S. government that denied wealth to Blacks restore that deferred wealth through reparations to their descendants in the form of individual cash payments in the amount that will close the Black-white racial wealth divide. Additionally, reparations should come in the form of wealth-building opportunities that address racial disparities in education, housing, and business ownership.
In 1860, over $3 billion was the value assigned to the physical bodies of enslaved Black Americans to be used as free labor and production. This was more money than was invested in factories and railroads combined. In 1861, the value placed on cotton produced by enslaved Blacks was $250 million. Slavery enriched white slave owners and their descendants, and it fueled the country’s economy while suppressing wealth building for the enslaved. The United States has yet to compensate descendants of enslaved Black Americans for their labor. Nor has the federal government atoned for the lost equity from anti-Black housing, transportation, and business policy. Slavery, Jim Crow segregation, anti-Black practices like redlining, and other discriminatory public policies in criminal justice and education have robbed Black Americans of the opportunities to build wealth (defined as assets minus debt) afforded to their white peers.
Bootstrapping isn’t going to erase racial wealth divides. As economists William “Sandy” Darity and Darrick Hamilton point out in their 2018 report, What We Get Wrong About Closing the Wealth Gap, “Blacks cannot close the racial wealth gap by changing their individual behavior –i.e. by assuming more ‘personal responsibility’ or acquiring the portfolio management insights associated with ‘[financial] literacy.’” In fact, white high school dropouts have more wealth than Black college graduates. Moreover, the racial wealth gap did not result from a lack of labor. Rather, it came from a lack of financial capital.
Not only do racial wealth disparities reveal fallacies in the American Dream, the financial and social consequences are significant and wide-ranging. Wealth is positively correlated with better health, educational, and economic outcomes. Furthermore, assets from homes, stocks, bonds, and retirement savings provide a financial safety net for the inevitable shocks to the economy and personal finances that happen throughout a person’s lifespan.
Recessions impact everyone, but wealth is distributed quite unevenly in the U.S. The woeful inadequacy of a government-sponsored safety net was made apparent in the wake of economic disasters like the 2008 housing crisis and natural ones like Hurricane Katrina in 2005. Those who can draw upon the equity in a home, savings, and securities are able to recover faster after economic downturns than those without wealth. The lack of a social safety net and the racial wealth divide are currently on display amid the COVID-19 crisis. Disparities in access to health care along with inequities in economic policies combine to make Black people more vulnerable to negative consequences than white individuals.
One key question after deciding what a reparations package should include is who should qualify. In short, a Black person who can trace their heritage to people enslaved in U.S. states and territories should be eligible for financial compensation for slavery. Meanwhile, Black people who can show how they were excluded from various policies after emancipation should seek separate damages. For instance, a person like Senator Cory Booker whose parents are descendants of slaves would qualify for slavery reparations whereas Senator Kamala Harris (Jamaican immigrant father and Indian immigrant mother) and President Barack Obama (Kenyan immigrant father and white mother) may seek redress for housing and/or education segregation. Sasha and Malia Obama (whose mother is Michelle Robinson Obama, a descendant of enslaved Africans) would qualify.
To determine qualification, birth records can initially be used to determine if a person was classified as Black American. Economist Sandy Darity asserts that people should show a consistent pattern of identification. Census records can then be used to determine if a person has consistently identified as Black American. Finally, DNA testing can be used as a supplement to determine lineage. This is how Senator Booker, who first introduced a reparations bill in the Senate, learned that his lineage stemmed from Sierra Leone.
For the descendants of the 12.5 million Blacks who were shipped in chains from Western Africa, “America has a genetic birth defect when it comes to the question of race,” as stated recently by U.S. Representative Hakeem Jeffries. If America is to atone for this defect, reparations for Black Americans is part of the healing and reconciliation process.
With April 4 marking the fifty-second year since Dr. Martin Luther King, Jr. was assassinated in Memphis, we think it is appropriate to end with an oft-forgotten quote from Dr. King’s “I Have a Dream Speech” that he gave in 1963 in Washington, D.C. This statement is still one of the unfulfilled aspects of this policy-related speech:
We have come to our nation’s capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. … It is obvious today that America has defaulted on this promissory note insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked “insufficient funds.” But we refuse to believe that the bank of justice is bankrupt.
Given the lingering legacy of slavery on the racial wealth gap, the monetary value we know that was placed on enslaved Blacks, the fact that other groups have received reparations, and the fact that Blacks were originally awarded reparations only to have them rescinded provide overwhelming evidence that it is time to pay reparations to the descendants of enslaved Blacks.
(Thank you https://www.brookings.edu/policy2020/bigideas/why-we-need-reparations-for-black-americans/)
