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Blacks can help themselves with business empowerment Print E-mail
Written by Tannette Johnson-Elie   

We African-Americans lag other racial groups in just about every economic category, and the only way we are going to catch up is to help ourselves and stop looking to others for solutions.The reason it's up to black folks to help themselves is that the rest of America doesn't know how to solve our problems, says Claud Anderson, who has a doctorate and is author of "PowerNomics: The National Plan to Empower Black America."

In particular, it's up to those of us who have made it to go back and help the many African-Americans who remain mired in poverty in our nation's central cities.

The many social programs and policies that were developed as a result of the civil rights movement, may have helped blacks socially, "but hamstrung blacks economically," he writes.

"This book is a plan specifically intended for black America, because no other group will support the elevation of blacks to a position of group prosperity, respect and competitiveness," Anderson said last week in a phone interview from Washington, D.C. He is set to speak at 10 a.m. on July 26 at Holy Redeemer Institutional Church of God and Christ, 3500 Mother Daniels Way.

I don't agree with everything Anderson says in his book, but I must admit that I like the notion of self-help and economic empowerment for African-Americans. In fact, it's been a recurring theme of this column.

Anderson, president and CEO of Powernomics Corp. of America and also author of "Black Labor, White Wealth," has been crisscrossing the country to promote his book and urge blacks to wake up and make drastic behavior changes in order to compete in what he calls "the game of capitalism."

Anderson's upcoming visit to Milwaukee is sponsored by WMCS-AM (1290); Conceptz Communications; the African-American Chamber of Commerce; the Black Business Alliance Inc.; the Center for Teaching Entrepreneurship; the Social Development Commission; and the Association for the Study of Classical African Civilizations.

Keith Murphy, news director and host of the Morning Magazine on WMCS, was instrumental in bringing Anderson here. For the past year, Anderson has been a regular guest on Murphy's "Wealth on Wednesdays" segment that focuses on personal finance topics geared toward blacks.

Anderson and Murphy's late father, Ed, a businessman who owned a supper club in Washington, D.C., were involved in economic development efforts together.

"I share the concern with Dr. Anderson that the only help that is going to come to black America is primarily black America," says Murphy, who also is president of Conceptz Communications. "It's taking a look at the conditions in our community and finding the courage to act."

After reading Anderson's book, I too, felt compelled to act, but it's a large assignment that seems almost too complex to grasp.

Nevertheless, there certainly are some lessons that can be learned from Anderson's book. First, let's start by defining PowerNomics. It combines the concepts of power and economics to help blacks produce, distribute and consume in a way that creates black-controlled wealth.

Blacks are the only people who don't pool their resources, Anderson says. Ethnic groups from Asia and the Middle East have managed to do this particularly well, he points out, and so those immigrants have raised the capital needed to open businesses in black neighborhoods without relying on banks.

What's more, these groups are willing to work hard at it, and they don't mind going into tough neighborhoods because they recognize the economic potential in the central city.

Now, Anderson is calling on African-Americans to find their own niches and build their own economy as other ethnic groups have. Some examples would be how Indians have dominated the hotel industry in the South, or how Asians have found their niche running certain types of businesses such as nail salons, dry cleaners, restaurants and beauty supply stores.

"You cannot accumulate wealth and power in this country unless you own communities. Some examples, Chinatown, Greektown and Little Haiti," Anderson says. "There's a direct correlation between business ownership and power and wealth. Asians own more businesses than anybody. The fewer businesses you have, the more time you spend engaging in social programs."

Statistically speaking, what Anderson is saying makes sense, especially if you examine 2000 census data.

In terms of wealth and assets, white households had more than five times the wealth of black households, and Asian households had more than four times as much wealth as black households, but Hispanic households were only slightly ahead of black households, census data show.

Anderson contends the reason blacks have disproportionately higher rates of poverty and lower levels of income and wealth compared with other groups is because of their lower rates of business ownership.

In his research, Anderson asserts that one out of every 10 Asians owns a business and has a median income of $55,000; one out of every 34 whites is in businesses, with a median income of $53,000; one out of every 54 Hispanics is in business, with a median income of $31,000; and one out of every 104 blacks owns a business and has a median income of $19,000.

"We don't need any more rappers or (athletes)," Anderson says. "We need blacks who have enough sense to own the team and who can build companies that can provide the shoes, the uniforms and the training equipment for the team."

Until more African-Americans own and control the companies that make the products that are sold in our community, our progress will continue to be glacial, Anderson says, adding that "black people have been in the same socioeconomic ditch since slavery."

Nevertheless, African-Americans won't make significant progress until our children see the value in getting an education, and that it's just as cool to be smart as it is to dribble a basketball or rap into a microphone. It's up to the adults around them to show them a better way.

After all, if we make the right choices as individuals, only then can we be empowered to help the group. In theory, that's really what PowerNomics is about.

 
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