Date: Feature Week of March 2, 2003
Topic: Black Press Business/Economic
Author: William Reed
Article ID: article_ema030203a

PARTY WITH A PURPOSE
Black Economic Development Plan Number Thirtysomething

Among African Americans, issues about economic development and the weather are dealt with similarly - much talk about how little we can do about them. Actually, we have the power to change both. While weather conditions are impacted by "capitalist" emissions into the atmosphere, African-American efforts toward economic development blow into the wind as a result of dysfunctional financial behaviors exhibited by us every day.

Each and every Black American will tell you they know about how economics work; however our economic behavior belies that. Black consumer and consumption habits show most of us don't have a clue about wealth accumulation. If we do as has much smaller American ethnic groups - Asians, Arabs and Jews - we can change our economic circumstances - understanding the reasons for better circulation of our financial resources. Too many of us don't realize that if we'd buy, build and save among ourselves - as they do - Blacks' economy would experience exponential growth. Basic economics illustrates that "charity begins at home". Three principal means for household asset accumulation are: home and small business ownership and savings. These are important for individuals, communities and the national economy. In the American economic system homeownership, business development and savings play prominent roles in operations of financial markets and the priorities of public policy.

Homeownership increases an individual family's wealth. In places where home ownership flourishes there's increased neighborhood stability, more civic-minded residents, better school systems, and reduced crime rates. Homeownership represents a significant financial milestone and an important vehicle for ongoing savings. It represents 44 percent of gross assets for families earning $50,000 or less. Less than 50 percent of Blacks are homeowners, but as this number increases construction of such facilities can create new opportunities for African American contractors, architects, suppliers etc.

While the majority of us prepare our children to get a job, we should be reminded that each year it's small businesses that account for 50 percent of America's private gross domestic product. As America's Jewish population, as well as Asian and Arab immigrants, have demonstrated small business pursuits are important vehicles for significant numbers of minority families to accumulate assets. Small businesses drive America's economic engines. The convenience and grocery stores, dry cleaners, gas stations and other business we visit daily represent important services and economic activity in America. Data suggests that increases in small business ownership and equity investment by traditional minority populations result from increased access to appropriate financing to fund the start-up and growth of those businesses. Social, community, church groups, families and investment clubs represent ways we can finance such start-ups where we live.

Success is all about knowing and exercising your options. To date, Black Americans have shown more flash than cash regarding their communities. While waiting for "the government" to develop where we live, our society has been concerned with the superficial - outward appearances of hair, nails, cars and clothes. We must start with each member of our household being aware that saving is fundamental to increasing our financial capacity and serves as the starting point for accumulation of future tangible assets. The reasons for saving are: retirement, liquidity, and education. As a source of funding for education, it improves future earning capacity for us. Saving with Black-owned financial institutions serving our communities and neighborhoods increases the financial capacity for us to have more and better homes, stores and commercial activity, which in turn, increases our gross domestic product.

Many Blacks will tell you why they can't do the simple processes outlined. The reality is that doing something about our economic development means we each must promote, create and expand viable economic activity in Black neighborhoods. Increased opportunities for African Americans' personal, family and community wealth begins with each of us. Increased employment opportunities and community wealth base for Blacks can happen only when we purchase our: automobiles, apparel, accessories entertainment, food, furnishings, gasoline, drug prescriptions and professional services from other Blacks.

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© 2000-2003 William Reed - www.BlackPressInternational.com