It�s
a good thing President Obama will be having a jobs summit because
the recovery of the African American community from a recession,
as part of the general recovery of the national employment picture,
is not assured. My view is that this will be a grand opportunity
to figure out how to boost job growth for everyone, but also to
do some targeted work with those communities that are especially
hurt by the downturn in the economy as well.
My
conclusion that blacks will need to be targeted for help comes from
the fact that in the last recession during the Bush Administration,
blacks were the only group not to recover to their pre-recession
level of employment or wage earnings. This occurred for at least
two reasons. The first was that blacks had to compete at the lower
levels of the labor force with immigrants. In the decade between
1990 and 2000, 13 million immigrants came into the United
States, the largest since the European immigration
at the turn of the 20th century. The Center for Labor Studies at
Northeastern University
says that about 8 million of those entered the labor force, most
of them were males, and they constituted half of those entering
the labor force in that decade.
The second reason
was that the economic boom of the late 1990s was led by the tech
sector and blacks were not positioned to get the nearly 4 million
jobs created in that decade. The Clinton administration
provided incentives for computer-related companies in Silicon Valley to lead business growth, but less than 7% of blacks were
employed in the computer industry and therefore, were not able to
compete for jobs when they grew.
This �pincer
movement� attacking both low-income and professional jobs simultaneously
prevented the black community from participating in the recovery
and caused the stagnation of the black middle class and the growth
of poverty. In this recovery, blacks have lost significant jobs
in construction and therefore, are not able to obtain �shovel-ready�
jobs. They will not be able to take advantage of expected growth
in �Green jobs� unless the jobs summit is sensitive to the problem
of their disproportionate suffering and devises solutions.
A big part of
the solution is that, although Obama is being held responsible for
the lack of job growth, the Stimulus funds are being spent at the
local level by governors and mayors. Many of these jobs were promised
to be �shovel-ready� but were not; so Obama has gotten the blame
for what states said they could do quickly. This
is not the Roosevelt administration that established
a number of agencies that created essentially government jobs.
Obama has tried to work with the modern economy that is driven by
the private economy on the assumption that if he and his administration
could get the financial system working, it would finance the companies
that were responsible for employing workers.
The Summit
could consider funding small banks. Much of the TARP money went
to the big banks, but the administration should take some of the
300 billion that has been returned by some of the financial institutions
and re-direct it to the community banks that did have �toxic assets�
and did not make many of the subprime mortgage loans. With federal
government financial assistance, these banks would be more able
to abide by the Community Reinvestment Act that directs neighborhood
banks to fund local economic projects.
Finally,
the White House Jobs Summit should fund black job-creation projects
directly and recognize that black businesses are being shut out
of the recovery disproportionately and if they do not financially
support them, they will disappear, such as the auto industry, financial
services such as accounting, banking, the communications industry
and others. They are not being included in the deals that are being
made by the big banks, finance houses, auto industries, and etc.
and they disproportionately employ African Americans.
In other words,
the Summit should not avoid
taking race seriously when it is a critical dimension of the overall
economic problem the nation faces, and because the economic condition
of blacks and other large populations is material to the health
and future of this country.
BlackCommentator.com
Editorial Board member, Dr. Ron Walters, is the Distinguished
Leadership Scholar, Director of the African American Leadership
Center and Professor of Government and Politics at the University
of Maryland College Park. His latest book is: The Price of Racial Reconciliation (The Politics of Race and Ethnicity)
(University of Michigan Press). Click here
to contact Dr. Walters. |