In
President Barack Obama�s State of the Union address he did, as expected,
pivot sharply toward addressing the economy in a pointed, feisty,
significant display of pushback to critics and the Republican establishment
that his programs have not worked.� But two things worry me about
his strategy where the state of black America is concerned.�
First,
with respect to jobs he announced a series of things that would
help small businesses: giving $30 billion to community banks to
fund projects, eliminating their capital gains tax, providing $5,000
tax credit for each person hired, and tax incentives for investment
in plant and equipment.�
But
I wonder whether the President gets the state of black America.�
With an official unemployment rate nearing already nearing 20%,
constituting 40% of home foreclosures, with critical businesses
still not getting credit, and with a climbing poverty rate, blacks
need help now!�� While the President�s proposals accurately take
into consideration the fact that small businesses provide most of
the jobs in America and they are therefore, vital to the economic
recovery, this still amounts to a �trickle-down� strategy of job
creation that will take far too much time and effort to address
black suffering.
Everyone
is having a difficult time resume` shopping with businesses small
and large not hiring.� But even if the President�s strategy works,
history tells us that blacks will be the last hired which is why
they may not recover their pre-recession position in the labor force.�
This was the story of the Bush recession of 2001 and its aftermath.�
So, I conclude with Nobel Prize winning economist Paul Krugman that
against this backdrop something much larger is needed than this
relatively modest, almost Republican sounding set of measures.
Second,
the President announced (also playing to conservative critics of
the deficit) that he would propose a freeze on spending in the FY
2011 Budget.� Again, if history is any judge, the part of the budget
that is likely to be frozen is that which funds housing and urban
affairs, where� blacks are disproportionately situated.� After the
President�s address, Robert Gibbs, White House Press Secretary said
that the proposed $3.8 trillion dollar Budget will freeze most domestic
programs except for education, research programs, and aid to the
states.� However, another big exemption is the Defense budget causing
some liberal members of Congress to ask why not cut this budget,
a position that I take, especially in light of the fact that the
war in Iraq will be winding down by September of this year.
Something
I have said before bears repeating, which is that the Economic Policy
Institute projects that by the end of this year, if the unemployment
rate continues to climb, the poverty rate for black children, now
at 30%, could reach 50%.� That prospect alone calls for a toughness
by black leaders in the face of a possible freeze on governmental
assistance.� Bob Herbert also points this out in a recent New
York Times column (�Blacks
in Retreat�) and, observing the extent to which blacks and other
communities of color are being crushed� by this recession, says
that, �decades ago you would have heard a sustained outcry against
such dire conditions amongst blacks and there would have been loud
demands for policy changes designed to bring more black Americans
into the economic mainstream.�� His conclusion as to why things
have been so quiet is that, �too many so-called black leaders are
more interested in invitations to the White House�than in raising
the kind of ruckus that might benefit people in real trouble.�
Is
Herbert right?� There is something to what he says, but whether
or not he is right, it appears that black leadership must step up.�
At least one-quarter of the Stimulus funds have been spent and the
black unemployment rate is still growing, now the timetable faced
by the black community is defined by the prospect of a Budget freeze
which may close off the opportunity for a direct spending impact
on black economic fortunes, especially for the needy.�
The
leadership situation grows even more urgent as President Obama has
said that he is not an ideologue, but essentially a pragmatist.
This may be why he continues to attempt to appeal to Republicans
to affect bi-partisanship, exhibiting a pragmatism that could result
in handing over control of governance to the minority party.�
The
only thing that can check this is the rise of an agitated Left,
lead by the Black community.� When will its leadership step up to
the plate?
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. |