For
a brief moment in American history, one could argue that
the majority of African Americans were middle class. That
moment ended last year.
One definition of �middle class� used by social scientists
is twice the poverty level. Individuals who live in households
that have an income of at least two times the household�s
federal poverty threshold are middle class. By this definition,
in 1999 black America became a majority middle-class population.
That year, 52.2% of blacks were middle class. Last year,
the percent of middle-class blacks slipped down to 49.7%.
There is every reason to expect further declines this year
and next year.
College-educated blacks�another definition of �black middle
class��have been particularly hard hit during this recession.
My organization, the Economic Policy Institute (EPI), estimates that this year
the unemployment rate for black workers with bachelor�s
or higher degrees is on track to be the highest since 1979,
the earliest year for which we have data. In 2007, the unemployment
rate for college-educated blacks was 1.6 times the rate
for college-educated whites. This year it is 2 times the
rate for college-educated whites.
If one restricts the focus to recent black college graduates,
those under 25 years of age, the
picture is similar but worse. Young, recent African-American
college graduates had an unemployment rate of 15.4% in the
first half of this year. Among recent college graduates,
this group had the highest unemployment rate and the highest
student-loan debt level. Jobless and burdened with over
$30,000 worth of debt is a terrible way to begin one�s adult
life, but this is the reality for many young and well-educated
African Americans.
Wealth is another indicator that can be used to gauge the
health of the black middle class. In 2004, 32.2% of black
households had no wealth. EPI estimates that this percentage
grew to 39.9% in 2009. In 2004, the median black wealth
was a very modest $13,000. By 2009, it had fallen to $2,100.
There has been a tremendous decline in wealth in black households
likely due to the foreclosure crisis.
Whether one looks at income, wealth or the unemployment rate
for the college-educated, the signs are of a black middle
class in decline. What can be done?
The economic health of the black middle class is connected
to the economic condition of blacks generally and to the
health of the American labor force overall. The growth of
the black middle class was the flipside of the strong decline
in black poverty over the 1990s. We are not likely to see
an American economy where black economic conditions improve
dramatically without also an improvement in economic conditions
for the country as a whole. Therefore, a necessary pre-condition
for a strong and growing black middle class is a strong
and growing American economy.
Unfortunately, many of the conservatives in Congress are
promoting ideas that run the risk of stalling the already
very weak economic recovery and accelerating the decline
of the black middle class. For example, my colleagues at
EPI estimated that Rep. John Boehner�s idea to extend the
Bush tax cuts for all and cut domestic spending back to
their 2008 level would cause the country to lose 1 million
jobs. Policies of this sort will worsen economic conditions
not improve them.
An economy where consumers are cutting their spending and
businesses are aggressively cutting costs will not grow
unless the federal government steps in with stimulus spending.
The Recovery Act created over 2 million jobs, but we still
have an 11-million-jobs deficit. We can�t create a healthy
economy only through tax cuts. We tried this strategy during
the George W. Bush administration, and we saw extremely
weak job creation.
The federal government has one important option for job creation
that can help the black middle class. State and local governments
which are generally required to balance their budgets are
seeing large fiscal deficits because of the recession. Many
of these governments will respond to these deficits by cutting
jobs. College-educated blacks are over-represented in state
and local government. A large share of the jobs on the chopping
block is likely to be black-middle-class jobs. The federal
government can, however, provide aid to state and local
governments to help reduce the job losses.
The federal government can also help black communities broadly
by creating jobs programs as in did in response to the Great
Depression. Federal jobs programs can be targeted to depressed
communities where there has been a long-term scarcity of
jobs. Many urban black communities fit this description.
The Great Recession has hit the black middle class hard.
The fiscal crises in state and local government mean a continued
loss of middle-class black jobs. The continuing foreclosure
crisis means a continued loss of wealth among the black
middle class. The black middle class will continue to decline
unless the federal government steps in.
BlackCommentator.com Guest
Commentator, Dr. Algernon Austin, PhD, is the Director of
the Race, Ethnicity and the Economy Program at the Economic Policy Institute in Washington, D.C.
Additionally, he is the author of Getting It Wrong: How Black Public Intellectuals Are Failing Black
America and Achieving Blackness: Race, Black Nationalism, and Afrocentrism
in the Twentieth Century, as
well as scholarly articles in Ethnic and Racial Studies, Qualitative Sociology, the Journal of African American Studies, and Race, Gender and Class.
He blogs at thorainstitute.blogspot.com and The Huffington Post. Click here to
contact Dr. Austin.
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