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Barbara R. Arnwine

Barbara R. Arnwine

Posted: November 24, 2009 09:38 AM

As part of the Roosevelt Institute's 10-part series on the Jobs Crisis, running on the New Deal 2.0 blog from Nov. 12-25, I was asked to reflect on what can be done to get Americans working again. Here's my take.

As the economy continues its long road to recovery, we must be wary of the policies implemented along the trek. Race looms at the fork in the road and we must determine which way to turn to most effectively address these issues in a manner to protect people of all colors.

That said, the significant impact on the African-American and Latino communities must not be ignored. Among blacks, the jobless rate stands at 15 percent, while unemployment among Hispanics exceeds 12 percent. Comparatively, joblessness among white workers is below 9 percent. The gap between black and white unemployment rates "is an index of discrimination in our society" says William A Darity, professor of African and African-American Studies and Economics at Duke University, as reported in Congressional Quarterly. To focus attention on those communities hardest hit doesn't divert attention from the omnipresent problem, but reminds us that we must be strategic in our thinking to avoid the flagrant mistakes of the past.

As Congressional Quarterly reminds us, it is a fact that the jobless rate for black Americans has remained much higher than that of whites through good times and bad since at least the 1960s. As I stated in that article, we need specific programs directed toward communities of color and unfortunately we're not seeing that. President Obama is right to note that he must "get the economy as a whole moving to be able to help anybody," but that effort should not be mutually exclusive from assisting those communities disproportionately impacted.

Minorities make up a larger portion of the low-wage work force and tend to have less seniority than white workers, so they are often more likely to lose their jobs when the economy sours (Congressional Quarterly). Even college-educated African-Americans are consistently more likely to be unemployed than whites who have only a high school diploma. At the very least the federal government needs to track how communities of color are being impacted and identify ways to implement intervention policies differently. Otherwise, when the economy recovers, African-Americans and Latinos will still find themselves at the same unequal playing field from where they started, or worse, permanently displaced in our economy.

The typical black family owns 10 cents to the white family's dollar, and the typical Latino family owns 12 cents, according to a 2007 survey in Insight Center for Economic Development's report. Fixing the economy doesn't substantively address this issue. The pre-recession era was one still marked by an unequal playing field and to return to that status does us a disservice.

We also must reinvest in African-American and Latino communities in a way that helps them sustain their wealth in the future. As noted by InsightCCED.org, 42 percent of whites own an IRA or Keogh compared to only 7 percent of African-Americans and 8 percent of Latinos. African-Americans are 23.3 and Hispanics 28.3 percentage points less likely than all families to have direct or indirect holdings of publicly traded stock. It is essential that these communities not only have the power to spend and earn an equal income for equal work, but be able to sustain wealth and build assets. If not, this cycle of ethnic recession will continue.

To specifically address the particularized training and reemployment challenges for the most vulnerable communities, including African Americans, Latinos, the elderly, and people with disabilities, we recommend, as a start, these direct solutions:

1. Establishing an Interagency Task Force in the Federal Administration.

2. Strengthening enforcement and monitoring of Title VII of the Civil Rights Act of 1964 that prevents employment discrimination against individuals on the basis of race and ethnicity.

3. Integrate universal, age-appropriate, and culturally-relevant financial education opportunities into the K-12 curriculum and into post-secondary and community-based education settings.

4. Passing the Student Aid and Fiscal Responsibility Act which increases Pell Grant scholarships; invests in HBCUs; and lowers interest rates on student loans

5. Eliminating credit-checks as a condition for employment due to their disproportionate impact on candidates of color. Even for entry level jobs, or for jobs where there is no requirement or opportunity to handle money, the criteria of a clean credit record is often applied despite evidence that an imperfect credit record is not an accurate predictor of job competence or workplace theft.

We believe in the Obama administration's effort to revitalize the economy as a whole, but also recognize that implicit racial bias in the employment sector has a significant impact on the disproportionate disparities in unemployment we see today. The recession and the problems encompassed therein are nothing new for African-Americans and Latinos and merely a continuation of the plight of the last several decades. Fixing the economy must not just be about a return to pre-recession conditions, but forging a new path to economic sustainability for all.

*Kenneth Chandler, public policy associate, contributed to this article.

This post originally appeared on New Deal 2.0.

 
 
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HUFFPOST SUPER USER
masher
software engineer
02:37 AM on 11/25/2009
Its sad how right your heart is but how wrong your ideas are.

I'll tell you what's happening. We are either offshoring jobs or we are importing Indians into the US to replace Americans.

At Microsoft last year we switched to only India owned vendors in our group. All the Americans who worked for American vendors were let go. That included the only Black female programmer I have ever worked with. She was very bright, hard working, and very profession­al. But we replaced her with cheaper people from India. Why? Because Obama isn't doing anything to stop us.

What could he do to stop us? End the federal regulation­s that allow this!!!

What will Obama do? Nothing.
HUFFPOST SUPER USER
masher
software engineer
03:03 AM on 11/25/2009
Oh wait...I'm wrong. Obama will do something. He will talk about it endlessly and then give Wall Street more bailouts.
12:56 PM on 11/25/2009
you are wrong !!

the Indians coming here are future generation Americans. They are way smarter than blacks on unemployme­nt line. sorry for being politicall­y incorrect about this !!
HUFFPOST SUPER USER
charmante
02:56 PM on 11/26/2009
Have you thought of the consequenc­es of having a society where only a small minority is allowed to earn a living?
HUFFPOST SUPER USER
charmante
03:05 PM on 11/26/2009
Let me rephrase my question:

Have you thought of the consequenc­es of having a society where only a small minority is deemed worthy to earn a living?
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HMDMSR
Workers of the world, unite!
11:32 PM on 11/24/2009
"3. Integrate universal, age-approp­riate, and culturally­-relevant financial education opportunit­ies into the K-12 curriculum and into post-secon­dary and community-­based education settings."

This needs to be rethought. We need to teach children how the economy operates. Here is some starting material, in the form of questions that need to be addressed:

1) What is the source of economic value?

2) What is a national economy?

3) How can we assess the potential of a national economy?

4) How can an economy support its national citizenry one moment, then abruptly fail to do so a short time later? Or, what is an economic crisis?

5) How do political relationsh­ips within a nation's citizenry affect the relative distributi­on of goods and services within national economies? How do such relationsh­ips affect the distributi­on of debt?

6) A broader question, which must be addressed within any educationa­l system: How do we know if what we say or think is true? Or, what is the difference between ideology and science?
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HUFFPOST SUPER USER
mravka
The Coming Insurrection is here NOW.
01:17 AM on 11/25/2009
I have a few other questions to add to your most excellent list.

7) What effect does the economy have on our social, cultural, political and ecological environmen­ts?

8) How do advances in technology effect the organizati­on of human labour itself?

9) What is commodific­ation?

10) What causes poverty in a system of abundance?

11) What proof is there that production is the fundamenta­l human condition?
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HMDMSR
Workers of the world, unite!
06:16 PM on 11/25/2009
Thanks. Your suggestion­s make the list more complete. Folks can't understand their financial situations­, if they don't grasp the politics of the economy.
09:37 PM on 11/24/2009
This is not the time for left wing social experiment­s. The US needs to rebuild the economy by building back up America's most skilled, talented, and motivated citizens. These are the folks that can create wealth and get the economy growing and hiring again. The more we lose focus of that, the worse off the economy will be.
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12:43 AM on 11/25/2009
No, for starters there needs to be more on-the-job training. It seems as though that pretty much has become non-existe­nt lately. And let's be realistic, college is not going to be for everyone. Even though I started working while earning my college degree, I don't know what I would've done if I haven't had any training when I started work years ago. It became very useful in other jobs. I got the hang of things and after a few years, worked my way up. Nothing lucrative, but it's better than the unemployme­nt line, and I'm grateful. That's another way you can help build up some of the best and the brightest workers in this country.

Also we, the people, need to make it known to our elected officials (good luck) to prevent so many jobs from going overseas. Cheap labor + cheap products = huge dollars stuffed into the pockets of owners of businesses­/corporati­ons/politi­cians. And there's nothing liberal or conservati­ve about these solutions. It's about trying to help people get back to work and get the country back on track; so what's the problem? This is a real-life issue (and with homelessne­ss on a serious rise) that every citizen needs to come to grips with, seeing as it could easily happen to any one of us on this site, get active, and make your voice(s) heard; so enough with the divisivene­ss.
06:20 PM on 11/25/2009
On-the-job training doesn't do much good when there are plenty of skilled workers w/o a job and there are few jobs to be had. About "jobs going overseas", the way to solve that problem is to incentiviz­e companies to invest in the US rather than somewhere else. But right now, however, the growth and profits are overseas and that is where companies will continue to invest until that changes.
HUFFPOST SUPER USER
masher
software engineer
02:40 AM on 11/25/2009
Funny. You find me a company with well trained hard working Americans and I can come in and replace them all with H-1B workers for less or offshore the whole thing to China or India.

There is no reason to hire Americans. Doesn't matter how smart or hard working you are. We just laid off 5,000 of the best and brightest at Microsoft. Do you know how hard it is to get hired there?

Geez people. Wake up.
12:57 PM on 11/25/2009
The H1B workers you mention are better educated and skilled than welfare leeching individual­s over here !!
06:22 PM on 11/25/2009
There are so so so few people in the US here on H1B visas relative to the US job market that it's not even worth bringing up. Plus, those workers tend to remain in the US and eventually become Americans. We need more skilled workers in the US. It makes no sense to continue allowing unskilled workers into the US but not skilled workers. We need less day laborers and restaurant dishwasher­/busboys and more engineers.
08:38 PM on 11/24/2009
Great article. It is nice to see well thought out recommenda­tions. Blaming PBO for all wrong in the world doesn't move forward any conversati­ons. Lets hope those recommenda­tions u list are implemente­d. I would like to see #2 enforced.
HUFFPOST SUPER USER
charmante
06:26 PM on 11/24/2009
The groups who control the means of production and control of hirings and firings will always do better.
HUFFPOST SUPER USER
charmante
06:39 PM on 11/24/2009
Small correction­s and one addition

The group(s) who control the means of production and the means of hirings and firings will always do better.

Case in point, China now have more control over the means of production than does the US. Short of a major change in the current world order, it is predicted that by 2050 they will surpass the US and other european economies to become the world greatest economic superpower­.

So start sharpening your Mandarin as they will be in control.
HUFFPOST SUPER USER
masher
software engineer
02:43 AM on 11/25/2009
Nothing wrong with "doing better". But that isn't what we are seeing. What we have in the US today is a marriage of too big to fail corporatio­ns and too big to work government­.

Our own government issued H-1B ( and other) work visas so that corporatio­ns can import workers into the US to replace Americans *in* America. That's how insane and completely rigged the system is.
HUFFPOST SUPER USER
charmante
04:26 PM on 11/26/2009
This is only an observatio­n. An attempt to explain why things are the way they are and not what they should be or ought to be.
06:24 PM on 11/24/2009
My employer closed it's Chicago call center, last June, eliminatin­g 23 jobs, one gal had been with us for 18 years. Last week, this same company sub contracted 15 call center reps, in the Philippine­s, I'm told by the bean counters each one costs roughly 7 dollars a day, and 0 healthcare cost, as they have universal care offered by the fili government­. If you really expect to be carried in this economy, you better be prepared to accept low pay.. That said, African Americans lack effective leadership­, and community spirit, and that seems like their biggest problem. More then any other group, they seem concerned most with their selves, as opposed to their community. Hasn't worked for them for 40 years, yet here you are potbanging for more of the same, with your hand out, to the government­.
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comicpro
Stupid Should Be Painful
07:27 PM on 11/24/2009
I beg to differ but then again I am one of 'them' so I can speak from experience­. Its just like every other race that has to catch up when you have been down so long. You will always be behind and easy to point to and say 'see what is wrong with them" but in reality because I am one of them I see how things have improved. Yes I am an MBA worked on wall Street for 5 years have my own business now and still live in the same nieghborho­od that I always lived in. It has improved along with the people yet there is always room for improvemen­t. Like some rural poor places in the United States there are varying degrees of racial poverty that we can all point to and say look at them. because minorities tend to congregate in urban environmen­ts we are easy to count and census. I have been to the Appalachia­ns and some southern states where you have 99% white population­s in rural areas where the poverty rate is shocking yet very few articles spring up about them. Wonder why.
HUFFPOST SUPER USER
masher
software engineer
02:47 AM on 11/25/2009
Offshoring and labor market manipulati­ons (federal regulation­s like H-1B) are dismantlin­g the middle class. When the middle class is dead there won't be anyone to pay taxes and to buy whatever it is you make. Also whatever you make can be moved to China or India.

So your job will end too. Everyone, except the billionair­es, needs to be prepared to live with much less. We are becoming India. We are becoming China. That means a very small middle class and mostly poverty.
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HUFFPOST SUPER USER
Blutodog
Say what?
05:09 PM on 11/24/2009
The sad truth is Obama's admin. hasn't a clue about what to do and Larry and Tim don't really care. They made sure their pals on Wall st. though kept their jobs didn't they? Obama is secure in the Imperial bubble and probably hasn't a clue either. He's no FDR.
09:27 PM on 11/24/2009
Summers, Geithner, Bernanke and the wall street banking crew are absolutely pulling it over on obama....t­hey have him frightened that if he doesn't follow their recommenda­tions, the world will end.

just about all of the money spent on this crisis (the big money being on the fed balance sheet, not the stimulus bill) has gone to the banks, pure and simple as that.

unwind the big banks and stop the flow of our wealth to them in order to help out main street and cure the unemployme­nt problem for all who want a job.
HUFFPOST SUPER USER
masher
software engineer
02:48 AM on 11/25/2009
I think he knows exactly what he is doing. That's the sad part.
04:01 PM on 11/24/2009
Our problem is that private sector job growth has fallen off the cliff starting in 2001. Check out this chart:

http://www­.ritholtz.­com/blog/2­009/09/tot­al-10-year­-job-gains­-negative-­203k/

We now have less private sector jobs than in 1999. I guess all the stories about Bush and business hollowing out the country were true. The only job growth has been in the public sector.

How can all this be in America's interest? Profitable multinatio­nals hovering over an impoverish­ed populace is not a sign of progress.
HUFFPOST SUPER USER
masher
software engineer
02:50 AM on 11/25/2009
When Bush and now Obama tell use that "we are strengthen­ing our ties to India and China" they mean we are becoming exactly like India and China. That means a few billionair­es, a small middle class, and mostly poor.
01:45 PM on 11/24/2009
Ms Arnwine,

Did you consider the fact that President Obama has white relatives?
Some of us are unemployed­.
01:05 PM on 11/24/2009
Just because blacks and hispanics have higher unemployme­nt rate than whites does not mean system is racist.

why do Asians have much lower unemployme­nt rates than blacks or hispanics , maybe even lower than whites? why isnt the system racist against them?

why are graduation rates amongst Asians much higher than blacks or hispanics.

look at these before crying wolf !!

sick and tired of race baiting !!
HUFFPOST SUPER USER
masher
software engineer
03:00 AM on 11/25/2009
I just saw drymartini­1 say in another comment that they think all Americans are too stupid to get a job in America and we need H-1B federal regulation­s(so we can import foreigners into the US to replace Americans)­. People, this guy (or gal) just hates America.

They want the federal government involved in every detail of our lives including the labor market. So they are also a corporate communist.
12:25 PM on 11/24/2009
The streets of Columbus Ohio are filled with able-bodie­d young Black men who were kicked out of the school system and are just sitting ducks for crime promoters who'll use them. True that their parent/s are partly to blame, but the schools are largely to blame as is the city government and federal for lacking PROGRAMS to help these youth. It's spilling into the female population as well with a sense of feeling there is no future for them to be trained for decent jobs that will be there for them. Our country and local government­s need to assure that all Americans can get a job. Obama promised this and we need to get those young people off the streets and into jobs instead of costly prisons or just running around homeless and aimless.
11:53 AM on 11/24/2009
In other words Depression sucks. While the measures you've outlined seem appropriat­e I do not think focused action is going to stop the current slide - Obama's main mistake thusfar is in not recognizin­g the severity of the current economic calamity.
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HUFFPOST SUPER USER
Overtone
See bio on the Aesop Institute website
11:50 AM on 11/24/2009
Only small business is capable of rapidly generating millions of jobs.

With only limited money available from Congress, small firms will far exceed the new job totals that can result from direct government employment­.

SUGGESTION­S:

a. Establish Stock Market and Investment Regulation­s to prevent hedge funds from speculatin­g in small and medium sized firms.

b. Sharply encourage employee stock ownership by every means possible.

c. Establish Employment Tax Credits for small firms that cover the cost of collecting social security taxes, sales taxes, income taxes and other local, state and national revenues.

d. Establish a Jobs Tax Credit Program to create millions of new jobs. See: A Human Investment Tax Credit Program at: http://www­.aesopinst­itute.org

e. Expand a Tax Credit Program for employers who create new opportunit­ies for the hard to employ through work sharing and job training.

f. Dramatical­ly reform the tax system to reduce employment taxes as the major source of federal and state revenues.

g. Create much better means to rapidly increase financing for small businesses so they can grow as fast as possible.

Repeat until the public, Congress and the White House understand that: INCENTIVES THAT CREATE JOBS WILL PAY FOR THEMSELVES­, as employees pay taxes!

Support disruptive­, revolution­ary, energy technologi­es! See: 5 Steps to Revive the Auto Industry and the Economy on the same Aesop website. This can create very large numbers of well-paid new and restored jobs!
01:48 PM on 11/24/2009
I think that's just another Republican ploy
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HUFFPOST SUPER USER
Overtone
See bio on the Aesop Institute website
03:52 PM on 11/24/2009
Wrong...I am not now and never have been a Republican­.

I'm a political independen­t who worked with the late economist Robert Edmonds and L.V. Watkins to create a pair of Reports for the Economic Developmen­t Administra­tion of the Commerce Department titled A Human Investment Tax Credit Program back in 1975 and 1977.

A few of the incentives we suggested were included in the Employment Tax Credit of 1977. That created more jobs than any previous legislatio­n in our history, 20% of all jobs generated in the following year.

I'm also involved in the developmen­t of revolution­ary energy technologi­es that will provide electric cars which require no recharge and hybrids that need only to sip small amounts of water as fuel. See: http://www­.chavaener­gy.com Look under the heading HOW? Read the articles on ECHO, SPICE and MagGen to learn a bit about new technology that can radically reduce the need for fossil fuel.

Later, vehicles with these technologi­es can become power plants when parked, selling electricit­y to the local utility. Such cars and trucks may pay for themselves over time.

Hard to believe? You bet! But, Rowan University has validated fractional Hydrogen technology­. We call it Energy from Collapsing Hydrogen Orbits - ECHO.

The experiment­s produced heat that has no other explanatio­n. Other labs can and should now reproduce these experiment­s.

They indicate one gallon of water can replace 200 barrels of oil!

Let's accelerate the process!
11:44 AM on 11/24/2009
Wrong. Black high school graduation rate at 43% vs 75% for Asian and White. Yes, employers are discrimina­ting. Discrimina­ting against ignorance.
01:06 PM on 11/24/2009
thanks for being the voice of reason.

Why is it that black authors when citing unemployme­nt and linking it to racism cite facts based on blacks, hispanics and whites but forget Asians !!

:) a little too convenient to prove their supposed "theory" thats what it is.
HUFFPOST SUPER USER
charmante
08:06 PM on 11/24/2009
The majority of Asians who migrated to America came from the upper economic strata of their respective countries and as such had access to all the economic and educationa­l opportunit­ies that are available to folks in their socio-econ­omic brackets.
11:41 AM on 11/24/2009
In my life time I've never seen people struggle like this. They keep fighting over war and health care and ignoring everyone is out of work. For everyone struggling I dedicate this poem. Please pass it around, the poem says it all:

http://ame­ricaspeaks­ink.com/20­09/11/poet­ry-lets-ta­lk-15/
01:50 PM on 11/24/2009
No you haven't and I haven't and I'm older.