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PORTSIDE  March 2011, Week 3

PORTSIDE March 2011, Week 3

Subject:

Ray-Ray, Boo, Chico, Pookie &Today's Political Economy

From:

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Date:

Sat, 19 Mar 2011 14:17:23 -0400

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text/plain (304 lines)

Left Margin

Ray-Ray, Boo, Chico, Pookie and Today's Political
Economy

By Carl Bloice, BlackCommentator.com Editorial Board
BC
March 17, 2011

http://www.blackcommentator.com/418/418_lm_political_economy.php

Over at Jack and Jill Politics, author Jill Tubman took
note of the positive aspects of the country's
employment statistic for February citing figures from
the Grio: "Employers hired in February at the fastest
pace in almost a year and the unemployment rate fell to
8.9 percent - a nearly two-year low." African-American
unemployment went down to 15.3 percent and black youth
declined sharply to 38.4 percent, "but remains the
highest of any group," she wrote. "The good news - some
of your cousins have actually found jobs. Have Ray-Ray,
Boo and Chico finally gotten off your couch?" "So that
all sounds nice, don't it?" Tubman continued. "Except
did you notice how African-American unemployment is
double that than the average and how 40 percent - close
to half! - of black teens are out of work? Which means
Pookie may be staying in your spare bedroom a mite
longer, n'est pas?"

The bad news, the very perceptive Tubman wrote on the
valuable website, "is that the old saying that when
America catches a cold, Black America gets the flu
remains in full effect" and there is only "a small
hope" in the stats. "Where is the job training and help
for college our community needs? Pell Grants - college
financial aid directed at the poorest of the poor - are
targeted for cuts by both the Obama administration and
the Tea Party. Government jobs, traditionally a haven
for African-Americans due to lower barriers to entry,
are on the chopping block as state budgets crash and
unions implode. Will hard-working teachers in inner
city schools be forced to find new `service' jobs
serving sandwiches at Subway?"

Oh, if only such information and observations were more
widely available. If only the big pundits in the major
mass media saw and expressed thing as clearly.
Unfortunately, the alarm Tubman expresses is - as far
as I can tell - mostly restricted to a handful of
African American commentators around the country, a
media outlets big and small. However, what she write
underscores something that should produce wider
indignation: The economic situation facing African
Americans is perilous and nearly everything being
contemplated in Washington and state capitals around
the country seem destined to make matters worse.

Take these examples:

    * Public Employment

      While the recent decrease in the overall
      unemployment rate is good news for some, the
      massive layoffs being visited upon states and
      cities across the country in response to the
      ongoing economic crisis is not. This is
      particularly true in state and municipalities
      where public workers and their unions are under
      assault. It is also especially true for African
      American and other people of color.

      Almost anyone in the African American community
      is quite aware of the role of public employment
      in black economic life. From early on many of the
      most secure jobs, those that had buttressed what
      some would call the "middle class" status of
      black workers, have been in public employment, be
      it at the Post Office, the transit system or the
      DMV. My first full time job was civil service
      clerk, a position from which my hard-working
      mother retired.

      "For black men, the public sector-everything from
      police officers and firefighters to sanitation
      workers and government clerks-is the largest
      employer, providing 18 percent of jobs," observes
      Nina Martin of New America Media "For black
      women, it's the No. 2 employer, accounting for
      23.3 percent of jobs. By comparison, the public
      sector employs 14.2 percent of white male and
      19.8 percent of white female workers."

      The attacks on public sector workers will
      disproportionately affect blacks and women,
      researcher Steven Pitts recently told Martin.
      African Americans are 30 percent more likely to
      have jobs in the public sector, said Pitts, an
      economist at the Center for Labor Education and
      Research at the University of California,
      Berkeley. One in five African-American workers
      are employed in public sector jobs, as opposed to
      one in six white workers and one in ten Latino
      workers.

      "The assault on public-sector employment could
      not come at a worse time for blacks, who have
      been much harder hit by job losses-and cuts in
      the social safety net-than the workforce as a
      whole," said Pitts. He might have added that
      because of the hardly-over Great Recession, the
      African American community's total economic worth
      declined and public workers layoffs will be still
      another hit.

      "If you talk with people engaged with the black
      community, you know that the public sector is an
      important niche of black employment," Pitts said.
      "Despite all the talk about cutbacks, no one has
      been talking about how this would have a
      disproportionate effect on the black community."

      "A lot of times, when people think about racial
      discrimination, they think about someone in a
      Klan sheet," Pitts told Martin. "It's important
      to understand that even if someone like Scott
      Walker does not express an overt prejudice toward
      blacks, their policies still can have racial
      impacts that are unconscious and widespread."

    * Foreclosures and the Social Safety Net

      As has been documented many times, African
      Americans, Latinos and Asian have been hit
      disproportionately hard by the home mortgage
      crisis. That means that the precariousness of
      black homeowners increases as the number of
      instances grows in which the value of people's
      homes becomes less than the amount of the
      mortgage, situations referred to as "underwater."

      Researchers say that during the last quarter of
      2010 about 11.1 million households, or 23.1
      percent of all mortgaged homes, were underwater,
      up from 22.5 percent, or 10.8 million households,
      in the previous quarter.

      "It's a tough time for people in minority and
      immigrant communities and we see it in our courts
      every day," Charles Small, Chief Clerk for civil
      matters in the New York State Supreme Court in
      Brooklyn told Tony Best of Carib News this month.
      "People in the Caribbean immigrant community who
      are pursuing the American dream of homeownership
      are really feeling it."

      "With unemployment in Black and Hispanic
      communities hovering between 13 to 15 percent,
      Small and other court officials are reporting a
      deluge of foreclosure cases, applications for
      evictions, judgments for unpaid credit card debts
      and efforts by tenants to force their landlords
      to provide heat, make repairs or otherwise ensure
      their properties are in livable condition," wrote
      Best.

      According to Best, in Brooklyn alone, there are
      about 15,000 foreclosure cases in the courts or
      arbitration. "These are tough times and we see it
      in the cases for foreclosures, unpaid debt and
      landlords who have not been paid the rents due to
      them and the tenants who are fighting evictions,"
      said a court official in the Bronx. "Minorities
      are the hardest hit because they are feeling the
      brunt of the unemployment situation."

Meanwhile in Washington, axe-wielding Republican
lawmakers are determined to slash what meager
assistance there is for people caught in the mortgage
crisis.

House Republicans, led by Rep. Spencer Bachus (R -
Alabama), "are halfway toward their goal of killing
four federal programs meant to prevent home
foreclosures,' wrote Mary Orndorff of the Birmingham
News Sunday. Last week, the body voted, mostly along
partisan lines, to kill the Emergency Mortgage Relief
Program and the FHA Refinance Program in the name of
deficit reduction.

Eight Democrats voted with the majority while two
Republicans voted against it.

The House also voted last week to eliminate the FHA
Refinance Program that is aimed to give assistance to
people whose homes have lost significant value. Votes
were slated this week ending the Home Affordable
Modification Program and the Neighborhood Stabilization
Program.

These actions have attracted very little media
attention although they are threats to the livelihoods
and survival of millions of working people. One
explanation for this dearth of coverage will be that
the GOP sponsored measures are unlikely to get past the
Senate and there is always the threat of a Presidential
veto. However, in today's Washington politics the ever-
present scenario is the Republicans pass something
outrageous, the White House negotiates it, and they
come up with a "compromise."

'The president and his aides know that the G.O.P.
approach to the budget is wrongheaded and destructive,"
New York Times columnist Paul Krugman wrote March 11.
"But they've stopped making the case for an alternative
approach; instead, they've positioned themselves as
know-nothings lite, accepting the notion that spending
must be slashed immediately - just not as much as
Republicans want.

'Mr. Obama's political advisers clearly believe that
this strategy of protective camouflage offers the
president his best chance at re-election - and they may
be right. But that doesn't change the fact that the
White House is aiding and abetting the dumbing down of
our deficit debate."

Ray Ray and the others could well end up on the couch
more than a mite longer.

Over 1.2 million young adults moved home with their
parents from 2005 to 2010, notes Venessa Wong, a
lifestyle and real estate reporter for Bloomberg
Businessweek. The reason? Rents are soaring.

In 2009, rents fell 5.9 percent: in 2010 they rose 4.2
percent, compared to an overall consumer prices that
climbed only 1.6 percent. Citing figures from the
research group AXIOMetrics, Wong notes that "last year
was one of the best periods for landlords over the past
15 years."

Furthermore, "Renter households are unwinding from two-
and three-bedroom units into one-bedroom units after
many tenants doubled up in 2009 to save money," the
researchers told Wong.

Wong writes that the metropolitan areas with the
biggest rent increases are Greenville, S.C. (11.2
percent), Chattanooga, Tenn. (10.4 percent), Savannah,
Ga., (8.4 percent) and  Portland, Ore. and San Jose,
Ca. (close to 8 percent). The reason for the increasing
rent rates is simple: the still soaring foreclosures
are forcing more people onto the rental market and high
unemployment is dissuading workers from buying homes.
Landlords are only doing what landlords have done
throughout recorded history: charging whatever the
market will bear (except in fortunate areas that retain
some form of rent control or stabilization).

Surveying the scene Tubman wrote, "All for what - to
prop up a bloated military budget and fund a war far
away that most Americans think we should have stopped
fighting years ago? We are wasting our money and
bankrupting our future. A mind is a terrible thing to
waste indeed.

"Don't get me twisted. I think the economic stimulus
probably helped save the global economy and put off the
worst hurt. We have Obama to thank for that. But while
Wall Street has made a big comeback, it's been on the
backs and at the expense of those who were fleeced.
Black America is picking up the tab whether it's on the
no job front or the subprime mortgages we were sold -
it ain't fair and it ain't right. And we still look to
the Obama administration to help make it right. Because
if our boats rise, so will a lot of other boats. I, for
one, am still a believer yet am still waiting to see
how the Obama administration will make a dent in black
unemployment and ensure stronger futures for us and for
all Americans who have been hit hard during the Great
Recession."

"We must continue to Hope for Change.'

It springs eternal.

___________________________________________

Portside aims to provide material of interest to people
on the left that will help them to interpret the world
and to change it.

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