OPINION: The Racial Ignorance Of Barack Obama’s Financial “Gurus”
Many prominent black scholars were absolutely stunned by the racially misinformed remarks made by President Obama’s Chairman of the Federal Reserve, Ben Bernanke. During a visit to Morehouse College, Bernanke stated that the reason for the massive wealth gap between blacks and whites in America is due to “financial illiteracy” and a lack of “financial education” on the part of African Americans.
According to the 2007 Survey of Consumer Finances, white family households possess 10 times more wealth than the median black family. Yes, the statistic is true, but it’s not because black people spend all their money on gold chains and rims. Much of the wealth in America is obtained through inheritance: imagine having parents who can give you a down payment to your first home on your wedding day, or a grandmother who dies and leaves you a house that is fully paid off. There are other forms of critical inheritance, like having relatives with good jobs instead of being the only person in your family to have an income above $50,000 or having parents with Masters Degrees and grandparents who are MIT alumni. Whites are more likely to have these benefits than blacks, in large part because much American power is passed from parent to child (think about how many universities didn’t even start admitting black people until the 1970s and 1980s?). To say that the wealth gap is simply due to black people mismanaging their money is like bombing someone’s house for three months and then criticizing them for not dusting the coffee table. Having 400 years of targeted policy in favor of whites is what led to the wealth imbalance which exists in America. Since targeted policies are what created the problem, targeted policy is what should be used to fix it.
RELATED: Report Finds That 1 In 6 Americans Lives In Poverty
I am surprised that President Obama would express confidence in a chairman who would make such a misguided statement about the source of America’s wealth imbalance. This helps me to understand why the Obama Administration has been reluctant to consider meaningful economic policy which supports the African American community (notice that the president avoids such questions and only spoke on race during the admittedly sloppy defense of his Harvard homeboy Henry Louis Gates). It’s simple: Obama’s advisors don’t seem to remember that slavery took place. They at least don’t think that the economic marginalization of slavery and Jim Crow could possibly impact the present, and they don’t seem to want to understand how to use economic policy to fix the imbalance.
Bernanke is not the only financial leader in the Obama Administration who seems to be a victim of white supremacist thinking. Lawrence Summers, head of the National Economic Council, showed tremendous disrespect toward Dr. Cornel West during his time at Harvard. Not only was Summers attempting to undermine the value of Dr. West’s research, he engaged in the ironically typical act of arguing that the work of Dr. West does not qualify as meaningful scholarship. Given that Dr. Summers is a member of the same academic discipline that I am (Financial Economics), I know his elitism well; finance is a field where black folks need not apply when it comes to obtaining positions of influence and power. When I got my PhD in Finance in 2002, I was the only African American on the planet to get that degree in that year. Most of my colleagues hate what I do for black people.
RELATED: Even Tougher For Minorities To Get Mortgages
Summers, like many other white scholars across America, seems to have a nasty and elitist habit of believing that anything that is different must be inherently inferior. When you are part of the arrogant academic nobility (as Summers is – his uncle won a Nobel Prize in Economics – another form of inheritance that has benefited him tremendously), you are also tempted to believe that if you don’t understand something, it must be without value. Summers has also shown a tendency toward sexism, as he stated in 2005 that there may be biological reasons that women are less likely to pursue careers in math and science. Perhaps he thinks that their breasts get in the way while solving math problems.
One would hope that Obama would appoint economic policy makers in Washington with a broader ability to understand the impact that history has on the present. With the long list of academic credentials possessed by Obama’s economic team, many of his teammates are unimpressive when it comes to displaying the diversity in their backgrounds necessary to find creative solutions to critical problems. Based on Fed Chair Bernanke’s very limited understanding of the wealth gap in America, it is hard to imagine that he might actually be able to solve a problem that he doesn’t even understand. President Obama should go talk to Bernanke about slavery to make sure he is aware that it happened. It might help him make better decisions.
Dr. Boyce Watkins is a Professor at Syracuse University and founder of the Your Black World Coalition. He is also the author of the forthcoming book, “Black American Money.” For more information, please visit www.BoyceWatkins.com.
Famous Gay African-Americans
Comments
13
% %
lol @ Sub
Blaxx,
How is it a preservation of White-supremacy to cast doubt on a black writer? That sounds pretty elitist! And if Dr. Watkins was actually quoting something he would have referenced it properly like any educated person. And the 3/5’s thing had nothing to do with their comparative median incomes.
White Democrat 1: How can we appease these African American voters?
White Democrat 2: There is this guy name Barack Obama
White Democrat 1: Bark O-who that sounds like a Bin Laden flunkie
White Democrat 2: No his mom is white and his dad is from Kenya he was born in Hawaii. He wasn’t raised by his father just his white side of the family
White Democrat 1: Oh ok great so he would’nt be one of them fearsome African Americans like Malcom X. He’d be more passive since he can’t relate to the African Americans here.
White Democrat 2: Exactly though when does win the primary we do have to make sure he has a white VP. Can’t let them have everything you know.
White Democrat 1: That sounds like a great plan
White Republican: We don’t need any Nig err I mean African American to win.
Both Democrats: Didn’t all of your prominent African American’s leave the party?
White Republican: Fu.ck you! We still have Michael Stell and Piy err I mean Bobby Jindal!
Both Democrats: HAHHAHAHAHAHAA! Good luck selling that story!
On the previous post, I wrote a sentence that included the phrase “models of financial ac**en.” For some reason, the word “ac**en” was censored by this site and was replaced by “ac**em.” Do the corporate owners of this site consider the word “ac**en” to be obscene or profane?
Re: “During a visit to Morehouse College, Bernanke stated that the reason for the massive wealth gap between blacks and whites in America is due to “financial illiteracy” and a lack of “financial education” on the part of African Americans.”
So? What’s wrong with that? The fact is that, not just blacks, but most Americans are “financially illerate.” And many blacks are accepting of the situation. And, going further, I’ve heard black people claim that the only black people with money are athletes and entertainers. And, of course, the way many of the athletes and entertainers act with their sudden wealth can hardly serve as models of financial ac**en. But not even all athletes and entertainers are financial fools. Blacks could profitably look at Bill Cosby and Oprah Winfrey as shining examples of “takin’ care of business” with regard to financial matters. We should also look to the magazine Black Enterprise for (1) many examples of black folk making it big in business (not being a baller or butt-shaker) and (2) useful information that anybody can use to upgrade their own financial situation.
In short, we must stop thinking of ourselves as perennial victims!
Financial illiteracy and lack of generational wealth are both major factors. But you can improve your financial literacy, whereas you can’t change the cards you were dealt inheritance-wise. Bernanke was identifying two areas individuals can work on to improve their lot, whereas dwelling on the lack of generational wealth makes for good conversation but doesn’t accomplish much.
Ben Bernanke and Dr. Boyce Watkins are both right, different approach to the same conclusion..err.. one more augmentative. How many of you out there…Are planning for your gran kids future???? Read the IBD or even the Wall Street Journal ???? Study the trends of the Chicago/ LA exchanges ???? Planned for your kid(s) higher education ???? How about international maritime shipping reports ??? True retirement planning ??? Elderly health care ??? Decedent affairs ??? ….not very many !!!! 53 % of the white people you will encounter in your life… do just that!!! As for the silver spoon (white people), the leap frog plan (works very well I must say!!) = each father plants a economic seed for his gran kids (Dad for Son/Daughter offspring)…it maybe a parcel of land, $20K cash or more, a house, gold bouillon reserve, bara- bonds, T- bonds , E bonds, whole corporate stock and or shares, a business, or something of great value that maybe liquidate for huge profit!!! Question is …will you do that??? Factiod: We do not share the same monetary values with white people…Example: clothes and shoes black people=want/style&1st white people= need+purpose+longevity, style n/a… Automotive transportation: Black people=style+fad+luxo white people: operational cost& longevity+ insurance rate,percentage of resale value, then style….. Stop with the race card action, sit down, and think!!! What you going to do for your future!!! If the Asian Americans were acting like us… they be FUP like we are, but their not…Their doing quite well !!!
First, I was raised in what many consider the “blackest” city in America, Gary, IN A.K.A. “Chocolate City”. I’m puzzled why so many whites don’t understand what this man is trying to say. We live in a society where whites were given a 375 year “head start”! A black man would have been murdered 130 years ago for wanting to simply read a book! THINK ABOUT THAT FOR ONE MOMENT AND LET IT SINK IN PEOPLE………….. I can find no other word than pure “arrogance” to describe a person that would diminish that fact as if it didn’t figure into what you see in modern times. That’s like saying an 18 year old should financially be on the same level as a 60 year old! A 60 year old person has been awarded the time to build credit and wealth, benefit from financial knowledge pass down from others and the benefit of trial and error. Denying history and the truth will not make this go away…..
it’s a strike against ignorance, and preservation of White-Superiority, to cast doubt on Dr. Boyce Watkins…without first ensuring that he wasn’t simply quoting some fact that he researched and found to be valid.
This story has been out, for a while. And I certainly don’t read Bernanke putting out an official statement invalidating Dr. Watkins “inheritance” claim.
Plus its a fact, I repeat, a fact that the U.S. 2010 Census is about to realize proof that the Black median income is 3/5ths that, of the median White come…which means that Blacks are still equal to THE SAME 3/5ths of Whites, which the U.S. Constitution deemed them back in 1787.
You should research ‘The Hurdle Family’ and their $13.7-trillion reparations claim —that a White-racist Court hurried and dismissed— against some of TODAY’s corporate giants who profited off of the U.S. Slave Trade. You’ll get a clearer culpable picture, of Caucasoid’s responsibility and what it has morphed into in terms of Dr. Watkins valid synopsis.
I agree with bernanke. For watkins to say that the wealth advantage of us “whites” is mostly due to inheritance is ridiculous and a strike against his impressive merits. If we did a case study of middle aged white men compared to black men the difference in salaries and assets would coincide with the survey mentioned above. This is not a racists comment, don’t get me wrong, but Watkins is attempting to undermine white people in this article by saying that we’re just living off our parents, when in fact alot of us work hard in school and in the workforce so that we can have financial peace.
And I’m not going to comment on whats wrong with blacks in this area because I know how it will be misconstrued by half of you on this site
as a once famous leader said before ” we been BAMBOOZLED!!!”
unfortunately the Pres. is nothing less than a darker, leaner, more informed, more educated carbon copy of his predecessor; …W !!!
we have been sold down the river and with a bill of godds and the savior has not returned like we though he would, to save not only black people here and America too, but the whole world! NOT!!!
a year later things are still just as bad for the world, americans, black folks, and we all though he would not just be another politician!
Hell, i voted for the guy and i am now seeing the long and returning sad faces of the hopeful turning to hopeless again!
WOW… and i thought we did finally find the GREAT WHITE HOPE after all;
gotta start all over AGAIN; but this time i dont think the world will wait and be patient again; TIME is RUNNING OUT FOR ALL OF US-….N O W !!!!!
[quote]
During a visit to Morehouse College, Bernanke stated that the reason for the massive wealth gap between blacks and whites in America is due to “financial illiteracy” and a lack of “financial education” on the part of African Americans.
[end quote]
____________________________
financial illiteracy and lack of financial education. I agree 100% !!!
stop being so damn emotional about everything !!!
check out Robert Kiyosaki…he says the same thing about Americans IN GENERAL. the school system doesnt teach economics because the system is setup to keep that old school ’serf’ system from back in the day. just like back in slavery where Master could sit on porch all day watching everyone ELSE working hard wether it was ‘black’ folks working the fields, or low-class europeans aka ‘rednecks’. they got that label from working in the sun all day since they dont really tan lol.
while MOST people at their job (like prophet “JOB” in the Bible?) working as employees aka servants (employ VS deploy, like the military?)….the people who RUN things are playing Golf while you live by the sweat of their brow.
they TEACH, take out a huge loan and go to school to be ‘TRAINED’ (not educated), then get a stable job and work hard building up someone ELSE’s s**t until you get old. buy a house (which you dont really own, try not paying taxes lol) and TRY not to go into Debt, which leads to inferior social status….. slavery use to be about prisoners of war but also from owing people DEBTS. debt + interest = getting pimped basically. thats why various scriptures outlawed ‘Usury’.
oh and then add in that we spend money but the money aint being made useful. stuff like Cars Jewelry n clothes go DOWN in value over time. and then since for alot of us its ‘new’ money, we wanna floss cuz we not used to having s**t you feel me… THEN remember that 90% of the money we spend goes to OTHER groups of people so we aint building nothin for ourselves. even in our own hoods we dont really own nothing. when we buy stuff it goes to the europeans, the so-called jews, the asians, the arabs, the hindus etc etc etc……
notice you dont have none of these fake azz “Civil Rights” leaders talken bout LETS BOYCOTT these corporations and businesses who dont respect us. hell nawww cuz they on the same pay roll, it would ruin their lil hustle…….
we gotta stop being so damn emotional and keep it real with ourselves. just cuz a few of us on TV suposedly balling dont mean s**t for the rest of us living 2 checks away from being homeless U feel me!!! even the ones with a lil paper cant say or do too much out of fear of losing what little they do have if they say or do sumthin massah dont like.
but check out Robert Kiyosaki…
or Chika Onyeani and his book “CAPITALIST N!GGER”.
or brother Hotep and “HUSTLE UNIVERSITY”
why tha f**k you think it use to be ILLEGAL for black folks to know how to read??? so they could dumb us down, keep us hella ignorant and DISTRACTED with bulls**t….makes us easier to control you feel me !!!!
Bernanke and summers,racist parts of obama’s team.black people can forget getting help for their genocidal situation from the new pres.he has put people in charge of the dept.that would need to used,for any relief of the suffering that blacks have undergone for 400 years.the new pres.has blinders on when it comes to black peoples problems.all he can talk.about is school,like that is going to cure the homelessness,starvation,joblessness and all of the other ailments of black people in a racist country.he has been found to be of no help.we will remain with these problems until genocide relieves our suffering.it has been proven now,that no matter who sits in the oval office,we are cursed to suffer and die painfully, never knowing life,liberty and the pursuit of happiness!