Economic forces,structural discrimination and black family instability

The social and economic gains achieved by black families during the 1960s were severely eroded during the seventies and eighties. Unemployment, poverty, single-parent families, out-of-wedlock births, and adolescent pregnancies soared to alarming levels. According to the thesis of the declining significance of race, this crisis is mainly concentrated among the black “underclass” and it is broad societal trends, not racism, that is mainly responsible for their increased deprivation. We contend that this thesis fails to assess the role of institutionalized racism as it is manifested in “unintended” or “structural” discrimination, i.e., the disproportionate adverse effects of economic trends and policies on the functioning of low-income and middle-income black families. Moreover, we argue that social forces or policies that have racially disparate adverse effects are “discriminatory” by result, whether intended or not. The major economic trends that affected black families adversely during the seventies and eighties were: back-to-back recessions, double-digit inflation, and industrial and population shifts. The key economic policies that undermined black family stability have been: anti-inflation fiscal and monetary policies, trade policies, plant closings, social welfare, block grants, and federal per capita formulas for allocating funds to states and local areas that have not been corrected for the census undercount.     

The impact of black mayors on the black community: The case of New Orleans’ ernest morial

Conclusion Dutch Morial is deeply respected by the New Orleans black community. According to a poll conducted in April 1983 by Rose-Stekler Associates, 80% of the black respondents gave Morial “excellent” or “good” job ratings, compared to only 11% who found him doing a “fair” or “poor” job. Despite very limited resourses, the Morial mayoralty has facilitated the entrance of the black middle class into the governmental process, providing access to city contracts and administrative positions. On the other hand, the black underclass has received meager rewards in the form of employment or a reduction in police brutality. Hopefully, economic development, in the long-run, will create jobs and provide additional city revenue to fund services for the poor. But for now, the primary impact of a black mayor on the black community of New Orleans has been symbolic kinds of benefits. Yet the potential positive benefits of a black mayor serving as a role model for black youth, as well as the value of civil rights rhetoric in fostering hopefulness and a more self-reliant black community, should not be underestimated. The characterization of the status of the civil rights movement in 1983 offered by C. T. Vivian, head of the Anti-Klan Network, well applies to New Orleans black community today: “Everything has changed and nothing has changed. The statistics are still terrible. But the atmosphere is totally different.”⁴⁹     

Labor market racial discrimination against black women

Conclusion The data we have reviewed describe black women as having achieved parity with white women and indicate that this conclusion is not seriously affected after controlling for the direct and indirect effects of differences in time worked. However, the economic position of black women is not uniform throughout the economy. Black women have advanced primarily in public sector jobs and these advances have been made primarily by the youngest cohorts. Progress in the private sector has been much slower. Claims that a “new labor market” exists for black women ought to be carefully qualified, for their progress is impressive primarily when they are compared to white women—another disadvantaged group. Both groups of women are falling farther behind men in terms of relative earnings.16 Furthermore, it may be quite erroneous to interpret small differences in earnings between black and white women as evidence that black women do not suffer racial discrimination, as the following example illustrates.     

Big philanthropy and the funding of black organizations

Conclusion The general overview of foundation giving to promote black interests and the specific look at the Ford-MARC relationship support the notion that few foundation grants will go to “controversial” or “political” projects. The Peterson Commission estimated that only three percent of all private foundation grants are “innovative” and an even smaller percentage are “politically controversial.” Most often, these projects usually become controversial after the grant is made. A 1971 Urban League study revealed that grants for human services made by private foundations to black and Spanish-speaking communities were disproportionately low when measured in terms of the per capita needs of the minority population. Nevertheless, it is unrealistic to expect Ford, Rockefeller Brothers, Mott, or Carnegie to redistribute income or become the “cutting edge of social change”.     

Implications of revenue sharing for black political and economic goals

Conclusions Thus far urban development has been subject to the “regulation” of forces generated by the market economy. Such planning as has existed has been overwhelmed by the dynamics of market forces, perverted priorities, political fragmentation and economic differentiation. The joint goals of removing the “crisis” elements of urban growth and of expanding black political potential have provided the framework in which we have analyzed revenue sharing. We have analyzed the specific Nixon and Mills proposals as well as the general idea of revenue sharing, and compared revenue sharing proposals to present Federal aid to state and local governments.     

The Scholarly Status of Blacks in the Economics Profession: Have the National Economic Association and the Review of Black Political Economy Mattered?

This paper considers whether the National Economic Association and its journal the Review of Black Political Economy have enhanced the scholarly status of black economists. A bibliometric analysis reveals that while the typical black economist has never published in the Review of Black Political Economy, the share of black economists publishing in the Review of Black Economy approximates the share of all articles published on the economic and political economy of race by black economists, and the share of articles published in the Review of Black Political Economy by black economists appears higher than typical journals in economics—particularly for black economists employed at Historically Black Colleges and Universities. We also find that similar to other economics journals non-black economists dominate the share of published articles, and publications in the Review of Black Political Economy appear to be consistent with Lotka’s Law of scientific productivity suggesting that the journal is a standard outlet for research no different from any other science journal. Our results imply a plausible counterfactual that if the National Economic Association and Review of Black Political Economy did not exist, the scholarly status of blacks in the economics profession would have been lower than currently observed.     

Race and cesarean delivery in Florida

At a time when the Clinton Administration has set a goal of eliminating racial disparities in health by the year 2010, medical experts are struggling to understand one of the most glaring, and least talked about, disparities of all: death in childbirth. In a study made public this spring, the Centers for Disease Control and Prevention in Atlanta reported that black women in the U.S. were nearly four times as likely to die during delivery, or shortly thereafter, as white women. The disparity, which has remained about the same for the last four decades, holds true even for women who … are middle class and have health insurance. The findings … have renewed interest among scientists and legislators in a problem that many peoole think no longer exists … Dr. David Satcher, the United States Surgeon General, (says) “the disparity is important. In this country, we have a certain standard of expectation about the risk of women dying in pregnancy, and black women are off the scale right now.” (Sheryl Gay Stolberg, “Black Mothers' Mortality Rate Under Scrutiny,” Front Page, 8 Aug. 1999 New York Times)     

Race,class, and politics in the black community of Boston

Conclusion We found that there are indeed some slight differences in the electoral behavior of black voters when we separate them into high and low socio-economic areal categories based on the level of median income. These slight differences include turnout rates for primary and general elections and voter registration rates. The higher the socioeconomic status of the black electorate in Boston, the higher the turnout and registration rates for that area tended to be; however, this relationship was not found to be consistent among all the areas selected for study. Despite these differences in electoral behavior or “practices,” our areal model does not suggest any significant political schisms based on the sicioeconomic indicators used. Black voters tended to vote the same way on a number of city and state ballot questions, support the same candidates at both the city and state level, and vote the liberal preference on both issues and candidates regardless of socioeconomic background. In addition, there is some evidence that the higher a black voter is on the socioeconomic scale, the greater his or her tendency will be to vote the liberal position on various issues and candidates. Our model also suggests that black voters will tend to support black candidates regardless of some socioeconomic factors. If this model can be used as an indication of class differences in the black community, then our data show that socioeconomic criteria are not as salient as race in determining the political behavior and preferences of black voters.     

An alternative to Marshall: Economic history and applied economics at the early LSE

Conclusion The LSE in its early years did not produce a “school of economics” in the sense that Marshall's Cambridge constituted a “school.” English historical economics was too diffuse, too lacking in strong leadership, too untheoretical, and too committed to economic history as a discipline to create such a “school.” The special contribution of the LSE in the pre-war period was certainly not in theory, since one of the chief reasons for it being an alternative to Marshall's school of orthodoxy was that it paid relatively little attention to economic theory during this period. Rather, its alternative economics was its central conception that the economist'sraison d'etre was to solve pressing contemporary problems for which orthodox theory seemed to offer little guidance. Thus its teachers and curriculum, assembled by Hewins and the Webbs, emphasized applied subjects and economic history.     

Racial differences in consumer expenditure patterns, 1972–73

Summary and Conclusion In this paper, we have endeavored to analyze black-non-black differences in expenditure patterns as revealed by the 1972–73 BLS Consumer Expenditure Interview Survey Summary. Specific data shortcomings have been noted above. In addition, however, possible black-non-black differences in the propensity to misreport or withhold information may have affected the reliability of our findings. With these limitations in mind, the evidence of the survey data points to a main conclusion, namely, that although the “average” black consumer unit tended to spend a larger proportion of its after-tax income than the “average” non-black unit-just as the well-known stereotype implies-the statistical model underlying our analysis suggests that black consumer units with the same “characteristics” (after-tax income, family size, regional location, as well as the same age, education, and retired-nonretired status of family head) as the average non-black units tended to spend a smaller-not larger-proportion of their income than did the “comparable” non-black units. In addition, the model suggests that if Blacks maintained their own average characteristics but had the same “consumer behavior” as non-blacks, their APSp would rise substantially.     

Robert Browne and the Caucus of Black Economics

Robert S. Browne the founder of the Black Economic Research Center (BERC) and the Review of Black Political Economy was a charter founder of the Caucus of Black Economists. He played an important role in the leadership of the Caucus and its efforts to increase the supply of black economists, to expand research efforts on issues of relevance to black constituencies in urban and rural America. His entrepreneurial efforts have left an indelible record of achievements which continue to influence research by black economists and practical results for economic development institutions in black communities.     

Principles of a Pan-African economic ideology

Summary In this paper, an attempt has been made to integrate the politics of Pan-Africanism with its economic ideology. The basis and need for such an ideology has been explored. It has been argued here that the roots of underdevelopment in the Black World lie in the historical evolution of the world market economy; that continued participation in monopoly capitalism serves to reinforce the international inequality; and that the localization of economic activity by multinational firms within the Black World countries deepens internal inequality by suffocating the internal markets and impoverishing the indigenous class. It is argued further that the Absorption hypothesis, seeking wage employment in the “modern” sector for the army of unemployed being generated under international monopoly capitalism, is an hypothesis of the impossibility. The “modern” sector cannot expand fast enough nor adapt its techniques of production to absorb the unemployed.     

Human capital: A critique

The human capital approach increasingly has been absorbed within the folds of cultural determinism. The trend has been so pronounced that it prompted the organization of a session at the December 1984 American Economic Association meetings in Dallas, Texas, entitled “Human Capital and Culture: Analyses of Variations in Labor Market Performance.” The papers from that session are available in the May 1985 issue of theAmerican Economic Review. One of the discussants for the session was Stephen Steinberg, a sociologist at Queens College. Steinberg was invited to comment on the presented papers for two major reasons—first, he had written an outstanding study that debunked many of the conventional linkages made between culture and ethnic achievement,The Ethnic Myth, and second, as a sociologist, he was expected to provide a perspective on the subject quite different from the rest of the panelists, all of whom were economists. In the midst of the coven of economists, Steinberg appeared well armed. He arrived with his own paper, a paper that went far beyond comments on the presented papers. Unfortunately, the current rules governing the inclusion of papers in the AEA proceedings prohibit publication of the discussants’ remarks. Fortunately, Steinberg graciously has consented to have the paper appear in theReview of Black Political Economy.     

Probability and the synthetic <Emphasis Type="Italic">a Priori</Emphasis>: A reply to block

Conclusion Contrary to Block, the synthetic a priori has little to do with our dispute. My critique of the Austrians is not that their methods are “unscientific,” but that their most distinctive positions are false or overstated. Yet Block’s latest reply does inadvertently make Austrian economics more reasonable. If synthetic a priori claims vary in degree of probability, they can no longer be treated as scientifically superior to empirical claims. Furthermore, while empirically testing absolutely certain synthetic a priori claims is pointless, empirically testing uncertain synthetic a priori claims is not. As is often the case with Austrians, Block is better at criticizing neoclassicals than he is at producing a sound alternative. He is right that most economists do not practice the logical positivism that they preach. He is also correct to maintain that logical positivism is mistaken. However, both of these problems can be resolved if neoclassical economists themselves adopt the Bayesian model of belief formation that they routinely apply to everyone else.     

Black political power and the decline of black land ownership

Conclusion The absence of a viable equity base has been costly to the black community both economically and politically. Black dependency on white economic support has served to rob the black community of its autonomous decision-making potential. Further, without the advantage of a steady income and personal property in which they can take pride, many povertystricken Blacks have been unable to develop a serious interest in political activity. At the same time, black organizational efforts—both political and economic—have been crippled by the lack of a sufficient equity base to keep them independently viable.     

Consumer discrimination,duopoly, and black firm entry: The welfare effect of subsidies

Consumer discrimination, to the extent that it lowers expected profit for black owned firms, discourages the entry of new black firms. From a social welfare perspective, consumer discrimination may be welfare reducing, since market output is lower than otherwise. If so, a policy intervention that subsidizes new black firms may improve social welfare. This article presents a simple model of duopoly where consumer discrimination exists with uncertainty, and the only cost of production is a “loss of sales” cost. Given the Nash equilibrium, in which a black and white firm must select a price to charge, conditions are derived for which a profit subsidy to a new black firm increases, decreases, or has no effect on social welfare.     

The employed black: The dynamics of work-family tension

The interrelationship of job stressors, job strain, and marital strain among black police officers is examined using a “Work-Family Tension Model.” Perceived job stressors, such as differential treatment based on racial status, tended to affect job strain. Furthermore, job stressors (direct/indirect) and job strain tended to influence the level of marital interaction and potential for separation and divorce. The implications these findings have for work organizations are discussed.     

The federal reserve: Lender of last resort Gillian Garcia and Elizabeth Plautz Ballinger: Cambridge,MA, 1988, 310 pp.

Conclusion Garcia and Plautz have provided a real service to the profession by illuminating the important issues concerning the Federal Reserve System as lender of last resort. At one point in the book [p. 97] the authors refer to the preference by most economists to discuss the LLR concept via “...a practical, intuitive, rather than a theoretical, approach” that is in contrast to use of a “...formal theory of liquidity assistance...based on a mathematical framework, which is often the preferred approach among academic economists.” They imply here that the former is to be preferred to the latter, given the complexity of the LLR concept and the related public policy issues. After reading the book, this reviewer reaches the opposite conclusion. There are so many interrelated issues associated with the conduct of LLR policy that what is needed are more concrete analyses of the problem by academic and non-academic economists. Formal theories, such as those provided by Kanatas [1986] and by Waller [1990], are sorely needed as policymakers continue to search for the appropriate LLR Policy structure. Garcia and Plautz have taken the practical, intuitive approach just about as far as it can go. Hopefully, their work will stimulate new attempts to provide theoretical guidance toward a welfare-maximizing LLR policy. This review has benefited from very helpful comments by an anonymous referee.     

Federal agricultural policies: Do black farm operators benefit?

Findings of this study support the contention that benefits from federal agricultural programs accrue primarily to a few very large producers while small producers receive only minimal amounts, and black producers, even less. Not only does this study confirm the belief that, as a whole, black farmers receive only a very thin slice of the “benefit pie” but it makes clear the fact that their individual share is much smaller than their white counterparts’. Although low product volume is an obvious and often cited factor contributing to this inequity, these findings indicate that another very important factor is low program participation. Underparticipation by black farm operators is primarily attributed to racial discrimination against blacks, the negative attitude of many black farm operators toward government programs, failure of some to access available information, and poor decision-making skills of others.     

Black-owned banks: Issues and recommendations

Conclusion A number of suggestions have been made here which could be used to advantage by black banks. Several are already being used on a limited scale. In addition to instances cited previously, there are several other black or “interracial” banks which have located in white areas. Among these are the Universal Bank located in the Wall Street area of New York City; the interracial Vanguard National Bank in Hempstead, New York, a Long Island suburban area; and the American State Bank of Tulsa, Oklahoma, with a reported 30 percent white customers. Similarly, the black United Mortgage Bankers Association (UMBA) is in the process of using the device of pooling of mortgages. This article first appeared in theCalifornia Management Review no.1 (Fall 1974), and is reprinted with their permission.