Blog Posts Related to the African American Community

  • Labor Discusses Wealth Gap disparities Among African Americans

    On November 18, I participated in the inaugural event for the Joint Center for Political and Economic Studies’ launch of its Institute on Civic Engagement and Governance. I had the opportunity to participate on a plenary panel to discuss the challenges and effects of inequality on public policy with Professor William Darity, from Duke University.  I reflected on President Obama’s unique record in handling record levels of income inequality.

    Data from 2010 on income and poverty from the US Census Bureau highlights that the bottom 20 percent of households in America earn only 3.3 percent of total income in the US.  The next quintile, the lower-middle income, earns 8.5 percent of the total, and the middle quintile, the mathematical middle-class, earns 14.6 percent.  This means that the poor, and the middle class and lower-middle class earn a combined 26.4 percent of US income.  That is, the bottom six-in-ten of America gets less than three-in-ten of the income.  This results in a disadvantage for the bottom sixty percent and also develops an economic minority.

    It is a challenge to structure policy that addresses the loss of income that Americans have sustained because of foreclosures and home losses, and pension and retirement fund losses that reflects the political majority, not the economic majority.  Yet, by balancing tax cuts with income supports, the American Recovery and Revitalization Act that President Obama put in place was very successful in getting the benefits to follow the American people, instead of following dollars.  In April 2010 in the President’s Council of Economic Advisor’s Third Quarterly Report on ARRA, they were able to show that between the Making Work Pay tax credit, changes in unemployment insurance, food assistance and additional help to senior citizens, that the poorest 20 percent of American families got 12.7 percent of the benefits, and the next poorest 20 percent, those with lower-middle income, got 18.7 percent of the benefits.

    Unemployment rates are unacceptably high and the distribution of unemployment levels is unequal. Some communities have much higher unemployment rates than others.  For instance, there have been record level highs in unemployment for African Americans and minorities. Some people will get jobs quickly as aggregate demand is restored, and companies look to hire back to their previous employment levels.  But, others will be missed.  So, the AJA balances efforts at cutting taxes and extending unemployment insurance benefits that will help accelerate the restoration of aggregate demand with more direct measures to get people back to work.

    The AJA proposes to continue our investments in building the American future with targeted infrastructure projects, especially modernizing American schools.  The AJA targets a wide range of groups including, public employees, and communities that have high unemployment and high poverty; teachers, low-income workers, minorities and youth. Subsidized employment for these cohorts is cost effective in getting them back on the job. 

    So, it is very timely that the Joint Center adds to its tools to address America’s problems.  And, it is good to know how President Obama’s Administration is carefully balancing its policies.  Now is the time we all need to work together to pull America together, creating policies that do not just affect a few, but carefully designed to reach and benefit all Americans.

  • The Clock is Ticking

    This afternoon, President Obama went to the briefing room to urge Congress to pass tax cuts for the middle class before they go home for the holidays.  Immediately following the briefing, the White House launched a countdown clock on WhiteHouse.gov and in the press briefing room, to let people know exactly how much time is left before taxes go up for middle class families unless Congress acts.

    Check out this email from David Plouffe about the countdown clock and the tax cut calculator.  If you didn't get the email, be sure to sign up for the White House email list.

    It's simple. If lawmakers don't vote to extend the payroll tax cut, taxes for 160 million Americans will go up on January 1st. 

    President Obama just left the press briefing room at the White House where he called on Congress to extend the tax cut, pay for it responsibly, and expand it so middle class families get a $1,500 break next year.

    He told Congress to put country before party and stop wasting time.

    Every day, folks are fighting to make ends meet and businesses are working to keep their doors open. The longer Congress waits to extend the payroll tax cut, the more uncertainty it creates for ordinary Americans. So we've put a clock on every page of the White House website, counting down the days, hours, and minutes until taxes for the middle class increase. In the briefing room, where the President just spoke, that same clock is ticking down as well.

    And to make sure you have the information you need to know exactly what this means for your family, we've put together a calculator to show how much of your money hangs in the balance.

    This calculator illustrates for you what nearly every independent economist has said: letting this tax cut expire will be a blow to the economy. We can’t let that happen. Now is the time to make a real difference in the lives of the people who sent us here.

    Check it out and pass it along:

    http://obamawhitehouse.archives.gov/taxcut

    Thanks,

    David Plouffe
    Senior Advisor to the President

  • Holiday Shopping on Small Business Saturday

    President Barack Obama And Daughters Sasha And Malia Shop

    President Barack Obama and daughters Sasha and Malia shop at Kramerbook & Afterwords Cafe in Washington, D.C., Saturday, Nov. 26, 2011. (Official White House Photo by Pete Souza)

    This Saturday, President Obama took his daughters to a local bookstore to participate in Small Business Saturday.  SBA Administrator Karen Mills went to Boston for the grand opening of a small business called Minerva’s Owl, and many others in the Cabinet went to small businesses in their home cities and towns.  I had the pleasure of visiting a number of small businesses in the Adams Morgan neighborhood in here in Washington, DC, where I live.  Adams Morgan is a vibrant neighborhood with over 250 small businesses, from restaurants and eateries, to booksellers and vintage fashion stores.

    We all saw the news reports of crowds lining up late at night to shop on Friday.  Black Friday sales can be great for saving money, but small businesses are where you go for individualized service and unique, handpicked, Made-in-America products.  That’s why Americans visited small businesses on Saturday—for the personal touches and quality products that you can’t find anywhere else.

    Your dollar goes a long way when you shop at a small business.  That money goes right back into the local economy.  And that’s important, because half of working Americans either own or work for a small business, and small businesses create two out of every three new jobs.  The SBA is working hard to make sure even more small businesses can keep growing.  We had an all-time record for SBA loans this year, with over $30 billion in lending supportthat helped about 60,000 small businesses buy a new building, get more equipment, or hire more workers.  And, right now, the President is calling on Congress to cut in half the payroll taxes for small businesses as part of the American Jobs Act.

    This holiday season, we can all do our part to support America’s small businesses as they strengthen our economy and create jobs, by making every day Small Business Saturday.

  • Alternatives to the “War on Drugs:” Obama Drug Policy and Reforming the Criminal Justice System

    Compared to their representation among the U.S. population, African Americans are disproportionately incarcerated for drug offenses.  These two groups have consistently higher proportions of inmates in state prison who are drug offenders compared to whites - about 50% higher. 

    Over the past two months, we have met with African American leaders across the country – in Chicago, Philadelphia, New York, Atlanta and Los Angeles – to listen to what they had to say.  We discussed their concerns and ideas, and we outlined the Obama Administration’s approach to drug policy, presenting our view that it is guided by three indisputable facts:  Addiction is a disease that can be treated; people can recover from drug addiction; and new interventions are needed to appropriately address substance abuse and drug-related crime. Simply put:  We cannot arrest our way out of our Nation’s drug problem.  

    Addressing drug addiction as a public health issue will help us break the cycle of drug use, crime, and incarceration.  And in keeping with a balanced public health and safety approach, the Obama Administration is taking unprecedented actions to restore balance to how we address our Nation’s drug problem and its disproportionate effects on communities of color.  As Director Kerlikowske has said, the “War on Drugs” metaphor is not something that captures the complexity of the problem, or our innovative response:

    • This last fiscal year, the Obama Administration spent $10.4 billion on drug prevention and treatment programs compared to $9.2 billion on domestic drug enforcement;
    • In August of last year, President Obama signed the Fair Sentencing Act into law that dramatically reduced a 100-to-1 sentencing disparity between powder and crack cocaine, which disproportionately affected minorities;
    • The Administration also advocated for, and the U.S. Sentencing Commission approved, the retroactive application of these sentencing guidelines which became effective on November 1st.
    • We are supporting the expansion of drug courts, which place roughly 120,000 non-violent drug offenders into treatment instead of prison each year;
    • The Administration is implementing the Second Chance Act, which passed Congress with overwhelming bipartisan support and provides resources for common sense, evidence-based approaches to reducing crime;
    • The Administration has worked to clarify rules regarding the eligibility of housing authorities to allow ex-offenders access to public housing and ensure that they understand that they have the discretion to lease to all but two types of criminal convictions: Individuals convicted of manufacturing methamphetamine in public housing and registered sex offenders; and
    • Attorney General Holder has also contacted State Attorneys General to urge them to review the legal collateral consequences of their State laws being placed upon ex-offenders that may burden their successful reentry into society. 

  • Meeting with African American Leaders at the White House

    President Obama Speaks at the African American Policy Conference

    President Obama speaks at the African American Policy Conference, held at the White House on November 9, 2011. (Photo by Riana Lynn) November 9, 2011. (by White House Office of Public Engagement)

    Yesterday, the White House welcomed leaders from throughout the African American community for our first-ever African American Policy Conference. Participants heard from President Obama, senior administration officials and cabinet secretaries on a wide range of issues, such as the economy, the environment, and healthcare reform.

    To coincide with the conference, the White House released a report entitled, “The President’s Agenda and the African-American Community.” In the report, we describe the ways we’ve worked together to address the challenges many African American families face. Many of these challenges have existed for decades. The economic crisis, followed by the worst recession since the Great Depression, only made things worse.

    Under the leadership of President Obama, a broad coalition came together, including members of the Congressional Black Caucus and many of the groups who were represented at the White House yesterday, and we have been able to improve the lives of millions of Americans. We have made healthcare more accessible and more affordable. We have made our schools better equipped to prepare our children for the 21st-century, and made college more affordable. We have made it easier for small and minority-owned businesses to compete for federal contracts. We have invested in cities, and attacked the cycle of poverty that traps too many African American young people.

    As President Obama said, when he dropped by for a surprise visit in the afternoon, we continue to be driven by “the fierce urgency of now.” He thanked the participants in yesterday’s conference for their support of the American Jobs Act, the only jobs plan which independent economists have said would create nearly two million jobs immediately. And he reiterated that if Congress is unable or unwilling to do its job, the Obama Administration will find ways to act without them, because when it comes to getting our economy back on track, we can’t wait.

  • White House to Host African American Policy in Action Leadership Conference

    Today, Wednesday, November 8, the White House will host an African American Policy in Action Leadership Conference, bringing community leaders from across the country together with a broad range of White House and Cabinet officials for an in-depth series of interactive workshops and substantive conversations on the Administration’s efforts and achievements in the African American community.  Participants will include community leaders, professors, faith leaders, civil rights leaders, and elected officials, will have the opportunity to interact with Administration officials on pressing issues that directly impact African Americans. discussion topics include job training, access to capital for growing businesses, strengthening the economy through the American Jobs Act, reforming our nation’s education system, protecting civil rights, community development initiatives, and strategies targeting poverty.

    When President Obama took office, the economy was shedding nearly 800,000 jobs each month and millions of families were unable to make ends meet. African Americans were hit especially hard by the recession, struggling with significant economic losses, including near-record high levels of unemployment and low incomes compared to the national average. Since day one, the President has fought to restore the strength of middle class, protect the interests of the low-income families, and allow those hardest hit by the economy still have access to the American Dream.

    Click here to read the agenda or watch the conference live.