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Lobby Okay Activist Archives topic #4366

Subject: "The Real Issue" This topic is locked.
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Fri Jul-18-03 11:22 PM

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1. "The Real Issue"
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Isn't about spending "Black" - as the idea that Jews and Asians spend with each other more than outsiders is inherently false, as I've grown up around both groups and see them shopping at the same white owned places that I do.

Particularly when you consider that the most affluent of both groups typcially live around mostly whites.

If we're going to use other groups as an example - we should at least understand what they're doing -- just because we spend with a Black Businesses doesn't mean that business is going to hire more Blacks or even build wealth for anyone but the owner. Instead of throwing around conjecture and false facts - let's start throwing around bona-fide economic models and actual facts, particularly with regards to ways to build wealth.

The fact that the Wealthiest Blacks live around few Black Businesses isn't the reason there is a Wealth Gap - the fact that Blacks are quite lax in engaging in wealth building activities is.

Just think about it - if the wealthiest Blacks spend with Black owned business, how does that help those of us who don't work for that business or who aren't owners of it? Better yet - what's the real economic difference between working for a successful Black Business or a Successful White One in terms of building wealth?

At best - the author is discussing Income Solutions, not wealth ones and both Income Solutions and Wealth Solutions are needed - better yet, far reaching solutions are needed - as spending Black touches few of us.

Let's look at the fact that Jews, Asians and East Indians typically send their children to college to major in ludcrative careers and that these people often use the income from their jobs to help start businesses with family members or in addition to their own jobs - the point is, these people are doing a better job of generating income.

I have many Asian and East Indian colleagues in the IT field who own a business in addition to their Tech Job, many of these businesses have been started with family members. The point here - is tht people are using their earning potential to help their families increase their income potential to. If everyone does that on a family level - we're all better off.

When I lived in Suburban Philly - a local Chinese Food Place Exploded and Burned to the ground, the local authorities had trouble locating the owners because over 40 people had pooled their money to open that business. THAT'S COLLECTIVE ECONOMICS! Doing something that helps YOU and SOMEONE else - 40 people pool their money, spread the risk around and start several businesses. (This same group owned several Chinese Restaurants in the Philly area).

The above is real collective economics - it goes beyond shopping at a particular place, it instead consists of people working together for a bona-fide economic benefit.

Real Wealth Building - so you started a Dry Cleaners - and you're rolling in the cash and you look at the cat who works for someone else and makes similar money and think that you're building wealth and he isn't -- because you own a business.


You build wealth via the following:

-Managing your money wisely

Owning a business, in of itself, doesn't neccessarily constitute wealth. While the valuation of the business "can" count towards your net worth, many private firms aren't worth much without their original owners, nor can they operate without them. SO there are a lot of issues with regards to exit strategies, making sure the business can run without you, that the business is viable with regards to being able to be sold easily, that need to be addressed before a business constitutes "wealth" per se.

The point is that you could own a successful Land Scaping Business that brings you say, 250k in profit per year - and you could easily end up with less wealth than someone who earns a similar amount for a job (Even less), if they save and invest better - AND if you have difficulty selling the business when you want to retire.

That's my real problem with the Article - it throws around a lot of Ideas, but it doesn't really address the idea of building wealth.

An article discussing the use of 401ks, IRAs, Investmenting, budgeting so one can save to buy a home, money management, etc - will be more valuable to most people.

The country is full of people who built wealth from their jobs and for the average person, that is their best bet.

Finally - the Article's point that we're doing no better than we were doing Slave times in terms of our % of the Nation's Wealth is extremely misleading.

Yes, the % is the same as it was back during Slavery - BUT - Black people didn't have spending power equal to the GDP of the 11th largest nation back then either - not even close. Nor does it account for the fact that it probably DROPPED to a much lower % during various times in our nation's history.

Plus - in this day and age, the uber-wealth control a much larger percentage of the Nation's wealth than they did back in say 1860 or even 1970 for that matter - meaning that for 99% of the citizens in this country, their % of total wealth has decreased - the fact our % is still the same is actually a sign of progress, it should have decreased.

Finally - As I pointed out two years ago:

Black Incomes are increasing faster than anyone else's - and there is a significant wealth Gap amongst Blacks & Whites of similar incomes - so the problem is not so much who we spend with, but the fact that we're not saving and investing.

SO again - spending with different color people will not solve anything, saving and investing willl.



The Blog:

An assassinís life is never easy. Still, it beats being an assassinís target.

Enjoy your money, but live below your means, lest you become a 70-yr old Wal-Mart Greeter.


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Does black america have real wealth? [View all] , Chris40, Fri Jul-18-03 08:55 AM
Subject Author Message Date ID
So M2
Jul 19th 2003
My beef with M2's
Jul 19th 2003
Wealth Building is Simple Math
Jul 19th 2003
the east indian community in houston
Jul 19th 2003
RE: the east indian community in houston
Jul 19th 2003
Based on What?
Jul 19th 2003
      I guess you have to see it to understand
Jul 19th 2003
Jul 19th 2003
Jul 19th 2003
                     Abandon Fantasy
Jul 19th 2003
Missing the Point Entirely
Jul 19th 2003
At the risk of sounding ignorant..
Jul 20th 2003
      It wasn't meant as a Rebuttal
Jul 20th 2003
RE: So M2
Jul 19th 2003
Excellent Points
Jul 19th 2003
RE: So M2
Jul 20th 2003
      not nearly on the same level
Jul 20th 2003
RE: The Real Issue
Jul 20th 2003
Which only enriches certain individuals
Jul 20th 2003
      RE: Which only enriches certain individuals
Jul 21st 2003
RE: The Real Issue
Jul 21st 2003
      Prove me Wrong
Jul 21st 2003
In my center
Jul 19th 2003
the trend of convergence.
Jul 20th 2003
      RE: the trend of convergence.
Jul 20th 2003
           can u elaborate
Jul 22nd 2003
                RE: can u elaborate
Jul 22nd 2003
Jul 23rd 2003
                          RE: Further
Jul 23rd 2003
the main issue
Jul 20th 2003
ding ding ding
Jul 22nd 2003
Defining Wealth Building
Jul 20th 2003
great post M2
Jul 22nd 2003
      Seek and you shall find
Jul 22nd 2003
nice read
Jul 20th 2003
80% of all Businesses fail in Five Years
Jul 21st 2003
Jul 21st 2003

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