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M2
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Sat Jul-19-03 01:21 PM

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6. "Missing the Point Entirely"
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Sat Jul-19-03 01:36 PM

          

Growing up, I used to go to Chinatown in NYC on an almost monthly basis, so I'm well aware of the phenomenon, particularly since (IMO) the Chinatowns of other cities, pale in comparison to the one in NYC (With the exception of San Fran). In fact - nothing I said, disabuses the idea that a Chinatown exists and works.

Hence the title: "Missing the Point Entirely"

The problem with looking to Chinatown and trying to use it as an economic model that Blacks (or another group can use) to create wealth or elevate themselves economically, ignores several fundamental issues, which if analyzed clearly, show it simply won't work for other groups.

#1. Chinatown is a unique situation, where every possible service one needs can be acquired within a few Blocks from your home, from a service provider/vendor who is the same race as you - these owners/employees of these businesses will also purchase their goods and services from your business as well. E.g. There is a level of economic-interdependence that simply doesn't exist in other communities.

You can't take the Chinatown economic model and apply it to Blacks because we don't have that level of economic interdependence on each other, nor do we live in areas where we own all the land and all of the businesses. When you live in Chinatown and Spend Local - you're invariably helping yourself becuase those dollars will come back your way, when you spend Black it's often a one way transaction that doesn't come back to you.

See the difference?

In terms of group wealth building - money has to go back and forth.

You can't apply that model to Blacks because the economic context is COMPLETELY different.

#2. These neighborhoods aren't economically self-sufficient - that's the impression people have, but it's not true. Now I've never been to the Chinatown in Houston, but I know that in the one in NYC - there are a lot of Businesses selling trinkets, knock off Watches & Clothing and dozens of other items that are AIMED at Outsiders. Furthermore, aside from the Banks, Insurance Companies and Travel Agencies - you'll see outsiders shopping at practically all the businesses in the area.

Recognizing that these are primarily retail companies - E.g. Businesses that are High Volume/Low Margin - even if Outsiders only account for 15% of revenue, losing that 15% could put some people out of businesses, (or severely hurt them) - which only ripple throughout the community because of the high level of interdependence.

Even a business that doesn't generate its revenue from outsiders will be hurt because their customers will have less money to spend.

That's simple economics - consumer spending driving the economy.

#3. There was a post on this board a couple of weeks ago, about how not all Asians are as wealthy as the stereotype denotes, particularly in Urban Areas. This is not surprising - my mother grew up in Lower East Side Manhattan, Chinatown was practically next door and a lot of those kids went to her High School. Today those same projects are still around and there are still a lot of Children from Chinatown going to the same school as the kids from the Projects.

The point, is that just becuase you own a business in Chinatown, doesn't mean you're wealthy, or even middle class for that matter - Chinatown is (for the most part) a working class area.

http://www.cpaboston.org/neighborhoodorganizing/liberty_place/actout.html

In Boston the Per Capita Income of Chinatown is $12,500.00

This Article says it's even lower:

http://www.asiancdc.org/demographics.html

With 28% of Chinatown Residents living Poverty, compared to only 18% of the rest of the city.

This is just an interesting General Article:

http://www.arthurhu.com/index/apoverty.htm

More Info:

http://www.arthurhu.com/index/asianam.htm

Most Asians don't live in Chinatowns - and when they do, their poverty rates are often similar to the ones for Blacks.

E.g. It's not even a good model to use in the first place in terms of a method to generate wealth.

Many of the Asians who are wealthy/affluent, are doing so by attending the best schools, developing great careers, managing thier money successfully and in some cases by pooling their money to start businesses.

The interdependent Chinatown Model is not the source of the wealth of Asian-Americans and pretending it is while ignoring all of the Asians who expend a lot of energy to get into the best schools and persue fields of study that are the most ludcrative.

I had quite a few classmates and (relatives for that matter) who were given a VERY short list of Majors they were allowed to persue.

Also, let's not forget all the Asians who own several businesses, be it Gas Stations, Motels or Restaurants in White Areas - if one maps where the most affluent asians live (In the Suburbs - not Urban areas/enclaves) the lesson is clear.

4. I pointed out that regardless of where one derives their income, you still have to invest, save and manage that money to develop wealth. An income of X from your own business doesn't intrinsically make you wealthier than a wage earner who also makes $X/year.

5. I pointed out that true collective economics involves people pooling their money for a collective goal.

6. Asians often have significantly larger family structures to depend on - a lot of collectivism is occuring at the family level. I can speak on this - as the Asians outnumber the Blacks in my extended family by a nearly 2:1 Ratio.

7. Asians who may live in the Suburbs but spend money with other Asian Businesses are purchasing goods and services they can't get anywhere else. Which makes it a different situation from a Black Person purchasing something from a White Owned Business that a Black Owned Business also provides, due to price or convenience.

8. Language/Cultural Barrier - Something that Blacks by and large don't have to worry about when looking for goods and services.

In other words - we're talking about two entirely different situations and you can't superimpose one on the other, particularly when you ignore all the facets of one of them.

Just "Spending Black" is not a viable means of creating wealth for us a group unless there is significant interdependence and in the end, the groups we keep touting as models of interpendence, aren't neccessarily building their wealth that way either.

Even someone who starts a Bank or Insurance company for his fellow Chinese Immigrants - is simply engaging in Smart Business, going into a Market that he/she can excel in.

Economics/Finance - is simple math, so let's look at the "real" situation and institute real solutions that fit the context in which we live.

I understand that you see something else when you look at your hometown - but you have to dig deeper, look at the differences amongst Black People and really analyze the situation, because it's simply not what it seems.

I won't even get into the fact that all of these social pundits touting "spending Black" as the economic savior - are primarily not businesspeople AND don't even touch on a single full-fledged wealth building strategy.

Earl Graves is an exception though, the Publisher of Black Enterprise - while I do criticize his near monthly editorials that tell people to spend Black, I do laud the fact that he does provide (In his Magazine) genuine wealth building tactics, ways to get more customers in general, building one's career in a mostly white workplace, etc.

So in the end - if you want to tout spending Black as a sociopolitical "thing" that's fine - but as far as building wealth, let's recognize the limits and discuss what really needs to be done.

Black People spend too much anyway, shifting that spending towards Black Business Owners, will just result in richer Black Business Owners, with nothing really gained for the whole.




Peace,








M2




The Blog: http://www.analyticalwealth.com/

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
The Real Issue
Jul 18th 2003
1
So M2
Jul 19th 2003
2
My beef with M2's
Jul 19th 2003
3
Wealth Building is Simple Math
Jul 19th 2003
7
the east indian community in houston
Jul 19th 2003
4
RE: the east indian community in houston
Jul 19th 2003
5
Based on What?
Jul 19th 2003
8
      I guess you have to see it to understand
Jul 19th 2003
9
           Okay.......
Jul 19th 2003
10
                lol
Jul 19th 2003
14
                     Abandon Fantasy
Jul 19th 2003
15
At the risk of sounding ignorant..
Jul 20th 2003
18
      It wasn't meant as a Rebuttal
Jul 20th 2003
22
RE: So M2
Jul 19th 2003
11
Excellent Points
Jul 19th 2003
12
RE: So M2
Jul 20th 2003
17
      not nearly on the same level
Jul 20th 2003
20
RE: The Real Issue
Jul 20th 2003
16
Which only enriches certain individuals
Jul 20th 2003
23
      RE: Which only enriches certain individuals
Jul 21st 2003
28
RE: The Real Issue
Jul 21st 2003
30
      Prove me Wrong
Jul 21st 2003
31
In my center
Jul 19th 2003
13
the trend of convergence.
Jul 20th 2003
19
      RE: the trend of convergence.
Jul 20th 2003
21
           can u elaborate
Jul 22nd 2003
32
                RE: can u elaborate
Jul 22nd 2003
33
                     Further
Jul 23rd 2003
37
                          RE: Further
Jul 23rd 2003
38
the main issue
Jul 20th 2003
24
ding ding ding
Jul 22nd 2003
34
Defining Wealth Building
Jul 20th 2003
25
great post M2
Jul 22nd 2003
35
      Seek and you shall find
Jul 22nd 2003
36
nice read
Jul 20th 2003
26
80% of all Businesses fail in Five Years
Jul 21st 2003
27
I USED THE WRONG TITLE TO THIS TREAD!!!!
Jul 21st 2003
29

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