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State of Black America 2005

 

 

EVEN AS U.S. ECONOMY GETS BETTER

JOBS AND WEALTH GAP GETS LARGER ON THE "EQUALITY INDEX"
 

Urge the President and Congress to Create Commission on Economic Opportunity for Jobs and Business Growth


Washington, DC (April 6, 2005)- Equality between blacks and whites in urban America is not improving, and changes in national policies and priorities must be made to help, according to a report released today by The National Urban League, entitled The State of Black America 2005: Prescriptions for Change.

The annual report's Equality Index (a statistical measurement of disparities or equality gaps between blacks and whites in economics, housing, education, health, social justice and civic engagement) revealed that despite societal progress, the overall status of black Americans is just .73 or 73 percent, compared to the conditions of their white counterparts, marginally unchanged from 2004 index results.

After a decade where Black America began to see drops in the unemployment rate and gains in income, the post-9/11 recession is marked by economic stagnation. Although the overall equality index shows that black status remains at 73 percent, the numbers inside the index tell a troubling story in terms of unemployment, income and wealth, said Marc H. Morial, President and CEO, National Urban League.  Our nation must wake up. The growing wealth gap in this country is not just leaving behind Black America, it's leaving behind, the middle class, urban America, rural America and Hispanic America, too. When one community in America suffers, our entire economy suffers. That is why we're recommending specific changes in our national priorities and policies.

Highlights of the Equality Index findings in the five main areas include

1. Economics - Still the largest divide, black economic status measures 57 percent of white counterparts, an equality gap 20 percent wider than any other category. Black unemployment remained stagnant at 10.8 percent while white unemployment dropped to 4.7 percent, making black unemployment more than twice that of whites.

2. Health - Black health status is 76 percent of whites. Obesity rates for blacks are increasing faster and the life expectancy rate for blacks is 72 years vs. 78 years for whites.

3. Education - Black education status is 77 percent of whites. Teachers with less than 3 years experience teach in minority schools at twice the rate that they teach in white schools.

4. Social Justice - When measuring sentencing, enforcement and victimization, black vs. white equality under law is 68 percent of whites (5 percent less than 2004the worst decline overall.). Blacks are three times (3X) more likely to become prisoners once arrested and a Black person's average jail sentence is six months longer than a white's for the same crime; 39 months versus 33 months.

5. Civic Engagement - Blacks out-measure whites in the area of civic engagement (voter registration, volunteerism and government service) at 1.08. However, volunteerism is declining for both blacks and whites, due to an upsurge with the 2004 elections.

Total Equality Index states that Black status is 73% of their white counterparts

What Can Be Done?  For the first time, The 2005 State of Black America report also offers recommendations for specific policies and actions the nation collectively (government, business and communities) should take to stem the backslide of progress. They include:

1. Congress should extend the 1965 Voting Rights Act, which expires in 2007.

2. Raise the minimum wage from $5.15 to $7.25 per hour and tie future increases to an objective standard. The minimum wage must be a living wage, not a poverty wage.

3. Close the home ownership gap by lowering down payment requirements and making mortgages more available and affordable to all. Strengthen the Community Reinvestment Act which has helped to guide the banks in this area.

4. Increase Business Development and Entrepreneurship in the African American and other urban communities by doubling the size of the New Markets Tax Credit Program.

5. Strengthen and improve the Community Development Block Grant program and other urban economic opportunity and job training programs. Do not cut nor gut funding.

6. Expand job training and career counseling efforts with a focus on young urban males. Develop a comprehensive re-entry program for ex-felons in need so that they can become working, able citizens and contribute to society. We applaud the Department of Labor's support for the National Urban League's pilot program which is seeking to put young men and women to work in 15 cities across the country through career counseling and job training.

7. Make full day access to quality pre-school education mandatory for every child starting at age three years old. The best way to leave no child behind is to give every child an early and equal start.

8. African Americans must energize their focus on savings, investing and estate planning.

9. African Americans, especially the African American middle class should increase their commitment to civic tithing. Civic tithing means financially supporting as well as giving volunteer time to African American institutions like Historically Black Colleges and Universities, churches, civil rights organizations like the Urban League and more.

The nation cannot reverse the potential backslide of economic progress without changing it's focus and priorities. National Urban League President and CEO Marc H. Morial has urged President Bush and the leadership of both parties in Congress as well as the chairpersons of both the Congressional Black Caucus and the Congressional Hispanic Caucus to get together to examine and act on policies and programs that will move economic progress forward in all communities. The National Urban League proposes the creation of a bi-partisan Commission on Economic Opportunity for All.

We need members from both parties and both houses of Congress to get together and realize that the responsibility of our nation to provide economic opportunity for all of its citizens is the great civil rights challenge of our time. said Morial in his letter to the President and Congressional members.

Finally, The State of Black America 2005 continues its rich tradition of essays and commentaries focused on economics, wealth, education, health and voting rights from some of America's most prominent thinkers. Dr. Cornel West, Thomas Shapiro, Dianne Pinderhughes, Annelle B. Primm and Marisela B. Gomez, James P. Comer, Martin L. Kilson, Dr. James Lanier, Robert Taylor, David Burnham, Marc H. Morial and Marvin Owens offer their perspectives on why the disparities between blacks and whites persist as well as some compelling solutions to these problems.

For example, Tom Shapiro's essay, The Racial Wealth Gap, discusses the actual widening of the wealth gap. During the recession and jobless recovery, Hispanics and African Americans lost more than 25 percent of their wealth, while the wealth of white families grew slightly for African American families, stock and mutual fund investments plummeted by nearly two-thirds.

The National Urban League is committed to filling the equality gaps through measures such as job training, business development, and educational assistance. For a copy of the State of Black America 2005, visit www.nul.org.

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National Urban League ( www.nul.org  ) Established in 1910, The Urban League is the nation's oldest and largest community-based movement devoted to empowering African Americans to enter the economic and social mainstream. Today, the National Urban League, headquartered in New York City, spearheads the non-partisan efforts of its local affiliates. There are over 100 local affiliates of the National Urban League located in 35 states and the District of Columbia providing direct services to more than 2 million people nationwide through programs, advocacy and research.

Source: http://www.nul.org/PressReleases/2005/2005PR185.html

 

 

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Related files:  State of the Dream  White Privilege Shapes the U.S.   State Of Black America   state of black nation 2005   The State of the Dream 2005

  Myths of Low-Wage Workers      Skip Gates and the Talented Fifth  Responses to Skip Gates  The State of HBCUs   The State of Black Journalism  

Press Release from United for a Fair Economy