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By: Akon Angara
As black celebrities with wealth, power and influence in the United States rise, they plan on utilizing their wealth to develop programs and schemes to help build black capital, as well as advocate for black capitalism. But before we begin to discuss the harmful effects of black capitalism, as well as how it can be used as an obstacle to black liberation, what really is black capitalism?
Black Capitalism: Its origins and history Black capitalism refers to the political movement among African Americans, seeking to build wealth through the ownership and development of businesses. Black capitalism supports self-sufficiency; Black wealth through black-owned banking, entrepreneurship, and black businesses. Although black capitalism has been rising in popularity recently, it is an idea that has been around for centuries. The idea of black capitalism can be found as early as the 1800s, as black leaders urged black people to pursue and have faith in business and property, as a means of escaping poverty and achieving economic independence.
The term ‘black capitalism’, however, was only coined and promoted in 1966, as a part of the black power movement. Stomely Carmichael, a civil rights activist, argued that economic independence would result in political power, and help end racism. President Nixon co-opted this term and idea, and introduced his black capitalism policy to ‘promote black ownership within the urban ghetto’. He was able to use the idea of black capitalism to win the support of black and white voters, and convinced black voters that his policy would provide economic advancement.
However, Nixon’s policies never fulfilled the promises made to the black community. There was a 40.2% decline in black businesses, between the periods 1972 and 1975, and a black business failure rate of 18% compared to less than 1% for small businesses in general. During this period, thirteen of the one hundred largest black businesses had filed for bankruptcy. Black capitalist programs were ineffective, politicised, and corrupted. Black capitalism during Nixon’s reign as president had failed.
Black Capitalism today
Regarding black capitalism, presidential administrations have all attempted to develop black capitalism, but with limited success. Black businesses still have low profit, with huge divisions between successions of black and white owned businesses. But is all hope lost? With well-designed and thoughtful policies that acknowledge discrimination and systemic injustices, can black capitalism become a reality? Can our own leaders help with the mission of black capitalism? In a world where racial inequality is a persistent social issue, can black capitalism be seen as a possible solution to liberation?
In short, no. Black capitalism cannot be seen as a long term goal for racial equality, nor should it be seen as one. There are many examples of how black capitalism can be detrimental to the black community, a recent one being the Black Lives Matter movement. We saw the Black Lives Matter movement turn into one that was monetised. Events for police brutality victims such as Breonna Taylor and George Floyd were held, but did not contribute to the justice that they, as well as all the other police brutality victims so desperately need. We saw celebrities and corporations using the BLM movement to promote their own businesses and brands. We saw people using BLM to create jewellery, clothing and merchandise. But we did not see justice. We did not see police abolition. We did not see police officers being held accountable for the hateful and racially driven murders they committed.
Black celebrities have turned to the black community to advocate for economic liberation. Last year, many celebrities expressed their willingness to work with, or endorsed, former President Donald Trump. Ice Cube released a “Contract With Black America”, 50 Cent social tax tirade, Lil Wayne’s declaration of support for the president, as well as Kanye even deciding to run for president of the United States.
What’s the problem with Black Capitalism?
However, these black celebrities often misdiagnose the issue within their attempts to build the black community and solve economic inequality. Reform is not an option. We cannot expect a country and its systems that are built on the exploitation of black people to work in our favours. Any effort to solve economic inequality that does not call for the end of capitalism is only asking to diversify those who are able to do the oppressing.
As well as this, black people in higher economic classes such as celebrities, politicians and entrepreneurs, have often taken the role to dictate and negotiate the needs of Black people, as we saw large political figures such as former president Barack Obama condemning the use of violence throughout the protests. Black liberation does not require leaders. It does not require black people of higher classes to patronize the black community.
In general, black capitalism is highly flawed and cannot solve racial inequality. It cannot resolve the economic and social injustices. It cannot eliminate discrimination in hiring, improving education and housing of black people, which are necessary steps to elevate the black community and contribute to liberation.
In short, black capitalism is not synonymous with black liberation. We must continue to uplift and elevate the black community, as well as support those within the community who are struggling, with things such as mutual aid. However, this does not replace the long term goal of liberation. We do not need a seat at the table. The table should be destroyed.
“What the Black elite must understand is that they are not the vanguard. Liberation will always be led by those who are the most harmed by our society. Black capitalism will never be the answer for those who are seeking liberation for all Black people.”
Sources
https://www.thenation.com/article/archive/nipsey-killer-mike-race-economics/
https://www.sciencedirect.com/science/article/abs/pii/0007681369900378
https://www.teenvogue.com/story/black-elite-racial-justice
https://sarananika.com/wp-content/uploads/2020/02/black-capitalism-3.pdf
https://www.theatlantic.com/business/archive/2017/09/black-capitalism-baradaran/540522/
https://en.wikipedia.org/wiki/Black_capitalism
https://www.washingtonpost.com/outlook/2020/11/03/black-celebrities-have-long-history-endorsing-republican-presidents/