Dr. Lester K. Spence

There’s an interesting discussion with two parts
over at P6 about cooperative economics. The belief that black businesses will somehow lift black people from our place on the bottom rungs is driven by a mythical belief in the power of capitalism. If trickle-down economics does not work for whites, why exactly would it work for us? Yes black people are under-serviced, and there is a market that someone like Magic Johnson is perfectly situated to take advantage of. But while I’d rather have someone like Magic making loot than some faceless white-owned development corporation, Magic doesn’t line my pockets.

I watch most of my movies at home at any rate.

But there are two classes of black folk that could use one another, and perhaps leverage their power to generate new urban visions–black intellectuals, and new black money. For two interesting models check out Fast Company, the Global Ideas Bank.

It’s accepted as a cliche that crisis and opportunity are generated in the same moment. In cities like Detroit, what the hell will black book stores, and starbucks really accomplish?

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Story here. The details haven’t come out yet. I’m suspecting it’s going to be tied to seniority. But let’s say for the sake of discussion that each worker is going to get offered something like 60 grand to walk.

My dad just retired from Ford. He told me once about an older (white) worker he used to talk to. They stopped talking when my dad casually asked him about investing. We know what the black/white wealth gap looks like. What we don’t know is how much of this gap is due to a knowledge deficit rather than a pure resource deficit? Whites living in suburban Detroit can make money just off of their house, because as long as their neighborhood is 90% white or more, people will want to move into it. The only piece of knowledge the average white homeowner needs to know here is the knowledge he has as soon as he recognizes that “white” is more than the absence of color.

But how much of this knowledge comes from older co-workers telling him what do to with his money? Telling him how to invest, what to invest in?

I’ve already heard about one brother who quickly went belly up after taking a buyout from GM.

I’m thinking a WHOLE lot more are soon to follow.

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This was the take home message of my latest NPR Commentary. The caption focuses largely on black America’s debt. And our debt is growing. But what folks really need to get with is the fact that this is an American condition. Black people are always talking about how we spend money on frivolous stuff like Cadillacs and Air Jordans instead of stocks and bonds (preferably black stocks and bonds). Well…check that. Black people don’t talk about it, black pundits (like Tavis) do. That’s not the reality though.

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