TLDR

(too long, didn’t read)

• Exploring Race and Capitalism in America: Delving into the intersection of race, capitalism, and opportunity in the United States, I examine how historical inequities have shaped present-day disparities in access to opportunity and generational wealth, highlighting the need for systemic change.

• Impact of Historical Inequities: Reflecting on the lasting effects of slavery and segregation on access to opportunity, particularly for people of color, I discuss how systemic obstacles have hindered economic mobility and perpetuated racial disparities in income, education, and wealth.

• Challenges within the Capitalist System: Analyzing the role of capitalism in perpetuating racial inequalities, I question the system's ability to address biases and social phenomena like racism, sexism, and classism, emphasizing the need for conscious efforts to remove obstacles to equal opportunity.

• Economic Indicators of Inequality: Examining economic data on revenue, ownership, and income, I illustrate the stark disparities between white-owned and black-owned businesses, highlighting the systemic barriers that contribute to the wealth gap and hinder upward mobility for marginalized communities.

• Call to Action for Equality: Proposing actionable steps to address racial inequalities and dismantle systemic obstacles, I advocate for self-reflection, diversification of social circles, support for black-owned businesses, advocacy for policy reform, and engagement in difficult conversations about privilege and systemic injustice.

• Reforming Capitalism for Equality: Considering the potential of capitalism as a tool for social change, I argue for reforms that prioritize equality, acknowledging the evolving ethics and values of society and advocating for a system that disperses wealth and opportunity more equitably.

Give Me the Deets!

Give me the juicy details

Today we are discussing the history of race in the United States as it influences present day capitalism and how the access of opportunity differs by race in America. Generational wealth and opportunities available to an individual are directly correlated to where someone is born, class and status, history, and by other random factors. Access to opportunity today has been birthed by American history and is seen in the difference of life circumstances of all Americans. Historically, people of color have had less access to opportunity than white Americans, which makes gaining a higher quality of life more difficult. Upon first glance, some might wonder if we must do anything about making access to opportunity equal for all Americans. I argue that the pursuit of happiness entails the ability to advance oneself, not based on race or class, but as a basic property afforded to all Americans.

Access of opportunity in the U.S. largely lives inside of the institution of capitalism, but is informed by society. The more money and power a person has, generally the more opportunity and freedom they are afforded. As I researched this topic, I wondered “Can capitalism in the U.S. be separated from race and the lingering effects of slavery?” Capitalism as a system can be a very important tool for creating social change and increasing access to opportunity for generations to come. However, it is not independent of biases and social phenomena like racism, sexism, and obviously classism. To answer the question above, we can begin to correct the effects of racism and slavery on capitalism by taking action to remove obstacles that exist in our society that inhibit our friends and neighbors of color from accessing opportunity.  Modern day slavery as it contributes to global capitalism and economics will be discussed in a separate post. 

As most of us know, the focus of U.S. capitalism historically has been to maximize profit. When looking to increase profit margins businesses look to lower production costs. This includes buying cheaper materials, paying employees less, outsourcing, and automation. More on that here. Slavery was introduced into global capitalist structures as a way to maximize profit margins. Obviously racism was used to dehumanize enslaved people across the world, and America still reflects that history. While we have made slavery illegal (mostly), the tool and effects of racism still linger.

While legalized slavery has significantly decreased in America, companies still benefit from people who have fewer opportunities, are in lower income classes, and socially outcast. We still have large portions of the population - based on class and race - that do not have equal access to education and resources that would allow them to better themselves. This means they are paid lower wages whether due to lower level jobs, or because employers can pay you less based on credentials. This situation was born of our past because of the obstacles that limited access to wealth and education for people of color. Without even addressing present day obstacles, we can clearly see the economic indicators from the difference in history between white and black Americans. History alone has left white Americans holding the majority of economic power.

If we access time alone, white Americans have had 243 years to build equity and opportunity. Slavery in the U.S. was abolished in 1865, however segregation didn’t end until 1954, and people of color didn’t get the legal right to vote until 1965. Anti-discrimination laws for housing where put into place in 1968. If we assume that by that date all limitations were removed, and do not address Jim Crow Laws, black codes, current day voter suppression, and racism as it affects the lives of our fellow Americans, people of color in the U.S. have only had 53 years to work on building the same opportunities afforded to white Americans (Reuters, 2021).

Our history has especially impacted black Americans, because during slavery it was illegal for slaves to learn to read or write. As slavery ended, this meant many free African Americans had no where to go and did not have the ability to further themselves educationally or financially. They worked jobs for little to no money, especially in the south. The end of slavery meant freedom, but the white slave owners and non-slave owning whites did not suddenly change their mind about the value of their new fellow citizens. Segregation meant that even if you were a black man who could read or write, you could not get a job with established white businesses. If you wanted to learn to read or write. you did not have access to a school because all black schools had to be built from the ground up. Textbooks, school supplies, teachers - everything had to be recreated and these new citizens could not gain the advantage of sharing the resources that were already in place for white Americans. White Americans had and still have many more opportunities, and the gap is consistent today in income, education, and generational equity. Asian Americans, while making up 6% of the U.S. population, are the highest achievers in education. This is partly due to immigration requirements and partly cultural significance. Asian Americans have their own unique history that is independent from black American history. I plan to discuss this topic more in a separate post.

Economic class in the U.S. is tied to race because black Americans are consistently the lowest paid demographic by U.S. population. Less money means less opportunity for higher education and therefore less opportunity to gain higher paid jobs. Also, the U.S. struggles with wealth disparities in lower income schools, meaning black students are receiving lower quality of fundamental education. For example, if you live in Texas, schools are funded by property taxes which means poor neighborhoods have less money for education. As we have established, race and economic classes are closely connected, so in Texas this leaves white schools with $830 more per student in funding. If primary education is not equally funded, getting into college will be more difficult for students in the under funded schools. Those low income schools happen to be black schools.

We can trace this income gap to the larger economic picture of total revenue gained by racial demographics. In regards to owned equity and revenue, Black owned businesses make $187.6 billion, while white owned businesses make an annual revenue of $12.9 trillion. Black business make 1.45% of what white businesses make. This last economic indicator directly shows the equity gap that grows exponentially over time. Further, all humans tend to hire people who remind them of themselves. This is called an unconscious bias and while it may not be intentional, it impacts work and classroom diversity.

Some people I have spoken on this topic say things like, “ Well, we all have resources now and people should be able to see the possibilities available to them. People should aspire to more and do better for themselves.” For a response to this, I turn to Moslov’s Hierarchy of Needs as taught in human development and psychology. There are levels of needs that people must meet in order to reach their full potential. In order to prosper and gain access to upward economic mobility, humans must first have access to basic needs and these include food, water, shelter etc. Then there are safety needs that include financial and physical security. Next, close relationships and love are needed. Simply stated, it is difficult to thrive when humans are struggling to survive. You can read more about this theory here.

If we go back to the end of slavery and look at the situation through the lens of human development, black Americans were not provided access to fulfill basic human needs. This means that most black Americans were in their own class that placed them significantly below wealthy whites, and still hated by and below poor white Americans. Being in one of the lowest classes meant they did not have access to fulfill basic needs that all humans must meet in order to reach their maximum potential. If we take that knowledge and fast forward to today - without mentioning generational trauma and the fight for equal rights as American Citizens - we can acknowledge that white Americans have had more time to develop opportunity and upward mobility without the disadvantages and social resistance that black Americans have.

Opportunity is defined as, “a set of circumstances that make it possible to do something.” (Oxford Dictionary, 2021) Equal opportunity does not mean equal treatment. In a world where different people need different things to reach opportunity, we must look to our fellow citizens and ask ourselves, “What do our neighbors need in order to gain equal access to opportunity?” Helping our fellow citizens obtain access to opportunity isn’t a handout, because obstacles have been put into place to slow the progress of Americans of color. Helping take down those obstacles would be the just thing to do. Pursuit of happiness is arguably the ability to flourish- to feed yourself and children, to safely live, and to have access to education that would allow real freedom. 

More, for those who say “Slavery doesn’t exist today, so why are we still talking about this?” Institutional slavery has been outlawed to a large degree, AND the after effects of the institution are still apparent in our economy and society. To not acknowledge this fact is to be complicit with the harm that it is still doing to our friends, families, and neighbors. Our history is ugly, but we can change it. To not do so is a tragedy- for ourselves and for the coming generations.

So, how can we be allies to our neighbors and begin to dismantle these obstacles? 

1. Examine our own unconscious biases. See this post.

2. Diversify your friend group. The more you spend time with people who are like you, the more likely you are to hold inaccurate beliefs about people who are different from you. SO! Mix it up!

3. Go out of your way to support black owned businesses.

4. Look to laws surrounding income and access to education. Start initiatives to change laws that are biased or do not help the problem.

5. Have difficult conversations. Be open to acknowledge that individually we did not make the system we live in, but we do contribute to how it will change for the better or worse. When we acknowledge privilege, we can begin to support peoples who are negatively impacted in the lack. If you are unfamiliar with the conversation of privilege, watch this video to begin to learn more.

A nation’s values and ethics are largely reflect in the system that is in place. What matters to us as a community will be reflected in our laws, justice system, and how we treat our fellow citizens no matter the color of their skin. The conundrum we find ourselves in now is the process of realizing the world we live in was designed by people with different ethics, concerns, and values. Our ethics are evolving rapidly, and the things once held as social norms are quickly transforming. Capitalism can be a powerful tool for change as it either restricts or disperses wealth and access to opportunity. Dispersed wealth in a community is access to health care, nutritious foods, education, skilled labor, and a booming and stable economy. If equality and the acknowledgment of our history through action were to become the main focus now, capitalism in the U.S. could be better reformed to reflect its best outcomes. 

This topic is so large, and there is much more to be said. This is just the first of many posts. Please comment below to share you thoughts. 

Much Appreciation,

Astrid