There is no place in the country where a family supported by one minimum-wage worker with a full-time job can live and afford a 2-bedroom apartment at the average fair-market rent.
Average Walmart workers make twice the federal minimum wage but may still qualify for public benefits.
Given the pressure to earn enough to make ends meet, you would think that low-paid workers would be clamoring for raises. But this is not always the case.
Because so many American jobs don’t earn enough to pay for food, housing and other basic needs, many low-wage workers rely on public benefits that are only available to people in need, such as housing vouchers and Medicaid, to pay their bills.
Earning a little more money may not automatically increase their standard of living if it boosts their income to the point where they lose access to some or all of those benefits. That’s because the value of those lost benefits may outweigh their income gains.
I have researched this dynamic, which experts often call the “cliff effect,” for years to learn why workers weren’t succeeding at retaining their jobs following job training programs. Chief among the one step forward, two steps back problems the cliff effect causes: Low-paid workers can become reluctant to earn more money due to a fear that they will get worse off instead of better.
Trapped
“My supervisor wants to promote me,” a woman who gets housing assistance through the federal Section 8 housing voucher program, who I’ll call Josie, told me. “If my pay goes up, my rent will go up too. I don’t know if I’ll be able to afford my apartment,” Josie, a secretary at a Boston hospital, said.
These vouchers are available to Americans facing economic hardship, based on multiple criteria, including their income. Josie was worried that the bump up in pay that she’d get from the promotion would not make up for the loss of help she gets to pay her rent.
Given the possibility of a downside, many Americans in this situation decide it’s better to decline what on the surface looks like a good opportunity to escape poverty.
This uncertainty leads workers like Josie to forgo raises rather than take the risk of getting poorer while working harder. Having to stress out about potentially losing benefits that keep a roof over their heads and food on their table prolongs their own financial instability.
The pain isn’t just personal. Josie’s whole family misses out if she passes on an opportunity to earn more. The government loses a chance to stop using taxpayer dollars to cover benefits to someone who might not otherwise need them. The hospital can’t take full advantage of Josie’s proven talents.
Not always
Some low-paid workers do get farther behind when they should be getting ahead following a raise. But getting higher pay doesn’t always make anyone worse off. Whether it does or not depends on a lot of intersecting factors, like the local cost of living, the size of the raise, the size of the family and the benefits the worker receives.
The cliff effect is something social workers see their clients encounter all the time. And it’s maddeningly impossible to figure out for the people experiencing it and researchers like me alike.
Some benefits, notably the Supplemental Nutrition Assistance Program, the nation’s largest program designed to alleviate hunger, do include some incentives for recipients to earn more. SNAP, as today’s version of food stamps is known, tapers its phaseout for eligibility as incomes grow, rather than rendering people ineligible as soon as their pay crosses a single threshold.
But low-wage workers, such as those in food service, hospitality and retail have no way of knowing what to expect if they get SNAP benefits in combination with other government programs, such as housing vouchers and Medicaid.
At the heart of this problem is that the help millions Americans derive from the nation’s safety net comes from a fragmented system. Sorting out the repercussions of a higher income is nearly impossible because the safety net consists of a wide array of benefits programs administered by federal, state and local agencies. Each program and administrator has its own criteria, rules and restrictions.
Because that trepidation is sometimes unfounded, my colleagues at Project Hope Boston, a multi-service agency focused on moving the city’s families up and out of poverty, and I started to do something about it.
Fixing it
To help families assess risks tied to the cliff effect, we advised the Massachusetts Department of Transitional Assistance, which oversees state-administered safety net programs, to create a digital tool. Social workers are already using a preliminary version of it to show low-wage workers what they can probably expect to happen to their benefits if they earn more money.
The Commonwealth of Massachusetts plans to put this tool online for all to use by Summer of 2019.
After plugging information about variables like how many members are in the household, what benefits everyone receives, the costs of their regular expenses like rent, child care and medical bills, they become better able to make informed choices about their career opportunity based on their family’s personal financial situation.
But workers need more than just a tool, they need help getting over the cliff. We also help workforce development programs implement the state’s new Learn to Earn initiative, which gives low-income families the financial coaching they need to make educated decisions that could affect their bottom line.
But the reality is that even after some of the biggest minimum wage increases enacted at the state level lately, many families are not earning enough to pay for housing and other basic needs without help – for which they may no longer qualify. Several states, including Colorado and Florida, are seeking solutions.This complicated and frustrating challenge is just one symptom of an overarching problem. In addition to boosting wages, it will take major policy changes, like making child care more universally available and affordable, to offset the skyrocketing costs of living for American workers.
Republished with permission under license from The Conversation.
Automation threatens to replace some workers but can grow overall employment. The one sure thing is that technology will change how we labor.
By M. Mitchell Waldrop
Back in the 1990s, when US banks started installing automated teller machines in a big way, the human tellers who worked in those banks seemed to be facing rapid obsolescence. If machines could hand out cash and accept deposits on their own, around the clock, who needed people?
The banks did, actually. It’s true that the ATMs made it possible to operate branch banks with many fewer employees: 13 on average, down from 20. But the cost savings just encouraged the parent banks to open so many new branches that the total employment of tellers actually went up.
The robots are coming: SpaceX founder Elon Musk, and the late physicist Stephen Hawking both publicly warned that machines will eventually start programming themselves, and trigger the collapse of human civilization.
You can find similar stories in fields like finance, health care, education and law, says James Bessen, the Boston University economist who called his colleagues’ attention to the ATM story in 2015. “The argument isn’t that automation always increases jobs,” he says, “but that it can and often does.”
That’s a lesson worth remembering when listening to the increasingly fraught predictions about the future of work in the age of robots and artificial intelligence. Think driverless cars, or convincingly human speech synthesis, or creepily lifelike robots that can run, jump and open doors on their own: Given the breakneck pace of progress in such applications, how long will there be anything left for people to do?
That question has been given its most apocalyptic formulation by figures such as Tesla and SpaceX founder Elon Musk and the late physicist Stephen Hawking. Both have publicly warned that the machines will eventually exceed human capabilities, move beyond our control and perhaps even trigger the collapse of human civilization. But even less dramatic observers are worried. In 2014, when the Pew Research Center surveyed nearly 1,900 technology experts on the future of work, almost half were convinced that artificially intelligent machines would soon lead to accelerating job losses — nearly 50 percent by the early 2030s, according to one widely quoted analysis. The inevitable result, they feared, would be mass unemployment and a sharp upswing in today’s already worrisome levels of income inequality. And that could indeed lead to a breakdown in the social order.
Or maybe not. “It’s always easier to imagine the jobs that exist today and might be destroyed than it is to imagine the jobs that don’t exist today and might be created,” says Jed Kolko, chief economist at the online job-posting site Indeed. Many, if not most, experts in this field are cautiously optimistic about employment — if only because the ATM example and many others like it show how counterintuitive the impact of automation can be. Machine intelligence is still a very long way from matching the full range of human abilities, says Bessen. Even when you factor in the developments now coming through the pipeline, he says, “we have little reason in the next 10 or 20 years to worry about mass unemployment.”
So — which way will things go?
There’s no way to know for sure until the future gets here, says Kolko. But maybe, he adds, that’s not the right question: “The debate over the aggregate effect on job losses versus job gains blinds us to other issues that will matter regardless” — such as how jobs might change in the face of AI and robotics, and how society will manage that change. For example, will these new technologies be used as just another way to replace human workers and cut costs? Or will they be used to help workers, freeing them to exercise uniquely human abilities like problem-solving and creativity?
“There are many different possible ways we could configure the state of the world,” says Derik Pridmore, CEO of Osaro, a San Francisco-based firm that makes AI software for industrial robots, “and there are a lot of choices we have to make.”
Automation and jobs: lessons from the past
In the United States, at least, today’s debate over artificially intelligent machines and jobs can’t help but be colored by memories of the past four decades, when the total number of workers employed by US automakers, steel mills and other manufacturers began a long, slow decline from a high of 19.5 million in 1979 to about 17.3 million in 2000 — followed by a precipitous drop to a low of 11.5 million in the aftermath of the Great Recession of 2007–2009. (The total has since recovered slightly, to about 12.7 million; broadly similar changes were seen in other heavily automated countries such as Germany and Japan.) Coming on top of a stagnation in wage growth since about 1973, the experience was traumatic.
True, says Bessen, automation can’t possibly be the whole reason for the decline. “If you go back to the previous hundred years,” he says, “industry was automating at as fast or faster rates, and employment was growing robustly.” That’s how we got to millions of factory workers in the first place. Instead, economists blame the employment drop on a confluence of factors, among them globalization,the decline of labor unions, and a 1980s-era corporate culture in the United States that emphasized down-sizing, cost-cutting and quarterly profits above all else.
But automation was certainly one of those factors. “In the push to reduce costs, we collectively took the path of least resistance,” says Prasad Akella, a roboticist who is founder and CEO of Drishti,a start-up firm in Palo Alto, California, that uses AI to help workers improve their performance on the assembly line. “And that was, ‘Let’s offshore it to the cheapest center, so labor costs are low. And if we can’t offshore it, let’s automate it.’”
AI and robots in the workplace
Automation has taken many forms, including computer-controlled steel mills that can be operated by just a handful of employees, and industrial robots, mechanical arms that can be programmed to move a tool such as a paint sprayer or a welding torch through a sequence of motions. Such robots have been employed in steadily increasing numbers since the 1970s. There are currently about 2 million industrial robots in use globally, mostly in automotive and electronics assembly lines, each taking the place of one or more human workers.
The distinctions among automation, robotics and AI are admittedly rather fuzzy — and getting fuzzier, now that driverless cars and other advanced robots are using artificially intelligent software in their digital brains. But a rough rule of thumb is that robots carry out physical tasks that once required human intelligence, while AI software tries to carry out human-level cognitive tasks such as understanding language and recognizing images. Automation is an umbrella term that not only encompasses both, but also includes ordinary computers and non-intelligent machines.
AI’s job is toughest. Before about 2010, applications were limited by a paradox famously pointed out by the philosopher Michael Polanyi in 1966: “We can know more than we can tell” — meaning that most of the skills that get us through the day are practiced, unconscious and almost impossible to articulate. Polanyi called these skills tacit knowledge, as opposed to the explicit knowledge found in textbooks.
Imagine trying to explain exactly how you know that a particular pattern of pixels is a photograph of a puppy, or how you can safely negotiate a left-hand turn against oncoming traffic. (It sounds easy enough to say “wait for an opening in traffic” — until you try to define an “opening” well enough for a computer to recognize it, or to define precisely how big the gap must be to be safe.) This kind of tacit knowledge contained so many subtleties, special cases and things measured by “feel” that there seemed no way for programmers to extract it, much less encode it in a precisely defined algorithm.
Today, of course, even a smartphone app can recognize puppy photos (usually), and autonomous vehicles are making those left-hand turns routinely (if not always perfectly). What’s changed just within the past decade is that AI developers can now throw massive computer power at massive datasets — a process known as “‘deep learning.” This basically amounts to showing the machine a zillion photographs of puppies and a zillion photographs of not-puppies, then having the AI software adjust a zillion internal variables until it can identify the photos correctly.
Although this deep learning process isn’t particularly efficient — a human child only has to see one or two puppies — it’s had a transformative effect on AI applications such as autonomous vehicles, machine translation and anything requiring voice or image recognition. And that’s what’s freaking people out, says Jim Guszcza, US chief data scientist at Deloitte Consulting in Los Angeles: “Wow — things that before required tacit knowledge can now be done by computers!” Thus the new anxiety about massive job losses in fields like law and journalism that never had to worry about automation before. And thus the many predictions of rapid obsolescence for store clerks, security guards and fast-food workers, as well as for truck, taxi, limousine and delivery van drivers.
Meet my colleague, the robot
But then, bank tellers were supposed to become obsolete, too. What happened instead, says Bessen, was that automation via ATMs not only expanded the market for tellers, but also changed the nature of the job: As tellers spent less time simply handling cash, they spent more time talking with customers about loans and other banking services. “And as the interpersonal skills have become more important,” says Bessen, “there has been a modest rise in the salaries of bank tellers,” as well as an increase in the number of full-time rather than part-time teller positions. “So it’s a much richer picture than people often imagine,” he says.
Similar stories can be found in many other industries. (Even in the era of online shopping and self-checkout, for example, the employment numbers for retail trade are going up smartly.) The fact is that, even now, it’s very hard to completely replace human workers.
Steel mills are an exception that proves the rule, says Bryan Jones, CEO of JR Automation, a firm in Holland, Michigan, that integrates various forms of hardware and software for industrial customers seeking to automate. “A steel mill is a really nasty, tough environment,” he says. But the process itself — smelting, casting, rolling, and so on — is essentially the same no matter what kind of steel you’re making. So the mills have been comparatively easy to automate, he says, which is why the steel industry has shed so many jobs.
When people are better
“Where it becomes more difficult to automate is when you have a lot of variability and customization,” says Jones. “That’s one of the things we’re seeing in the auto industry right now: Most people want something that’s tailored to them,” with a personalized choice of color, accessories or even front and rear grills. Every vehicle coming down the assembly line might be a bit different.
It’s not impossible to automate that sort of flexibility, says Jones. Pick a task, and there’s probably a laboratory robot somewhere that has mastered it. But that’s not the same as doing it cost-effectively, at scale. In the real world, as Akella points out, most industrial robots are still big, blind machines that go through their motions no matter who or what is in the way, and have to be caged off from people for safety’s sake. With machines like that, he says, “flexibility requires a ton of retooling and a ton of programming — and that doesn't happen overnight.”
Contrast that with human workers, says Akella. The reprogramming is easy: “You just walk onto the factory floor and say, ‘Guys, today we’re making this instead of that.’” And better still, people come equipped with abilities that few robot arms can match, including fine motor control, hand-eye coordination and a talent for dealing with the unexpected.
All of which is why most automakers today don’t try to automate everything on the assembly line. (A few of them did try it early on, says Bessen. But their facilities generally ended up like General Motors’ Detroit-Hamtramck assembly plant,which quickly became a debugging nightmare after it opened in 1985: Its robots were painting each other as often as they painted the Cadillacs.) Instead, companies like Toyota, Mercedes-Benz and General Motors restrict the big, dumb, fenced-off robots to tasks that are dirty, dangerous and repetitive, such as welding and spray-painting. And they post their human workers to places like the final assembly area, where they can put the last pieces together while checking for alignment, fit, finish and quality — and whether the final product agrees with the customer’s customization request.
To help those human workers, moreover, many manufacturers (and not just automakers) are investing heavily in collaborative robots, or “cobots” — one of the fastest-growing categories of industrial automation today.
Sawyer, a collaborative robot made by Rethink Robotics, is one of many such "cobots" designed to work safely alongside humans on the shop floor. Sawyer guides its movements with a computer vision system, uses force feedback to know how hard it is gripping (and to keep from crushing things), and can be trained to do a new task simply by guiding its 7-jointed arm through the required motion. The expression of the eyes on the display screen change to indicate Sawyer's status, from "working well" to "needs attention."
Collaborative robots: Machines work with people
Cobots are now available from at least half a dozen firms. But they are all based on concepts developed by a team working under Akella in the mid-1990s, when he was a staff engineer at General Motors. The goal was to build robots that are safe to be around, and that can help with stressful or repetitive tasks while still leaving control with the human workers.
To get a feel for the problem, says Akella, imagine picking up a battery from a conveyor belt, walking two steps, dropping it into the car and then going back for the next one — once per minute, eight hours per day. “I've done the job myself,” says Akella, “and I can assure you that I came home extremely sore.” Or imagine picking up a 150-pound “cockpit” — the car’s dashboard, with all the attached instruments, displays and air-conditioning equipment — and maneuvering it into place through the car’s doorway without breaking anything.
Devising a robot that could help with such tasks was quite a novel research challenge at the time, says Michael Peshkin, a mechanical engineer at Northwestern University in Evanston, Illinois, and one of several outside investigators that Akella included in his team. “The field was all about increasing the robots’ autonomy, sensing and capacity to deal with variability,” he says. But until this project came along, no one had focused too much on the robots’ ability to work with people.
So for their first cobot, he and his Northwestern colleague Edward Colgate started with a very simple concept: a small cart equipped with set of lifters that would hoist, say, the cockpit, while the human worker guided it into place. But the cart wasn’t just passive, says Peshkin: It would sense its position and turn its wheels to stay inside a “virtual constraint surface” — in effect, an invisible midair funnel that would guide the cockpit through the door and into position without a scratch. The worker could then check the final fit and attachments without strain.
Cobots can be adapted to help human workers in a wide variety of manufacturing environments. At MS Schramberg, a mid-sized magnet manufacturer in Baden-Württemberg, Germany, multiple collaborative robots called Sawyers have been deployed to relieve workers from some of the most repetitive assembly tasks.
Another GM-sponsored prototype replaced the cart with a worker-guided robotic arm that could lift auto components while hanging from a movable suspension point on the ceiling. But it shared the same principle of machine assistance plus worker control — a principle that proved to be critically important when Peshkin and his colleagues tried out their prototypes on General Motors’ assembly line workers.
“We expected a lot of resistance,” says Peshkin. “But in fact, they were welcoming and helpful. They totally understood the idea of saving their backs from injury.” And just as important, the workers loved using the cobots. They liked being able to move a little faster or a little slower if they felt like it. “With a car coming along every 52 seconds,” says Peshkin, “that little bit of autonomy was really important.” And they liked being part of the process. “People want their skills to be on display,” he says. “They enjoy using their bodies, taking pleasure in their own motion.” And the cobots gave them that, he says: “You could swoop along the virtual surface, guide the cockpit in and enjoy the movement in a way that fixed machinery didn’t allow.”
AI and its limits
Akella’s current firm, Drishti, reports a similarly welcoming response to its AI-based software. Details are proprietary, says Akella. But the basic idea is to use advanced computer vision technology to function somewhat like a GPS for the assembly line, giving workers turn-by-turn instructions and warnings as they go. Say that a worker is putting together an iPhone, he explains, and the camera watching from overhead believes that only three out of four screws were secured: “We alert the worker and say, ‘Hey, just make sure to tighten that screw as well before it goes down the line.’”
This does have its Big Brother aspects, admits Drishti’s marketing director, David Prager. “But we’ve got a lot of examples of operators on the floor who become very engaged and ultimately very appreciative,” he says. “They know very well the specter of automation and robotics bearing down on them, and they see very quickly that this is a tool that helps them be more efficient, more precise and ultimately more valuable to the company. So the company is more willing to invest in its people, as opposed to getting them out of the equation.”
This theme — using technology to help people do their jobs rather than replacing people — is likely to be a characteristic of AI applications for a long time to come. Just as with robotics, there are still some important things that AI can’t do.
Robot arms can be equipped with “hands,” or grippers, that are specialized for the specific job. Here, Sawyer is using a gripper consisting of an array of suction cups to position a circuit board very precisely in a testing stand.
Take medicine, for example. Deep learning has already produced software that can interpret X rays as well as or better than human radiologists, says Darrell West, a political scientist who studies innovation at the Brookings Institution in Washington, DC. “But we’re not going to want the software to tell somebody, ‘You just got a possible cancer diagnosis,’” he says. “You're still going to need a radiologist to check on the AI, to make sure that what it observed actually is the case” — and then, if the results are bad, a cancer specialist to break the news to the patient and start planning out a course of treatment.
Likewise in law, where AI can be a huge help in finding precedents that might be relevant to a case — but not in interpreting them, or using them to build a case in court. More generally, says Guszcza, deep-learning-based AI is very good at identifying features and focusing attention where it needs to be. But it falls short when it comes to things like dealing with surprises, integrating many diverse sources of knowledge and applying common sense — “all the things that humans are very good at.”
During the 2016 election campaign, to test Google’s Translate utility, he tried a classic experiment: Take a headline — “Hillary slams the door on Bernie” — then ask Google to translate it from English to Bengali and back again. Result: “Barney slam the door on Clinton.” A year later, after Google had done a massive upgrade of Translate using deep learning, Guszcza repeated the experiment with the result: “Hillary Barry opened the door.”
“I don’t see any evidence that we’re going to achieve full common-sense reasoning with current AI,” he says, echoing a point made by many AI researchers themselves. In September 2017, for example, deep learning pioneer Geoffrey Hinton, a computer scientist at the University of Toronto, told the news site Axios that the field needs some fundamentally new ideas if researchers ever hope to achieve human-level AI.
Job evolution
AI’s limitations are another reason why economists like Bessen don’t see it causing mass unemployment anytime soon. “Automation is almost always about automating a task, not the entire job,” he says, echoing a point made by many others. And while every job has at least a few routine tasks that could benefit from AI, there are very few jobs that are all routine. In fact, says Bessen, when he systematically looked at all the jobs listed in the 1950 census, “there was only one occupation that you could say was clearly automated out of existence — elevator operators.” There were 50,000 in 1950, and effectively none today.
On the other hand, you don’t need mass unemployment to have massive upheaval in the workplace, says Lee Rainie, director of internet and technology research at the Pew Research Center in Washington, DC. “The experts are hardly close to a consensus on whether robotics and artificial intelligence will result in more jobs, or fewer jobs,” he says, “but they will certainly change jobs. Everybody expects that this great sorting out of skills and functions will continue for as far as the eye can see.”
Worse, says Rainie, “the most worried experts in our sample say that we’ve never in history faced this level of change this rapidly.” It’s not just information technology, or artificial intelligence, or robotics, he says. It’s also nanotechnology, biotechnology, 3-D printing, communication technologies — on and on. “The changes are happening on so many fronts that they threaten to overwhelm our capacity to adjust,” he says.
Preparing for the future of work
If so, the resulting era of constant job churn could force some radical changes in the wider society. Suggestions from Pew’s experts and others include an increased emphasis on continuing education and retraining for adults seeking new skills, and a social safety net that has been revamped to help people move from job to job and place to place. There is even emerging support in the tech sector for some kind of guaranteed annual income, on the theory that advances in AI and robotics will eventually transcend the current limitations and make massive workplace disruptions inevitable, meaning that people will need a cushion.
This is the kind of discussion that gets really political really fast. And at the moment, says Rainie, Pew’s opinion surveys show that it’s not really on the public’s radar: “There are a lot of average folks, average workers saying, ‘Yeah, everybody else is going to get messed up by this — but I’m not. My business is in good shape. I can’t imagine how a machine or a piece of software could replace me.’”
But it’s a discussion that urgently needs to happen, says West. Just looking at what’s already in the pipeline, he says, “the full force of the technology revolution is going to take place between 2020 and 2050. So if we make changes now and gradually phase things in over the next 20 years, it’s perfectly manageable. But if we wait until 2040, it will probably be impossible to handle.”
I was hospitalized recently for three weeks. I was rushed by ambulance to the emergency room, transferred to another hospital for surgery where I spent the majority of my recovery in the intensive care unit (ICU).
Although a hospital is within an insurance provider’s network, the doctors providing care may not be. For insurance purposes, those physicians might be considered “out-of-network” providers, and the insurance company may not cover any of the treatment costs. This from what I understand is a fairly common practice. When this happens, the patient even when covered by insurance has to cover the majority of the medical cost.
Article By Michelle Andrews
Elham Mirshafiei was at the library cramming for final exams during her senior year at California State University-Long Beach when she grew nauseated and started vomiting. After the 10th episode in an hour, a friend took her to the nearest emergency room. Diagnosis: an intestinal bug and severe dehydration. In a few hours, she was home again, with instructions to eat a bland diet and drink plenty of fluids.
That was in 2010. But the $4,000 bill for the brief emergency department visit at an out-of-network hospital has trailed her ever since. Mirshafiei, 31, has a good job now as a licensed insurance adviser in Palo Alto, Calif. But money is still tight and her priority is paying off her $67,000 student loan debt rather than that old hospital bill.
Once or twice a year she gets a letter from a collection agency. She ignores them, and, so far, the consequences have been manageable. “It’s not like electricity that gets cut off if you don’t pay it,” she said.
Mirshafiei has plenty of company. At least 43 million other Americans have overdue medical bills on their credit reports, a federal Consumer Financial Protection Bureau report on medical debt found in 2014. And 59% of people contacted by a debt collector say the exchange was over medical bills, the most common type of contact stemming from an overdue bill, according to the CFPB.
This month, the CFPB proposed a rule to frame what debt collectors are allowed to do when pursuing many types of overdue bills, including medical debt.
Federal law already prohibits debt collectors from harassing consumers or contacting them before 8 a.m. or after 9 p.m., among other things. But the law, which was passed in 1977, didn’t anticipate emails and text messages. The CFPB’s proposal clarifies how debt collectors can use these communication tools. And it would allow consumers to opt out of being contacted this way.
The rule also specifies that debt collectors can make no more than seven telephone calls weekly over a specific debt.
But some consumer advocates panned the effort. “This really doesn’t go far enough to protect consumers and make sure that consumers are not abused or harassed or subject to unfair collection practices in debt collection,” said April Kuehnhoff, an attorney at the National Consumer Law Center who specializes in debt collection.
For instance, the center wants a limit of just three telephone attempts each week on a debt. The seven-call limit could be particularly tough on people with medical debt, Kuehnhoff said. They may accumulate bills from several providers for a single medical event — hospital, doctors, a lab and a nursing home, for example — and all could be in collections separately, potentially resulting in dozens of calls each week.
Debt collectors aren’t necessarily in favor of the seven-call cap either, but for different reasons. They say that limiting the number of calls could lead to more litigation or adverse credit reporting rather than working out a payment plan. Overall, the proposed rule seemed to strike a good balance between collection industry and consumer concerns, said Leah Dempsey, vice president and senior counsel for federal affairs at ACA International, a trade group representing 2,500 debt collectors, asset buyers and related professions.
The general consensus is that people should pay their debts. But taking responsibility for medical debt isn’t always as straightforward as paying off a large-screen TV that someone put on a credit card. Did health insurance pay the correct amount? Was the person screened for eligibility for Medicaid, charity care or financial assistance?
“The actual debt collector problem is often about the lack of accountability that providers have for the people that they pass their debt along to,” said Leonardo Cuello, director of health policy at the National Health Law Program.
When a debt collector calls, consumers who are confused about the bill should ask, in writing and generally within 30 days, that the debt be validated. Debts are often bundled and sold multiple times to different collectors, which means errors may be introduced along the way. “There are no magic words; you don’t need to cite the statute,” said Justin J. Lowe, legal director at Health Law Advocates, a nonprofit law firm in Boston that helps people with low incomes who are having trouble accessing or paying for medical care.
At that point, the collection agency has to stop activities until it proves what the consumer owes. The proposed CFPB rule would spell out verification information that must be provided along with instructions for consumers about how to dispute the debt.
The proposal would also address other practices, including the collection of so-called zombie debt. That refers to a bill that has passed a time limit — or statute of limitations — for bringing legal action, often between three and six years, depending on the state. In many states, if a collector sues someone for such a time-barred debt, consumers can raise the issue in court in their defense. If a judge agrees, the case could be dismissed.
Consumer advocates have long wanted debt collectors to be prohibited from trying to collect zombie debt. After several years, it can be difficult for patients to remember whether a bill has been paid or to locate records, they argue.
The proposed CFPB rule would prohibit debt collectors from suing or threatening to sue consumers for zombie debt, but only if the collectors knew or should have known that the statute of limitations had expired. That puts the onus on the consumer to prove what was in the debt collector’s mind rather than merely showing that too much time had passed to collect.
It’s unclear how the proposed changes announced by the CFPB might affect Mirshafiei’s situation. The statute of limitations in California on written contracts is four years.
One thing someone in Mirshafiei’s situation should be aware of is that making a payment could reset the statute of limitations, Lowe said. The debt collector could argue that by making a payment the person is affirming that he or she owes the debt.
Because of her damaged credit, Mirshafiei needed a relative to co-sign for student loans for graduate school. She worries that if she tries to buy a house, she’ll have trouble getting approved.
“I just hope that in the next chapter of my life I don’t have to be denied things because of this stain on my record,” she said.
As the federal government moves ahead with the rule to address various types of debt collection activities, legislators in a few states have introduced bills that specifically target medical debt. Their efforts often focus on improving access to financial assistance for medical care and limiting predatory debt collection tactics.
Last month, Washington Gov. Jay Inslee signed a law that reduces the maximum interest rate on medical debt prior to a court judgment from 12% to 9%. It also prohibits sending a medical debt to collections until 120 days after the patient is sent the initial bill and requires collection agencies to provide itemized statements to patients for medical and hospital debts and to notify them of their possible eligibility for charity care.
In Oregon, a bill sponsored by Rep. Andrea Salinas would require nonprofit hospitals and affiliated clinics to provide care free of charge to families with incomes up to 200% of the federal poverty level (about $43,000 for a family of three) and charge a sliding scale for families earning up to 400% of the poverty level (about $85,000 for a three-person family).
Like the Washington law, the Oregon bill places limits on the interest charged for medical debt. It also requires health care facilities to screen patients for eligibility for financial assistance and insurance.
The bill passed the House earlier this month. Some hospitals already have strong financial assistance policies, but the playing field needs leveling, said Salinas. “We really need hospitals to be a part of the solution to prevent consumers from going into bankruptcy over medical debt.”
Republish with permission under license from Kaiser Health News a national health policy news service.
As the agency’s ability to audit the rich crumbles, its scrutiny of the poor has held steady in recent years. Meanwhile, a new study shows that audits of poor taxpayers make them far less likely to claim credits they might be entitled to.
employee exits the building in Washington, D.C.
By Paul Kiel
Every year, the IRS, starved of funds after years of budget cuts, loses hundreds more agents to retirement. And every year, the news gets better for the rich — especially those prone to go bold on their taxes. According to data released by the IRS last week, millionaires in 2018 were about 80% less likely to be audited than they were in 2011.
But poor taxpayers continue to bear the brunt of the IRS’ remaining force. As we reported last year, Americans who receive the earned income tax credit, one of the country’s largest anti-poverty programs, are audited at a higher rate than all but the richest taxpayers. The new data shows that the trend has only grown stronger.
Audits of the rich continue to plunge while those of the poor hold steady, and the two audit rates are converging. Last year, the top 1% of taxpayers by income were audited at a rate of 1.56%. EITC recipients, who typically have annual income under $20,000, were audited at 1.41%.
Part of the reason is ease. Audits of EITC recipients are largely automated and far less complicated.
“While the wealthy now have an open invitation to cheat, low-income taxpayers are receiving heightened scrutiny because they can be audited far more easily. All it takes is a letter instead of a team of investigators and lawyers,” said Sen. Ron Wyden, D-Ore., the ranking member of the Senate Finance Committee.
“We have two tax systems in this country,” he said, “and nothing illustrates that better than the IRS ignoring wealthy tax cheats while penalizing low-income workers over small mistakes.”
In a statement, IRS spokesman Dean Patterson acknowledged that the sharp decline in audits of the wealthy is due to the agency having lost so many skilled auditors. And he didn’t dispute that pursuing the poor is just easier.
Because EITC audits are largely conducted through the mail by lower-level employees from a central location, they are “less burdensome for taxpayers than in-person audits as they mail in their documentation and don’t have to take time out of the workday,” Patterson said.
“Correspondence audits are also the most efficient use of IRS’ limited examination resources.”
In April, Wyden, citing ProPublica’s reporting, asked IRS Commissioner Charles Rettig to deliver a plan to address the agency’s disproportionate focus on auditing the poor. The deadline has passed, but Wyden’s office said the senator still expects a response. The IRS did not comment on the delay.
The agency audited 382,000 recipients of the EITC in 2018, accounting for 43% of all audits of individuals last year. When we mapped the estimated audit rates for every county in America, the counties with the highest audit rates were poor, rural, mostly African American and in the South, a reflection of the high number of EITC claims there.
Natassia Smick and her husband were among those unlucky 382,000 households. We wrote about them last year. They live outside Los Angeles and saw their entire refund frozen in February 2018. For a couple who earned about $33,000 in 2017, that $7,300 refund was big money ($2,000 of it stemmed from the EITC). When it didn’t come, Smick said she had to abandon plans for catching up with her credit card debt.
After Smick sent in all her supporting documents, it took until this May to get a final answer from the IRS. Fourteen months after it all started, the IRS said it agreed Smick and her husband were due about $7,000, she said. But the agency disagreed on the remaining $350, because it couldn’t verify her husband’s employment for part of the year. Smick said the IRS was wrong to hold back the $350, but she couldn’t afford to contest it and further delay the $7,000.
“I’m not going to fight anymore,” she said. “We have already waited too long, and we are not in a financial position to wait another three months to appeal.”
For poor taxpayers, the worst part of the EITC audits is usually the beginning. That’s because they almost always begin with the shock of the refund being held.
But the audits also hardly ever end well. According to data in the new study, most end without the taxpayer responding at all, and the poorer the audit target, the more likely that is to happen. Those with wage income under $10,000 per year, for instance, didn’t respond at all in 64% of the EITC audits. For those with income over $40,000 per year, that rate dipped to 35%.
The diminished response rate of the poorest taxpayers in part reflects that they are harder to reach: In 15% of those audits, the mail couldn’t be delivered. But earlier studies have also shown that many poor taxpayers don’t understand they are being audited or have trouble deciphering what the IRS is asking in its letters.
The EITC is aimed mainly at low-income workers with children. Last year, 26 million households received an average credit of about $2,500. Most EITC audits require taxpayers to dig up documents to show that a child meets the legal threshold of a “qualifying child,” a status that’s distinct from a dependent. The IRS has long blamed the law’s complexity as the main reason taxpayers may incorrectly claim the credit.
Smick was among the rare audit veterans who prevailed. Taxpayers rarely win against the IRS regardless of how likely they are to qualify for the credit, according to the new study, which was done by Day Manoli, an assistant professor of economics at the University of Texas at Austin, and researchers with the IRS and Treasury Department.
The authors sliced the population of EITC recipients into categories. At one end of the spectrum were tax returns with red flags that made it almost certain they would be audited. On the other end were returns very unlikely to be audited. But, looking over time, the outcomes of those audits weren’t all that different. When those returns with red flags were audited, the taxpayers prevailed 7% of the time. The taxpayers at the other end of the spectrum — the group seemingly most likely to qualify for the credit — only prevailed 10% of the time.
The audits have a long-term impact on the lives of those who go through them, the study found. In the years after they were audited, wage earners were 68% less likely to claim the credit compared with similar taxpayers who had not been audited. They were even 14% less likely to file taxes at all.
These taxpayers surrender “benefits from potentially legitimate EITC claims,” the study authors write, and, when they fail to file taxes at all, leave money on the table in the form of other credits and withholdings.
Because the IRS conducts so many EITC audits — between 380,000 and 600,000 per year over the past decade — at the very least, hundreds of thousands of taxpayers have likely avoided claiming the credit in response to having it denied through an audit. By discouraging people from claiming the credit, the audits clash with an avowed goal of the IRS: to encourage people to claim it. About a fifth of those eligible for the credit don’t claim it, and the IRS runs education campaigns to increase uptake.
EITC recipients are audited at such a high rate in part because Republicans in Congress have long pressured the IRS to reduce incorrect payments of the credit.
The IRS estimates that there was about $18 billion in incorrect claims in 2018. In most contexts, $18 billion is a big number, but when compared with the full scope of unpaid taxes, which likely total more than $600 billion each year, it’s not so big.
And while that $18 billion number, which Republicans touted as a “big problem” in the April hearing, is often cast as a kind of government waste, the study shows things are far more complicated.
In the years following an audit, the study found, children who were claimed on one taxpayer’s return often were claimed on a different taxpayer’s return. In other words, the kids might have just been claimed on the wrong return, and if that’s the case, the money should have been paid out, just to someone else.
The authors distinguish between the $18 billion in “gross overpayments” of the credit, which would include such misdirected payments, and what they call “net overpayments,” money that shouldn’t have been paid out at all. The “net” number, they say, could be one-third to one-half smaller than the “gross” one.
The IRS, in its statement, said the study had focused on a sample of only one type of taxpayer (single and head-of-household filers), and so the estimate of “net overpayments” should not be generalized to the entire EITC-claiming population.
Republished with permission under license from ProPublica, a Pulitzer Prize-winning investigative newsroom.
The federal class-action claims thousands of people in Missouri were jailed because they couldn’t pay off fines. Four years after the suit was filed, the plaintiffs are still waiting, and wondering if the deck is stacked against them.
By Topher Sanders
In January 2014, Tonya DeBerry was driving through an unincorporated area of St. Louis County, Missouri, when a police officer pulled her over for having expired license plates.
Allison Nelson in Jennings, Missouri. Her mother, Tonya DeBerry, was jailed over outstanding traffic tickets from three jurisdictions. After paying St. Louis County, she was handed over to Ferguson and Jennings, and in each, she was told she’d be released only after paying a portion of the fines.
After discovering that DeBerry, 51, had several outstanding traffic tickets from three jurisdictions, the officer handcuffed her and took her to jail.
To be released, she was told, she would have to pay hundreds of dollars in fines she owed the county, according to her account in a federal lawsuit. But after her family came up with the money, DeBerry wasn’t released from custody. Instead, she was handed over to the municipalities of Ferguson and Jennings, and in each city, she was told she would be released only after she paid a portion of the fines she owed them, according to the lawsuit.
It was as if she were being held for “ransom,” her lawyer would later say.
The Supreme Court ruled almost 50 years ago that a person can’t be jailed for not being able to pay a fine. But like so many people in Missouri, DeBerry had ended up cycling through a succession of jails for that very reason, caught up in what critics have called modern-day “debtors prisons,” used by towns to keep fines flowing into municipal coffers.
“It’s a cat-and-mouse game,” said her daughter, Allison Nelson, who has also spent time in jail for not being able to pay traffic fines.
If DeBerry and her family were exasperated by the heavy-handed collection efforts, they would learn how hard it would be to hold the authorities accountable, especially in Ferguson, even after the killing of Michael Brown later that year drew national attention to the city’s troubled criminal justice system.
The city slowly stopped jailing people for not being able to pay fines as the news media showed the victims were primarily black and the Justice Department made clear that what Ferguson had been doing was wrong. But four years after a federal class-action suit was filed against the city on behalf of thousands of people who claimed they were jailed for their inability to pay fines, the plaintiffs are still waiting for redress.
The city has sought to have the lawsuit dismissed, filing a succession of motions, arguing among other reasons that instead of suing the city, the plaintiffs should be suing the municipal division of the state court. All three of the motions have been denied by the judge, Audrey G. Fleissig, of the U.S. District Court in St. Louis, though one of the rulings was appealed and that took about a year to resolve.
Nelson flips through photocopies of traffic tickets and legal filings.
One issue has proved to be particularly frustrating to the plaintiffs: whether the city of Ferguson is even insured for a class action.
In March 2016, the lawyer representing Ferguson sent an email to a representative of the city’s insurer, saying that the scope of the lawsuit had expanded, and that concern about the case “grew” after a similar suit was settled for what was believed to be a “substantial amount of money.”
The five-sentence email concluded with the lawyer, Peter Dunne, of the St. Louis firm Pitzer Snodgrass, saying that legal action may be necessary to resolve the question of whether the city was covered for a class action.
“We believe a DJ [declaratory judgment] suit to determine coverage may be necessary,” Dunne wrote.
Three months later, the insurance trust filed a declaratory judgment suit against Ferguson in St. Louis County Circuit Court, asking a judge to find that the city did not have insurance coverage for class actions.
Dunne’s role was not publicly known until September when St. Louis Post-Dispatch columnist Tony Messenger reported Ferguson’s allegation that Dunne had violated his duty to the city. The email documenting Dunne’s discussion of a lawsuit with the insurer was first obtained by ProPublica. Dunne, one of the firm’s principals, did not respond to requests for comment. The other principals did not respond to emails or to a call to the firm’s office.
Suggesting legal action involving his own client was a breach of legal ethics, some experts said, and the revelation has only deepened the sense among the plaintiffs and their supporters that the deck is stacked.
“No matter where the citizens of Ferguson go in the legal system, justice is really hard for them to obtain,” said Vincent Southerland, executive director of New York University School of Law’s Center on Race, Inequality and the Law. “It’s another example that we have a legal system that was not built to protect and vindicate the rights of the most vulnerable among us.”
The killing of Brown by a police officer in August 2014 and the unrest that followed thrust Ferguson into the middle of a growing national debate over race and law enforcement. But for black people in Ferguson and the surrounding North County region, racial discrimination had long defined their relationship with the local police and courts.
Even as the rest of the country moved on from Ferguson, the people seeking a judgment against the city found themselves mired in the machinations of an insular legal system and an overburdened insurance carrier.
Ferguson, a city of about 21,000 people, was insured through a cooperative of 25 municipalities called the St. Louis Area Insurance Trust, commonly referred to as SLAIT.
Messenger said the rural courts ensnared whites, while in Ferguson and elsewhere in North County, it was blacks who were victimized. “But it’s the same concept,” he said. “It’s policing on the poor, it’s jurisdictions that don’t have a tax base anymore looking to the judicial system as a fundraising tool and judges allowing themselves to be tax collectors rather than purveyors of justice.”
Four years after a federal class-action suit was filed against Ferguson on behalf of thousands who claimed they were jailed for their inability to pay fines, the plaintiffs are still waiting for redress.
The trust hired Dunne to provide Ferguson’s defense of the class-action lawsuit. But his firm, Pitzer Snodgrass, was also providing the trust with legal advice on insurance coverage issues, according to a court filing by Ferguson. That set up what Ferguson said in the filing was a conflict that the city had not been made aware of.
Even if city officials wanted to settle the case, the trust claims in court filings there isn’t coverage and it won’t pay out. The insurance trust’s lawsuit will determine whether there is coverage.
Michael Downey, a law professor at Washington University in St. Louis and an expert on legal ethics, said that unless Dunne had Ferguson’s permission, Dunne should not have talked to the insurer about the possibility of a lawsuit over coverage.
“A breach of the duty of confidentiality basically to encourage a party to take action against your client is a pretty serious violation of the rules,” Downey said.
Even if Dunne thought he was conveying something that the insurer already knew, the exchange was still concerning, Downey said.
The trust, through its lawyer, declined to comment.
Michael Frisch, Georgetown University Law Center’s ethics counsel, said that, were the bar to pursue an investigation, any punishment would not be severe. A reprimand — at most, he said.
“It’s the kind of a thing that would not draw that much of a response from the bar,” Frisch said. “Lawyers tend not to get suspended for things like this.”
New York University law professor Stephen Gillers, who specializes in legal ethics, said that regardless of any punishment, Dunn’s actions are significant.
“It’s a big deal, because clients are entitled to loyalty,” he said. “If you can’t be equally loyal to both clients, then you have a conflict and you have to withdraw entirely or from one or the other client.”
For lawyers hired by insurance companies to represent policyholders, the question of who is the client was for many years unsettled ethical terrain, experts say.
Lawyers can feel a sense of obligation to the insurance companies that hire them — and that can provide a steady stream of business — said William Barker, co-author of “Professional Responsibilities of Insurance Defense Counsel.”
Barker, a Chicago lawyer with the firm Dentons, said that until the 1970s, lawyers hired by insurance companies to represent a policyholder typically thought of the company as their chief client. But a series of court decisions since then established that the lawyer owes undivided loyalty to the policyholder, and that is why the lawyer’s actions in the Ferguson case appear to be troubling, Barker said. “That’s something that the defense lawyer ought not to be doing,” he said. “The lawyer who is handling the defense ought not to be involved, certainly in advising the insurance company on coverage issues.”
Michael-John Voss, a lawyer for the ArchCity Defenders, the civil rights group that brought the lawsuit against Ferguson, expects to case to drag into 2020.
“The relief and the remedy has been a long time coming, and there’s no clear end in sight,” he said. “And it reemphasized to me the way that these larger structures are put in place to avoid accountability and to perpetuate a system of social control.”
ProPublica asked the insurance trust if it had instructed Dunne to act as he did, but the trust’s lawyer said the organization would not answer any of ProPublica’s questions because of the ongoing lawsuits.
The insurance cooperative was created in the 1980s to help small St. Louis-area municipalities share the cost of liability insurance and health care. The arrangement worked for the occasional slip-and-fall claim and other routine municipal litigation. But it has not held up well in the face of payouts to cops injured on duty and for actions by the police and the courts.
Most notably, the trust paid $1.5 million to Brown’s family in 2017 to settle a wrongful death claim against Ferguson. But that was hardly the only big hit in recent years. In 2016, a jury awarded $3 million to the family of Jason Moore, an unarmed 31-year-old man, who died after a Ferguson police officer delivered several shots from a Taser.
A state audit released in February showed the organization’s fund balance dropped to $3.8 million in 2018 from $12.2 million in 2016. Like many insurers, the trust also has its own coverage, known as reinsurance, and it turned to those carriers to help with the Moore verdict. But the companies have told the trust that they won’t cover the judgment in the Moore case because the companies allege the trust improperly notified them of the claim. The trust is suing the companies.
Dunne and his firm are no longer working on the Ferguson case. The firm was disqualified by the judge after it hired a lawyer from the ArchCity Defenders who represented one of the lawsuit’s plaintiffs in court.
De’carlon Seewood, who stepped down in March after three and a half years as Ferguson’s city manager, said resolving the lawsuit will help the community move beyond the abuses and the notoriety that came with them.
“It is important to kind of move forward and show that new face, that better face,” Seewood said this year, before he left Ferguson to become the city manager in Fairburn, Georgia, just outside Atlanta. Jeffrey Blume, Ferguson’s interim city manager, directed questions to the city’s attorney, who declined to answer.
Seewood said the city had hoped the insurance trust would take care of the settlement the way the insurer for the city of Jennings had. But Jennings was in a very different position. Its insurer was Travelers, the country’s sixth-largest property and casualty insurer. By contrast, the insurance trust is a small cooperative with dwindling funds.
“The insurance [trust] looked at the enormity of what’s being asked and they said that’s it’s outside their [coverage] of the city, and so the city finds itself fighting with its insurance company about [coverage],” Seewood said.
According to a memo written by the trust’s claims administrator, the plaintiffs originally asked for $27.5 million but during mediation in April 2016 reduced the demand to $9.5 million. That amount is what the plaintiffs believe, based on the policies, is the total coverage limit of Ferguson’s insurance.
Alexandra Lahav, a professor at the University of Connecticut School of Law and an expert in civil litigation, said a case like this typically would be resolved in about two years and said the insurance dispute was slowing the process.
“This really shouldn’t be a very complicated class action,” Lahav said.
Lisa Soronen, executive director for the State and Local Legal Center, a Washington organization that supports states and local governments in legal disputes that rise to the U.S. Supreme Court, said the dispute between the trust and Ferguson didn’t leave the city with many sound options other than fighting the case mightily.
“As a practical matter, Ferguson’s a really small city that has no money,” she said. “If there’s no insurance coverage and there’s a huge judgment, I don’t know how it would pay.”
John Rappaport, a professor at the University of Chicago Law School who has studied the impact insurance can have on police practices and policies, said insurance trusts have a reputation for being less likely than commercial insurers to settle cases involving police officers.
“The risk pools or the trusts, they see themselves as extensions of the cities themselves,” he said. “Their reluctance to settle litigation against the police would seem [to be] a kind of loyalty to their members — their cities.”
Rappaport said commercial insurers often see the issues as purely a matter of dollars and cents.
“Whereas if the city either is in a risk pool or the city represents itself, they see it as more of like a moral issue, like we have to stand up for our officers,” he said.
Even after the Ferguson suit is resolved, litigation in Missouri over “debtors prison” practices won’t be. ArchCity Defenders has lawsuits pending in six other cities, with more in the pipeline stretching beyond North County.
DeBerry, the Ferguson woman who was a named plaintiff in the Ferguson class action, was also a plaintiff in the lawsuit against neighboring Jennings, which settled for $4.8 million less than a year and a half after the suit was filed.
But the suit in Ferguson has dragged on longer than DeBerry could wait.
She died in April 2018.
“And now she will never even get a piece of this justice because she’s no longer here,” said Nelson, her daughter. “That’s sad, that’s really sad. It’s actually pathetic because it should have never come to that. It hurts.”
DeBerry died in April 2018. “And now she will never even get a piece of this justice because she’s no longer here,” Nelson said.
Republished with permission under license from ProPublica, a Pulitzer Prize-winning investigative newsroom.
There appears to be a concerted effort to destroy the reputations and images of Black men. Not even the dead are immune. Fifty-one years after his death, Dr. Martin Luther King Jr. is the latest target; allegations of rape and participation in orgies have surfaced.
FBI's History of Targeting Black Activism
From the 1910s to the 1970s, the FBI treated civil rights activists in general, and African American activists in particular, as either disloyal “subversives” or “dupes” of foreign agents. The FBI’s predecessor, the Bureau of Investigation, sought to “compel black loyalty” during World War I and investigate “negro radicalism” in the 1920s.
FBI records show between 1956 and 1971 a covert and at times illegal program, COINTELPRO, targeted black leaders and civil rights organizations with the stated purpose of surveilling, infiltrating, discrediting, and disrupting their activities. The FBI file on my uncle Dick Gregory contains over 3,700 pages.
Two days after Dr. King delivered his famous “I Have a Dream” speech at the 1963 March on Washington, William Sullivan, the FBI’s director of intelligence, famously responded by writing, “We must mark him now, if we have not done so before, as the most dangerous Negro of the future in this Nation from the standpoint of communism, the Negro and national security.” In late August 1963, FBI leaders met to discuss ways of “neutralizing King".
COINTELPRO tactics are still used to this day, and have been alleged to include discrediting targets through psychological warfare; smearing individuals and groups using forged documents and by planting false reports in the media; harassment; wrongful imprisonment; and illegal violence, including assassination.
The FBI sent a secret memo in August 2017 to alert 18,000 law enforcement agencies that people involved in the black lives matter and similar movements could be "black identity extremism” an inflammatory term for a group that doesn’t even exist to discredit and criminalize black people protesting against police brutality and killings by labeling them as terrorists.
Sexual Allegations
In an 8,000-word article published in the British periodical Standpoint Magazine on May 30, David Garrow details the contents of FBI memos he discovered after spending weeks sifting through more than 54,000 documents located on the National Archive’s website. Initially sealed by court order until 2027, the documents ended up being made available in recent months through the President John F. Kennedy Assassination Records Collection Act of 1992.
The memos claim that agents knew that King and a group including Baltimore Pastor Logan Kearse were going to be staying at the Willard Hotel in January 1964 days before he ever arrived. The most troubling memos describe King witnessing a rape in a hotel room. Instead of stopping it, handwritten notes in the file say he laughed and encouraged Kearse who died in 1991 to continue. The FBI allegedly listened in on King and at least 11 others who participated in what the FBI memos describe as “an orgy” on Jan. 6, 1964.
Many of these transcripts were based on audiotapes that are still sealed until 2027 under a court order. That’s when the FBI’s full audiotapes, photographs and film footage of King will be unsealed per a 1977 court order.
Questionable Motives
Some historians have questioned Garrow’s choice to publish the content of the memos and transcripts without listening to the recordings, and have pointed out that the FBI had spent years trying to undermine King. People will rightly debate the trustworthiness of FBI sources, and Garrow’s interpretation of them. No figure, no matter how revered, should be immune from scrutiny over their potential support for violence against women.
But those weighing the evidence and its legitimacy should not forget that the tapes being used to facilitate this discussion were created and preserved with the goal of destroying Martin Luther King’s reputation. The FBI’s intent was to demoralize and fragment the coalition of supporters King brought together in his life, the people who find common purpose by honoring his memory.
Media Propaganda
A large segment of the black community is too quick to buy into racist narratives created in the news media about black athletes, entertainers, politicians, and leaders.
As we've mentioned before 90 percent of mass media is controlled by a few white corporations. Negative perceptions of black people persist primarily because of racist propaganda. Most white television programming and movies depict even successful black people as former drug dealers, criminals or they have some major character flaw and can't be trusted.
Bill Cosby's reputation was destroyed after a massive media propaganda campaign that accused him of sexually assaulting dozens of women. Cosby was eventually convicted of aggravated indecent assault and sentenced to 3 to 10 years in prison. The Cosby Show and A Different World helped spread a more positive image of African-Americans all around the world. The Cosby Show made possible a larger variety of shows with a predominantly African-American cast, such as In Living Color, The Fresh Prince of Bel-Air and others.
The Cosby Show may not have been possible if Dr. King hadn't inspired millions of people through his actions and words. Although, there were others who were equally dedicated, such as Medgar Evers and Malcolm X who also gave their lives fighting for civil rights; none were more persuasive. Now Dr. King's legacy which inspired a national holiday is under assault.
The white media machine will viciously attack Dr. King's reputation and legacy. Hopefully, large segments of the black community will not be fooled into abandoning one of their most cherished champions. As a reminder of white media's power; in January of this year, the following black reputations were attacked:
Michael Jackson and R. Kelly were vilified in the documentaries "Leaving Neverland" and "Surviving R. Kelly". Both were previously found not guilty in prior sex abuse cases. New charges were bought against Kelly after Surviving R. Kelly aired.
Chris Brown was arrested on rape and drug charges in Paris, however, charges were later dropped but the investigation remains open.
Jussie Smollett after reporting being attacked became a suspect and was indicted on 16 felony counts and faced 64 years in prison. The police held an elaborate press conference which was essentially trial by public opinion. All charges were eventually dropped and the Black prosecutor was smeared. The Chicago police just recently released hundreds of pages of the Smollett case file.
George Washington, Thomas Jefferson, and others are celebrated by white people despite them being slave owners and rapist. Many in the white community still believe black people should stand to honor a song adopted as the national anthem that celebrated the deaths and defeat of slaves who were fighting for their freedom.
Mentioning slaves fighting for freedom reminded me of the 2016 media attack on Nate Parker, director and star of "Birth of a Nation", a wonderful film about the slave rebellion led by Nat Turner. Nate Parker and his roommate and wrestling teammate, Jean McGianni Celestin, were accused of raping a white female student at Penn State. Parker was acquitted on all four counts brought against him. Celestin was convicted but it was later overturned. False rape allegations are an effective tool of white supremacists; countless numbers of black men have been lynched, jailed and ruined. "Birth of a Nation" was expected to be a huge success and Oscar contender until the media campaign smeared Parker's reputation prior to the release of the film.
Dr. King cannot defend himself against these outrageous allegations, so we must. He gave his life fighting for freedoms and privileges we now take for granted. Destruction of Dr. King's reputation is paramount to an assassination of his dream and legacy.
Major Democratic presidential candidates are talking about considering or paying reparations to the descendants of African Americans who were enslaved. Many of the candidates may simply be engaging in political pandering. Most candidates simply express support for a discussion rather than actual support for reparations. I haven't heard any candidate actually talk about what reparations might look like.
The definition of reparation is making amends by paying money to or otherwise helping those who have been wronged. The spilling of blood during the Civil War and nearly 10 years of Radical Reconstruction could have been a good start if the federal government had not abandoned efforts to protect former slaves.
When the Declaration of Independence declared "that all men are created equal" in 1776, slaves were 20 percent of the population. Slavery existed in the former colonies and the United States for nearly 250 years, Jim Crow laws for another 90 years. Institutionalized and government-sanctioned discrimination including laws that led to unequal and substandard education, militaristic policing, unjust courts, mass incarceration, and other forms of oppression still exist.
My great-grandmother was a slave, my father said how ashamed she was whenever slavery was mentioned. There were no amends made to her or any other slave for their suffering. Her situation directly affected my grandfather, which directly affected my father, which directly affected me, which directly affects my children.
During slavery men, women and children were raped by their straight, gay or pedophile owners. Medical schools used slaves for medical experiments and practiced surgical procedures on slaves. Families were torn apart. People were tortured, maimed, and killed. The worst atrocities imaginable today were legal because people were reduced to mere property.
After the abolition of slavery; convict leasing, peonage, and Jim Crow kept blacks in slave-like conditions. Black Americans lived in terror because the government refused to offer any meaningful protection from angry or jealous white men. Lynchings and other racially motivated killings were common and unpunished. Prosperous Black neighborhoods such as Tulsa, OK, and Rosewood, FL were looted, burned, bombed and land theft was common.
The government engineered a number of economic, educational and social disadvantages. Social Security was originally designed to prevent 80% of the black population from participating. Federal housing programs that helped create the white middle class, implemented a redlining system which prevented blacks from benefiting.
Government-sponsored experiments such as Tuskegee and Pruitt Igoe have been revealed. Blacks originally were systematically excluded from U.S. farm bills, unemployment compensation, the minimum wage, protection of the right of workers to join labor unions and the G.I. Bill. Law enforcement sabotaged the Civil Rights Movement, In 1972 and 1996 the CIA was linked to drug traffic in black neighborhoods.
The government through legislation, policy, and court decisions actively participated in black oppression. Government inaction encouraged treachery and terrorism so vast it was easy to "keep negroes in their place" effectively eliminating the creation of black opportunity and wealth.
Slave Owner Reparations
In 1833, the abolitionist William Lloyd Garrison said at the National Anti-Slavery Convention in Philadelphia: “If compensation is to be given at all, it should be given to the outraged and guiltless slaves, and not to those who have plundered and abused them.” Garrison may have referenced the 1833 "Slavery Abolition Act" when more than 46,000 British slave owners were compensated for freed slaves.
The District of Columbia Emancipation Act, which prohibited slavery in the District, was signed into law on April 16, 1862, by President Abraham Lincoln, forcing over 900 slaveholders to free their slaves.
The government paid to slave owners that were loyal to the Union up to $300 for every enslaved person freed. Slaveowners received payment, slaves received nothing.
The Debt
When you purchase or inherit real estate and other property, you also assume or inherit the debt; mortgages, taxes, and liens attached to the property. For those who directly experienced slavery and Jim Crow who since died, a debt is owed to their estates; and their descendants are the beneficiaries. The government sanctioned slavery; individuals, churches, corporations, universities, and other institutions actively participated. Georgetown University exists today because of slavery.
The partial list of current corporations and institutions that benefited from slavery include:
AIG, Aetna, Bank of America, Brooks Brothers, Brown Brothers Harriman, Brown Unversity, Columbia, CSX, Fleet, Gannet, Georgetown, Havard, JP Morgan Chase, New York Life, Norfolk Southern, Princeton, Tiffany, University of Virginia, Wells Fargo, Yale, and the list goes one.
All White people passively benefited from the wealth and opportunity created by slavery and Jim Crow. White immigrants decreased the overall percentage of black people and diluted the effectiveness of the black vote. Immigrants benefited from opportunities in a country made prosperous off the backs of the enslaved and directly from professions and job denied to blacks.
The political scientist Thomas Craemer calculated the hours worked by enslaved black workers between 1776 and the official end of slavery. He estimates this uncompensated labor totaled between $5.9 and $14.2 trillion in current dollars.
What reparations could look like?
During a discussion with one of my closest friends in response to his skepticism about any workable reparation solutions, I mentioned what I thought to be some simple ways to identify who should benefit and how to implement.
Reparations should be a combination of social, institutional, and economic solutions that are specific to African American Descendants of Slaves (ADOS). No other group of people was legally brought to the United States by force. Congress should exempt reparations from discrimination or racial exclusion statutes or regulations since they are in effect debts owed and not benefits. However, some solutions, especially those related to a fairer criminal justice system, will, directly and indirectly, benefit other groups. White companies supplying building supplies and other durable goods will also directly benefit.
Although others, most notably Native Americans, perhaps are owed reparations, this discussion is limited to the debt owed to the Black ADOS. Other so-called solutions were never exclusive to Blacks.
Equal Opportunity
Equal opportunity solutions may have been well-intentioned, but in reality, were distorted myths. Affirmative Action, for example, benefited white women more than any other group. There was never any real equal opportunity for black people. If there are vast differences in education, access to credit, transportation, housing, medical care and just about everything else, how is anything equal?
Some concepts are easier to construct and implement; those should be worked on first and others more complex solutions later. Solutions should also have incentives to maximize positive impact on the community.
United Nations Recommends Reparations
At the invitation of the U.S. Government, a group of experts from the United Nations visited the country in 2016 to study and make a recommendation concerning people of African Descent.
The Group urged in their report that the United States consider seriously applying a Ten-Point Action Plan on Reparations, which includes a formal apology, health initiatives, educational opportunities, an African knowledge program, psychological rehabilitation, technology transfer and financial support, and debt cancellation. The following statements were included within the report:
Despite these legal and constitutional developments (13th, 14th & 15 amendments), the prevalence of “Jim Crow” laws — laws at the state and local levels that enforced racial segregation and persecution, primarily in the southern states — perpetuated political disenfranchisement, social and economic exploitation, violence and the overall subjugation of people of African descent until the 1960s. Lynching was a form of racial terrorism that has contributed to a legacy of racial inequality that the United States must address. Thousands of people of African descent were killed in violent public acts of racial control and domination and the perpetrators were never held accountable.
Despite substantial changes since the end of the enforcement of Jim Crow and the fight for civil rights, a systemic ideology of racism ensuring the domination of one group over another continues to impact negatively on the civil, political, economic, social and cultural rights of African Americans today.
The Working Group is deeply concerned at the alarming levels of police brutality and excessive use of lethal force by law enforcement officials, committed with impunity against people of African descent in the United States.
The Working Group is deeply concerned about the low number of cases where police officers have been held accountable for these crimes, despite the evidence.
Killings of unarmed African Americans by the police is only the tip of the iceberg in what is a pervasive racial bias in the justice system.
The Working Group was informed that the “War on Drugs” had had a devastating impact on African Americans and that mass incarceration was considered a system of racial control that operated in a similar way to how Jim Crow laws once operated.
The complex organizational structure of the legal system, with the independence of federal, state and county jurisdictions, and the lack of direct applicability of international human rights law and policies, create gaps that impact deeply on the human rights of African Americans.
There is a profound need to acknowledge that the transatlantic trade in Africans, enslavement, colonization, and colonialism were crimes against humanity and are among the major sources and manifestations of racism, racial discrimination, Afrophobia, and related intolerance. Past injustices and crimes against African Americans need to be addressed with reparatory justice.
Who should be Eligible for Reparations?
In the United States, any person known to have African ancestry was considered Black. This was often called the "one drop rule" and some courts referred to it as the "traceable amount rule". As historian Evelyn Brooks Higginbotham stated in regard to race, "most people believe that they know it when they see it but arrive at nothing short of confusion when pressed to define it."
In 1860, ninety percent of the four million Black people in the U.S. were slaves. Of the ten percent of free Blacks, its safe to assume that virtually all of them were either former slaves or descendants. Even descendants of the handful of black indentured servants such as Anthony Johnson married slaves or former slaves resulting in every black person at that time having a slave in their ancestry. Most of the nation’s 40 million U.S.-born blacks trace their roots to this population.
Significant voluntary Black immigration to the U.S. did not begin until the Immigration and Nationality Act of 1965, the Refugee Act of 1980 and the U.S. Immigration Act of 1990 when immigration policy changed restrictions on foreign-born blacks. Black people that can trace their ancestry to 1960 should be assumed to be ADOS. For example, my 20-year-old son can prove thru birth records that I was born in 1965 and since my parents were born in the 1920s and 1930s; he satisfies the 1960 rule.
Having Black skin creates barriers which even White people understand because most white people would not want to be treated the way Black people are. Some Black ADOS people with fair skin passed as white and thereby obtained some degree of white privilege. However, even they had to endure being separated from their family, listening to derogatory comments, denying who they were and living in fear of being caught. White privilege is misunderstood, it simply means that white people enjoy the benefit of being treated as normal.
Any Black person who is ADOS should be able to benefit from reparations. Regardless of personal achievement or those made by their ancestors; harm whether physically, emotionally, socially or financially was endured. However, the initial concentration of corrective solutions should be aimed at those who are among the most vulnerable and disadvantaged. Those below the poverty line should be among the first to benefit.
REPARATION SOLUTIONS
Nothing can ever be sufficient restitution for the spiritual, mental, cultural and physical damages inflicted by slavery, Jim Crow and racism. However, something must be done to repair the damage.
Apology
The first step should be an official government apology for slavery and its aftermath that acknowledges that harm was done not only to slaves but to their descendants. However, apologies are meaningless without change.
The video below shows the emotional response when a descendant of a former slave owner apologizes to descendants former slaves.
Reparations Commission
A reparations commission comprising a super majority of ADOS (2/3) should be created to study slavery, the aftermath, the value of uncompensated labor, lost opportunity and pain and suffering. The people who were victims should have the most say in determining what they suffered.
Psychological Rehabilitation
For nearly 250 years Africans and their descendants were denied recognition as members of the human family and were classified in law as non-human, chattel, property, and real estate. This history has inflicted massive psychological trauma upon African descendant populations. As Dr. Joy de Gruy Leary argues, African-Americans are suffering from post-traumatic slave syndrome. Only a reparatory justice approach to truth and educational exposure can begin the process of healing and repair. Part of the dehumanizing process of making a slave was to make Africans descendants hate themselves. Generations of psychological damaged need to be acknowledged and dealt with.
Broadcast Licenses
Broadcasting is the most influential industry in the United States. African-Americans were regularly given stereotypic roles that depicted them as lazy, ignorant, and generally derogatory by mass media. The Federal Radio Commission (FRC) and then the Federal Communications Commission (FCC) excluded Black people from ownership of the airways by denying licensing. When the U.S. government first started giving away free licenses in the 1930s, they were distributed exclusively to white, male owners. As technology developed from radio to television and then cable, the same, white-owned companies continued to lead the pack because they could adapt to the new technology fastest. As a result, horrible negative images of black people were transmitted all around the world. As a group, we had no means to counter these images or broadcast information to a national audience. Reparations should include free broadcast licenses. A corporation comprised of shareholders restricted to black churches, black organizations, black entertainers and individual black people should be formed to accept broadcast licenses from the FCC.
Education
Education or should I say miseducation was used as a weapon against Black people during and after slavery. Because knowledge is power, slaves were denied the right to read or write. The slavemaster was able to easily deceive slaves with lies and half-truths. One of the most glaring examples was the "slave bible". A normal "King James" version has 1189 chapters, but the slave bible only contained 232 chapters.
Ironically, even the bible states that reparations for slavery should be provided:
And if thy brother, a Hebrew man, or a Hebrew woman, be sold unto thee, and serve thee six years; then in the seventh year thou shalt let him go free from thee. And when thou sendest him out free from thee, thou shalt not let him go away empty: thou shalt furnish him liberally out of thy flock, and out of thy floor, and out of thy winepress: of that wherewith the LORD thy God hath blessed thee thou shalt give unto him. And thou shalt remember that thou wast a bondman in the land of Egypt, and the LORD thy God redeemed thee: therefore I command thee this thing today.
— deuteronomy 15: 12–15
After slavery, white-controlled, often racist school boards, rather than slave masters directed miseducation of black people. The 1954 Supreme Court decision, Brown vs The Board of Education, made it clear that black schools were so inferior that the quality of education was unconstitutional. Today, 65 years after Brown, the situation is even worse. The cure was worse than the disease. Busing was the primary solution. White schools received even more funding to accommodate black students. Those funds were used to upgrade facilities and programs, while black schools suffered and closed. Many of the most stable and brightest black students were removed along with their positive influence and impact. Some of the best teachers also left. When bussing programs were eliminated, black students were trapped in schools suffering from decades of decline.
Public schools in the U.S. should teach the truth about the horrors of slavery and its aftermath instead of the sanitized whitewashed version usually taught. For example, "The Great Migration" is the general term used to describe how 6 million black people moved north from the south. The whitewashed narrative states better job opportunity was the motivation. In reality, those "migrants" were refugees fleeing terrorism, persecution, violence and were seeking asylum only to find a different form of oppression in the north.
Public school funding should not be based on property taxes. Schools in predominantly black neighborhoods, because of lower property taxes, would remain substandard. These schools provide limited electives, advanced courses, are often in disrepair, have limited supplies, outdated textbooks or may not have books at all. Enrichment and extracurricular programs that help motivate and keep students interested in attending a school such as art, band, choir, drama, sports, student government, debate, robotics, and others won't exist or will be eliminated due to lack of funding.
Free college tuition including books, room and board should be made available to all low-income ADOS students. A small monthly stipend to cover necessary costs such as toiletries, laundry, and personal care items could also be included.
Historically Black Colleges and Universities (HBCUs) are in the best position to help black students and should receive reparation grants for operating expenses, to improve, modernize and expand their programs and facilities. The improvements will allow HBCUs to attract additional instructors and students. Program expansion should include fields critically needed within the black communities and others where Blacks are underrepresented, for example:
Agricultural programs: that include some sort of land, equipment and operating grant to help create a new generation of black farmers to decrease urban food desserts. Government discrimination caused many Black farmers to lose their farms.
Business: As Black people were increasingly segregated and cut off from the larger white community, black entrepreneurs established flourishing businesses that catered to black customers. The period between 1900 and 1930 has been called the "golden age of black business". Due to jealousy, envy or greed, white Americans including city officials and members of law enforcement destroyed prosperous black businesses and entire communities. Punitive zoning laws, business license denials, and various other tactics were used to prevent black people from opening and operating a business. Grants for entrepreneurial training and business funding should be part of reparations.
Trade education programs: the major trades which include carpentry, plumbing, electrical, heating & cooling and others systematically excluded black people from training and jobs. Quoting a New York Times article, "The building of houses, offices and factories, of bridges and dams and highways, is still largely white man's work in America." Reparation grants should include trade education. Improvement grants to black homeowners in neighborhoods suffering from decades of neglect should be issued. Grants should be restricted to employ the students and graduates of those program and qualified black-owned businesses.
Teacher programs: We need more Black teachers in public schools. Cultural differences and lack of understanding cause white teachers to discipline excessively contributing to the school to prison pipeline. America’s public school population has been majority children of color since 2014. 50.4 million kids were in public schools; in the fall of 2016; 24.6 million (49%) were white and 25.9 million (51%) were kids of color. Research shows that teachers of color help close achievement gaps for students of color and are highly rated by students of all races. About 80 percent of all public school teachers are White, 9 percent Hispanic, 7 percent Black, and 2 percent were Asian” during the 2015-16 school year. Certification rules and tests and racial bias in hiring are keeping would-be teachers of color out of America’s classrooms. Reparation incentives for black teachers and modifications to certification and hiring processes are needed.
Doctors. nurses and other medical professions: As a child, I vividly remember a large number of black nurses and doctors in St. Louis area hospitals. I'm certain this was due to Homer G. Phillips Hospital, which trained the largest number of black doctors and nurses in the world. Now, Forty years after the hospital's closing, black doctors and nurses are rare finds in hospitals; and when they are found they are often foreign-born.
Lawyers: Howard University's Law School under the leadership of Charles Hamilton Houston, contributed greatly to the most important civil right legal victories. While nearly 40 percent of incarcerated prisoners are African-American, only 4.8 percent of lawyers are African-American, 88 percent of lawyers are white. The American Bar Association (ABA) was formed in 1878, one year after the reconstruction ended. Prior to the ABA, most practicing lawyers never attended law school. The ABA caused blacks to be excluded from the legal profession by colluding with state governments and courts making it more difficult to become a lawyer. Studies show that white attorneys might have biases that result in less favorable outcomes for their black clients; the same holds true for prosecutors and judges.
Criminal Justice
Ending mandatory prison sentences and mass incarceration practices which disproportionally affect people of color. According to the Vera Institute of Justice, incarceration costs an average of more than $31,000 per inmate, per year. There are nearly 2.2 million incarcerated adults, and more than 4.5 million under probation or parole supervision, which cost nearly $4,400 after the sentence is completed. The country would save $3.1 billion per year for every 100,000 people we prevent from being incarcerated and an additional $440 million in probation supervision cost.
Allow felons to vote after finishing their sentences. Once a person has completed their prison sentence, their debt to society at least, in theory, is supposed to be paid. An estimated 6.1 million people in the United States (2.5% of the nation's voting age population, excluding DC) could not vote due to a felony conviction; 7.44% of African Americans in the United States could not vote due to a felony conviction in 2016.
Some of the funds saved by incarcerating fewer people could go towards reparations programs. It's ultimately more beneficial for society to pay for trade school or college than prison.
Housing
The federal government encouraged racial housing discrimination by redlining areas containing African-Americans and refusing to guarantee loans in those redlined zones. This lack of access to capital affected the ability of black people to buy, rent or maintain their homes. Redlining triggered white flight, caused neighborhoods to declined, discouraged business and investment in entire communities. Zero or low-interest loans should be made available as part of reparations to purchase homes.
Story of Contract Buyers
Following World War II, Chicago’s South Side had become increasingly overcrowded as African Americans moved from the South in the second wave of the Great Migration. Unable to attain decent and sanitary housing in white neighborhoods because of racially restrictive real estate covenants and mortgage redlining by the Federal Housing Administration (FHA), African Americans were confined to the South Side ghetto.
In the 1950s-60s, real estate speculators exploited white homeowners’ fears on the West Side of plummeting real estate values because of neighborhoods that had ethnic change. Realtors went door-to-door to persuade white homeowners to sell because blacks were moving into the neighborhood. In neighborhoods they wished to exploit, “panic-peddling” speculators hired black men to drive beat-up cars with the music blaring and paid black women to push their babies in strollers. Speculators made enormous profits by convincing whites to sell their homes at well-below market value and then reselling to blacks at much higher than market value. Black homebuyers were subject to a “race tax,” as a property would typically be bought from a white homeowner for $10,000 and resold a week later to a black family for $25,000. This contributed to the neighborhood’s population changing from 87% white in 1950 to 91% black in 1960. Similar scenarios occurred in other cities across the county. The video below explains how victims in Chicago organized and fought back.
Direct Payments
Black people have been targets of predatory lending and their wealth stripped away because many were forced to pay higher interest rates even with good credit. Even the bankruptcy process became predatory for African-Americas. Direct payments could be made to eliminate or reduce debt.
Many African-Americans have prospered despite systemic racism and racialized barriers placed in their way. Maybe they had to be twice as good to get half as much as their white contemporaries. Regardless, they and their ancestor were wronged. The difference is that some successful black people and their children may have already obtained degrees, houses and the other trappings of success. Direct payments to pay off student loans, mortgage or other debt may be a more practical solution. However, this sort of direct payment might disqualify them from participating in other reparation programs.
Slavery Was A Long Time Ago
Many white people, live on or possess land passed down from generations ago, celebrate the 4th of July, re-enact Civil War battles, scream about monuments and confederate flags being taken down, but tell us to forget slavery because no one alive today was a slave or slave-owner.
African-Americans have been free in this country for less time than they were enslaved. Do the math: Blacks were enslaved nearly 250 years but have been free for 152 years, which means that most Americans are only two to three generations away from slavery. This is not that long ago.
"It's foolish to let your oppressor tell you that you should forget about the oppression that they inflicted upon you".
Black Divisions
When my uncle, Dick Gregory, walked away from millions of dollars in bookings, to actively participate in the civil rights movement, there were family members who had good jobs that didn't understand what the fuss was all about.
Blacks among W.E.B. Dubose's so-called "talented tenth" who are among the best educated and best paid in the African-American community may not believe reparations are necessary, because they themselves are doing well. However, the irony is that even the "talented tenth" would be in better shape if the barriers of racism hadn't prevented even greater success than achieved.
Dr. Carter G. Woodson realized that the more educated black people became, the more they became indoctrinated into the thinking and ways of the white oppressor. "The same educational process which inspires and stimulates the oppressor with the thought that he is everything and has accomplished everything worth while, depresses and crushes at the same time the spark of genius in the Negro by making him feel that his race does not amount to much and never will measure up to the standards of other peoples. The Negro thus educated is a hopeless liability of the race." The "Black Card" video below, featuring Candace Owens, demonstrates Dr. Woodson's premise.
In the above video, Ms. Owens acknowledges her grandfather, Robert Owens, endured Jim Crow, the KKK, was forced to work at the age of five on a tobacco plantation, cleaned homes and office buildings for a living eventually owning his own cleaning company. Like many African-American, Robert Owens overcame extreme oppressive conditions, imagine how his life might have been better had he not experienced serious racism including the KKK shooting up his family's home as a child.
Black median household income of $40,232 is about two thirds that of other households. The median wealth of white household is $134,230 vs $11,030 for black households. These figures are direct results of racial oppression and the capacity to create and pass along generational wealth.
Racism created a number of divisions within the Black community, most notably light vs dark skinned, straight hair vs kinky hair, and house vs field slave. The Willie Lynch Letter best illustrates this phenomenon.
Meritorious manumission was a method of freeing or rewarding slaves for "good deeds" such as saving the life of a white person, creating an invention a slave master could profit from, or “snitching” on a slave planning to run away or organize a revolt. Some black people are still willing to sell out their community for financial gain.
Conclusion
Pick any major indicator, education, housing, employment, credit, business ownership, skilled trade, technology, science, law, medicine or any other and blacks woefully lag behind whites. These situations did not randomly occur, they were designed and enforced through government legislation and policy.
FDR once said, "In politics, nothing happens by accident. If it happens, you can bet it was planned that way." After World War 2, the Marshall Plan rebuilt parts of Europe including Germany, the Supreme Command of Allied Powers (SCAP) revived Japan's economy, and the U.S. helped create Isreal, which became the largest recipient of U.S. foreign aid. As a country, we know how to stabilize and build economies. So one can assume that the present state of Black America was planned; simply by virtue that no serious efforts were made to stabilize let alone rebuilt economies within the black community. While the U.S. was providing former enemies with economic aid, black veterans who fought those enemies were denied G.I. and other benefits.
Although a vast debt is owed, I don't really expect any meaningful reparations to be paid. The descendants of slave owners and others who benefited economically have no incentive to pay.
Power is not given, it must be taken. How can you expect powerful people to give you the education, training, and resources to take their power away from them?
African descendants of slaves have no means to force the payment of the debt. Usually, a creditor can take a debtor to court, obtain a judgment which is backed by the force of law. Even if reparations were provided, the voluntary payments would be a tiny fraction of the debt owed and couldn't cause any meaningful change.
Slavery existed and racism exists because it is profitable! Being a slum lord is profitable, marketing sub-prime and payday loans is profitable, hiring desperate workers at low wages is profitable and having a population of 45 million black consumers who do not manufacture anything is profitable.
Even if reparations were paid, how long would it take for that money to end right back into the hands of white businesses? We don't manufacture building supplies, houses, furniture, appliances, electronics or even clothes. Everything we need to survive including food, water, electricity, gas, and other basics are supplied by others.
Self Reparations
Black churches, Kingdom Halls, Mosques, organizations, and businesses should create a commission and find workable solutions to at least some of the damage caused by centuries of racial oppression. Malcolm X in his "Ballot or the Bullet" speech recommended forgetting religious differences to concentrate on fighting a common enemy and working towards Black Nationalism to control the politics and economy in our own community.
The commission would need to partner to build distribution networks for black businesses and merchandise. There are probably congregation members who provide services or own businesses that their fellow members know nothing about. Imagine if black churches used some of their space to sell products such as soft drinks, baked goods, and other black manufactured goods.
Black Convention Venue
My son, who is a youth minister at his church, for years has attended church conventions in various cities where tens of millions of dollars are spent by attendees. For example, in 2010, the National Baptist Congress of Christian Education's 55,000 attendees spent an estimated $76 million in Detroit. Right here in St. Louis where I live, between 2010 and 2016, the Church of God in Christ (COGIC) through it's Holy Convocation injected more than $125 million into the St. Louis economy. Imagine if that money was spent within the black community instead of white-owned hotels, restaurants, and venues.
Black churches, professional organizations, and non-profit organizations could contribute funds for a non-profit corporation to create venues to accommodate member churches and organizations' large meetings and conventions. Black churches alone take in an estimated $12-13 billion per year. This organization could reach out to the African Union and others in the African Diaspora to build alliances, investors and partners.
If the organizational structure ends up being a standard corporation, shares can be made available to congregation and organization members, with members encouraged to support and recommend the venues for vacations and other travel. Discounts should be offered to members of participating organizations.
The average hotel with 115 room costs $22 million to build. The average daily rate (ADR) of hotels in the United States was 128.94 U.S. dollars as of February 2019. In 2018, the hotel occupancy rate was at 66.2 percent. Based on the ADR and occupancy rate, the average 115 room hotel earns $3.58 million in revenue per year, with gross operating profits of 38 percent, not factoring in religious or non-profit tax exemptions.
To start, the most popular convention destinations should be researched and a single start city selected, preferably one with a large black population to help sustain the venues during the initial and growth stages. Land in predominantly black neighborhoods should be selected for development. Member organizations would need to commit to holding conventions and meetings in the start city for a number of years. A black transportation system, similar to Uber, could be organized with a network of black restaurants, entertainment, retailers and other places of interests as target destinations. After the initial start city becomes successful, a secondary city could be selected and the process repeated until about five or six of the most popular destination cities have been developed. African American travelers contributed about $63 billion to the U.S. travel and tourism economy in 2018. Imagine capturing just ten percent of that market.
This suggestion needs to be fine-tuned, would require sacrifice and might require member organizations to forgo conventions for a period of time. However, the long term benefits to the organizations and the black community would be monumental.
Even if a national coalition of organizations is not currently feasible, certainly local coalitions could be built to find workable local solutions for community issues. The primary issues in our communities are economic. Until workable solutions are presented to help people, especially our youth get out of poverty, desperate people will continue to find violent solutions to their problems and no catchphrase or slogan will stop them.
I realized some time ago that black people have the greatest need for timely access to quality information, however, those with the information, usually will not share it with others. I've actually seen situations where one non-profit organization would not share with needy clients helpful information about other non-profit organizations. It is my sincere hope that my ideas will spark someone into action to help others.
Although I'm not an attorney, I created this site to distribute free legal information to help those with little or no money to hire an attorney. Multiple systems are rigged against all of us. "United we stand, divided we fall"; let us stand so we can help those who have fallen.
