Category Archives: Employment

Pooling Our Resources to Foster Black Progress: An Entrepreneurship and Impact Investing Framework

Check out the new book, Pooling Our Resources to Foster Black Progress: An Entrepreneurship and Impact Investing Framework. The book:

  • Examines the great potential with respect to the powerful nexus among: black earning/buying/investing power, philanthropy and resource-pooling, buying/banking black, entrepreneurship, business development, job creation, wealth-building, and economic and social progress 
  • Shows how a potent, large-scale resource-pooling vehicle with a comprehensive framework that is able to harness this potential, especially with the galvanizing power of online and social media, can have immense impact 
  • Presents a framework for establishing such an initiative, in the form of a national impact investment fund — the “Excellence and Ventures Transformation Fund” (or “EXCEL-TRANSFORM Fund”) — that would address unemployment and poverty and help finish the “unfinished business” of the civil rights movement.

[Full disclosure: the author, Dr. Michael Isimbabi, a finance and energy industry professional, consultant, and former professor of finance, is affiliated with this website.]

 Look inside the book (the first 10%) for free and get it here (at Amazon.com): http://www.amazon.com/POOLING-RESOURCES-FOSTER-BLACK-PROGRESS-ebook/dp/B00HTWJ8BY.

Also join the discussion on the feasibility and establishment of the EXCEL-TRANSFORM Fund, innovative strategies for self-reliant resource-pooling, and related philanthropy, entrepreneurship, impact investing and empowerment issues at the book’s website, www.PoolingOurResources.com, and Google Plus.

The Racial Wealth Gap: Recent Studies

Less Than Equal: Racial Disparities in Wealth Accumulation. Signe-Mary McKernan, Caroline Ratcliffe, C. Eugene Steuerle & Sisi Zhang. Urban Institute. April 2013. 

When it comes to economic gaps between whites and communities of color in the United States, income inequality tells part of the story. But let’s not forget about wealth. Wealth isn’t just money in the bank, it’s insurance against tough times, tuition to get a better education and a better job, savings to retire on, and a springboard into the middle class. In short, wealth translates into opportunity.

…How Did the Great Recession Affect Wealth, and Who Lost the Most? While the Great Recession didn’t cause the wealth disparities between whites and minorities, it did exacerbate them. The 2007–09 recession brought about sharp declines in the wealth of white, black, and Hispanic families alike, but Hispanics experienced the largest decline. Lower home values account for much of Hispanics’ wealth loss, while retirement accounts are where blacks were hit hardest….

How Do We Fix This? Families of color were disproportionately affected by the recession. However, the fact that they were not on good wealth-building paths before this financial crisis calls into question whether a whole range of policies (from tax to safety net) have actually been helping minorities get ahead in the modern economy. More fundamentally, it raises the question of whether social welfare policies pay too little attention to wealth building and mobility relative to consumption and income….

…A common misconception is that poor or even low-income families cannot save. Research and evidence from savings programs shows they can. When we examined families living below the poverty level, we found that over a decade more than 40 percent were able to increase their networth and save enough to escape asset poverty—in other words, they had enough assets to live at the poverty level for three months without income (about $3,000 for an individual and $6,000 for a family of four). The federal government spends hundreds of billions of dollars each year to support long-term asset development. But these asset building subsidies primarily benefit high income families, while low-income families receive next to nothing. Reforming policies like the mortgage interest tax deduction so it benefits all families, and helping families enroll in automatic savings vehicles, will help improve wealth inequality and promote saving opportunities for all Americans.

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How America Built the Racial Wealth Gap. Lawrence D. Bobo. April 9, 2013.  Straight Up: Will leaders ever step up to fix the mess that social policy and our checkered past created?

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The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide. Thomas Shapiro, Tatjana Meschede and Sam Osoro. Research and Policy Brief. February 2013. Institute on Assets & Social Policy. Brandeis University.

KEY FINDINGS:

1. Tracing the same households over 25 years, the total wealth gap between white and African-American families nearly triples, increasing from $85,000 in 1984 to $236,500 in 2009.

2. The biggest drivers of the growing racial wealth gap are: • Years of homeownership • Household income • Unemployment, which is much more prominent among AfricanAmerican families • A college education • Inheritance, financial supports by families or friends, and preexisting family wealth

3. Equal achievements, such as income gains, yield unequal wealth rewards for whites and African-Americans.

 

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Closing the Racial Wealth Gap Initiative – Publications and Materials. Insight Center for Community Economic Development.

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Lisa Hall, President/CEO of Calvert Foundation, on the Potential of Impact Investing to Transform Underserved Communities

Excerpts: Lisa Hall, President/CEO of Calvert Foundation, on the potential of impact investing to transform underserved communities

LisaHall-239x164Lisa Hall of the Calvert Foundation on Impact Investing: An In-depth Interview. Forbes.com. October 20, 2011.

….Rahim Kanani: How can we convince traditional investors to reevaluate their portfolios and consider social impact investing?

Lisa Hall: I thought about this a lot at the Congressional Black Caucus Foundation’s annual conference, where I spoke about impact investing and the widening wealth gap. During the past few years, our economy has suffered greatly and yet the wealth keeps building at the top. Impact investment creates a virtuous circle of empowerment, opportunity, and engagement by connecting investors, underprivileged individuals, and communities. We need more people to get involved in impact investing because it is a critical part of the solution to closing the wealth gap. ….

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Lisa Hall on How Calvert Foundation is Democratizing Impact Investing. Forbes.com. December 17, 2012.

Sixteen years ago, Calvert Foundation was born of a seemingly improbable idea: using investment dollars to help end poverty.

Today, investment banks describe impact investing as an “emerging asset class”;… the impact investing market is estimated to raise at least $500 billion in the next decade;…and according to Calvert Foundation’s recent research survey, 72 percent of financial advisors are interested in offering impact investing products to clients….

Impact investing is undoubtedly an idea whose time has come. As budgets of philanthropies and governments have shrunk, investment capital has come to be recognized as a tool that can address some of the world’s most pressing problems.…..

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BET Founder Robert L. Johnson’s “RLJ Rule” to Increase Employment Opportunities for African Americans

Robert-L.-Johnson-CNBCRobert L. Johnson Urges President Obama to Encourage U.S. Businesses to Adopt Version of the NFL Rooney Rule for Employment. News Release. Rljcompanies.com. December 17, 2012.

Robert L. Johnson, chairman of The RLJ Companies and founder of Black Entertainment Television (BET) today calls on President Barack Obama to renew his commitment in addressing the employment gap between African Americans and White Americans, by encouraging U.S. corporations to adopt the RLJ Rule to address the overwhelming gap in unemployment.

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