August 30, 2018
By Charlene Crowell
For years, and particularly in recent months, major news outlets have heralded the nation’s robust economic recovery. From rising corporate profits, to lower unemployment, or rising stock prices on Wall Street, many consumers might conclude that financial stability not only returned after the Great Recession but continues to climb.
But for people of color, and specifically Black America, the state of the economy has not recovered. Instead of low unemployment, many who were laid off during the foreclosure crisis today are under-employed and cope with paychecks that that lead to more month than money. Recent college graduates remain living with their parents, often due to burdensome student debt that delays them setting up their own households. And according to a recent report by the Federal Reserve, a single $400 unexpected expense led to borrowing, selling something or not being able to pay for four in 10 adults last year.
These seldom unacknowledged financial disparities emerged during testimony at a Capitol Hill hearing on August 21. A subcommittee of the U.S. Senate’s Committee on Health, Education, Labor & Pensions heard and learned about how a history of economic exclusion, combined with a more recent wealth shift to the top 10 percent of income earners, leads to a bleak financial future for people of color.
Scott Astrada, Federal Advocacy Director for the Center for Responsible Lending (CRL), testified to the “fear, anxiety and despair facing millions of Americans as they look toward a financial future plagued with uncertainty and loss.”
Citing data from multiple and recent research reports, Astrada noted a still-growing economic divide that has worsened since the Great Recession. Today, the wealthiest 10 percent now own 76 percent of the nation’s wealth, and the median net worth of Blacks and Latinx are respectively $11,000 and $14,000. Further, the May 2018 Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2017, found that fewer than 40 percent of adults feel they are on track to retire with adequate savings, and 25 percent have no retirement savings at all.
“For households of color, the Great Recession erased the economic progress made over the past three decades in their entirety,” said Astrada. “If current trends continue, it will take 228 years for the average Black family to reach the level of wealth White families own today. For the average Latinx family, matching the wealth of White families will take 84 years.”
“Ultimately,” Astrada continued, “if current trends continue Black household wealth is on the path to hit zero by 2053.”
Two long-standing federal policies were cited as key components to today’s financial disparities: government-backed mortgages and Social Security. Both federal programs, according to Astrada, have a sordid history of discrimination that brought long-lasting and significantly diminished and deliberate federal efforts to diminish the financial well-being of Black Americans.
In 1935, the year that Social Security began as a financial safety net for older Americans, the New Deal program excluded domestic and farm workers. Representing nearly a third of the nation’s workforce in the 1930s, these Americans were also largely people of color. A 2017 publication jointly released by Prosperity Now and the Institute for Policy Studies, The Road to Zero Wealth, tallied that long-time economic exclusion to be approximately $143 billion in 2016 dollars.
Fast forward to 2018, and generations of lower wages and benefits translates into nearly a third of Black retirees relying solely upon Social Security as the sole source of retirement income for more than half of retirees for all races.
Similarly from 1934 to 1968, widespread redlining in the Federal Housing Administration (FHA) low-down payment, government-backed mortgages denied Blacks and other people of color opportunities to build and transfer wealth from one generation to another. During this 34-year span, only two percent of FHA mortgages were available to people of color. In just one city, Chicago, this three-decade exclusion shortchanged Black Chicagoans by $3 billion in 2017 dollars.”
“The harm of homeownership disparities,” added Astrada, “is especially clear when considering that two-thirds of the net wealth that is held by the middle 60 percent of families is in the form of home equity, resulting from, among other factors, invested wealth and appreciation.”
The lack of convenient access to full-service banking was identified by Astrada is a third factor diminishing Black wealth. Communities of color, particularly those with low-incomes, frequently lack access to traditional banking. Often these same communities are where high-cost, alternative financial services offering check-cashing, money orders, or payday loans sell their predatory products.
“Individuals cannot simply save and borrow as necessary to smooth dips and spikes without access to affordable and wealth building credit,” said Astrada. “Predatory lending ensnares families already in emergency situations.”
Since the onset of the Trump Administration, multiple federal agencies such as the Department of Education and the Consumer Financial Protection Bureau have emphasized the need for more consumer information.
Although a 2017 report by Prudential Financial, Inc. entitled, The Financial Wellness of America, found that a majority of working Americans suffer from financial stress due to struggles to pay monthly bills, and/or saving for the future, the corporation’s representative at the hearing representative attributed this financial angst to “the evolution of retirement and healthcare benefit offerings.”
Vishal Jain, a vice president with Prudential Financial, Inc.'s Workplace Solutions Group testified, “Today's workers are having to assume increased responsibility for their financial security. When coupled with day-to-day financial obligations, such as mortgages and student loan debt, it is easy to understand why employees may be experiencing higher levels of stress about their financial situation.”
None of the other persons testifying in the hearing spoke to the continuing discrimination that people of color encounter despite federal and state laws calling for equal treatment.
But Astrada did.
“For the purposes of this hearing, I want to underscore that financial literacy cannot, by any means, solve everything…Furthermore, the limits of financial literacy, in the context of discussion, require that strong regulators and sound consumer protection policy remain at the root for retirement readiness,” concluded Astrada.
August 30, 2018
LAWT News Service
The California Legislative Black Caucus (CLBC) is pleased to announce the election of Dr. Shirley N. Weber (AD 79) as the incoming Chair of the California Legislative Black Caucus. Assemblymember Weber has been a champion for education and civil rights. This year, Dr. Weber authored two Caucus priority bills Assembly Bill 2635 regarding properly funding underperforming students, and Assembly Bill 931 which seeks to improve public safety through changing law enforcement’s use of force policies.
“Because of her leadership and passion for the African American community, we are honored to have Dr. Weber serve as the new Black Caucus Chair,” stated Assemblymember Chris Holden (AD 41), the CLBC’s current chair. “She has proven time and time again that she is willing to take on the biggest issues, serving as a David to a world of Goliaths.”
Dr. Weber will be sworn in as Chair on December 3, 2018. “I’m honored that my colleagues have entrusted me with the Chair of the CLBC. We’ve had a wonderfully successful two years under the guidance of Mr. Holden, and I hope to continue that success into my tenure,” said Assemblymember Weber. “The CLBC has a 50-year tradition of excellence serving the African American community. I hope to contribute to that tradition by shedding light on issues important to our community and advancing policies that benefit all communities.”
The Executive Board will also include: Vice Chair, Senator Steven Bradford (SD 35); Secretary, Assemblymember Sydney Kamlager-Dove (AD 54); and Treasurer, Assemblymember Jim Cooper (AD 9).
August 23, 2018
By Kimberlee Buck
Contributing Writer
In 2017, Hyundai Motor America (Hyundai) in partnership with Taste of Soul, created a contest to acknowledge the residents who are doing their part to make the city of Los Angeles a better place by awarding one winner with a brand new car! The contest was so successful that Hyundai decided to bring it back with a new theme tilted, “Reimagine Everything at Taste of Soul Los Angeles.”
Part of Hyundai’s commitment as a brand, is to “help the society” and “improve humankind,” which is why the company is inviting Angelenos to join them in solving some of the issues that affect the Los Angeles community by entering to win a 2018 Kona Limited Thunder Gray.
Here’s How It Works:
Step 1: Download the free Taste of Soul Mobile App using a smart phone from either the Apple App Store, the Android Market, or Google Play
Step 2: Follow the in-App instructions to register, includes providing the entrant’s name, age, email address, and city and state of residence
Step 3: Follow the instructions to visit HyundaiDiversity.com
After reading and accepting the rules, follow the instructions to upload an original video (no more than 90 seconds) explaining how you are working to make the city of Los Angeles a better place for all.
Hyundai’s mission and values coincide with their contest vision of reimagining a better Los Angeles, and it was only right to lead by example. Recently, the company launched, “Hyundai’s Road to Taste of Soul,” where they highlighted four local organizations to give back to. This year, Hyundai decided to focus on local organizations that were helping children.
“One of the things that is unique about Hyundai is that we are a brand that likes to consider the possible and find new solutions to solving societal issues and any issues we have. We have done so from the history of our car company to our products and services and that extends to our commitment to society,” said director of Corporate Social Responsibility and Diversity Inclusion at Hyundai Motor America, Zafar Brooks.
The first stop took place in early August at the 20th annual Mothers in Action Back To School Health & Family Festival. During the event Brooks, on behalf of Hyundai, presented the non-profit organization, Mother’s in Action with a $2500.00 check. The second stop took place later this month at the New Image Emergency Shelter for the Homeless. While there, Hyundai presented a $2500.00 donation. The third stop will take place in early September at actress Wendy Raquel Robinson’s Amazing Grace Conservatory. The final stop will take place at the 13th annual Taste of Soul where Brotherhood Crusade will receive a monetary donation.
“We are asking people to be a part of this journey of solving problems that affect our communities, and work together in bringing new solutions, that will benefit people, society, and the planet. That is what it’s really all about,” said Brooks.
The contest begins at 12:00 p.m. Pacific Time on August 21, 2018 and ends at 11:59:59 p.m. Pacific Time on November 5, 2018. Please note all videos must comply with all the video requirements and submission information. For a complete list of submission info, video restrictions, prize winner selection, and conditions of entry please visit www.tasteofsoul.org.
August 16, 2018
By E Mesiyah McGinnis
Contributing Writer
According to its press release, the Contractors State License Board (CSLB) unanimously elected businesswoman Marlo N. Thomas to chair its 15-member board. Thomas started her term July 1, where she oversees a governing body for contractors in the state of California, where consumer protection is a key focus.
The release stated that the South L.A. native is the first African American woman to serve in this position and was appointed to the Board in 2015 by Governor Jerry Brown. Thomas worked 15 years as an executive in law and in law enforcement in Los Angeles. She also has executive level experience in the restaurant, retail, health care, and real estate industries. She is excited to bring these experiences with her. “I enjoy being in a position to bring about positive change,” said Thomas.
Thomas will oversee a Board that licenses and regulates contractors in 44 classifications that constitute the construction industry. There are approximately 300,000 contractors in California. CSLB maintains a budget of approximately 66 million dollars with over 400 employees throughout the state of California, the release stated.
According to the CSLB site, the organization holds Board meetings quarterly, and Committee meetings on an as-needed basis. “I’m headed to an emergency meeting now,” Thomas texted to the Sentinel.” The meeting agendas are posted at least 10 days prior to the meeting date. Minutes are posted after Board approval, which happens at the following quarterly Board meeting. CSLB may provide live webcasts of meetings.
Thomas grew up in South L.A. and Westside neighborhoods, leaving Westchester High, then graduating from California State University, Dominguez Hills with a BS in Communications. Thomas continued, attended USC’s School of Public Policy in addition to law school. “Growing up in L.A. definitely played a role in my success. I saw a lot of things that made me know that I wanted more for myself. I started to network with people who I admired, and made sure I had the professional and personal qualities that would be a benefit to others,” said Thomas.
Thomas says she was determined to attend college and made sure she was always at the top of her class, and that her work represented her best efforts. With a background in law-enforcement, Thomas knew it a very young age that I wanted to help others. “As I got into law-enforcement environment, I found myself promoting fairly fast and utilizing leadership skills that I learned growing up. I started mentoring other people and saw a need in a certain type of leadership,” she said. According to Thomas, she used her experiences with incompetent managers as inspiration to be better and invest in herself and uplifting others.
One of the strategies in place for CSLB is a structured mentoring program to develop the future of the organization. Thomas says when you investing in people, there is less employee turnover and happier employees make for better businesses.
“I’m a spiritually grounded person, and I’ve had some great things happen to me and I believe it is my purpose. Everything I do and that I am is bigger than me. I am in a position to inspire and encourage others and try to do that often both personally and through my work,” said Thomas, who is also working as an executive producer in the film industry. “This has been a very rewarding journey.”