A Nation Built on the Back of Slavery and Racism

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A Nation Built on the Back of Slavery and Racism JUST THE FACTS A NATION BUILT ON THE BACK OF SLAVERY Why Reparations? AND RACISM It began with 246 years of legal slavery in which we extracted wealth from the lives of African Americans. At the time of the Civil War, close to 4 million African Americans were enslaved, 13 percent of America’s total population. After the war, institutional injustices focused on stealing their land and jobs and ensuring that African Americans did not build wealth as fast as the rest of Americans. The economy we have today was built on this. PB yes! summer 2015 :: yesmagazine.org yesmagazine.org :: yes! summer 2015 25 The nation paid reparations to slave 1 holders—not to slaves. Slavery launched modern No $300 40 ACRES AND A MULE capitalism and turned PER FREED SLAVE the U.S. into the President Andrew Johnson On April 16, 1862, President wealthiest country overturned Gen. Sherman’s Abraham Lincoln signed a in the world. famous promise, which would bill ending slavery in the have redistributed roughly District of Columbia, 400,000 acres to newly freed providing for compensa- black families. tion to former owners. Slave-harvested cotton dominated the 19th-century international Vagrancy laws allowed market. police to sweep up black men and then rent them U.S. COTTON out as convict labor. PRODUCTION Following the war, 1859 convict leasing programs 2.25 billion shifted the Southern pounds prison populations to predominantly black. BLACK CONVICTS IN NASHVILLE, 1790 1.5 million pounds 2 TENNESSEE’S MAIN PRISON Cotton built New York City U.S. COTTON USED into a commercial and Emancipation IN BRITISH TEXTILE financial center. 58% 64% did not INDUSTRY NEW YORK’S 33% bring economic By the 1830s For every dollar cotton made, SHARE freedom about 40 cents OF ALL 77% ended up in New COTTON 1865 1867 1869 to former REVENUE York as the city slaves. supplied insur- ance, shipping, 40% and financing. Discriminatory business policies kept white people economically ahead. Southern merchants At the outbreak Black Codes were enacted to used unfair credit to impede stop African Americans from of the Civil War, Slaves’ black wealth building. the market worth owning their own businesses. 48% INTEREST RATES value of slaves $3 billion of total in the U.S. BUSINESS LICENSING FEES CHARGED BY MERCHANTS wealth of Under Black Codes in 1870 1881–1889 exceeded that of the South banks, factories, in 1860 and railroads $100 $0 44%–74% combined. Currency in circulation White Georgia $450 million entrepreneurs 7% Black New York City entrepreneurs 2626 yesyes!! summersummer 20152015 :::: yesmagazineyesmagazine..orgorg yesmagazine.org :: yes! summer 2015 27 Social safety nets have missed African Americans. 4 Social Security originally excluded The result: domestic and agricultural work- ers—mostly African Americans, African Americans especially in the South. have not been able INELIGIBLE FOR SOCIAL to get a foothold in SECURITY IN 1935 the economy. 70%–80% 65% 27% Whites Blacks Blacks in the The income gap has not South budged since 1970. Discriminatory For every dollar of assets white policies then kept households have … 3 African Americans MEDIAN $58,ooo HOUSEHOLD from receiving help INCOME $35,ooo other citizens in 2013 Racist policies received. contributed to the Black … black households decline of black have a dime. farmers. White By 1982, only 1.5 percent of farmers were black, and the USDA’s Civil Rights Office — African Americans have barely any of the nation’s wealth, which investigated loan program discrimina- and therefore little to pass down to future generations. tion complaints—was closed. FARMLAND OWNED BY Economists estimate that up to NATIONAL WEALTH AFRICAN AMERICANS 80 percent of lifetime wealth Owned by African Americans accumulation depends on intergenerational transfers. 1910 1982 0.5% 1.o% 15 million 3.1 million 1865, 1990, acres acres just after a full 125 years after Emancipation Emancipation Money meant for distressed Can we calculate the economic damages? homeowners supported segregation. In 1933, the Home Owners’ Loan Corporation Estimates range from: Martin Luther King Jr. was created and helped more than 1 million calculated that making homeowners. The HOLC was the origin of $59 trillion good on the promise of “redlining” maps. 40 acres and a mule ($20 a week since the late GOVERNMENT LOANS TO $24 trillion 1700s for 4 million slaves) AVOID FORECLOSURE $15 trillion would total $800 billion.* 0 “They owe us a lot of 1 loans to blacks money.” million * $6.4 trillion loans in white neighborhoods That’s MLK’s $800 billion in today’s dollars. Source citations at yesmagazine.org/JTF74 YES! infographic by Jeff Neumann and Tracy Loeffelholz Dunn. 26 yes! summer 2015 :: yesmagazine.org Research by Heidi Bruce and Clo Copass. Images from Library of Congress. yesmagazineyesmagazine..orgorg :::: yesyes!! summersummer 20152015 2727.
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