Why We Need To Create Black-Owned Banks

It is readily acknowledged that Black Americans have some catching up to do when it comes to income and wealth.

Often, Black Americans focus much of their explanations for these circumstances on racism and discrimination. We, straightaway, argue that the solution is for Black Americans to start our own businesses. Any kind of business will do, we say. The key is to motivate Blacks to become entrepreneurs. Having achieved that, income and wealth inequality should diminish.

This is a simple minded and delusional hope. We all know that, “Hope is no strategy.” There has to be a better strategy that will produce meaningful and sustainable results.

Thoughtful economists take a more comprehensive view to Black American economic development. We say that Black businesses should be initiated more selectively; beginning with small service firms, expanding to larger service firms and small scale manufacturing, then up to large-scale manufacturing where big-ticket items can be produced and sold.

Read the rest at The Atlanta Post