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For Release on D e l i v e r y F r i d a y , O c t o b e r 1 6 , 1970 11 a . m . ( E . D . T . ) AN ECONOMIC AGENDA FOR BLACK AMERICANS Remarks by Andrew F. Brimmer Member Board o f Governors o f the F e d e r a l Reserve System At the C h a r t e r Day C o n v o c a t i o n C e l e b r a t i n g the One H u n d r e d a n d F i f t h A n n i v e r s a r y of Atlanta University Atlanta, October Georgia 16, 1970 AN ECONOMIC AGENDA FOR BLACK AMERICANS By Andrew F. I was f l a t t e r e d observance of University. by t h e I g l a d l y accepted the t o young b l a c k people ever at large. public at for talents to throughout the n a t i o n this of sufficient merit this Atlanta that institution it is immediate h o r i z o n s I am p l e a s e d t h a t y o u h a v e but worthwhile and t o use of you the what- community f o u n d my e f f o r t s in t o w a r r a n t an i n v i t a t i o n the to speak convocation. am a l s o p l e a s e d t h e R i c h a r d R. W r i g h t that the f i r s t college of Atlanta fashion to * Member, By t h i s University, banking, t h e Negro community: determination occasion to act, to a n t i c i p a t e t h e c h a n g i n g demands o f h i g h e r Board of Governors a n d who you s i m u l t a n e o u s l y University of a member who a c h i e v e d and e d u c a t i o n , dedicate y o u do m o r e o f an o u t s t a n d i n g a l u m n u s , class at Atlanta the world of business, so much t o you chose t h i s School o f Business. than mark the accomplishments a timely in of in By i n v i t i n g me, t h e y may h a v e t o a d v a n c e t h e w e l f a r e So, I in to p a r t i c i p a t e invitation. the students g o a l s beyond t h e i r service this invitation t h e One H u n d r e d a n d F i f t h A n n i v e r s a r y seem t o be s a y i n g n o t o n l y to s t r i v e Brimmer" so much contributed demonstrate and t o respond education. the Federal Reserve System. I am g r a t e f u l t o M r . H e n r y T e r r e l l a n d M i s s H a r r i e t t Harper of the Boardfs s t a f f f o r assistance i n the p r e p a r a t i o n of these remarks. of the in -2S i n c e y o u know my own b a c k g r o u n d , i n v i t e d me t o p a r t i c i p a t e I relevance t i o n o f Negroes i n t h e U n i t e d S t a t e s . suggest some o f achieve full length of t h e decade o f the steps I participation that t h e most Nevertheless, tenacious and a r e w i l l i n g differently, and w h i t e s to I of the campaign f o r a game f o r requiring all c a n be f o u n d - - w h a t e v e r would if for I will also we a r e to say i n t h e s e r e m a r k s However, I obstructions reasonable to of overlooking racial and b e h a v i o r addressed of equality white obviously need for its eradication. economic e q u a l i t y separatists Expressed between blacks and s e g r e g a t i o n i s t s ; t h e e n e r g y and i m a g i n a t i o n the color racism or c u l t u r a l h e r i t a g e it that of those help. have chosen t o a d d r e s s most o f agenda i s undoubtedly am n o t is t h o s e w h i t e s who a l s o a b h o r economic agenda f o r b l a c k A m e r i c a n s . 1970's. t h e b l a c k community w i l l t o work a c t i v e l y i s not an e f f o r t this I t h e economic o u t l o o k the i n the a t t i t u d e s t h e c o o p e r a t i o n and s u p p o r t who w a n t condi- assumption, i n an open s o c i e t y w i t h i n a t o the b l a c k community. i n America are rooted is thought time. primarily people. you t h e economic b e l i e v e we must t a k e Most o f what I have t o the fact to On t h a t t o s h a r e w i t h y o u my a s s e s s m e n t o f t h e b l a c k community over assume t h a t i n these e x e r c i s e s because you m i g h t have s o m e t h i n g t o say o f like I by no means e x h a u s t i v e . I these remarks t o must s t r e s s , however, Other observers e r a s e one o r more i t e m s and add others. an would that -3The m a i n p o i n t s on t h i s agenda c a n be s u m m a r i z e d B l a c k p e o p l e m u s t c o n c e n t r a t e on p r e p a r i n g t h e m s e l v e s t o s h a r e more f u l l y i n t h e e x p a n d i n g economic o p p o r t u n i t i e s w h i c h the p r e s e n t decade w i l l b r i n g . These o p e n i n g s w i l l r e q u i r e a much h i g h e r l e v e l o f e d u c a t i o n , and many o f them w i l l o c c u r i n f i e l d s w h i c h Negroes t r a d i t i o n a l l y have n o t entered. C o n s e q u e n t l y , young b l a c k p e o p l e w i l l have t o a c q u i r e a w i d e r a n g e o f new s k i l l s while s t r i v i n g simultaneously to n a r r o w t h e e d u c a t i o n a l gap b e t w e e n N e g r o e s and w h i t e s . T h i s c h a n g i n g demand f o r s k i l l s w i l l a l s o pose a s e r i o u s c h a l l e n g e t o p r e d o m i n a n t l y Negro c o l l e g e s . There i s a p r e s s i n g need t o d e v e l o p g r e a t e r e c o n o m i c i n t e l l i g e n c e i n t h e b l a c k community. Stated s i m p l y , the d e p r i v e d e n v i r o n ment i n w h i c h Negroes have been f o r c e d t o l i v e has l e f t t h e m i l l - e q u i p p e d t o u n d e r s t a n d a n d cope w i t h t h e c o m p l e x e c o n o m i c f o r c e s t h a t p l a y such a v i t a l r o l e i n American s o c i e t y . Because o f t h i s h a n d i c a p , many N e g r o e s ( p a r t i c u l a r l y y o u n g b l a c k people) are i n danger o f b e i n g l e d a s t r a y by p r o p o n e n t s o f numerous e x c i t i n g , b u t p o o r l y c o n c e i v e d , schemes f o r t h e economic development o f the b l a c k community. The o v e r r i d i n g t a s k a h e a d o f us m u s t be t h e p r o v i s i o n o f m e a n i n g f u l employment opport u n i t i e s f o r t h e v a s t m a j o r i t y o f t h e Negro labor force. H o w e v e r , we s h o u l d a l s o s e e k t o enhance t h e f u t u r e o f Negroes i n b u s i n e s s . H o p e f u l l y , as t h e f a l l a c y o f " b l a c k c a p i t a l ism 1 1 w i t h e r s a w a y , t h e e m e r g i n g o p p o r t u n i t i e s f o r g e n u i n e p a r t i c i p a t i o n i n b u s i n e s s can be s e e n m o r e c l e a r l y . I n t h e m e a n t i m e , h o w e v e r , a number o f e x i s t i n g i n s t i t u t i o n s - - i n c l u d i n g commercial b a n k s , s a v i n g s and l o a n a s s o c i a t i o n s , and l i f e i n s u r a n c e c o m p a n i e s - - n e e d t o be strengthened. Otherwis e the b l a c k community may l o s e c o n t r o l o v e r some o f i t s p r o u d e s t achievements. briefly: -4F i n a l l y , N e g r o e s must t a k e a much more a c t i v e r o l e i n the e f f o r t t o check the r i s i n g crime r a t e i n the b l a c k community. W h i l e t h e r i s i n g i n c i d e n c e o f crime has b e e n a s o u r c e o f e m b a r r a s s m e n t t o many N e g r o l e a d e r s , f a r t o o many h a v e r e m a i n e d ambivalent toward the problem - - perhaps through fear of providing comfort to r a c i s t s m a s q u e r a d i n g b e h i n d a mask o f " l a w and o r d e r . " The e c o n o m i c c o s t o f c r i m e i n t h e b l a c k c o m m u n i t y may be as much as $3 b i l l i o n per y e a r . This would r e p r e s e n t a l m o s t 10 p e r c e n t o f N e g r o e s 1 a g g r e g a t e f a m i l y income i n 1 9 6 9 , compared w i t h 5 p e r c e n t f o r t h e economy as a w h o l e . W h i l e N e g r o e s c o n s t i t u t e 11 p e r c e n t o f t h e n a t i o n ' s p o p u l a t i o n , t h e y may be b e a r i n g a b o u t 12 p e r c e n t o f t h e e c o n o m i c b u r d e n of crime. The i m p a c t o f c r i m e s c o m m i t t e d by Negroes a g a i n s t o t h e r Negroes i s espec i a l l y h e a v y i n t h e case o f b l a c k b u s i n e s s men a t t e s t i n g t o p i o n e e r i n g h e t t o e n t e r prises. So, I would a s s i g n a h i g h p r i o r i t y t o e f f o r t s t o check c r i m e i n the Negro community. These m a i n p o i n t s a r e a m p l i f i e d these further i n the r e s t of remarks. Economic O u t l o o k f o r During advancement the t h e American Negro 1970's, the prospects by N e g r o e s a p p e a r investment education -- w i l l be t h e economic o u t l o o k But for -- a especially in f r o m a n assessment of required. for d e c a d e and t h e p r o b a b l e good. economic these emerging o p p o r t u n i t i e s , i n human r e s o u r c e d e v e l o p m e n t These c o n c l u s i o n s economic p o s i t i o n . substantial t o be p a r t i c u l a r l y b l a c k people t o take advantage of sizable for follow directly t h e n a t i o n a l economy d u r i n g impact of The l a t e s t prospective official the current changes on t h e p r o j e c t i o n of the Negro's American -5- economy p r e p a r e d b y t h e B u r e a u o f L a b o r S t a t i s t i c s that, by 1980, annual r a t e , the p r o j e c t i o n s . " 65 p e r c e n t more h e a v i l y the decade, of ing this growth, nation's labor increase of t h e economy w i l l o f goods w i l l 7 in In in the l e v e l White-collar account will for 10 i n reaches of further -- of skills decade, 1968. even Reflect- in 1968 - - the an employed i n f r o m 6 i n 10 occupations w i l l over h a l f a sharp advance i s r e q u i r e d by b o t h of a l l the o c c u p a t i o n a l t h e l o w e r end o f fessional and t e c h n i c a l continue jobs and t h e i r I n general, those a t the in in i n d u s t r y and government. t o expand r a p i d l y 1980. share o f Blue-collar total job opportunities ladder w i l l the scale. anticipated i n the occupations will higher expand more r a p i d l y The r a t e o f employment w i l l a n d may employment growth of be p a r t i c u l a r l y * See " T h e U. S. Economy i n 1 9 8 0 : A P r e v i e w o f BLS t i o n s , 11 M o n t h l y L a b o r R e v i e w , A p r i l 1 9 7 0 , p p . 4 - 3 4 . by services, 100 m i l l i o n w o r k e r s rise base increase substantially. in at 1980. the c u r r e n t further. also rise The p r o p o r t i o n o f w o r k e r s expand more s l o w l y , shrink the be c o n c e n t r a t i n g c o m p a r e d w i t h 82 m i l l i o n one-fifth. to on t h e p r o d u c t i o n o f t h e r e may be a b o u t force, projected -- $865.7 b i l l i o n achieved i n service producing sectors w i l l 1968 t o GNP i s than i n recent years the output although m e a s u r e d i n 1968 p r i c e s Thus, from the l e v e l By t h e e n d o f suggests t h e n a t i o n may be p r o d u c i n g g o o d s a n d s e r v i c e s a $1.4 t r i l l i o n year of (BLS) than pro- striking. Projec- -6In contrast, will t h e number o f m a n a g e r s , i n c r e a s e more s l o w l y - - officials, about i n l i n e w i t h the r a t e total workers w i l l a l s o advance o n l y s l i g h t l y more r a p i d l y f o r c e as a w h o l e . workers w i t h s i m i l a r than t o t a l trades Employment o f factories of employment. o t h e r hand, especially In employed o u t s i d e the and slowly skilled may r e g i s t e r among w o r k e r s out of school education. number decline. of On t h e o c c u p a t i o n s may rise employment. it be s u s t a i n e d b y will during be r a r e the substan1970!s. indeed to find s c h o o l a n y o n e who has n o t r e c e i v e d some h i g h T h e s e c h a n g i n g demands f o r t h e g r o w i n g e m p h a s i s on s k i l l s b e a r i n g on t h e e c o n o m i c o u t l o o k segments o f A m e r i c a n the in as a n d t h e number an a c t u a l in service the decade, as f a s t no g r o w t h i n in educational qualifications by t h e end o f on ( s u c h as o p e r a t i v e s of agriculture, t h e number o f w o r k e r s improvements fact, other those may i n c r e a s e o n l y h a l f 1 - 1 / 2 t i m e s as f a s t as t o t a l cially true of sales foremen, is This occupational upgrading w i l l tial than e x p e c t e d t o i n c r e a s e more T h e r e may be v i r t u a l l y i n farming i t s e l f about and is s e m i s k i l l e d workers and t r u c k d r i v e r s ) laborers jobs this of i n w h i c h c r a f t u n i o n s e x e r c i s e such s t r o n g i n f l u e n c e entry. total clerical The number o f c r a f t s m e n , skills employment; The number o f proprietors expansion i n labor employment. and -- w i l l f o r Negroes, society. labor have a -- and espesignificant as w e l l as for -7By 1 9 8 0 , a c c o r d i n g to t h e U . S. B u r e a u o f t h e N e g r o p o p u l a t i o n s h o u l d be a b o u t 22 m i l l i o n of in 1968. 27 The B u r e a u a l s o p r o j e c t s the United States at approximately 201 m i l l i o n in 1968. Consequently, 13 p e r c e n t rate projected for compared the t o t a l 228 m i l l i o n in about the t o t a l in 1968. 10.9 per cent T h e r e s h o u l d be a b o u t force in 1980, an i n c r e a s e o f would represent account for for whites 16-1/2 per cent 3 million If strengthened share of the of of as So, the i n the total labor This about 1-1/2 So N e g r o e s would labor t h e t o t a l w o u l d be the necessary s k i l l s , be r e f l e c t e d the Bureau o f $543.6 b i l l i o n . was e a r n e d b y N e g r o e s — r e p r e s e n t i n g times force 12 Of t h i s their in their the Census, amount, 6.3 per cent of By 1 9 8 0 , t h e t o t a l may h a v e r i s e n t o $870 b i l l i o n , accruing t o N e g r o e s may be a p p r o x i m a t e l y Negroes1 share of is decade. According to the versus 1968 l e v e l . 2.4 per cent, share of economic p o s i t i o n w i l l money i n c o m e t o t a l e d 1980, the growth i n the t o t a l Negroes can a c q u i r e income. from the (1.6 per c e n t ) . b e t w e e n 1968 and 1 9 8 0 , and t h e i r p e r c e n t by t h e end o f in 12 m i l l i o n N e g r o e s an annual growth of as r a p i d as t h a t population population. 11.8 per cent compared w i t h with t w i c e as r a p i d l y b l a c k people are expected t o c o n s t i t u t e 1980, Census, the Negro p o p u l a t i o n e x p e c t e d t o i n c r e a s e by 23 p e r c e n t , the million, the expanded aggregate $34.4 the total. and t h e $66.1 b i l l i o n . t o t a l may h a v e c l i m e d t o 7 . 6 p e r billion amount Thus, cent. the -8In conclusion, somewhat more f u l l y it did in the the assumption be a b l e t h e Negro community i s i n economic g r o w t h i n last. However, this skills be a p p r e c i a b l y a b l e outcome m a t e r i a l i z e s , with the campaign f o r Today, lessened. it will this w o r l d of economics, in the most to favor- to press formulate a in and f i n a n c e . marketing, of the b l a c k e a s i l y understood: t h e y have n o t had an o p p o r t u n i t y performance. racial on 1980. N e g r o e s have h a d l i t t l e business, the s t r u c t u r e will i n a n open be n e c e s s a r y ill-equipped handicap i s financing, they on Intelligence Negroes a r e racial discrimination, determine still t h e pace o f economic p r o g r e s s The r e a s o n f o r production, But even i f than i s based that to p a r t i c i p a t i o n equal opportunity Development o f Economic to accelerate projected result a t an a c c e l e r a t e d r a t e and t h a t d i s c r i m i n a t i o n and o t h e r b a r r i e r s share t h e c u r r e n t decade ( w h i c h may p r o v e t o be o p t i m i s t i c ) to acquire economy w i l l expected to to acquire community. because contact with With the strategy few of the exceptions, familiarity with and o t h e r e c o n o m i c p r o c e s s e s t h e A m e r i c a n economy and c o n d i t i o n Thus, a s e r i o u s effort which its s h o u l d be made t o remedy this deficiency. I professional no a c c u r a t e am n o t economists on t h e s m a l l number t o be f o u n d i n t h e b l a c k c o m m u n i t y . census e x i s t s , professionally focusing exclusively of While t h e r e a r e no more t h a n a few h u n d r e d t r a i n e d Negro e c o n o m i s t s and p r o b a b l y less than -91,000 w i t h i n jobs some f o r m a l t r a i n i n g requiring which economists 50,000 persons less t h e m t o p e r f o r m some o f t y p i c a l l y work. There a r e , of the who h a v e r e c e i v e d s p e c i a l i z e d They a r e exposed t o stitute So, on t h e w h o l e , -- business a d m i n i s t r a t i o n , the mainsprings total employment of appears economic that the the b l a c k community. limited extent The s i t u a t i o n to which readers is cial publications. reported that, 9 9 . 6 p e r c e n t do n o t c e n t do n o t 1.4 per cent is of con- professions. from quite exposure limited. of clearly largest Ebony1s of and the finan- read c e n t do n o t read Business it by readers, c e n t do n o t 98.2 per Furthermore, This i n f o r m e d members illustrated read Forbes; read F o r t u n e . the households is 99.5 per 9 7 . 2 p e r c e n t do n o t they off readers of business r e a d Duns R e v i e w ; 9 8 . 6 p e r c e n t do n o t r e a d B u s i n e s s Week; 96.2 per It cut o f Ebony ( t h e are also Barron's; i n these and b e s t b l a c k - o r i e n t e d magazines) in and m a r k e t i n g . even t h e i n f o r m a l even t h e most a l e r t Negroes ideas. most Negroes g e t t o t h e w o r l d o f b u s i n e s s seems t o be t r u e o f constitute but here also b l a c k people are s u b s t a n t i a l l y it on about and a r e e m p l o y e d — the world of business, Moreover, of in total a much l a r g e r number o f training a small percentage of contact with Since there are tasks total. course, s u c h as a c c o u n t i n g , employed the substantive engaged i n s u c h t a s k s , N e g r o e s p r o b a b l y than 2 per cent of fields i n e c o n o m i c s a n d who a r e Management; seems t h a t reading N a t i o n 1 s Business — and only -10only 1.9 per cent of t h o s e r e a d i n g The W a l l S t r e e t Journal -- are black.* The somewhat u n c e r t a i n g r a s p w h i c h N e g r o e s h a v e respect ought t o economic t o be a m a t t e r Negroes is face of major today w i t h r o u g h l y analogous with respect is i n f o r m a t i o n and t h e far to obstruct respect to r i g h t s movement. The d r i v e a g a i n s t sion in education, public Yet, racial qualities. activists, t h e r e was a s m a l l b u t v i g o r o u s But behind the ranks who u n d e r s t o o d of segregation. While as technicians. T h e y knew how t o r e s e a r c h t h e which equality and and the p o l i t i c a l exclu- legal exceptional civil rights scholars and law, They u n d e r s t o o d underpinnings they were how t o better draft the workings a n d t h e ways i n w h i c h s e g r e g a t e d warped the minds o f young p e o p l e . that voting restless t h e y were good as a d v o c a t e s , institutions ago community the b a r r i e r s o f a t t a c k on t h e l e g a l and s o c i a l a n d how t o p l e a d c a s e s . to democratize task t h e A m e r i c a n C o n s t i t u t i o n a n d how of vote the black skills band o f fashion a strategy educational economic housing, to briefs, the analysis s e g r e g a t i o n and organizational leadership scientists for t o cope w i t h accommodations, undoubtedly required mastery of social economic I n one s e n s e , to the quest equipped t e c h n i c a l l y progress. of t h a t w h i c h t h e y c o n f r o n t e d a few decades the c i v i l less w e l l concern. tools with of schools They knew how t o u s e t h e r i g h t process. In short, t h e y had the * See " T h e U r b a n C r i s i s , " a s p e e c h b y W i l l i a m P. G r a y s o n , E x e c u t i v e V i c e P r e s i d e n t , J o h n s o n P u b l i s h i n g Company, a t t h e 1 4 t h Annual Seminar, I n d u s t r i a l Communication C o u n c i l , I n c . , Royal York H o t e l , T o r o n t o , Canada, September 15, 1970, pp. 1 0 - 1 1 . to -11professional rights of arid t e c h n i c a l competence movement a n d t o h a r n e s s t h e s o c i a l and p o l i t i c a l Sadly, however, economics. lack of Mainly, opportunity, of the the critically for the incentive the b l a c k community. deficit to in this discipline. remedy t h i s field of discrimination and t o p u r s u e a c a r e e r i s an u r g e n t need t o civil restructuring the case i n t h e legacy of important the nation. N e g r o e s h a v e had l i t t l e s p e c i a l i z e d but of energies i s not because o f tool kit intelligence life this the economist's there its to organize Of c o u r s e , it master highly I n my i n the and opinion, economic will take t o expand t h e s u p p l y o f b l a c k economists p a s s i n g through colleges a r e underway and u n i v e r s i t i e s , accelerate the is however, attracting among c o l l e g e students, t o be t h e c a s e d e s p i t e the f a i r l y of support the graduate study of economics. apparently do n o t — at least at Instead, I am t o l d see t h e r e l e v a n c e o f i s s u e s w h i c h c o n c e r n t h e m most - t i o n of black c u l t u r e . students the f i e l d o n l y a s m a l l number o f y o u n g b l a c k T h i s appears financial our to process.* So f a r , economics but organized e f f o r t s time I that availability level -- to of for strongly study that the students the kinds s u c h as r a c i s m a n d t h e field people. numerous b l a c k economics personally believe should pursue whatever ample of of celebra- that appeals to them. * I am c u r r e n t l y s e r v i n g as C h a i r m a n o f t h e C o m m i t t e e o n t h e E d u c a t i o n a n d T r a i n i n g o f M i n o r i t y G r o u p E c o n o m i s t s c r e a t e d by t h e A m e r i c a n E c o n o m i c A s s o c i a t i o n i n December 1 9 6 9 . The C o m m i t t e e i s w e l l a l o n g i n f o r m u l a t i n g a p r o g r a m , and more t h a n t w o d o z e n U n i v e r s i t i e s have i n d i c a t e d a w i l l i n g n e s s t o share i n t h e e f f o r t t o e x p a n d g r e a t l y t h e number o f b l a c k e c o n o m i s t s . -12However, a g r e a t many o f apparently for feel example, they s h o u l d use t h e i r poverty, and improvement of t h e p r o b l e m s on w h i c h young b l a c k discrimination black enclaves I n my j u d g m e n t , on t h i s range of knowledge spring. of In himself issues, if in one i s roots t h e absence o f this urban than accepting insist that least appreciation, -- but improvement s u c h schemes a t a good economic power and i t s in history. enhance its use i n To a c c o m p l i s h understanding Educational Attainment this of o f economic the o u t s e t , o u r a g e n d a m u s t be t h e a c h i e v e m e n t opportunities the in for black people. ill-conceived in their white the b l a c k rigorous the job outlook for t h e most of community. should economic the this important a significant After The e v i d e n c e black workers schemes realities juncture Opportunities all, over i t e m on widening of the vast m a j o r i t y t o be i n t h e h a v e t o w o r k f o r wages a n d s a l a r i e s counterparts. -- issues. 12 m i l l i o n N e g r o e s who a r e e x p e c t e d 1980 w i l l find t h e b l a c k community must and E m p l o y m e n t As s t r e s s e d a t obstacles one c a n e a s i l y the United States at end, working these r e a s o n i n g a n d made t o p a s s m u s t e r when c o n f r o n t e d w i t h of control attack face v a l u e , Negroes t h e y be t e s t e d i n t h e c r u c i b l e -- areas. f r o m w h i c h many o f advanced w i t h a h o p e f u l promise of and t h e t o make a s u c c e s s f u l i n a f l o o d of glamorous Rather a r e economic problems i n employment, he m u s t a c q u i r e a t t h e economic adrift talents people -- labor the of force same as c i t e d above s u g g e s t s the c u r r e n t job decade that will -13brighten considerably advantage of quite the last increase in in S i z a b l e g a i n s were for further 1960 t o 60 p e r c e n t i n 1969; the Moreover, increase the 1960fs t h e r e was a m a j o r o f Negroes a t t e n d i n g c o l l e g e , s t u d e n t s were e n r o l l e d less 7 per cent o f recent continue during trends less schooling, T h i & w o u l d mean t h a t from 0.9 years i n the further narrowing black total enrollment, By 750,000, compared 1968. the 1970!s, the educational narrow considerably. compared w i t h gap On t h i s a s s u m p t i o n , 12.6 years in f o r w h i t e women. shrunk f a v o r o f w h i t e women. s c h o o l i n g may h a v e r i s e n compared w i t h 1 2 . 8 y e a r s t h e gap t o a b o u t by 12.1 t h e e d u c a t i o n a l d i f f e r e n t i a l w o u l d have the median years o f 1 1 . 4 years by 1980, number of higher education. i n 1967 t o o n l y 0 . 5 y e a r s Among N e g r o men, from striking. N e g r o women on t h e a v e r a g e may h a v e c o m p l e t e d a b o u t years of the i n s c h o o l i n g o f b o t h w h i t e s and Negroes t h e decade o f between t h e two w i l l the is cent. a n d i n 1968 r o u g h l y 4 3 4 , 0 0 0 in institutions than 6 per cent i n If 1980, advances number may h a v e r i s e n t o b e t w e e n 7 0 0 , 0 0 0 a n d r e p r e s e n t i n g about with achieved t o 78 p e r but the corresponding -- this of f o u r y e a r s o f h i g h s c h o o l o r more r o s e A d v a n c e s made b y N e g r o women w e r e s i m i l a r 1980, take t h e p r o p o r t i o n o f N e g r o men i n f o r w h i t e men was f r o m 63 p e r c e n t in to the e d u c a t i o n a l a t t a i n m e n t and the p r o s p e c t For example, age g r o u p 2 5 - 2 9 w i t h themselves openings. be c r u c i a l . decade, hopeful. 36 p e r c e n t t h e y can p r e p a r e improvement community w i l l during if the emerging Thus, black -- 1.4 years, f o r w h i t e men -- in contrast to a to -14differential of 1.9 years in 1967. Moreover, can a l s o be e x p e c t e d i n t h e q u a l i t y over the next be a s h a r p i n c r e a s e But a t t h e same t i m e , types of tance to black skills field teaching). students This prospect w i l l -- and t o them w i l l look for sciences, (much s m a l l e r selected majors in the s c i e n t i f i c decade, to run s u b s t a n t i a l l y Even b e f o r e classroom personnel -- if recent scientific and l i f e entry patterns fields, scientists to concentrate recent past. -- w i l l the i n these areas typical i n the small has and far graduates pattern of advanced, shortage of occupation continue. of biologists) litera- biology l o n g p l a g u e d by a t h e r e may a l s o be a s u r p l u s (especially secondary college be f a c e d w i t h a s u r p l u s in this heavily enrollment. t h e decade i s v e r y e l e m e n t a r y and secondary e d u c a t i o n - of to colleges generally) among t h e s e , t h e demand f o r counter the impor- Only a students the in As we k n o w , and E n g l i s h and share o f there people. critical i n e l e m e n t a r y and fields; Over Negro g r a d u a t e s . be o f shift the remaining graduates. a sizable expected trained concentrated t h a n among c o l l e g e the c u r r e n t the 1970fs, education. business, mathematics accounted f o r is their (especially t u r e have a t t r a c t e d most o f percentage in the predominantly black have t r a d i t i o n a l l y of education The s o c i a l as i n d i c a t e d a b o v e , we c a n a l s o e x p e c t a d r a m a t i c Negro c o l l e g e g r a d u a t e s the e d u c a t i o n r e c e i v e d by Negroes i n t h e demand f o r h i g h l y required. t o w h i c h many o f in improvement decade. On t h e o t h e r h a n d , will of substantial teachers In of mathematicians if students same p r o p o r t i o n as i n continue the -15In contrast, fields w i l l include continue chemistry, several other to face shortages during geology, sional health occupations The s h o r t - f a l l in cially serious, dental schools scheduled geophysics, due t o limited t o be l a u n c h e d d u r i n g capacity counseling, s o c i a l work, the technical 1970fs. 1970's. shortages. may be slightly by the shortages and institutions scientific include and a number o f i n t h e p l a n n i n g and a d m i n i s t r a t i o n o f espe- e x i s t i n g medical Outside other areas of p o t e n t i a l urban planning, continued of These Profes- and d e n t i s t s - - w h i c h may be r e l i e v e d o n l y fields, the can a l s o a n t i c i p a t e the and and e n g i n e e r i n g . the supply of p h y s i c i a n s and m e d i c a l involved scientific S t a t e and occupations local governments. I n view of the market for these s h i f t i n g college graduates, the Negro c o l l e g e s w i l l make m a j o r a d a p t a t i o n s in their are In general, to remain v i a b l e . will call for instructional the Negro c o l l e g e s would f i n d their it sion of will in highly efforts believe job opportunities of recent have if along the required in to they opportunity faculty trends, and many of supported) t h e r e s o u r c e s needed t o upgrade lines. Business that for our p r i m a r y t a s k s h o u l d be t h e the vast m a j o r i t y h a v e t o w o r k f o r wages and s a l a r i e s , qualified -- among t h o s e p r i v a t e l y to generate t o Negroes i n Since I t h e a r e a s o f new On t h e b a s i s (particularly difficult educational The C h a l l e n g e c u r r i c u l a and p r o g r a m s a heavy investment equipment. s u p p l y and demand c o n d i t i o n s I of black also believe expan- p e o p l e who that is the -16direction i n w h i c h we s h o u l d be e x p e n d i n g m o s t o f H o w e v e r , we s h o u l d a l s o who w o u l d l i k e to try show some c a p a c i t y seek t o enhance t h e f u t u r e their luck for r i s k ism." of such o p p o r t u n i t i e s w i t h however, that for Negroes a n d who the i l l u s i o n s of the v e h i c l e I am n o t "black for t h e d e b a t e as t o w h e t h e r b l a c k c a p i t a l i s m i s strategy those taking. These r e m a r k s o b v i o u s l y a r e n o t t i o n of energy. i n the business world - - B u t l e t me s a y i m m e d i a t e l y , confusing our t h e economic development of capital- a continua- the best t h e Negro community in "K the United States. On t h e o t h e r h a n d , business enterprise instance, ghetto, of generally N e g r o e s may w e l l opportunities is o f Negroes quite a different matter. own a n d o p e r a t e b u s i n e s s e s competing w i t h others profit the p a r t i c i p a t i o n i n t h e same l i n e s , (while running For outside taking t h e same r i s k in of advantage loss), * My v i e w s on t h i s s u b j e c t h a v e b e e n s p e l l e d o u t f u l l y i n a p a p e r p r e p a r e d w i t h H e n r y S. T e r r e l l e n t i t l e d " T h e E c o n o m i c P o t e n t i a l o f B l a c k C a p i t a l i s m , 1 1 a n d p r e s e n t e d a t t h e 82nd A n n u a l M e e t i n g o f t h e A m e r i c a n E c o n o m i c A s s o c i a t i o n , i n New Y o r k , N. Y . , December 2 9 , 1 9 6 9 . the -17without regard to the race of the p a r t i c i p a n t s . could j o i n w i t h w h i t e businessmen - ghetto -- clearly to either b l a c k nor a number o f existing f o r Negroes institutions among t h e s e a r e c o m m e r c i a l b a n k s , insurance some o f It instances, their companies. proudest would c l e a r l y but I think a d i s c u s s i o n of tially, the d i f f i c u l t i e s managerial far resources so much a t t e n t i o n to p a r t i c i p a t e is business, need t o be s t r e n g t h e n e d . Included s a v i n g s and l o a n associations, control achievements. be i n a p p r o p r i a t e is f o r me t o c i t e sufficiently the general nature of arise the problem. from the thinness i n the b l a c k community. For the c o n t r o l l i n g The c i r c u m s t a n c e s specific serious of to Essen- capital example, and in stockholders a d v a n c e d i n a g e , and t h e p r o b l e m o f m a n a g e r i a l from resolved. neither O t h e r w i s e , N e g r o e s may l o s e s e v e r a l Negro-owned i n s t i t u t i o n s , is But in the s i t u a t i o n warrant are q u i t e venture. the white. f o c u s e d on new o p p o r t u n i t i e s over Negroes or o u t s i d e to capitalism - - I n the meantime, however, w h i l e and l i f e inside l a u n c h or expand a p r o f i t - s e e k i n g s u c h a n a p p r o a c h s i m p l y amounts Moreover, from which the succession present -18uncertainties a r o s e c a n be r e a d i l y u n d e r s t o o d . c a s e , a f e w men ( f r e q u e n t l y t o see t h e n e e d f o r W i t h a venturesome a single financial spirit t h e r i s k and n u r t u r e d — but w i t h g r o w t h and modest p r o g r e s s . accumulated losses by the w a y s i d e . root But Because o f institutions these s u r v i v a l s , important today. - - network of There are of they took slow the cases, fell plant took hospitable. we h a v e a s m a l l - black-owned and 50 l i f e financial commercial insurance so a l m o s t the banks, companies. three-fifths six years. l a u n c h s a v i n g s and l o a n a s s o c i a t i o n s and life companies in but last t h a n i n t h e case o f the f r a g i l e from t h e e x i s t i n g number h a v e b e e n s t a r t e d insurance -- and t h e i n s t i t u t i o n t h e r e were 11 b l a c k - o w n e d b a n k s , The movement t o community. p r o p o r t i o n of 26 b l a c k - o w n e d 43 s a v i n g s and l o a n a s s o c i a t i o n s , I n 1963, capital vision t h r o u g h many y e a r s o f instances, t h a t was f a r typical had t h e the b l a c k In a sizable i n other soil in little exceeded t h e g a i n s , i n an economic strategically individual) services the e n t e r p r i s e I n the i n r e c e n t y e a r s has been l e s s banks. pronounced -19- As I survey the scene, m u s t be made t o e n s u r e t h a t and p r o s p e r . may f i n d sell it their I t h i n k a much g r e a t e r the e x i s t i n g institutions (because o f age, any t i m e soon, family, or other it of that o w n e r s h i p and c o n t r o l o f On t h e o t h e r h a n d , w h i l e I tunity it c e r t a i n l y has n o t still exists some o f their rising management o f incomes, their to s a v e more - - the most t o go t h r o u g h t h e without requiring that be is there entrust the present -- out of latter (and careers) must without And i s no r e a s o n why members their leadership of priority. done, the savings these to them. institutions t h e q u e s t i o n o f management s u c c e s s i o n i s the highest oppor- t o be f i n a n c i a l management c a n n o t be a c q u i r e d . t h e b l a c k community s h o u l d must r e a l i z e to to entrust beginning t h e i r a and t h e t r a i n i n g and a p p r e n t i c e s h i p such d e m o n s t r a t e d c a p a c i t y , Finally, is prized less The few community. this a n d consume f u n d s t o Negro b u s i n e s s m e n . be w i l l i n g in If to this that there stage, and t h e y m u s t be w i l l i n g the younger people j u s t If the matter situation. especially which e x p e r t i s e consider reached a c r i s i s to rescue the N e g r o e s m u s t be w i l l i n g of Thus, t h e e x i s t i n g b u s i n e s s e s m i g h t pass f r o m t h e b l a c k serious, reasons) i s my i m p r e s s i o n b u y e r s c o u l d be f o u n d i n t h e N e g r o c o m m u n i t y . survive stockholders h o l d i n g s b e f o r e many more y e a r s h a v e p a s s e d . prospect materializes real risk can I n s e v e r a l c a s e s , one o r more i m p o r t a n t necessary effort I n a s u b s t a n t i a l number o f one cases, y o u n g p e o p l e h a v e b e e n a d d e d i n r e c e n t y e a r s a n d a r e now w o r k i n g their way up t h e o c c u p a t i o n a l ladder. Moreover, given the progress -20- b e i n g made i n several t h e number o f black appreciably ment ranks direction opportunity of the for appears take are also senior manage- t o be considerable i n new p e o p l e . thin, so f e w assume o v e r a l l there to only a few of involved good e x p o s u r e financial example, appears positions in t o be a n and familiarity Government, but the excellent most o f --- financial range o f were in the quite to give issues these appointees and a f t e r with are them c o u l d institutions. 1960fs. a few them which still other a reasonably a number o f financial c o u l d be i n c l u d e d as number o f Negroes Government fields financial t h e m h a v e moved o n t o who h a v e n o t b e e n i n G o v e r n m e n t experiences needed i n a h i g h enough l e v e l the profes- other top p o l i c y p o s t s , Some o f inducements black-owned the with specialized preparation to skills the Federal them o c c u p i e d i n policymaking at the appropriate attracted specific a substantial managers must d e a l . Federal of the mature affairs. in could build Admit- responsibility experience senior persons can r e a d i l y to the expand men a n d women who h a v e a c q u i r e d appointed period and t h e r e levels hand, contrast, increase should mature, For With In to to a t t r a c t they some o f management. the supply of personnel institutions1 other designed the businesses on w h i c h were thin, management people On t h e While the i n a number o f i n s t i t u t i o n s the middle sional t r a i n i n g programs few y e a r s . extremely and e x p e r i e n c e d for the bankers, the next are reluctance tedly, in of in jobs. short be Undoubtedly, b u t who h a v e a c q u i r e d similar well. But whatever t h e method u s e d , most o f institutions s h o u l d l o s e no t i m e in the trying Negro-owned to strengthen -21themselves at chances survival, build of the further s e n i o r management As I the black economic of of role community. costs of foundations the outset, i n the e f f o r t Although I w i l l crime, I fear which increased b l a c k and w h i t e -- community criminal t h i n k N e g r o e s must t a k e a check t h e rising and e s p e c i a l l y crime rate c o n c e n t r a t e my r e m a r k s toll activities of pain, the community, I am n o t n e g l e c t i n g t h e w e i g h t y e v i d e n c e w h i c h o f much o f the observed c r i m i n a l discrimination. attack i n the f i e l d I causes. among s c h o l a r s , generally crime - - activity can a g r e e w i t h law enforcement them t h a t a genuinely i n recent evidence. years, The l a t e s t sociologists to the origins and successful attack in that on t h e s e debate commentators t h e adverse economic crime r a t e s urging deprivation, of a fundamental and t h e p r e s s i n g need t o l i m i t been d i s c u s s e d w i d e l y impact of it. i n t h e Negro community and t h e r e -- d o c u m e n t a t i o n was p r o v i d e d by t h e N a t i o n a l poverty, o f f i c i a l s , and p u b l i c t o have a c l e a r v i e w o f the d e t a i l e d in in -- t o p r o t e c t the B u t one need n o t become e n t a n g l e d The a c c e l e r a t i n g cite efforts have a c c u m u l a t e d p o i n t i n g on c r i m e must be a b y - p r o d u c t underlying in their and citizens Moreover, t o be more f o r t h c o m i n g expert desirability a r e l e v y i n g on o u r i n urban areas. m on t h e suffering, black people and o t h e r s to developed. am b y no means o v e r l o o k i n g s t o p p i n g the c o m p l e t e l y senseless own Community I to the b l a c k already Crime i n t h e Negro stressed at much more a c t i v e By e n h a n c i n g t h e i r they would a l s o enable on t h e e c o n o m i c The E c o n o m i c I m p a c t level. is have no need h e r e to and p e r h a p s most e x t e n s i v e C o m m i s s i o n on Causes and -- -22Prevention of Violence. that, in while Negroes 1967 t h e y w e r e I n broad o u t l i n e , constitute involved f o r murder, and o v e r one-half those a r r e s t e d of and o t h e r half black of a l l victims for people were people a r r e s t e d involving of for for information (and I shortcomings), for whatever among a r r e s t s , to believe (especially s u f f e r i n g , a n d economic were b l a c k . Nearly loss J u s t under how h e a v y a n e c o n o m i c -- and a g a i n of the n a t i o n a t c a n be g o t t e n o n t h e b a s i s auspicies of indictments, of that reflect the impact large. Essentially, the p r o p o r t i o n of of do t h i s , to are and particular shown i n I convic- such a sharply r i s i n g inflict crime prepared the pro- pain, is having i n -- just a rough the as i n 1967 u n d e r the and to estimate categories of crime An e f f o r t the attached that was made table. it indication task is the b l a c k community. and t h e r e s u l t s crimes C o m m i s s i o n on Law E n f o r c e m e n t of Justice. s h o u l d be a l l o c a t e d less statistical However, Administration the costs total t h e r e a r e many to the Negroes. of estimates the P r e s i d e n t ' s the However, N e g r o c o m m u n i t y c a n n o t be m e a s u r e d w i t h a n y p r e c i s i o n c a n n o t be done f o r one- these s t a t i s t i c s , black youths) on o t h e r Negroes in connection with In citing obviously population, arrests three-fifths the shortcomings figures Negroes Just About reported the r o b b e r y were b l a c k . am w i l l i n g the of r a p e were Negroes the persons a r r e s t e d the d i f f e r e n c e s However, the v i c t i m s the a g g r a v a t e d a s s a u l t were p r o p e r t y were Negroes. am a w a r e o f three-fifths the primary v i c t i m s . persons a r r e s t e d than o n e - t h i r d pensity of w e r e m a i n l y b l a c k women. number o f tions. a b o u t 12 p e r c e n t o f i n almost one-half the Commission to -23On t h e b a s i s main c a t e g o r i e s in 1965 (the year were b a s e d ) . of of this crimes listed the n a t i o n ' s these estimates, the probable a higher was t h e s u b s t a n t i a l l y t h a n among w h i t e s . whites." These f i g u r e s true rates less higher v i c t i m i z a t i o n times because o f likely w i t h crimes against partly among N e g r o e s . the costs of community. million, statistical persons the 1965, billion is using cost Negroes con- logical among below t h a t impact of crimes a g a i n s t each cent as of the cent) to Negroes. rates of 10 p e r (15 p e r The reason nonwhites that these r a t e s 3.52 t i m e s as h i g h for as for the d i f f e r e n c e s in the Negroes w o u l d factor of earnings. for whites, Since this Negroes1 differential the h i g h e r v i c t i m i z a t i o n (and n o t a l a r g e r p e r s o n s was a t t r i b u t e d proportion) to t o N e g r o e s was a b o u t T a b l e 12, p. $122 m i l l i o n the 80. m be associated rates of black S i n c e t h e t o t a l was e s t i m a t e d by t h e C o m m i s s i o n a t the cost for -- underreporting; the loss studies total t o make a The k e y e c o n o m i c 15 p e r c e n t * Task Force R e p o r t , is t h e economic Thus, rape, probably understate of earnings offsets of as h i g h f o r a g g r a v a t e d a s s a u l t to r e p o r t a crime. average l e v e l share p e r s o n s was a s s i g n e d n o n w h i t e s w e r e 3 . 7 2 t i m e s as h i g h f o r and 1.87 $2.3 six population. tried The C o m m i s s i o n r e p o r t e d robbery, In For example, than p r o p o r t i o n a t e cost of crimes against the o c c u r r e n c e and economic e f f e c t s o f c r i m e among N e g r o e s . a benchmark, I that Commission's 11 p e r c e n t e s t i m a t e d by the Commission. In deriving category I estimated c o s t Negroes a b o u t represented about s t i t u t e d a r o u n d 10 p e r c e n t o f assessment o f exercise, on w h i c h t h e Law E n f o r c e m e n t This $21 b i l l i o n of 1965. $815 -24About was a l s o allocated zation rate a lower rates 15 p e r c e n t o f t o Negroes. of property t i m e s as h i g h f o r nonwhite rate for Victimization and f o r g e r y . this tax of $3.9 fraud, increasingly offset that, in for for gambling, the other types business of fraud, businesses i m p a c t on b l a c k retail setting crimes the pro- against -- out of billion. crimes ( d r i v i n g under and a b o r t i o n ) influence of relative t h e n a t i o n as a w h o l e . 10 p e r c e n t the s a l e o f narcotics, the p r o b a b l y had t h e same c o m m u n i t y as i n involving I n gambling, theft whites. t a k i n g over 1965, by However, small On b a l a n c e , of the t o t a l were a s s i g n e d t o Negroes f o r Crimes that have a d e v a s t a t i n g suggests $204 m i l l i o n , $2,036 m i l l i o n , tion. times t h e b l a c k c o m m u n i t y a b o u t $590 m i l l i o n the black reason, include victimi- victimization as f o r w h i t e s . crimes a g a i n s t owned b y w h i t e s . Three other burden i n partly For example, s u c h as e m b e z z l e m e n t , many o f whom a r e 15 p e r c e n t cost alcohol, -- i n ghetto areas - - previously costs -- l a r c e n y was o n l y 0 . 6 0 property businessmen - - portion at burglary On t h e o t h e r h a n d , particularly total ownership. property- the h i g h e r i n some c a t e g o r i e s r a t e s among N e g r o e s a r e e v e n l o w e r crimes against property crimes a g a i n s t n o n w h i t e s w e r e 1 . 7 4 t i m e s as h i g h f o r m o t o r v e h i c l e and 1 . 5 9 outlets of The r e a s o n s w e r e among b l a c k p e o p l e incidence for the costs illegal loan sharking, as i s w i d e l y k n o w n , these betting costs of crimes. goods and alcohol, For and services prostitu- o n numbers is -25highly bets, concentrated but However, in neither the aggregate by f a r gambling - of i n the ghetto. the t h e amounts s u c h as i l l e g a l o f f t r a c k b e t t i n g and f o o t b a l l these forms is prevalent costs For of share of it is types of illegal and p r o s t i t u t i o n reason, -- $1,075 m i l l i o n that in was a s s i g n e d crimes 1965, I n the aggregate, sales The c o s t s of of this to of illegal to the black (double the black the and t h e share o f $915 the t o t a l the costs cent of family these costs t o income. income, -- in it the Negro's law e n f o r c e m e n t and i n 1965. about Negroes. the o r a b o u t $295 million. cost black criminal These a r e essen- probably S i n c e n o n w h i t e s have 7 . 0 per was assumed t h a t Thus, million. o f g e n e r a l government and a r e of narcotics, probably tially roughly proportional -- the n a t i o n $4.2 b i l l i o n of community. community. goods a n d s e r v i c e s i n the neighborhood of supporting of t h e n a t i o n as a w h o l e . type cost $8 b i l l i o n , reason, So $700 m i l l i o n j u s t i c e was e s t i m a t e d a t part pools; o f w h i c h $215 m i l l i o n was b o r n e by the country approximately c o m m u n i t y was p r o b a b l y factor of proportion- goods a n d s e r v i c e s than for large. forms For t h i s t h e i m p a c t on N e g r o e s a 20 p e r c e n t c o s t the p o p u l a t i o n ) estimated population. $7 b i l l i o n w e r e a l l o c a t e d i s u n d o u b t e d l y much h i g h e r this the g h e t t o . of gambling are probably d i s t r i b u t e d For o t h e r loan sharking, in small i n v o l v e d may be f a i r l y sums a r e a s s o c i a t e d w i t h o t h e r a t e l y between t h e b l a c k and w h i t e ghetto very largest t h e economic c o s t s the t o t a l These a r e t y p i c a l l y they paid 7.0 cent per -26Th e p r i v a t e costs related p r e v e n t i o n d e v i c e s and s e r v i c e s , seems t h a t the b u l k of b e i n g done i n the expenses bail crime include insurance, s p e n d i n g on p r e v e n t i o n d e v i c e s a n d s e r v i c e s is community, and c o u n s e l were purchased r e l a t i v e l y $153 while a disproportionate is b e i n g b o r n e by n o n w h i t e s . of this l e s s by n o n w h i t e s , it was assumed t h a t 8 per cent of 1965. in Today, substantial prices 1969, the aggregate, rise the t o t a l in prices cost of category and $1.9 b i l l i o n and f o r Negroes 11 p e r c e n t o f i n the last it i n aggregate In presenting I think it is family income i n these estimates non- -- -- to or $2.3 or Since it important of the costs the impact t o emphasize community has s t r u g g l e d criminal 1969, was estimated $25 b i l l i o n t h e $33 compared in statistics. to $3 billion with I am individNever- that a significant Moreover, in families. of crime, the wealth to accumulate are being offenses. the consumer o f c r i m e on proportion of the billion because o f r e c e i v e d by a l l c a n n o t be c a p t u r e d income and a s i z a b l e the wastage of -- 10 p e r c e n t o f t h e $542 b i l l i o n certainly the hard-earned the black the t o t a l f i v e years. to sketch a broad overview; u a l s and f a m i l i e s theless, t h e above c r i m e s was assumed t o h a v e a m o u n t e d t o c l o s e This would represent almost attempting of t h e s e c r i m e s was a p p r o x i m a t e l y than 5 per cent of through the costs 16 p e r c e n t b e t w e e n 1965 a n d 1 9 6 9 , cost of Negroes r e c e i v e d of total t h e s e c o s t s w o u l d be much h i g h e r rose about billion. less the of Since part b l a c k community were about that share million. So, in and b a i l . as it p r e v e n t i o n s e r v i c e s make u p t h e l a r g e s t whites bore about such items On b a l a n c e , the w h i t e for to share that dissipated the cost of -27c r i m e i s b y no means e v e n l y d i s t r i b u t e d just as i t is not evenly d i s t r i b u t e d i n the Negro community i n the n a t i o n a t t h e p o o r e s t members a r e f a r more l i k e l y i n cases o f personal violence. Thus, l a t i o n w h i c h can l e a s t bear the costs of to carry a d i s p r o p o r t i o n a t e share o f what amounts imposed large. t o be v i c t i m s t h e segment o f -- Instead, especially the black popu- crime a r e most o f t e n to a forced criminally levy. The s i t u a t i o n o f distressing. Typically, provision of personal ghetto. The d i r e c t extremely heavy. t h e average Negro b u s i n e s s m a n i s he i s a s m a l l - s c a l e services losses This operator or i n l o w - m a r g i n r e t a i l i n g s u f f e r e d b y many o f is especially true of in the r e t a i l field President!s the r e t a i l associated w i t h crimes ( s u c h as s h o p l i f t i n g , may a m o u n t t o as much a s 2 p e r c e n t o f Since a f t e r - t a x losses p r o f i t margins in employee the v a l u e t e n d t o be t h i n i n the range o f 4-6 per c e n t ) , in these t h i s means t h a t may be e r o d i n g more t h a n o n e - t h i r d o f the net earnings businessmen. these figures do n o t r o b b e r y - - w h i c h a r e known t o inflict a staggering businessmen. Moreover, W i t h Negroes ghetto establishments, * Ibid, p. 48. t a k i n g over include are in the field theft, of a l l etc.) retail lines sales." (fre- the crime o f many losses tariff the the these merchants For example, Commission e s t i m a t e d t h a t equally engaged i n w h i c h many b l a c k b u s i n e s s m e n a r e c o n c e n t r a t e d . quently -- on toll black due to ghetto f r o m w h i t e s more a n d m o r e t h e y a r e b e a r i n g an i n c r e a s i n g share of the -28costs of crime. particularly In fact, among r e c e n t l y t r a c e d t o some e x t e n t to I n my o p i n i o n , the b l a c k violence Negro a significant proportion launched b l a c k businesses the adverse the time impact of is leaders black people I can understand - - who a r e o t h e r w i s e q u i c k -- t o speak o u t a g a i n s t Negroes. After all, behalf b l a c k people would l i k e of this opponents the aims o f of of some crime rates o f any p r o g r e s s purposes. of I on such In the " l a w and order11 o f an open and j u s t such remarks. of among own r e g r e s s i v e the achievement in tide t h a n t o use t h a t many a d v o c a t e s may a l s o m i s r e p r e s e n t rising nothing better same v e i n , concern for them. t o champion the w e l f a r e their without -- c a n be the r e l u c t a n c e the r i s i n g many i m p l a c a b l e can a n t i c i p a t e -- crimes against c r i t i c i s m as a m m u n i t i o n f o r I failures l o n g s i n c e p a s t when v o i c e s c o m m u n i t y s h o u l d be r a i s e d a g a i n s t and a g g r e s s i o n . of -- society recognize these risks. But I a l s o r e c o g n i z e an even g r e a t e r risk t h a t Negroes to protest their the opportunity t h e m s e l v e s may c o n f u s e unsatisfactory for us must be s t r o n g equally strong Concluding criminals the r i g h t in This of black i n our defense o f the former i n our condemnation o f the is the people the United States t o p r e y on e x p o s e d c i t i z e n s . -- with All of a n d we m u s t be latter! Remarks The m a i n c o n c l u s i o n s the o u t s e t . condition risk. However, I do w a n t of this d i s c u s s i o n were expressed t o make a f e w c o n c l u d i n g at observations. -29As I the economic l o o k ahead t h r o u g h t h e 1 9 7 0 f s , future the persistence e v e r y economic present o f d i s c r i m i n a t i o n and t h e o b v i o u s indicator affecting t i m e i s p o i s e d on t h e and t h e p a t h i s them, economic r e s o u r c e s am n o t still slippery, required. tion, Nevertheless, to obstruct community - vision there the white At yield this and w h i t e I (although t h e young p e o p l e - - disappointments. juncture i n our h i s t o r y , will we w i l l for down t o t h e the head, in recognize laws o f taxing task that the c u r r e n t this i s ahead o f of course, and that coopera- the not black its seem t o be longer t h e l a n d on o u r we h a v e purchasing decade. opportunity, us. I extent the power. c a n be u s e d t o e n h a n c e a n d u n d e r w r i t e a economic e q u a l i t y keep a c l e a r to N e g r o e s a r e no a n d we h a v e a s i z a b l e a n d g r o w i n g a m o u n t o f tained drive Of not allow t h e y may be e n f o r c e d w i t h r e t i c e n c e ) , These a r e weapons t h a t stock s i n c e r e l y hope t h a t We h a v e t h e b a s i c accu- s e g r e g a t i o n i s t s must of past completely powerless. shamefully community - - be f o r t h c o m i n g the advance i s an i n e s c a p a b l e need f o r the e f f o r t . particularly virtually c a n be b u i l t . t o be o b s c u r e d b y t h e a n g e r a n d f r u s t r a t i o n the n a t u r a l vote, of this w i l l and t h e b l a c k s e p a r a t i s t s be a l l o w e d side that in and a s i z a b l e on w h i c h marked p r o g r e s s confident Despite t h e b l a c k c o m m u n i t y has skills support about t h e A m e r i c a n Negro a t A l t h o u g h t h e p a c e has b e e n need t h e v i g o r o u s fully lags threshold of a s i g n i f i c a n t m u l a t e d a c o n s i d e r a b l e endowment o f they w i l l am o p t i m i s t i c o f black people i n the United States. toward economic e q u a l i t y . slow, I and sus- Hopefully, settle Estimated Costs of Crime t o t h e B l a c k Community, (Millions Type of of Dollars) Estimated Cost t o N a t i o n as a W h o l e fTotan Crime 1965 Estimated Black Per Cent of T o t a l Share o f t h e Community Amount Crimes a g a i n s t persons (Loss o f income, e t c . ) 815 15 122 Crimes a g a i n s t p r o p e r t y ( T r a n s f e r s and l o s s e s ) 3,932 15 590 O t h e r Crimes ( D r i v i n g under i n f l u e n c e of a l c o h o l , tax fraud, abortion) 2,036 10 204 I l l e g a l goods and s e r v i c e s Gambling Others ( n a r c o t i c s , loan-sharking, etc.) 8,075 7,000 11 10 915 700 1,075 20 215 4,212 7 295 1,910 8 153 20,980 11 2,279 P u b l i c law enforcement criminal justice and P r i v a t e costs r e l a t e d to Crime (Prevention devices, etc.) Total Source: E s t i m a t e s f o r t o t a l f r o m t h e P r e s i d e n t s C o m m i s s i o n on Law E n f o r c e m e n t and A d m i n i s t r a t i o n o f J u s t i c e , T a s k F o r c e on A s s e s s m e n t , R e p o r t : Crime ! l 1 1 and I t s I m p a c t : An A s s e s s m e n t a The E c o n o m i c I m p a c t o f C r i m e , Chapter 3 , pp. 42-59 (1967). P e r c e n t a g e o f Costs a l l o c a t e d t o Negro community e s t i m a t e d on b a s i s o f a s s u m p t i o n s e x p l a i n e d i n t e x t .
@FedFRASER