In this article I continue to discuss motivational factors that must be taken into account to develop different ideas for helping black Americans improve their position in the American economy. Decades of government programs and trillions of dollars have not achieved acceptable outcomes. Some black American demographics are worse now than when massive government programs started in the mid-1960’s, involving increased family breakup and increased number of children born out of wedlock by teenagers. Different knowledge must be applied to develop different approaches that will achieve acceptable outcomes.
This article, and several that follow, discuss a major motivational factor relating to people understanding the significance of what they do. People who understand the importance of their actions will strive harder to do better. To understand the importance of their actions black Americans, along with all common Americans, have to increase their knowledge and understanding of history.
News reports recently stated that Americans know little about history. Having extensive university course work and decades of independent reading in the social sciences, including history, reviewing high school and university history textbooks brings to mind the possibility that little governmental or media effort is directed toward Americans knowing much about the real past. Uninformed, uneducated people, kept ignorant of their past, are easily fooled and herded for the political and economic benefit of a few wealth people. People, who study the social sciences across the broad scope of history, can see this pattern. It has existed for thousands of years and is designed to control the many for the benefit of a wealthy few. The pattern continues to exist throughout the world but is little discussed in textbooks or publicized through media news or programs.
Because of our American representative/democratic form of government it is more difficult for a few wealthy people to control our government as opposed to other nations like England, China, Russia, Angola, Mexico, etc. These other nations’ governments recognize different classes of people within their populations either legally or on a practical basis. They are established based on the assumption that a few wealthy people will control the government and economy and these few people will stay wealthy generation after generation while most people will remain uneducated, uninformed, politically powerless, poor, and a source of cheap labor.
Throughout thousands of years the wealthiest nations have been class-based made up of a few people who controlled governmental power and structured the economy for their personal benefit. During the last 500 years a movement has gained traction based on the idea that all people should be first-class citizens. The American founding documents included words about people being created equal and having equal rights, etc. Our history has included progress toward making these words a legal and practical reality, but only since the mid-1950’s has our Supreme Court and Congress institutionalized these concepts into legal practice. This progress must be seen as a continuation of the American Revolution but progress has not been uniform or continuous. It has been a “two steps forward but one step back” activity. Our efforts to continue this revolution must continue today.
A normal, human impediment to continuing the American Revolution involves efforts by the already wealthy to control government for their benefit and pass their riches from generation to generation. Based on our democratic system and practical implementation of a classless society during the last 60 years, wealthy Americans must resort to other means to control government and the economy as opposed to those used in other nations. Today to maintain this control, the wealthy own media outlets including television and radio networks, newspapers, news websites, movie and television production companies, and contribute massive masses of cash to political campaigns.
The following articles briefly discuss several elements of this strategy, including passage and enforcement of laws and government regulations that encroach on civil rights and liberties and imprison large segments of Americans, overemphasis on the need for government and government protection, increased taxes for common Americans, and implementation of approaches that foster divisiveness among the common people. This strategy involves governmental pronouncements and manipulation of news and historical information designed to keep common Americans in their place. Of course, black Americans continue “in their place” where they have been for 400 years, but for them to do anything meaningful about this they have to better understand their past and devise new approaches to accomplish different results from that that have been resulting for the last 60 years.
Joseph L. Bass, Ed.D. is a retired business/organizational consultant, seeking to improve society using his decades of experience enhancing corporations and government agencies. What is a society other than a large, complex organization created by a people for their own betterment? He is executive director of the non-profit ABetterSociety.Info, Inc.
Showing posts with label african american money. Show all posts
Showing posts with label african american money. Show all posts
Monday, June 20, 2011
Thursday, June 9, 2011
Organizational and Motivational Factors
In this article I explore assumptions about the relationship between business and government organizations, our national economy, and different approaches for helping black Americans. What is a society other than a large, complex organization created by a people for their own betterment? This article begins a series discussing different approaches designed to achieve different conclusions for black Americans.
In a previous article I quoted Dr. Watkins who wrote the following in “Why Black Men Continue to Suffer, and Why It Must End Now” that was published in Your Black World on June 1, 2011. “… the state of black male existence and employment is at a 40-year low. But this 40-year low is preceded by a 400-year old problem. If we continue to address the problem in the same ways we have in the past, we will continue to reach the same conclusions and find the same faulty solutions. It’s time for a new day in black male America and that day must come right now.”
I agree with his words but think the issue should be expanded to include both black males and black females. Black Americans represent one of our greatest challenges that must be overcome. As everyone knows, these challenges come from the fact that black people were used as a source of legally-enforced cheap labor in the American economy from 1619 up until the mid-1950’s. If you are in doubt about this last date, see http://www.slaverybyanothername.com/. A quote from this website reads, “Across the South, a new variety of slavery emerged after the Civil War. Laws were rewritten to criminalize African-American life. The judicial system was retooled to provide cheap forced labor to mines, farms, timber camps, turpentine makers, railroad builders and entrepreneurs large and small. Tens of thousands of men, the vast majority of them black, found themselves pulled back into slavery.”
In previous articles I wrote about the on-going pattern of dramatic swings in our economy that help a few (Wall Streeters and bankers) and do not help the many in the long run. This is particularly true of black Americans who have been at the bottom of the economic ladder for 400 years. As Dr. Watkins wrote, to rectify this situation we have applied the same faulty solutions that have not resulted in desired conclusions. The bottom line is that none of what has been done has successfully addressed the real issues regarding black American’s employment, health, wealth, and retirement.
As an introduction to this series, this article discusses organizations and their relationship with our national economy. Before I retired I worked as a business/organizational consultant for corporations, government agencies, and non-profits. In virtually all cases, each organization I was asked to help was experiencing challenges related to employee/organizational productivity and motivation. Some of them were in such bad shape I represented their last-ditch effort to not close their doors and go bankrupt. My job was to determine why each organization was experiencing challenges and help them see how to overcome them. (Without pulling a muscle in my old shoulder while patting myself on the back, I can say I was quite good at doing this.) And it is my firm belief that the approaches I used with these organizations can be applied to our national economy. From my point of view the failed approaches attempted to help black Americans did not take into account knowledge that today is applied to business and governmental organizational improvement.
To develop different ideas for helping black Americans, as Dr. Watkins says we should, we have to apply different knowledge and develop different approaches. From my experience, the failed approaches were designed like a circuit board that didn’t have its power cord plugged in. Every improvement program I have studied and observed involved acquiring money, establishing goals, hiring staff, developing work processes and activities, advertising availability, and opening the doors. Not one program was established taking into account the electricity that makes human society successfully function – human motivation. Not one included group-process activities designed to foster the involvement and participation of the people the program was supposed to help. Not one included any determination of what the people the program was supposed to help would have to do themselves to insure program success. How can any human society successfully function without taking into account human motivational factors?
There will be more about this in future articles.
NOTE: If you are interested in knowing more about organizations and motivation read about Abraham Maslow’s hierarchy of needs and his 1954 book Motivation and Personality (See http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs), Frederick Herzberg’s motivational approaches and his book Work and the Nature of Man (See http://en.wikipedia.org/wiki/Frederick_Herzberg and http://en.wikipedia.org/wiki/Two-factor_theory), and J.R. Hackman’s and G.R. Oldham’s job satisfaction approaches and their book Organizational Behavior and Human Performance in a chapter titled Motivation through the Design of Work (See http://en.wikipedia.org/wiki/Job_satisfaction) These were my primary references for my doctoral dissertation at the University of Southern California.
Joseph L. Bass, Ed.D. is a retired business/organizational consultant, seeking to improve society using his decades of experience enhancing corporations and government agencies. What is a society other than a large, complex organization created by a people for their own betterment? He is executive director of the non-profit ABetterSociety.Info, Inc.
In a previous article I quoted Dr. Watkins who wrote the following in “Why Black Men Continue to Suffer, and Why It Must End Now” that was published in Your Black World on June 1, 2011. “… the state of black male existence and employment is at a 40-year low. But this 40-year low is preceded by a 400-year old problem. If we continue to address the problem in the same ways we have in the past, we will continue to reach the same conclusions and find the same faulty solutions. It’s time for a new day in black male America and that day must come right now.”
I agree with his words but think the issue should be expanded to include both black males and black females. Black Americans represent one of our greatest challenges that must be overcome. As everyone knows, these challenges come from the fact that black people were used as a source of legally-enforced cheap labor in the American economy from 1619 up until the mid-1950’s. If you are in doubt about this last date, see http://www.slaverybyanothername.com/. A quote from this website reads, “Across the South, a new variety of slavery emerged after the Civil War. Laws were rewritten to criminalize African-American life. The judicial system was retooled to provide cheap forced labor to mines, farms, timber camps, turpentine makers, railroad builders and entrepreneurs large and small. Tens of thousands of men, the vast majority of them black, found themselves pulled back into slavery.”
In previous articles I wrote about the on-going pattern of dramatic swings in our economy that help a few (Wall Streeters and bankers) and do not help the many in the long run. This is particularly true of black Americans who have been at the bottom of the economic ladder for 400 years. As Dr. Watkins wrote, to rectify this situation we have applied the same faulty solutions that have not resulted in desired conclusions. The bottom line is that none of what has been done has successfully addressed the real issues regarding black American’s employment, health, wealth, and retirement.
As an introduction to this series, this article discusses organizations and their relationship with our national economy. Before I retired I worked as a business/organizational consultant for corporations, government agencies, and non-profits. In virtually all cases, each organization I was asked to help was experiencing challenges related to employee/organizational productivity and motivation. Some of them were in such bad shape I represented their last-ditch effort to not close their doors and go bankrupt. My job was to determine why each organization was experiencing challenges and help them see how to overcome them. (Without pulling a muscle in my old shoulder while patting myself on the back, I can say I was quite good at doing this.) And it is my firm belief that the approaches I used with these organizations can be applied to our national economy. From my point of view the failed approaches attempted to help black Americans did not take into account knowledge that today is applied to business and governmental organizational improvement.
To develop different ideas for helping black Americans, as Dr. Watkins says we should, we have to apply different knowledge and develop different approaches. From my experience, the failed approaches were designed like a circuit board that didn’t have its power cord plugged in. Every improvement program I have studied and observed involved acquiring money, establishing goals, hiring staff, developing work processes and activities, advertising availability, and opening the doors. Not one program was established taking into account the electricity that makes human society successfully function – human motivation. Not one included group-process activities designed to foster the involvement and participation of the people the program was supposed to help. Not one included any determination of what the people the program was supposed to help would have to do themselves to insure program success. How can any human society successfully function without taking into account human motivational factors?
There will be more about this in future articles.
NOTE: If you are interested in knowing more about organizations and motivation read about Abraham Maslow’s hierarchy of needs and his 1954 book Motivation and Personality (See http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs), Frederick Herzberg’s motivational approaches and his book Work and the Nature of Man (See http://en.wikipedia.org/wiki/Frederick_Herzberg and http://en.wikipedia.org/wiki/Two-factor_theory), and J.R. Hackman’s and G.R. Oldham’s job satisfaction approaches and their book Organizational Behavior and Human Performance in a chapter titled Motivation through the Design of Work (See http://en.wikipedia.org/wiki/Job_satisfaction) These were my primary references for my doctoral dissertation at the University of Southern California.
Joseph L. Bass, Ed.D. is a retired business/organizational consultant, seeking to improve society using his decades of experience enhancing corporations and government agencies. What is a society other than a large, complex organization created by a people for their own betterment? He is executive director of the non-profit ABetterSociety.Info, Inc.
Wednesday, June 8, 2011
Other Artificial Economic Stimulators
In this article I explore assumptions about several other ways our economy is artificially stimulated. These stimulators do not, in the long run, help black Americans. The information provided is designed to question underlying assumptions. It is provided to help readers think critically and participate in an online dialogue. We all want effective programs that truly help black Americans, but successful programs have to be based on valid assumptions. Programs based on invalid assumptions will not achieve desired results.
Like other economic stimulators previously discussed, those discussed here cause dramatic economic ups and downs. When the economy goes up, the media and government make a lot of noise about black Americans doing so much better. But artificial stimulations that do not create wealth ultimately result in dramatic economic declines. Whether the economy goes up or down, Wall Streeters and bankers collect their market fees that they use to finance their incredible salaries and bonuses. A stable economy would not help fatten their personal and corporate bank accounts like an economy that dramatically swings. And this continuing pattern involves nothing directed toward overcoming the systemic issues associated with black Americans being on the bottom of the economic heap.
The economic stimulations discussed in this article and other articles result in on-going increases of governmental debt including the national debt, and state and local government debt. Combining difficult-to-come-by numbers, each American man, woman, and child must own about $60,000 in government debt that someday must be paid off. As this debt increases, government only pays (with our tax money) the interest on the debt, paying little, if anything, on the principle. Because government debt continues to rise, we have not created adequate wealth through the programs and activities financed with the money borrowed. (See http://www.cato.org/pubs/tbb/tbb_0706-37.pdf) Too much of our economy is a house of cards and government continues to borrow and spend money to artificially prop it up.
It is important to remember that a lot of the money spent by government comes from borrowing. It is also important to remember that little of this helps black Americans in the long run. As has always been the case, some black Americans continue to do well in our economy - Oprah is clearly not poor. What has not happened as yet is for a much larger percentage of black Americans to achieve an improved, stable livelihood in a growing, but stable, mainstream economy. When economic stimulators again result in a declining economy, these people will again not do well.
Economic stimulators briefly discussed in this article include various types of government spending that do create jobs but do not result in borrowed money being paid back.
Money spent by the Department of Defense and other federal government agencies on the Afghan war and the continuing conflict in Iraq will be greatly reduced when our government declares victory and brings the troops home. Government employees, members of the military, and defense contractor employees will be layoff and our economy will swing down. It always does following a military downturn based on either victory or defeat.
When other government spending is reduced in attempts to bring down debt, many government employees will lose their jobs as will employees of companies that sell goods and services to government agencies. These will surely include ineffective welfare and skills training programs that do not result in recipients getting a job and paying enough taxes to pay back the borrowed government money used to finance the ineffective programs.
In summary, this and recent articles deal with swinging business cycles that help a few (Wall Streeters and bankers) and does not help many in the long run (particularly black Americans). The bottom line is that none of this addresses the real issues regarding black American’s employment, health, wealth, and retirement. Future articles will deal with these issues.
Joseph L. Bass, Ed.D. is a retired business/organizational consultant, seeking to improve society using his decades of experience enhancing corporations and government agencies. What is a society other than a large organization created by a people for their own betterment? He is executive director of the non-profit ABetterSociety.Info, Inc.
Like other economic stimulators previously discussed, those discussed here cause dramatic economic ups and downs. When the economy goes up, the media and government make a lot of noise about black Americans doing so much better. But artificial stimulations that do not create wealth ultimately result in dramatic economic declines. Whether the economy goes up or down, Wall Streeters and bankers collect their market fees that they use to finance their incredible salaries and bonuses. A stable economy would not help fatten their personal and corporate bank accounts like an economy that dramatically swings. And this continuing pattern involves nothing directed toward overcoming the systemic issues associated with black Americans being on the bottom of the economic heap.
The economic stimulations discussed in this article and other articles result in on-going increases of governmental debt including the national debt, and state and local government debt. Combining difficult-to-come-by numbers, each American man, woman, and child must own about $60,000 in government debt that someday must be paid off. As this debt increases, government only pays (with our tax money) the interest on the debt, paying little, if anything, on the principle. Because government debt continues to rise, we have not created adequate wealth through the programs and activities financed with the money borrowed. (See http://www.cato.org/pubs/tbb/tbb_0706-37.pdf) Too much of our economy is a house of cards and government continues to borrow and spend money to artificially prop it up.
It is important to remember that a lot of the money spent by government comes from borrowing. It is also important to remember that little of this helps black Americans in the long run. As has always been the case, some black Americans continue to do well in our economy - Oprah is clearly not poor. What has not happened as yet is for a much larger percentage of black Americans to achieve an improved, stable livelihood in a growing, but stable, mainstream economy. When economic stimulators again result in a declining economy, these people will again not do well.
Economic stimulators briefly discussed in this article include various types of government spending that do create jobs but do not result in borrowed money being paid back.
Money spent by the Department of Defense and other federal government agencies on the Afghan war and the continuing conflict in Iraq will be greatly reduced when our government declares victory and brings the troops home. Government employees, members of the military, and defense contractor employees will be layoff and our economy will swing down. It always does following a military downturn based on either victory or defeat.
When other government spending is reduced in attempts to bring down debt, many government employees will lose their jobs as will employees of companies that sell goods and services to government agencies. These will surely include ineffective welfare and skills training programs that do not result in recipients getting a job and paying enough taxes to pay back the borrowed government money used to finance the ineffective programs.
In summary, this and recent articles deal with swinging business cycles that help a few (Wall Streeters and bankers) and does not help many in the long run (particularly black Americans). The bottom line is that none of this addresses the real issues regarding black American’s employment, health, wealth, and retirement. Future articles will deal with these issues.
Joseph L. Bass, Ed.D. is a retired business/organizational consultant, seeking to improve society using his decades of experience enhancing corporations and government agencies. What is a society other than a large organization created by a people for their own betterment? He is executive director of the non-profit ABetterSociety.Info, Inc.
Tuesday, June 7, 2011
Wall Streeter Games
In this article I explore assumptions about Wall Streeter and banker games that do not help black Americans. The information provided is designed to question underlying assumptions. It is provided to help readers think critically and participate in an online dialogue. We all want effective programs that truly help black Americans, but successful programs have to be based on valid assumptions. Programs based on invalid assumptions will not achieve desired results.
To explore these assumptions it is first necessary to discuss what is meant by “wealth.” Consider the following example. Two business people have $100,000 of their own money and borrow another $100,000 to create a business. Start-up costs include: renting a facility, securing business licenses and permits, paying for facility remodeling, paying for advertising, purchasing equipment, hiring staff, purchasing inventory, paying for power, heat, air conditioning, etc. They operate their business for one year. All start-up expenses created jobs for the people from whom they purchased goods and services, for the people they hired, and for themselves through paying themselves a monthly salary. At what point do they make a profit? At what point do they create wealth?
A reasonable business answer is: They make a profit, they create wealth, when they are able to pay their bills, pay their employees and themselves a monthly salary with benefits, and pay off the $200,000 used to start the business. When these conditions are met and they make one more dollar, they have made a dollar in profit (created $1.00 in wealth). If during the first year of operation the business were to fail, the partners have artificially stimulated the economy and artificially created jobs but created no wealth. When the business fails the partners have lost their investment and still have to pay off their debt or go bankrupt.
This example outlines the standard situation for any small business owner. One of the great challenges for small business owners, including black Americans, is that we continue to experience dramatic swings in the economy. These swings hinder effectively doing anything about the fact that many black Americans live on the bottom of the economic heap. When the economy swings up and black Americans do better, we hear “a rising tide raises all ships,” and the media and government cheer! When Wallstreeters’ and bankers’ house of cards falls many black Americans lose their jobs or businesses and their homes. And media and government focus is on rebuilding the same house of cards so we can do the same thing all over again.
One of the factors in these swings is that government allows large corporations to operate on different standards from those describe above for small businesses. For example, on April 26, 2011, the New York Times reported that Ford Motor Company made a quarterly profit of $2,550,000,000 ($2.55 billion). The same article reported that Ford’s chief executive is being paid $26,500,000 ($26.5 million) a year. (See http://www.nytimes.com/2011/04/27/business/27ford.html?_r=1&ref=fordmotorcompany). But it requires much internet searching to discover that Ford had a long term debt of $101,640,000,000 ($101.64 billion) on 3/31/11. (See http://ycharts.com/financials/F/quarterly_balance_sheet) How can a business claim to make a profit of $2.55 billion while still owing $101.64 billion in debt? And it is not uncommon for corporations with similar debts to pay share holders a dividend when the corporation hasn’t really made a profit. This practice allows corporations to channel borrowed money to share holders.
Why play this game or any of the other shell games played by Wall Streeters and bankers? The fundamental issue is that they want people to buy and sell “things” in their markets. Their “things” include stocks, bonds, derivatives, etc. They don’t care about the fundamental value of what they sell. The more attractive they can make purchasing their “things,” the more fees they can charge. The more ups and downs in the markets the more people buy and sell.
Regardless of the real value of what they sell, fees are their source of income. Their income is used to pay Wall Streeters and bankers huge salaries and bonuses. As long as these people are allowed to play their games, they will continue to channel money into their personal accounts while not creating real wealth for the American people. And they will do nothing to provide meaningful help for advancing black Americans into the mainstream economy.
Using the money from their personal and corporate accounts these people donate large amounts to political campaigns. They donate to candidates in both parties and, to a certain extent it doesn’t make any difference who wins. They have great influence with either candidate going into an election. Without regard for what should be done for black Americans, Wall Streeters and bankers only care about maintaining their games and the very large sums of money that flow into their personal accounts. As long as voters continue to allow themselves to be distracted by meaningless fringe issues that make up most campaign noise, economic swings that benefit a few will continue. Until American voters make it clear to politicians that changes must be made, nothing meaningful will be done for black Americans. What do readers think about this? Joseph L. Bass, Ed.D.
To explore these assumptions it is first necessary to discuss what is meant by “wealth.” Consider the following example. Two business people have $100,000 of their own money and borrow another $100,000 to create a business. Start-up costs include: renting a facility, securing business licenses and permits, paying for facility remodeling, paying for advertising, purchasing equipment, hiring staff, purchasing inventory, paying for power, heat, air conditioning, etc. They operate their business for one year. All start-up expenses created jobs for the people from whom they purchased goods and services, for the people they hired, and for themselves through paying themselves a monthly salary. At what point do they make a profit? At what point do they create wealth?
A reasonable business answer is: They make a profit, they create wealth, when they are able to pay their bills, pay their employees and themselves a monthly salary with benefits, and pay off the $200,000 used to start the business. When these conditions are met and they make one more dollar, they have made a dollar in profit (created $1.00 in wealth). If during the first year of operation the business were to fail, the partners have artificially stimulated the economy and artificially created jobs but created no wealth. When the business fails the partners have lost their investment and still have to pay off their debt or go bankrupt.
This example outlines the standard situation for any small business owner. One of the great challenges for small business owners, including black Americans, is that we continue to experience dramatic swings in the economy. These swings hinder effectively doing anything about the fact that many black Americans live on the bottom of the economic heap. When the economy swings up and black Americans do better, we hear “a rising tide raises all ships,” and the media and government cheer! When Wallstreeters’ and bankers’ house of cards falls many black Americans lose their jobs or businesses and their homes. And media and government focus is on rebuilding the same house of cards so we can do the same thing all over again.
One of the factors in these swings is that government allows large corporations to operate on different standards from those describe above for small businesses. For example, on April 26, 2011, the New York Times reported that Ford Motor Company made a quarterly profit of $2,550,000,000 ($2.55 billion). The same article reported that Ford’s chief executive is being paid $26,500,000 ($26.5 million) a year. (See http://www.nytimes.com/2011/04/27/business/27ford.html?_r=1&ref=fordmotorcompany). But it requires much internet searching to discover that Ford had a long term debt of $101,640,000,000 ($101.64 billion) on 3/31/11. (See http://ycharts.com/financials/F/quarterly_balance_sheet) How can a business claim to make a profit of $2.55 billion while still owing $101.64 billion in debt? And it is not uncommon for corporations with similar debts to pay share holders a dividend when the corporation hasn’t really made a profit. This practice allows corporations to channel borrowed money to share holders.
Why play this game or any of the other shell games played by Wall Streeters and bankers? The fundamental issue is that they want people to buy and sell “things” in their markets. Their “things” include stocks, bonds, derivatives, etc. They don’t care about the fundamental value of what they sell. The more attractive they can make purchasing their “things,” the more fees they can charge. The more ups and downs in the markets the more people buy and sell.
Regardless of the real value of what they sell, fees are their source of income. Their income is used to pay Wall Streeters and bankers huge salaries and bonuses. As long as these people are allowed to play their games, they will continue to channel money into their personal accounts while not creating real wealth for the American people. And they will do nothing to provide meaningful help for advancing black Americans into the mainstream economy.
Using the money from their personal and corporate accounts these people donate large amounts to political campaigns. They donate to candidates in both parties and, to a certain extent it doesn’t make any difference who wins. They have great influence with either candidate going into an election. Without regard for what should be done for black Americans, Wall Streeters and bankers only care about maintaining their games and the very large sums of money that flow into their personal accounts. As long as voters continue to allow themselves to be distracted by meaningless fringe issues that make up most campaign noise, economic swings that benefit a few will continue. Until American voters make it clear to politicians that changes must be made, nothing meaningful will be done for black Americans. What do readers think about this? Joseph L. Bass, Ed.D.
Monday, June 6, 2011
Creating Jobs vs Creating Wealth
In this article I explore assumptions people have about “solutions” for making life better for black Americans. I explore several assumptions about creating jobs as opposed to creating wealth, stimulating the economy artificially, and “a rising tide raises all boats.” The information provided is designed to question underlying assumptions. It is provided to help readers think critically and participate in an online dialogue. We all want effective programs that truly help black Americans, but successful programs have to be based on valid assumptions. Programs based on invalid assumptions will not achieve desired results.
Dr. Watkins wrote the following in “Why Black Men Continue to Suffer, and Why It Must End Now” that was published in Your Black World on June 1, 2011. “… the state of black male existence and employment is at a 40-year low. But this 40-year low is preceded by a 400-year old problem. If we continue to address the problem in the same ways we have in the past, we will continue to reach the same conclusions and find the same faulty solutions. It’s time for a new day in black male America and that day must come right now.”
I couldn’t agree more. Since Lyndon Johnson in the mid-1960’s we have applied the same “solutions” that have either partially worked, not worked, or made things worse. Too many activists campaign for more of the same programs that have not accomplished desired goals. And we have continued to allow financial practices that result in dramatic swings in the economy. Every time it goes down, like right now, black Americans suffer the most.
We can explore destructive welfare programs later, but suffice to say, like those in Europe, American versions provide sops for those not taking part in the mainstream economy. The sops are supposed to placate the poor while others make billions.
When the economy has been artificially stimulated, the media makes much of the supposed-improved lot of black Americans who temporarily have more jobs, make more money, etc. And this is when we hear “a rising tide raises all ships.” All this reinforces continuing to do the same things, allowing a few to put billions in their personal accounts while temporarily creating jobs that are not based on creation of wealth. Of course, this financial house of cards always falls and many black Americans lose their jobs and their homes. And media and government focus is on rebuilding the same house of cards so we can do the same thing all over again.
There are a number of ways to artificially create jobs without creating wealth. The most recent fiasco is a good example. As our American population grew people needed a place to live. People designed rental property or houses, other people built them, other people sold them, and other people made loans to those desiring to purchase. All of this created wealth as long as the renters and purchasers could pay their rent or make mortgage payments. In the past banks held the mortgages until they were paid off, making their money from interest.
But Wall Streeters and bankers are full of creative ways to make money for their personal accounts that create no additional wealth for the rest of us. Their questionable financial practices result in dramatic swings in the economy. These practices need to be examined and changed so that we can stabilize the economy and focus on the systematic problems that cause black Americans to be at the bottom of the heap. Until this is done, the economic swings and welfare sops will continue and many black Americans will continue “in their place.”
As is often the case, a Wall Streeter/banker “gimmick product” got us into our current mess. Instead of continuing the time-tested practice of bankers holding onto mortgages until paid off, they came up with the idea of packaging various types of mortgages and selling them on the market as separate products. These “products” were divorced from the wealth associated with houses and loans. Selling those produced fees used for Wall Streeters’ and bankers’ salaries and bonuses but created no additional wealth. The huge salaries and bonuses resulted in some of this “funny money” flowing into the economy, artificially stimulating the economy and artificially creating jobs. But all of this was divorced from the original wealth created through building rental buildings and houses.
Today stocks and other gimmick products are owned for seconds instead of being owned for years. This is true of your 401 (k) retirement package, which allows those handling your retirement money to buy and sell “things” as much as they want. This generates more and more fees that generated higher Wall Streeters’ and bankers’ salaries and bonuses.
As everyone knows there are other issues in the black world that need to be examined and addressed. But it will be extremely difficult to do so as long as we experience artificial economic stimulation, “boom or bust” economic swings, and a few making billions. Joseph L. Bass, Ed.D.
Dr. Watkins wrote the following in “Why Black Men Continue to Suffer, and Why It Must End Now” that was published in Your Black World on June 1, 2011. “… the state of black male existence and employment is at a 40-year low. But this 40-year low is preceded by a 400-year old problem. If we continue to address the problem in the same ways we have in the past, we will continue to reach the same conclusions and find the same faulty solutions. It’s time for a new day in black male America and that day must come right now.”
I couldn’t agree more. Since Lyndon Johnson in the mid-1960’s we have applied the same “solutions” that have either partially worked, not worked, or made things worse. Too many activists campaign for more of the same programs that have not accomplished desired goals. And we have continued to allow financial practices that result in dramatic swings in the economy. Every time it goes down, like right now, black Americans suffer the most.
We can explore destructive welfare programs later, but suffice to say, like those in Europe, American versions provide sops for those not taking part in the mainstream economy. The sops are supposed to placate the poor while others make billions.
When the economy has been artificially stimulated, the media makes much of the supposed-improved lot of black Americans who temporarily have more jobs, make more money, etc. And this is when we hear “a rising tide raises all ships.” All this reinforces continuing to do the same things, allowing a few to put billions in their personal accounts while temporarily creating jobs that are not based on creation of wealth. Of course, this financial house of cards always falls and many black Americans lose their jobs and their homes. And media and government focus is on rebuilding the same house of cards so we can do the same thing all over again.
There are a number of ways to artificially create jobs without creating wealth. The most recent fiasco is a good example. As our American population grew people needed a place to live. People designed rental property or houses, other people built them, other people sold them, and other people made loans to those desiring to purchase. All of this created wealth as long as the renters and purchasers could pay their rent or make mortgage payments. In the past banks held the mortgages until they were paid off, making their money from interest.
But Wall Streeters and bankers are full of creative ways to make money for their personal accounts that create no additional wealth for the rest of us. Their questionable financial practices result in dramatic swings in the economy. These practices need to be examined and changed so that we can stabilize the economy and focus on the systematic problems that cause black Americans to be at the bottom of the heap. Until this is done, the economic swings and welfare sops will continue and many black Americans will continue “in their place.”
As is often the case, a Wall Streeter/banker “gimmick product” got us into our current mess. Instead of continuing the time-tested practice of bankers holding onto mortgages until paid off, they came up with the idea of packaging various types of mortgages and selling them on the market as separate products. These “products” were divorced from the wealth associated with houses and loans. Selling those produced fees used for Wall Streeters’ and bankers’ salaries and bonuses but created no additional wealth. The huge salaries and bonuses resulted in some of this “funny money” flowing into the economy, artificially stimulating the economy and artificially creating jobs. But all of this was divorced from the original wealth created through building rental buildings and houses.
Today stocks and other gimmick products are owned for seconds instead of being owned for years. This is true of your 401 (k) retirement package, which allows those handling your retirement money to buy and sell “things” as much as they want. This generates more and more fees that generated higher Wall Streeters’ and bankers’ salaries and bonuses.
As everyone knows there are other issues in the black world that need to be examined and addressed. But it will be extremely difficult to do so as long as we experience artificial economic stimulation, “boom or bust” economic swings, and a few making billions. Joseph L. Bass, Ed.D.
Saturday, April 17, 2010
The Latest Black News - 4/16/10
Labor protest lands Danny Glover behind bars
By theGrio
10:14 PM on 04/16/2010
GAITHERSBURG, Maryland (AP) - Actor Danny Glover and 11 others have been arrested during a labor union protest at the headquarters of a food service company...
Tea Partiers go after Obama's 'gangster government'
By theGrio
6:00 PM on 04/16/2010
WASHINGTON (AP) - "We're on to this gangster government," Rep. Michele Bachmann declared. "I say it's time for these little piggies to go home."..
Obama extends health care rights to gay partners
By theGrio
5:28 PM on 04/16/2010
WASHINGTON (AP) - The move was called a major step toward fairness for lesbian, gay, bisexual and transgender Americans...
Officer behind Roethlisberger report resigns amid scandal leaks
By theGrio
5:17 PM on 04/16/2010
MILLEDGEVILLE, Ga. (AP) - The documents show Sgt. Jerry Blash acknowledged to investigators that he made derogatory statements about Roethlisberger's accuser to other officers...
Spelman College gets $1 million technology grant
By theGrio
5:05 PM on 04/16/2010
ATLANTA (AP) - Spelman College will use a $1 million grant to increase the number of engineers who are black women...
Mystery dust blankets Detroit
By theGrio
4:06 PM on 04/16/2010
VIDEO - A thin layer of dust that is coating cars, lawns, windows and homes in one Detroit neighborhood is being questioned by residents as a health risk...
Lawyer for Jackson's doctor says no plea bargain
By theGrio
3:15 PM on 04/16/2010
LOS ANGELES (AP) - The case against Dr. Conrad Murray is complicated, involving drugs, dosages, medical protocols and other complex issues...
Michelle Obama: 'I am not a political animal'
3:14 PM on 04/16/2010
VIDEO - "I am not a political animal," says Michelle. "I think the whole arena of politics cuts against the grain of who I am authentically."...
Durant becomes NBA's youngest scoring champ
By theGrio
2:02 PM on 04/16/2010
OKLAHOMA CITY (AP) - Kevin Durant earned himself a place in NBA history. Without a trip to the playoffs, too, it would be nearly as special...
Obama assassination plotter gets 10 years behind bars
By theGrio
1:03 PM on 04/16/2010
JACKSON, Tenn. (AP) - A young white supremacist was sentenced Thursday to 10 years in prison for conspiring to kill then-presidential candidate Barack Obama and dozens of other blacks....
Brandon Marshall welcomes clean slate in Miami
By theGrio
12:49 PM on 04/16/2010
PLANTATION, Fla. (AP) - Marshall walked into the room with a clean slate and a new contract that makes him one of the NFL's best-paid receivers. No wonder he wore a grin from earring to earring...
Government charges Goldman Sachs with fraud for subprime swindle
By theGrio
11:28 AM on 04/16/2010
WASHINGTON (AP) - The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering...
Saturday, February 27, 2010
Your News: Anita Baker Barely Misses Going to Jail
Singing great Anita Baker barely missed going to jail Friday in a dispute with her ex-husband over music royalties. The 52-year old Baker found herself in a heated battle with Walter Bridgforth, her ex-husband, over the details of their divorce settlement.
"I'm so happy. ... I have never been in such a position before," Baker said in the hallway outside court. "And we don't intend to ever be in such a position ever again. I just wanna go home,and I'm happy to go home. ... As horrific as it could have been, it was lovely to feel supported, though, on the other end."
Baker was faced with a deadline Wednesday to sign documents that empower court-appointed music contract expert Howard Hertz to obtain information from record labels regarding how much Baker owed her ex-husband. The deadline passed and Baker still had not signed. This led to the Wayne County Chief Family Court Judge Lita Masini Popke ordering Baker to either show up in court on Friday or go to jail.
Thursday, February 5, 2009
Obama and Faith-Based Initiatives: He Pushes Them Through
President Obama established his own faith-based initiatives office Thursday, reversing a Bush administration policy that allowed churches to discriminate in their hiring practices.
"Whatever our differences, there is one law that binds all great religions together . . . It is, of course, the golden rule, the call to love one another, to understand one another, to treat with dignity and respect those with whom we share a brief moment on this Earth," Obama said at the National Prayer Breakfast.
"It is an ancient rule, a simple rule, but also perhaps the most challenging, for it asks each of us to take some measure of responsibility for the well-being of people we may not know or worship with, or agree with on every issue or any issue," he added as he unveiled his faith-based agenda.
Obama signed an executive order creating the Office of Faith-based and Neighborhood Partnerships. Unlike ex-President Bush, churches with hiring policies that discriminate won't be eligible for federal grants under the executive order.
Wednesday, February 4, 2009
Your Black Wealth: Big Test on Stimulus for Barack Obama
A contentious debate over a "Buy American" provision in the economic stimulus package poses an early test for President Obama on both domestic politics and foreign policy.
The Senate this week is considering an $885 billion bill designed to help mend the ailing economy, which requires all "manufactured goods" purchased with stimulus money to be made in the United States. The House already has approved a narrower bill mandating the use of domestic iron and steel.
To supporters, including labor unions that helped the Democrats retake the White House last year, a "Buy American" requirement is just common sense at a time of economic crisis and rising unemployment. Factories have been hemorrhaging jobs for years; manufacturing employment is now 12.9 million, down from 17.2 million at the end of 2000. If Congress doesn't insist upon the use of U.S.-made materials, taxpayer funds could line the pockets of European or Chinese workers rather than hard-hit Americans.
Technorati Tags: african american money,african american wealth,black money,black wealth,barack obama
Sunday, February 1, 2009
Black News: Banks Used Federal Stimulus to Hire Foreign Workers
Banks collecting billions of dollars in federal bailout money sought government permission to bring thousands of foreign workers to the U.S. for high-paying jobs, according to an Associated Press review of visa applications.
The dozen banks receiving the biggest rescue packages, totaling more than $150 billion, requested visas for more than 21,800 foreign workers over the past six years for positions that included senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. The average annual salary for those jobs was $90,721, nearly twice the median income for all American households.
The figures are significant because they show that the bailed-out banks, being kept afloat with U.S. taxpayer money, actively sought to hire foreign workers instead of American workers. As the economic collapse worsened last year — with huge numbers of bank employees laid off — the numbers of visas sought by the dozen banks in AP's analysis increased by nearly one-third, from 3,258 in fiscal 2007 to 4,163 in fiscal 2008.
Technorati Tags: black money,african american money,black wealth,african american wealth,black investing
Saturday, November 29, 2008
Can We Trust The Government To Protect Our Money?
By Dr. Boyce Watkins
www.BoyceWatkins.com
Media reports show that many Americans are not quite sure of what to do with their money. Watching banks fail left and right, people are logically afraid of what might happen to their savings. This fear is justified, as we are seeing our accounts beaten and stomped by the global financial meltdown.
This grave concern is magnified by the fact that those we’ve trusted are the ones who’ve left us vulnerable. Our most cherished financial experts handled our retirement accounts like flashy vehicles on a Nascar speedway. Our elected officials allowed executives in the banking industry to run rampant like 3-year olds with dirty diapers. Then, when the crash came, a massive bailout package was created for those most responsible for the damage, while the rest of us were left holding the tax bill.
This begs the question: Why in the hell should we trust the government?
I recall that during the failure of Enron, one of the most respected companies in America at the time, the firm made several statements designed to create confidence in the company’s financial condition. Like captains of the Titanic, company leaders explained that there was nothing to worry about, even as they themselves were preparing their lifeboats. When the company failed, those who did not protect themselves reminded us of one grim and fundamental truth: when the “you know what” hits the fan, it’s every man for himself….and every woman too, in case you’re wondering.
In response to such sentiment, the American consumer has been working overtime to protect his/her resources: people have (against my advice) moved their money away from the frightening stock market, they are diversifying money into different banks, and some are taking their money out of banks altogether. All of these actions are occurring in spite of government calls for calm in a world on the verge of financial panic.
The honest to goodness truth is that I don’t blame Americans for being afraid. I don’t blame them for not trusting the government right now. Trust must be earned in any relationship, whether it is a tough marriage of the relationship between a government and its citizens. Our government must work to regain that trust through sound and efficient financial management. It will NOT regenerate the public trust through excessive spending on meaningless wars, selfish pork-filled bills being passed through Congress and budget deficits that strain the resources of Americans everywhere.
I can’t tell you if the government is lying to you, but I can tell you this: There was a time when government guarantees such as FDIC insurance were as pure as the driven snow. There was a time when the United States Federal Government had pockets and resources so deep that even God himself could be bailed out with our cash. The sad truth, however, is that no empire lasts forever, and there is destined to be a day in the future when we are no longer the unquestionable economic super power that we once were. A country that can’t even afford its social security obligations is hardly a nation that has risen beyond economic risk.
Another sad truth is that if the financial world really were coming to an end, the citizens would be the last to find out about any such crisis. We would, simultaneously, be the first ones asked to suffer the burden of irresponsible behavior by our leaders. If that doesn’t justify a bit of skepticism, I am not sure what does.
Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, ESPN, CBS and BET. For more information, please visit www.BoyceWatkins.com.
Wednesday, November 26, 2008
Creating Consumer Confidence Tips From Boyce Watkins
Dr. Boyce Watkins
www.Boycewatkins.com
www.Boycewatkins.com
If you wish to see a video explaining consumer confidence, which is one of the driving issues behind the recent moves in the stock market, please click here.
This has been an interesting week, with auto execs showing up on private jets to request a bailout from the government and the Dow moving to below 8,000 points for the first time in 5 years. I still hold to the fact that this is a great time to get into the stock market if one has never done so before, especially if you are under the age of 50. By the way - please visit our sponsor, GreatBlackSpeakers.com if you are interested in hiring a top notch African American speaker or seeking to become one.
Take care!
Boyce Watkins
http://www.blogger.com/www.boycewatkins.com
Click here to join our money advice list.
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If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.
Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:
1) Confident consumers spend money
If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.
2) Confident companies invest money and hire workers
Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.
3) Confident Americans do not take their money out of banks
In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.
4) Confident investors keep their money in the stock market
The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.
5) Confident banks make loans
Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.
The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.
Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, BET, ESPN and CBS. For more information, please visit http://www.blogger.com/www.boycewatkins.com. To join our money list, please click here.
Tuesday, October 14, 2008
Your Black News: Black America ‘Gets Pneumonia’ in Cold Economic Climate
WASHINGTON (NNPA) - As the Black unemployment rate leaped another eight percentage points last month – from 10.6 percent to 11.4 percent, the White unemployment rate actually remained the same – at 5.4 percent, less than half the rate for Blacks. In addition to that in every economic category, from the poverty rate to housing loss African-Americans remain historically and consistently at rock bottom – a condition exacerbated by the national housing and Wall Street financial crisis that forced Congress to reluctantly pass a $700 billion bailout last week.
''We're in a weaker financial position related to the mainstream in the first place,'' said Alfred A. Edmond, Jr., editor-in-chief of BlackEnterprise.com, in an interview with the NNPA News Service. “The saying goes, 'when the rest of America gets a cold, Black America gets pneumonia.''
Edmond is just one among Black economic experts across the nation who say as America observes the economic fall out even after the congressional bailout of lending and investment agencies last week, African-Americans must establish creative ways to stay afloat.
“In every relevant economic number, Black people are worse off today than they were in 2000,” says Natioal Urban League President and CEO Marc Morial, in an interview following a Black Leadership Forum telephone conference pertaining to get out to vote efforts as well as the economic bailout. “We’ve lost ground in home ownership, we’ve lost ground in employment, we’ve lost ground in wage verses inflation, we have just lost ground economically in the last eight years.”
Morial says the bailout was not a rescue but just something to help stop the bleeding. “The ramifications of not doing it were worse than the ramification of doing it. For there not to be any credit, obviously, when it hurts big businesses, it hurts small business and it hurts the average consumer, automobile loans, personal finance loans, credit cards, that kind of thing,” said Morial. “My position would have been that we have to hold our noses and go forth.” Morial, who predicted the mortgage crisis in the spring of last year, said the bailout will not be enough for Black people and will take many months to execute.
Photo from www.thorainstitute.com
Monday, October 13, 2008
"Black News: Dr Boyce Watkins Explains Credit Reports"
By Dr. Boyce Watkins
http://www.drboycefinance.com/
Where do Credit Scores come from?
Unlike babies, credit scores do not come from a financial stork. There are 3 major credit bureaus in the United States: Experian, Trans Union and Equifax. Companies subscribe to their services to obtain information about you to decide if you are credit worthy or not. Under the old system, the credit scores ranged from 375 to 900. Under the new VantageScore system, they range from 501 to 990. The new system is more consistent among various credit bureaus, so you don’t end up with scores that go all over the place.
How can I get a copy of my report?
I personally go to a site called Myfico.com, where you can order reports from all 3 bureaus or just one. You can also go to freecreditreport.com (you know, the site with the really funny commercials). The law says that you are entitled to at least one free credit report every year. Also, if you are denied credit for any reason, you can write the bureaus, sending along a copy of the rejection letter, and request a copy of your credit report. If you choose to pay for your report, it will likely cost you about $8 dollars.
What factors go into calculating a credit score?
The factors that go into calculating a credit score are a little vague and it’s protected like the recipe for KFC chicken. While the formula is well-guarded, we do have some guidelines on what factors are theoretically used to determine whether or not someone should loan money to you.
The factors are broken into what they call “The Four C’s of Credit”: Character, collateral, capacity, capital and conditions.
Character is their way of trying to decide if you are a good person or not. I don’t agree with this, since having bad credit does not make you a bad person. It just makes you a person who does not have a good track record when it comes to borrowing money.
Capacity is represented mostly by your income level and how much money you’re expected to earn in the future.
Capital is noted by the amount of cash you have in reserves and other liquid assets at your disposal. If you have capital, that means you can withstand a short-term decline in income and still make payments.
Conditions are reflected by the environment in which you live. It might include the state of the economy, your line of work and other external factors that might impact your credit report. For example, during the liquidity crisis in America, conditions for lending are very, very bad.
Now you know where credit scores come from. You probably have more questions, since there is a lot of ground to cover. To get more information, please feel free to learn along with me and my students by visiting http://www.drboycefinance.com/.
Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, ESPN, BET and CBS. For more information, please visit www.BoyceWatkins.com
Thursday, October 9, 2008
Wednesday, October 8, 2008
Dr Boyce Watkins: Fighting with Bill Collectors
One of the groups that was not bailed out during the recent financial crisis has been the American consumer. Congress took care of the firms on Wall Street, but they didn’t take care of the millions of Americans forced to confront the realities of bankruptcy, foreclosure and uncomfortable confrontations with menacing bill collectors. It appears, sadly, that every man and woman must find their own way through this financial tragedy.
Bill Collectors really want their money, like the rest of us. Some of them seem to feel that it’s O.K. to resort to flat out thuggish intimidation to get their money back. That might work on The Sopranos, but it shouldn't work in real life.
Part of the reason abusive bill collectors can have their way with the public is because many citizens do not know their rights. Bill collectors prey on the uninformed in a terrible way: They may threaten to have you arrested, harass your relatives, call all hours of the night, and engage in other types of atrocious behavior to get their money out of your hide.
One woman successfully sued a rogue bill collector after he called her repeatedly with threatening language. The woman, a senior citizen, was told by the man to "Stop with the sob stories and pay your god d*m bill!" This kind of behavior is not acceptable, and bill collector harassment doesn’t have to keep you up at night.
The Federal Trade Commission states that complaints against bill collectors are rising, reaching the highest level they've seen in the past 3 years. Most of the complaints focus on vulgar language, trying to collect more than the amount of the true debt, and extra fees, such as court costs.
You have rights that can protect you from bad and malicious bill collectors. You want to keep these in mind as you work yourself out of debt:
1) There is something called "The Fair Debt Collection Practices Act". If you are not familiar with this document, get familiar with it. You can read it by clicking here.
2) A bill collector cannot contact you at work if your employer does not approve of the contact. Let the bill collector know that this is the case and they must legally stop contacting you at your job.
3) Bill collectors cannot call you before 8 am or after 9 pm. The only exception is if you give them permission to do so.
4) A bill collector can only contact your friends and family if they are trying to find a way to get in touch with you. However, some of them may do this in order to harass or embarrass you. If that is the case, you may want to tell your friends to tell the bill collector, "She does not live here and I do not know how to get in touch with her. Please don't call here anymore." Then, get the bill collector's information from your friend and reach out to them when you can.
5) You can get bill collectors to stop contacting you altogether by sending them a letter telling them to stop. You still must pay the debt, but they won't be calling you during dinner.
6) The bill collector cannot curse at you or use foul language and they must tell the truth about how much you owe. They cannot threaten to sue unless they are serious about it, and they can't touch your 401k or IRA.
7) If the bill collectors call you, you can demand that they send you a written notice of the amount you owe and who you owe the money to. If you do not believe that the debt is yours, you can write a letter to them stating that this is not your debt. They must then send you proof that the debt is actually yours.
If you feel that a debt collector has violated any of these rules, you can contact the Federal Trade Commission at www.ftc.gov. Remember that you are not powerless in this situation.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of Financial Lovemaking 101: Merging Asset with Your Partner in Ways that Feel Good. He does regular commentary in national media, including CNN, CBS, NBC and BET. For more information, please visit www.BoyceWatkins.com. This information does not constitute legal advice. For legal advice, please consult your attorney.
Monday, September 22, 2008
My New Book: Black American Money
I should begin by saying that I am not a Finance Professor who happens to be Black. Rather, I am a Black man who happens to be a finance Professor. The goal of this work was not to create yet another book analyzing money to the nth degree, discussing stocks, bonds, charts and portfolios. I see money as a tool for the enhancement of life and the liberation of a people. I also see money as part of a nexus of critical issues that drive the world in which we live.
So, this book is not going to be about money throughout. It does not contain a long list of nuts and bolts financial advice. It is a discussion, by a Black social commentator who cares about his people, who also happens to be an educator and a Financial expert. So, imagine a person who is an expert at cooking steak, chicken and carrots, but insists upon making sure the plate has a little bit of each. I have never been one dimensional in my analysis, because linear, limited thinking is how one consistently misses the big picture.
In this book, you are going to get first hand analysis of how money plays a role in critical Black issues and leadership, from The State of the Black Union to Civil Rights. I will openly and honestly share my behind-the-scenes experiences with CNN, FOX, ESPN and other networks. You will hear about academia, as I take you for a quick trip into the ivory tower for a discussion of how economic incentives impact the value systems of today’s “Blackademics”. The trip will be long and broad, and won’t just focus on money. Rather, the focus is on capital of all types, not just financial capital.
Money, like any other powerful object, can either be incredibly constructive or horrifically destructive. It can ruin families or make people strong. It can liberate, enslave and do everything in between. You can improve the lives of those you love or ruin your relationships with loved ones. Money can do many amazing things in a capitalist society. Therefore, understanding money, embracing the power of money and controlling the power of money is clearly, without question, an undeniably meaningful part of the movement toward equal rights.
This was an introduction to the forthcoming book "Black American Money", written by Dr. Boyce Watkins. For more information, please visit www.BoyceWatkins.com.
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