The Color of Money : Black Banks and the Racial Wealth Gap

"Read this book. It explains so much about the moment...Beautiful, heartbreaking work."--Ta-Nehisi CoatesWhen the Emancipation Proclamation was signed in 1863, the black community owned less than one percent of the United States' total wealth. More than 150 years later, that number has barely budged. The Color of Money pursues the persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks. Studying these institutions over time, Mehrsa Baradaran challenges the myth that black communities could ever accumulate wealth in a segregated economy. Instead, housing segregation, racism, and Jim Crow credit policies created an inescapable, but hard to detect, economic trap for black communities and their banks.The catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. Not only could black banks not "control the black dollar" due to the dynamics of bank depositing and lending but they drained black capital into white banks, leaving the black economy with the scraps.Baradaran challenges the long-standing notion that black banking and community self-help is the solution to the racial wealth gap. These initiatives have functioned as a potent political decoy to avoid more fundamental reforms and racial redress. Examining the fruits of past policies and the operation of banking in a segregated economy, she makes clear that only bolder, more realistic views of banking's relation to black communities will end the cycle of poverty and promote black wealth. When The Emancipation Proclamation Was Signed In 1863, The Black Community Owned Less Than One Percent Of The United States' Total Wealth. More Than 150 Years Later, That Number Has Barely Budged. The Color Of Money Pursues The Persistence Of This Racial Wealth Gap By Focusing On The Generators Of Wealth In The Black Community: Black Banks. Studying These Institutions Over Time, Mehrsa Baradaran Challenges The Myth That Black Communities Could Ever Accumulate Wealth In A Segregated Economy. Instead, Housing Segregation, Racism, And Jim Crow Credit Policies Created An Inescapable, But Hard To Detect, Economic Trap For Black Communities And Their Banks. The Catch-22 Of Black Banking Is That The Very Institutions Needed To Help Communities Escape The Deep Poverty Caused By Discrimination And Segregation Inevitably Became Victims Of That Same Poverty. Not Only Could Black Banks Not Control The Black Dollar Due To The Dynamics Of Bank Depositing And Lending But They Drained Black Capital Into White Banks, Leaving The Black Economy With The Scraps. Baradaran Challenges The Long-standing Notion That Black Banking And Community Self-help Is The Solution To The Racial Wealth Gap. These Initiatives Have Functioned As A Potent Political Decoy To Avoid More Fundamental Reforms And Racial Redress. Examining The Fruits Of Past Policies And The Operation Of Banking In A Segregated Economy, She Makes Clear That Only Bolder, More Realistic Views Of Banking's Relation To Black Communities Will End The Cycle Of Poverty And Promote Black Wealth. -- Book Jacket. Forty Acres Or A Savings Bank -- Capitalism Without Capital -- The Rise Of Black Banking -- The New Deal For White America -- Civil Rights Dreams, Economic Nightmares -- The Decoy Of Black Capitalism -- The Free Market Confronts Black Poverty -- The Color Of Money Matters. Mehrsa Baradaran. Includes Bibliographical References (pages 289-357) And Index. Read this book. It explains so much about the momentBeautiful, heartbreaking work. Ta-Nehisi Coates When the Emancipation Proclamation was signed in 1863, the black community owned less than one percent of the United States total wealth. More than 150 years later, that number has barely budged. The Color of Money pursues the persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks. Studying these institutions over time, Mehrsa Baradaran challenges the myth that black communities could ever accumulate wealth in a segregated economy. Instead, housing segregation, racism, and Jim Crow credit policies created an inescapable, but hard to detect, economic trap for black communities and their banks. The catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. Not only could black banks not control the black dollar due to the dynamics of bank depositing and lending but they drained black capital into white banks, leaving the black economy with the scraps. Baradaran challenges the long-standing notion that black banking and community self-help is the solution to the racial wealth gap. These initiatives have functioned as a potent political decoy to avoid more fundamental reforms and racial redress. Examining the fruits of past policies and the operation of banking in a segregated economy, she makes clear that only bolder, more realistic views of bankings relation to black communities will end the cycle of poverty and promote black wealth. “Read this book. It explains so much about the moment...Beautiful, heartbreaking work.”—Ta-Nehisi Coates“A deep accounting of how America got to a point where a median white family has 13 times more wealth than the median black family.”—The Atlantic“Extraordinary...Baradaran focuses on a part of the American story that's often ignored: the way African Americans were locked out of the financial engines that create wealth in America.”—Ezra KleinWhen the Emancipation Proclamation was signed in 1863, the black community owned less than 1 percent of the total wealth in America. More than 150 years later, that number has barely budged. The Color of Money seeks to explain the stubborn persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks.With the civil rights movement in full swing, President Nixon promoted “black capitalism,” a plan to support black banks and minority-owned businesses. But the catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. In this timely and eye-opening account, Baradaran challenges the long-standing belief that black communities could ever really hope to accumulate wealth in a segregated economy.“Black capitalism has not improved the economic lives of black people, and Baradaran deftly explains the reasons why.”—Los Angeles Review of Books“A must read for anyone interested in closing America's racial wealth gap.”—Black Perspectives "When the Emancipation Proclamation was signed in 1863, the black community owned less than one percent of the United States' total wealth. More than 150 years later, that number has barely budged. The Color of Money pursues the persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks. Studying these institutions over time, Mehrsa Baradaran challenges the myth that black communities could ever accumulate wealth in a segregated economy. Instead, housing segregation, racism, and Jim Crow credit policies created an inescapable, but hard to detect, economic trap for black communities and their banks. The Catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. Not only could black banks not "control the black dollar" due to the dynamics of bank depositing and lending but they drained black capital into white banks, leaving the black economy with the scraps. Baradaran challenges the long-standing notion that black banking and community self-help is the solution to the racial wealth gap. These initiatives have functioned as a potent political decoy to avoid more fundamental reforms and racial redress. Examining the fruits of past policies and the operation of banking in a segregated economy, she makes clear that only bolder, more realistic views of banking's relation to black communities will end the cycle of poverty and promote black wealth."--Dust jacket "When the Emancipation Proclamation was signed in 1863, the black community owned less than one percent of the United States' total wealth. More than one hundred and fifty years later, that number has barely budged. The Color of Money seeks to explain the stubborn persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks. With the civil rights movement in full swing, President Nixon promoted "black capitalism," a plan to support black banks and minority-owned businesses. But the catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. In this timely and eye-opening account, Baradaran challenges the long-standing belief that black communities could ever really hope to accumulate wealth in a segregated economy"--Back cover. In 1863 black communities owned less than 1 percent of total U.S. wealth. Today that number has barely budged. Mehrsa Baradaran pursues this wealth gap by focusing on black banks. She challenges the myth that black banking is the solution to the racial wealth gap and argues that black communities can never accumulate wealth in a segregated economy. Contents Introduction 1. Forty Acres or a Savings Bank 2. Capitalism without Capital 3. The Rise of Black Banking 4. The New Deal for White America 5. Civil Rights Dreams, Economic Nightmares 6. The Decoy of Black Capitalism 7. The Free Market Confronts Black Poverty 8. The Color of Money Matters Epilogue Notes Acknowledgements Index