Business and Finance
Black businesses face an uphill battle after an overturned racism ruling
Earlier this month, a federal judge dealt one other blow to the federal government’s efforts to shut the racial equity gap and higher serve Black and Brown communities.
The latest setback was Judge Mark Pittman’s ruling ordering the Minority Business Development Agency (MBDA) to now not take race or ethnicity into consideration when providing services to small businesses within the US.
“This is not one attack, but a series of attacks on the measures the federal government has put in place to address it,” Patrice Willoughby, senior vice chairman for global policy and impact on the National Association for the Advancement of Colored People (NAACP), told Grio.
Using the identical constitutional argument that the U.S. Supreme Court used to strike down race-conscious affirmative motion in college admissions last yr, Pittman, appointed by former President Donald Trump to the U.S. District Court for the Northern District of Texas, concluded that MBDA qualified by identifying themselves as “disadvantaged persons,” business owners violated the Equal Protection Clause of the 14th Amendment.
In other words, the judge argued that the agency violated the constitutional rights of white business owners.
“While the agency’s work may help reduce opportunity gaps facing MBEs (minority business owners), two wrongs do not make a right,” Pittman wrote in his ruling.
Elected officials and supporters are condemning the federal court’s ruling, blaming a movement led by conservatives and supported by Republican-appointed judges that’s undermining decades-long efforts to right historic wrongs which have affected Black and brown communities. Advocates fear that the MBDA ruling could further exacerbate existing racial disparities in property and wealth.
“We really should see this as a response to Black economic progress,” said Willoughby, former executive director of the Congressional Black Caucus. “It is very clear that because discrimination still exists, these programs are still needed.”
The mission of the Minority Business Development Agency is to advertise the expansion and competitiveness of minority-owned businesses within the United States. MBDA provides minority business owners with access to capital, contracts and advisory services. Ironically, the agency was founded by Republican President Richard Nixon in 1969. Under Democrat Joe Biden, it became a everlasting agency under federal law, expanding its reach nationwide.
White House press secretary Karine Jean-Pierre told the Grio that Biden is “very proud” of signing MBDA’s everlasting government status into law.
“Over the last three years, 16 million applications have started under this administration, which is important,” a Biden spokesman said. “There was definitely a boost… with minority-owned businesses starting their small businesses.”
Now that MBDA will probably be legally required to make its programs available to white business owners, experts fear it should feed into already existing patterns of implicit or explicit racial bias and further widen the racial wealth gap.
“Basically, people will do business with people they like,” Willoughby explained. “They want to increase the visibility of who can benefit underground, so that there is no oversight, no regulation, and no broader assistance when it comes to DEI.”
Samantha Tweedy, chief executive of the Black Economic Alliance, said the judge’s ruling “results in the MBDA being unable to support diverse business owners navigating an economic system that research shows is permeated by racial bias.”
“We know this is the goal of many who want to reclaim the paths of economic progress open to the Black community,” said Tweedy, who called on Congress and the White House to “step in to protect the vital role of MBDA.” ”
So far, “reversal racism” rulings that roll back race-specific programs intended to deal with racial disparities have hit college campuses, businesses and even Black farmers. These cases were largely brought by conservative activists, including millionaire Edward Blum, who championed the affirmative motion case before the Supreme Court. Blum can also be behind an ongoing lawsuit against the Black women-owned Fearless Fund, arguing that its program to extend funding for Black women entrepreneurs is discriminatory against white women-owned businesses.
“You remove the legal framework that allows them to challenge discrimination,” Willoughby explained of the growing variety of legal challenges against DEI. She said success within the courts “emboldens opponents of equality” and turns back the clock on racial progress.
“Basically (they) are trying to return America to what these opponents called the good old days, but in reality it was a white supremacist framework,” Willoughby noted, “to which black businesses and people of color really had very limited access to the benefits of this country that other people enjoyed.”
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According to the February 2024 report Brookings InstitutionWhile Black-owned businesses experienced continued growth from 2017 to 2021, the variety of Black-owned employer businesses stays disproportionate to the variety of Black people living within the United States. In 2021, Black Americans made up just 2.7% of employers, despite making up 14.4% of the population. Closing this loophole, the report argues, would stimulate the U.S. economy and create 1000’s of additional jobs.
Looking ahead to the fight against legal failures in DEI-related programs, Willoughby told the Grio that policymakers, researchers and litigants might want to increase data collection and advocacy efforts. Proponents of DEI programs might want to make “a better case in the courts” and “a stronger case for the existence of any remedy where race is linked to disadvantage.”
“Collecting data, documenting discrimination and proving that disadvantage is directly related to race” will turn out to be rather more vital, she said.
The current legal failures also reflect the indisputable fact that decisions have consequences. In addition to Trump nominating Pittman as a judge, three Supreme Court justices who joined the bulk to finish race-based affirmative motion.
“Now this court, which is hostile to issues related to race and racist measures, will continue to operate for the next decade,” Willoughby said.
“Voting is tied to Black progress,” she added. “Even if you feel disconnected, you still need to check who has your interests at heart and vote with your wallet to identify candidates who will strengthen your participation in the economic system.”
Gerren Keith Gaynor is a White House correspondent and managing editor of theGrio’s Politics section. He lives in Washington
Business and Finance
A former Netflix marketing executive turned reality star is launching a wig brand
Bozoma Saint John takes his Fortune 500 marketing skills to his own empire. The former Netflix marketing executive launched her own wig and hair care company, Eve By Boz.
Saint John, 47, has already reached historic highs in her profession. After leading the marketing departments of tech giants like Apple, Uber and Netflix, he wants to start out his own empire.
She left the favored streaming platform in 2022 after which published a memoir about how, along with her premature daughter, she lost her husband to cancer. Healing from losses, Saint Jan wants to start out a legacy that honors her past and future.
She saw a gap within the hair care industry, particularly wigs, where women of color owned businesses. Especially for products aimed toward diverse women, with the identical demographic leading the best way, the trouble was too sparse for Saint John.
“Women of color and black women don’t really have a voice in the production process, they are the ones consuming the majority of the product,” she said.
Understanding this need, she began developing her line within the spring of 2023. She attended a hair show in Guangzhou, China, with a hair stylist to attach with vendors. She traveled across the continent to learn more about sourcing products.
After doing her homework, Saint John decided to speculate in herself and lift money to launch her wig enterprise. She’s put about “a few million” into the business, but she has the knowledge to succeed.
“I’ve worked for big enough companies and I have a lot of inventory in a lot of places,” she explained. “It’s time to reinvest in myself and that is exactly what I made a decision to do. Besides, I can have total control. I don’t need anyone telling me what to do.”
Saint John’s is changing the sport by offering additional lace colours for wigs. Diversifying color decisions will higher serve customers of all skin tones, which also stays a priority for Saint John.
“I don’t want to go on YouTube or Google and watch 14 million videos of black women and women of color working in kitchen pharmacies dyeing lace to match their skin,” she says. “My intention is for other companies to see the success of this company and follow suit.”
Eve By Boz will premiere in Saint John’s other project, an entry as a solid member on “The Real Housewives of Beverly Hills.” While it’s a coincidence, Saint John welcomes the eye for a product he considers a winner. The 171-piece Eve By Boz collection is now available exclusively on her website.
Business and Finance
Average homebuyers are now the oldest and wealthiest in history
AND latest report details the grim reality in which America goes on to tackle the housing shortage and financial obstacles for people wanting to own a house. According to the National Association of Realtors, homebuyers are older and wealthier than ever before, and the average age of homebuyers is at an all-time high.
The median age of buyers rose to a high of 56, up from 49 in 2023. The median age of first-time buyers rose to 38 from 35 in 2023, and the age of repeat buyers rose to 61 from 58 in 2023.
“Highlighting the barriers to entry into the housing market, the average age of first-time homebuyers has hit an all-time high of 38. In the 1980s, the typical first-time homebuyer was around 20 years old,” the report said.
But age is just not the only factor that has increased. It can be the average income of buyers.
“Over the past two years, first-time home buyer household incomes have increased by $26,000. “This year’s report shows that the median household income for first-time homebuyers was $97,000,” the report said.
The racial gap for homebuyers is growing
Unfortunately, there continues to be a racial gap between white and black homeowners.
“Overall, 83% of buyers were white/Caucasian, up from 81% last year,” the report said. Only 7% of recent buyers identified as black/African American.
According to A report mortgage lending to Black Americans declined by 16% in 2022. Mortgage denial rates, nonetheless, increased by 2.6 percentage points.
The report reveals one other dramatic change: buyers with children are less more likely to purchase homes.
Of all homebuyers, 62% are married couples, 20% are single women, and 8% are single men. The percentage of buyers with children under 18 dropped to the lowest level and amounted to 27% of all buyers.
The report shows that multi-generational housing stays popular, with the highest percentage ever of individuals purchasing a house that may accommodate multiple generations at 17% of all buyers. The commonest reasons are savings, elder care and the return of young adults.
Business and Finance
Cryptocurrency is rising after Trump’s election
Cryptocurrency surges following the election of Donald Trump as President of the United States of America; although he was already on the rise, its momentum is upwards on account of the market’s interpretation of Trump’s guarantees around cryptocurrency.
According to , although no political party fully trusts cryptocurrencies, Trump has positioned himself as president of cryptocurrencies.
The Republican Party has followed Trump’s lead in fully embracing digital currencies.
In a video he posted on social media in August, Trump promised that the United States can be the cryptocurrency capital of the world.
“This afternoon I’m unveiling my plan to make sure the United States is the crypto capital of the planet. They need to strangle you. They need to put you out of business. We won’t let that occur,” Trump said within the video.
“They” is unclear, but with Elon Musk within the ear, the cryptocurrency industry will likely receive favorable policy proposals in the subsequent iteration of the Trump administration.
The market seems to suggest that the longer term president and the strong support for cryptocurrencies from certainly one of his key advisors is a great development for cryptocurrency investors.
Indeed, in keeping with Susannah Streeter, director of cash and markets at investment research firm Hargreaves Lansdown, the market is experiencing “euphoria” after the election.
“His (Trump) pledge to go all out on crypto has sent Bitcoin to new, stunning heights,” Streeter said in a research note published on November 11.
Streeter continued: “He has made a comeback in supporting the industry and now vows to show the United States into the crypto capital of the world. Bitcoin speculators are betting on a more lenient regulatory environment and expect authorities could create a crypto reserve fund, helping boost sustained demand.
In a previous research note, Streeter also noted that “Investors should only dabble in cryptocurrencies with money they may be prepared to lose. Because we have seen these wild swings previously.
According to the Associated Press, Trump did too promised to remove Gary Genslerhead of the Securities and Exchange Commission.
Gensler has been critical of the cryptocurrency in his role, prompting the federal government to crack down on it and calling for greater oversight of the extremely volatile digital currencies.
In October, Gensler criticized the cryptocurrency field generally during a discussion at New York University School of Law.
“We try to enforce the law as it stands… This is an area where there are a lot of scammers, a lot of scammers and a lot of scams,” Gensler said.
Mauvis Ledford, CEO of Sogni AI, a Singapore-based technology startup, said the Trump administration they might adopt cryptocurrency to spice up economic growth.
“It is likely that the Trump administration may explore the use of blockchain technology to increase transparency and efficiency in government operations, particularly with Elon Musk in an advisory role,” Ledford said. “There could also be initiatives to promote the adoption of cryptocurrencies to stimulate economic growth and attract technology-enabled investment.”
However, Ledford also has reservations about how far Trump will go in favor of digital currencies.
“But I personally don’t believe anything Trump says, and blockchains actually allow for the creation of rules that everyone has to follow, which I don’t think Trump particularly likes about the government he runs.”
Ledford noted that cryptocurrency is rising in popularity, which should help legitimize it as more technological barriers are erected.
“Large corporations are integrating crypto payments, and advances in blockchain technology are making transactions safer and efficient. Additionally, regulatory frameworks are evolving that might provide greater stability and legitimacy within the cryptocurrency market.
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