Economics

Opinion: Economic Recovery Zones; Boom or Bust?

Published

5 years ago

April 29, 2019

Curtis O. Robinson, Sr.

God on Wall Street

Rev. Curtis O. Robinson, Sr.

When Pres. Trump signed into law the overreaching tax cut in 2017, what was suspected was true in that wealthy American elites received another break.

According to an article in Time magazine, “The biggest benefits, though, go to the top 1 percent, who are projected to receive an average tax break of $62,000 in 2018, while the middle one-fifth of income earners got an average tax cut of $1,090 — about $20 per biweekly paycheck.”

So, once more, the wealthiest Americans received help that they really didn’t need.

It is true that the economic recovery has been strong since the great recession of 2007-2009. But when we see the level of homelessness in major urban settings, it doesn’t look like a recovery at all. It looks more like people continuing to fall through the cracks of the richest country in the world.

Unemployment is low in most of America, but in places like Stockton, Oakland, and Youngstown, OH, unemployment is still quite high. I have heard that unemployment in East Oakland is close to 8%, while the state of California lists unemployment at 4.2%, and the rest of the national average is 3.5% to 3.8%.

Somewhere cradled in the Trump tax cut is a piece of legislation called the Economic Opportunity Fund. This fund is designed to reach into economically deprived areas and allow investors to roll over their capital gains from the stock market.

Typically, when investors sell their stocks or bonds, the gains from the principal investment get taxed as capital gains. However, because of a Republican Congress, the rich get a chance to get richer.

Instead of selling and being taxed on profits, investors can now put that money to work into places in the U.S. to help rebuild these neglected communities. East and West Oakland are prime examples of an Economic Recovery Zone.

The potential could be tremendous, as this pot of gold is said to contain more than $1 trillion in it. The wealthy get an opportunity to make tax-free investments once more if they leave their investment in tact for five to 10 years.

At 10 years, there is no tax at all. We can only hope that this will help because poor people continue to hurt, while rich folk continue to have “champagne wishes and caviar dreams.”

Curtis O. Robinson, Sr.

Posts by Curtis O. Robinson, Sr.

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Oakland Post: Week of April 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024

Published

4 hours ago

April 26, 2024

Oakland Post

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Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

6 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”