The Loop 21 asked and people answered on the question of the state of the black economy.
Also worth a gander is The Loop 21’s ‘Jobs and Financial Security for Black America’ series. Below is an excerpt from the article “Eight Million Jobs Gone? Does the Future Look ‘Green”?
In the past, the construction and automotive industries led the country out of recessions. But this time around, the recession has pretty much eviscerated Detroit — the headquarters of the American automotive industry. Real estate accounts for 20 percent of the total U.S. economic output . There is a huge surplus of new and foreclosed homes and vacant commercial properties hovering over the market. There are also tighter lending guidelines which prevent many Americans, especially minorities, from getting into that market. The sub prime loan market, which accounted for a considerable amount of real estate growth in the last 10 years, no longer exists. About 20 percent of all retail sales, think Home Depot, Lowes and furniture stores, is also directly related to real estate.
About 70 percent of the Gross Domestic Product in the U.S. is directly related to consumption (which is depressed due to high unemployment, financial uncertainty, indebtedness and the credit crunch which refers to card companies upping interest rates, and revoking credit cards due to the recession). Consumption accounts for $10 trillion of our $14 trillion economy.
So, in the short term, joblessness is the norm because this time around, it’s not just about recovery but reinvention.