13 minute read
with Power Comes Responsibility
By Larisa Mitchell Scott, with contributions from the U.S. Chamber of Commerce
Suzanne Clark, President, U.S. Chamber of Commerce
As a renewed call for progress and change captivates the nation, the Newnan-Coweta Chamber readies itself for action alongside the U.S. Chamber of Commerce as part of a national initiative to address inequality of opportunity in the business community.
A June 25th town hall meeting hosted by the U.S. Chamber of Commerce brought business and community leaders together to identify and discuss concrete actions that can be taken by the government and private sector in support of closing the gap for Blacks and people of color. As a result, the Chamber is outlining a plan to facilitate business and industry dialogues to advance the initiative locally on the topics of education, employment, entrepreneurship, and criminal justice.
“The Newnan-Coweta Chamber’s mission has been and will remain, to advocate for all of our members and the business community in building and sustaining a diverse and prosperous economy. To fulfill our mission, we must work to create a safe environment where all of our citizens can live and work without fear and discrimination. Injustice and prosperity are incompatible. The Chamber will give voice to economic inequity and promote access to opportunities that uplift people of all backgrounds across our region.” says Candace Boothby, Newnan Coweta Chamber President and CEO.
U.S. Chamber President Suzanne Clark adds,“The moral case for greater diversity, equality,and inclusion in the workplace is indisputable,and there’s overwhelming evidence that greaterdiversity benefits the American economy,businesses, communities, and employees. Weare proud to partner with the Newnan-CowetaChamber on this initiative and help develop arobust plan of action.”
The U.S. Chamber of Commerce is the largest lobbying organization in the nation, representing businesses of all sizes and serving as a powerful influence in communities far and wide. This amount of leverage, however, carries with it tremendous responsibility in identifying and carrying through productive and decisive actions designed to eliminate systemic disadvantages, especially in business. As such, it is essential to engage in sustained dialogue, acknowledge challenges, and take action to address inequalities of opportunity for Blacks and people of color.
Coweta resident and thought-leader Anissa Patton, Senior Attorney, and Child WelfareLaw Specialist, co-chairs the Newnan-CowetaChamber’s Advancing Coweta Equality of opportunity task force. Patton says of the effort, “the Equality of Opportunity initiative is so needed at a time like this, especially because this pandemic is going to further widen the education and wealth gaps. The wonderful thing about the initiative is that it focuses on those barriers that impede Blacks from progressing, and it resolves to eliminate these barriers while creating opportunities. This initiative recognizes the urgency of this movement, particularly because models indicate that within the next 30 years, Black household wealth will be a negative figure if we continue on the current path.”
/ EDUCATION /
Lauded for its high-achieving students, Coweta County serves as exemplary in education. Yet, disparities persist for those who begin their journey at a socio-economic disadvantage.
Research indicates a strong correlation between socio-economic status and early development, warranting a reevaluation of how our community untangles the complex issues faced by Black students and students of color.
Ruth Scott, Mental Health Coordinator for the Coweta County School System, reinforces, “School administrators, teachers, counselors, and staff build relationships with kids every day. They not only teach them but connect with them while building community in their classrooms (both virtually and in face-to-face). As a school system, we work to identify kids who are at risk and vulnerable to trauma and those who might be struggling academically and behaviorally to provide additional support in the form of differentiated learning. Such support comes in the form of individualized Education Programs (IEP), speech and occupational therapy, mentorship, mental health therapists, and other tangible resources such as school supplies, Chromebooks, and meals. Pre-K and head start programs also work diligently to help prepare students to meet academic standards when they get to school.”
However, racial disparities in learning begin even before formal schooling starts. The“achievement gap” for children begins shortly after birth, with early learning experiences varying considerably based on parents’ income level. In everything from the number of words a young child hears to access to resources like museums or libraries, there is a strong correlation between socioeconomic status and early learning.
The rate of Black American children living in poverty is more than double that of white children, which means these disparities are distributed unequally across racial lines. Black students are twice as likely to attend high-poverty schools as their white peers, and 60%attend high-poverty non-white schools. The average per-pupil spending in high-poverty,non-white school districts is $1,500 less than the national average.
Scott continues, “Regardless of their background, all students are encouraged to take advantage of high-end educational experiences such as STEM programs, technology, arts, academic and service-oriented clubs, athletics, the Central EducationalCenter, and other work-based learning opportunities. Our schools provide access to local service providers, churches, mentors, and many other organizations that support our students in meeting the need for a sense of community and healing, thus working to reduce the educational achievement gap.”
Only one in five Black 4th graders are reading on grade level compared to half of the white students. Just 14% of Black 8th graders are on grade level in mathematics, 20% below the rate for all students combined. As students get older, roughly 45% of Black students receive no formal education beyond high school and only 15.3% earn a bachelor’s degree, compared to more than 23% of white students.
All other factors held equal, the gap in educational opportunities and achievement between Black Americans and other groups is substantial. While Black Americans are catching up to white Americans in terms of high school graduation and college enrollment, there has been less progress in closing degree attainment and skill acquisition gaps.
/ EMPLOYMENT /
Racial disparities extend beyond education to employment and access to different occupations.
For the past four decades, Black unemployment rates have been consistently twice as high as white unemployment rates. Across six major categories of occupations ranked by 2019 median weekly earnings, 23% of Black(non-Hispanic) workers were employed in the lowest-earning groups (manual labor and service occupations) and 25.7% in the highest-earning groups (management, professional, and technical occupations). For non-Hispanic-white workers, the percentages are 13.3% and 50.4%, respectively.
At the same time, disparities in earnings along racial and gender lines are evident across similar occupations and education levels. For example, within “high earning managerial and professional” roles in 2019, the median weekly earnings for non-Hispanic white men was $1,538, while for non-Hispanic Black men, the median was $1,167. A smaller gap exists for women.
The pandemic has exacerbated these trends. Black unemployment rose to 16.8% in May, up from 6.0% in January 2020, as compared to white unemployment, which was 12.4% inMay and 3.1% in January. During the pandemic, Black (23%) and Latino (24%) workers are more likely than white (15%) and Asian-Americans (13%) to have experienced layoffs.
Anissa Patton explains, “Coweta businesses can support the initiative by being proactive about identifying and addressing implicit biases that affect the hiring and retention of Black employees. For example, there is an ‘ethnic-sounding’ name hurdle. Employers are more likely to call back and hire someone with a name that is gender and racially neutral as opposed to ethnic. Additionally, businesses should not focus so much on
diversity quotas because that can be limiting,and it reinforces the underlying problemof lack of access and opportunity. Instead,businesses can work to improve the quality ofthe workforce by investing in education andtraining programs so that more Black peoplehave quality employment opportunities.”
Patton continues, “Businesses can support the Chamber’s Equality of Opportunity initiative by examining existing internal policies and structures that may impede opportunities for Blacks and people of color. These policies should be “equity-minded” and wholly aligned with the Chamber’s Equality of opportunity agenda. Businesses should note that existing policies and practices may appear neutral, but have disparate impacts on specific demographics – only recruiting talent from top-tier institutions limits the talent pool, for example.”
The business community must also prioritize diversity in the C-suite, on boards, and in their talent and skill pipelines, ensuring the proportional representation of black Americans throughout all segments of the workforce. Business leaders must expand their networks and create more pathways, including apprenticeships and mentorships for Black Americans.
Craig Ogletree, Area Manager for the Metro Region External Affairs, is responsible for establishing and maintaining Georgia Power’s external effectiveness. He is a leader in the areas of economic development, education, and environmental initiatives, working closely with local and state governments.
Ogletree says of the Chamber’s initiative, “Equality of opportunity is the foundation for sustained economic development and substantial community growth for all. Barriers to equality of opportunities create gaps in every sector of our community and have adverse effects on every person and business within the community, especially people of color. Our policy and regulatory committee endeavor to uncover data-driven facts and solutions as we work with public and private stakeholders to ensure that policies are clear and conducive to success in all sectors and for all people. During this pandemic and its devastating impact, along with persistent racial injustices, there is heightened attention on the uneven playing field that affects people of color.”
/ ENTREPRENEURSHIP /
Entrepreneurship plays a vital role in building wealth in families, communities, and economies, but the opportunity to start and grow a business is not equal for white and Black Americans.
Black Americans are underrepresented among entrepreneurs, representing 12% of the U.S. labor force, but only 9.4% of business owners. They also are less likely than white Americans to launch businesses, and when they do, those businesses tend to have lower revenues and fewer employees.
Research has shown that these disparities can be explained in no small measure by persistent gaps in access to financial capital and whats commonly referred to as human capital (education and experience).
Black-owned non-employer businesses are less than half as likely to get financing as white-owned firms. As a result, Black entrepreneurs are nearly three times more likely to have business growth and profitability negatively impacted by a lack of financial capital. Given that 70.6% of Black entrepreneurs rely on personal and family savings for financing, lower family wealth for Black families overall drives more of a divide in access to capital. In addition, Black Americans hold higher levels of student debt, which inhibits entrepreneurship by discouraging risk and hindering access to capital.
The economic fallout from the pandemic has hit Black-owned and Hispanic-owned firms particularly hard, exacerbating these challenges. The number of Black Americans who are self-employed dropped by a staggering 41% from February to April while the number of Latinx non-employer entrepreneurs dropped 32%, compared to a 17% drop for white entrepreneurs. This was due in part to industry concentrations that put Black-and Hispanic-owned businesses at higher risk of disruption and loss caused by the pandemic.
Businesswoman and Newnan City Councilman, Cynthia Jenkins says, “I’m glad we are looking at these issues and how we as a community can be supportive of all businesses. Based on what I’ve seen in my years in the construction industry, there is a great deal still to accomplish. I think it is a wonderful idea for the Chamber to look at ways to support and elevate minority-owned businesses. I recall a separate Chamber organized by Blacks many years ago because many Black-owned businesses did not feel supported. I’m pleased today that we have one Chamber serving and supporting all local businesses.”
Closing racial divides in entrepreneurship would provide a significant infusion of jobs and economic growth. A recent study found that if the number of people-of-color-owned firms is proportional to their labor force participation, the U.S. would add more than1.1 million businesses, supporting an estimated nine million additional jobs and adding nearly $300 billion in workers’ income. A separate study estimated that more equitable access for the Black community to tools businesses need would generate an additional $8 trillion in U.S. GDP growth.
Jenkins continues, “We have a variety of people who’ve moved here. There is the old Newnan, and then there is the new Newnan, with professionals who seek opportunities to network and connect. We have a growing base of entrepreneurs of both mid- and top-level executives who are here but are not yet connected. It will be beneficial when these professionals are serving on boards and engaged with the community. They are an untapped asset, so let’s create opportunities and help minority newcomers feel welcome because we need their skill set. Perhaps established businesses can explore relationships with minority-owned businesses; opportunities for minority newcomers to have a seat at the table is much needed.”
/ WEALTH /
There are significant racial disparities in wealth in America.
At $171,000, the net worth of a typical white family is nearly ten times greater than that of the average Black American family ($17,150). Also, Black Americans are much more likely to experience poverty: 21% of Black Americans and 8% of whites live below the poverty level, though there have been improvements in recent years.
Wealth disparities come to surface in everything from retirement planning to homeownership to net worth. While 60% of white families contribute to retirement accounts, only about 33% of Black American families hold assets there. A recent report showed that Black Americans had balances of $30,000 in their retirement accounts, while white women and men had balances of $60,000 and $101,000, respectively. As a result, Black Americans are at substantially higher risk of being poor in retirement.
The disparities extend to homeownership. According to a 2016 Federal Reserve report, growth in homeownership increased from70.5% to 75.6% for white Americans between 1989 and 2007. Over the same period, Black American homeownership rose from 42.4%to 49.3%.
/ CRIMINAL JUSTICE /
Black Americans represented 27% of all individuals arrested in America in2016, about twice their proportion of the total population.
In Washington, D.C., 2019 data showed that despite making up46.5% of the city’s population, Black Americans composed 72% of the people stopped by police. Even when no arrests are made, Black Americans are 21% more likely to experience some form of physical force during interactions with the police.
Black Americans are more likely than white Americans to be arrested. Once they are arrested, they are more likely to be convicted. And once convicted, they are more likely to experience lengthy prison sentences.
Black Americans comprise13% of the U.S.population, but 40% of the incarcerated population, and black Americans are incarcerated in state prisons at 5.1 times the rate of white Americans.
It is also harder for Black Americans to bounce back economically after incarceration.
A criminal conviction limits employment prospects as well as access to housing and public assistance. Re-entry into the labor market is especially challenging. A criminal record, gaps in education and employment, and the stigma of incarceration limit opportunities. Having a prior conviction reduces employer callback rates by 65% for Black male job applicants, compared to a 50% reduction for white male applicants.
Previously convicted Americans receive insufficient preparation and inadequate assistance and resources, making re-entry into communities challenging.
A criminal conviction limits eligibility for things like public housing and social services and studies show that the most significant challenge they face is re-entering the labor market and finding employment. These challenges disproportionately hurt Black Americans and predominantly Black communities.
Inequality of opportunity has left a lasting mark on the U.S.and a devastating impact on minorities. Moving forward requires us to reevaluate how we look at equal access to things like employment, education, starting a business, health services, financial services, and justice. If we are to protect the United States’ social and economic fabric, we must work diligently to address these long-standing racial disparities. Many leaders are asking if this moment is different—if the passion of this moment can create real and lasting change. The answer is “yes” if leaders decisively rally around the identified challenges.
Tom Donahue, CEO, U.S. Chamber of Commerce
