The Costs of War - An Economic Draft

[Donnachaidh]

http://www.counterpunch.org/prashad07292011.html

Reports come fast and furiously from the Pew Research Center and the National Urban League. The news is bad. The Pew report shows that between 2005 and 2009 every "racial" group lost wealth, but the losses were largest amongst Hispanics and Blacks. Inflation-adjusted median wealth of white households fell by 16%, but Hispanic households lost 66% and Black households lost 53%. As of 2009, the typical white household had wealth (assets minus debts) worth $113,149, which Black households only had $5,677 and Hispanic households $6,325. The myth of the post-racial society should be buried under this data.

The most dazzling fact is not this decline. It is what is to come. The National Urban League Policy Institute's latest study finds that unemployment for Blacks with four-year college degrees has tripled since 1992, and overall unemployment is near 1982 levels, namely 20%. Such numbers have not been seen since the Depression. Langston Hughes wrote that the 1930s "brought everybody down a peg or two," but that those on the darker side of the Color Curtain had not much to lose. That is no longer the case. The thirty years since 1965 provided a boost to the Black and Latino middle class, largely thanks to employment at the various levels of government (and salutations to the American Federation of State, County and Municipal Employees for its battles to hold public sector wages). With unemployment on the rise, it will be difficult to build back those assets.

The shuttering of the U. S. industrial sector and the attack on public sector jobs hit the Black and Latino workers very hard. Rather than tax the rich and use these public funds to build up a different kind of economy (such as to make public rail networks), the Clinton administration harshly developed a massive prison archipelago and hacked at the modest social welfare system in the country. In the name of balanced budgets and supply side economics, a generation of young people of color lost access to decent education. It is difficult to try and get a job if your resume includes a stint in prison, often for non-violent economic crimes (such as employment in the drug economy, one of the few places to get a job in neighborhoods of the disposable class). The other place for employment, of course, was the military.

The proximate reason for this catastrophic loss of wealth is the housing crisis, and the racial impact of the foreclosure epidemic. The Center for Responsible Lending shows that 8% of Blacks who bought homes between 2005 and 2008 lost them to foreclosure, whereas only 4.5% of whites who bought in the same period lost their homes. A look back to the 1990s confirms these statistics: Blacks and Latinos are hit disproportionately hard by foreclosure.

More at the link --