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Yet the community-based institutions like Watts Credit Union are much more likely to invest in mortgages and business credit in the neighborhoods with the highest unemployment. The history of black-run credit unions goes back to the mutual benefit societies of the 1700s which led to the African Methodist Episcopal denomination and to insurance companies and banks after Emancipation.
Supporting black financial institutions like Watts Credit Union is one of the goals of National Black Business Month, coming up in August. There are hundreds of such credit unions operating in places as diverse as churches and historically-black colleges and universities. The Omega Psi Phi Fraternity even has its own credit union.
LOS ANGELES- As thousands flooded into the city for the Michael Jackson memorial, a little-noticed event happened in Watts.
The Watts Credit Union, an institution founded in 1966 after the riots that set a tone for the era of the 1960s as much as Motown music, was closed by the State of California for insolvency on Monday, July 6.
It was down to 1,000 members and $800,000 in assets when turned over to the National Credit Union Administration.
Atthough financial institutions are closing frequently in this economic downturn, the Watts closure does raise the question of how stimulus money could more directly be targeted to the communities faring worst in the recession.
Last week, Treasury Secretary Timothy Geithner announced with great fanfare the award of $90 million in stimulus funding to 59 community development financial institutions in 26 states.
Geither was one of the architects of the $700 billion TARP program which has invested as much as $45 billion in major money center banks.
Christian Science Monitor June 14, 2009
EPA leader Jackson touts new energy legislation to Senate
The New Orleans native and chemical engineer added, "That figure does not account for the economic benefits of saving our children from living with increased drought, fire, pests, flooding, and disease. It does not account for the benefit of decreasing our dependency on foreign oil. "
WASHINGTON- Environmental Protection Agency head Lisa P. Jackson told a Senate committee that clean energy is the current equivalent of the space race "and America's behind."
She added, Governments in Asia and Europe are ahead of the United States in making aggressive investments in clean-energy technology. "
"We are also coming late to the task of leading the worlds major greenhouse-gas emitters to reverse our collective emissions growth in time to avert catastrophic climactic changes that would severely harm Americas economy and national security within our childrens lifetimes," Jackson said.
Responding to critics of the cost of the bill, she said, "I do not mean to say that we can get something for nothing. But according to the Congressional Budget Offices analysis of the American Clean Energy and Security Act, the net cost to the average American household in 2020 would be less than 50 cents a day."
Spreading the reciprocity virus the theme for the sixth annual
National Black Business Month during 31 days of August
Another example is the late Dr. Henry Lucas, who with several other professionals began Plan of Action for Challenging Times (PACT) in 1963 to help black youth prepare for college.
More than 40,000 young people have passed through PACT's programs, including 3,000 currently.
Lucas, named one of America's top dentists in 2004, continued to be a board member when he passed this month. A celebration is set for Aug. 8 in Mountain View. CA.
The family is requesting that bequests in his honor be donated to PACT Inc., 635 Divisadero St., San Francisco, CA 94117/
SAN FRANCISCO -- Millions of people around the world responded to the passing of important figures such as Michael Jackson and Steve McNair.
National Black Business Month founder John William Templeton notes it is also important to be just as passionate about the non-celebrities who operate businesses that create jobs everyday
As we celebrate our heroes, Templeton says it is heroic to be one of the more than 1 million African-Americans in business, particularly during a recession and credit crunch.
It is a reason to begin to reach out to such entreprenuers. During National Black Business Month, consumers are encouraged to visit at least one black business each day in August.
In another blog, Templeton gives the example of Dr. Delores Nehemiah, an 80-year-old history advocate and bookseller he met at the Leimert Park Book Fair. Nehemiah invested in a CATScan for the doctor who saved her life so he could help more women avoid heart disease.
San Jose Mercury News, Oakland Tribune and Contra Costa Times, April 5, 2009
INCREASING BLACK ENTREPRENEURSHIP
The best way to reduce black unemployment
The sixth edition of the State of Black Business notes that African-American unemployment, now over 15 percent, can most effectively be reduced by increasing black entrepreneurship.
With 1.2 million black businesses, adding just one employee would reduce black unemployment below the national average.
In this year's edition, we calculate a ratio of black/white self-employment for each state with more than 1,000 black firms. In most jurisdictions, there is a 2 to 1 gap. There is a similar gap in unemployment rates between African-Americans and the general labor force on the national level.
With major industrial employers such as automakers shrinking their labor forces, governments laying off workers, it is the entrepreneural sector which is the only practical alternative. By visiting at least one black business a day during August and patronizing the firms that earn your business, you help spread the "reciprocity virus."
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State of Black Business 2009 sixth edition
Ranks state by state for black business affinity index; with most up-to-date national and regional information on black businesses and consumer markets.
http://www.blackbusinessmonth.com
provides suggested ways to support
black entrepreneurs for each of the
31 days of August 2009.
Black Students Internet Guide 2009
More than 400 sites which support the education of learners of African descent. Great classroom and homework tool includes 50 Most Important African-Americans in Technology.
