America’s racist exploitative economics are embedded so deep in the consciousness of America that they are reflected in most the laws and government policy decisions. Congressional Representatives and U.S. Senators, state and local government officials are OK making it possible for corporations and local governments to commit legal theft and profit on communities of color—the most vulnerable in American society.
Ta-Nehisi Coates writes in The Case for Reparations “Perhaps no statistic better illustrates the enduring legacy of our country’s shameful history of treating black people as sub-citizens, sub-Americans, and sub-humans than the wealth gap.”
First, it was the financialization of the criminal justice system and as a result America’s mass incarceration system became a profit center for the prison-industrial-complex and many corporations. They are making millions of dollars in profit.
Second, it was the housing crisis in 2008 that devastated the black community; facilitated by “decades of racist housing policies by the American government, along with decades of racist housing practices by American businesses.”
A study published in 2010 about the foreclosure crisis found that “black home buyers—even after controlling for factors like creditworthiness—were still more likely than white home buyers to be steered toward subprime loans.”
Third, the Consumer Federation of America released a study that found black drivers can pay up to 194 percent more for mandated auto insurance than white drivers. According to the report:
Most states prohibit the consideration of a driver’s race or ethnicity when determining premiums. However, the findings of this report suggest that good drivers living in predominantly African American communities will pay, on average, 70 percent more for state-mandated minimum liability-only coverage than a similarly-situated driver in a predominantly white community. After controlling for both population density (as a proxy for traffic density) and income, we found that drivers living in predominantly African American communities continued to see higher average premiums than similarly situated drivers in predominantly white communities.
- Communities with “more than three quarters of black residents” average premium is “70 percent higher ($1,060 vs. $627).”
- Urban black communities average premium is “60 percent higher ($1797 vs. $1,126).”
- Rural black communities average premium is “23 percent higher ($669 vs. $542).”
- Upper black middle-income communities average premium is “194 percent higher ($2113 vs. $717).”
“Progressive and Farmers Insurance show the most disparity, averaging 92 percent. State Farm, Allstate, and GEICO all charge more—62, 56, 52 percent respectively.” Even though these discriminatory practices are prohibited, bias and exploitation wins every time.
Lastly, 88 Democrats in the House of Representatives voted to approve the Reforming CFPB Indirect Auto Financing Guidance Act which would restore a system that “routinely charges Black and Latino borrowers hundreds of dollars more for car loans than similarly-qualified white borrowers.” It passed 332 to 96. For decades throughout America, “racial discrimination in consumer lending” has been a longstanding practice. This Act would eliminate the regulatory instructions put in place in 2013 by the Consumer Financial Protection Bureau, regulations to combat this longstanding practice. Although discriminatory lending is illegal, banks allow car dealerships to issue such loans.
A dealer sends a buyer's credit information to the bank, and the bank then tells the dealer the appropriate interest rate for a borrower with that particular financial profile. But dealers are allowed to charge higher rates at their own discretion -- and the dealers themselves receive a cut of that higher lending price. This arrangement creates incentives for both the dealership and the bank to inflate interest rates. Lawsuits dating back to the 1990s show that customers of color are more likely to be charged additional interest rates, known as "markups," and that their markup rates tend to be higher than those charged to white borrowers.
This vote angers me so much, why do Democrats feel it is OK to charge customers of color more for a car loan? As you look at this list of the 88, please remember their vote when they ask for donations and your vote in 2016. “Note that this list includes the chair of the DNC, a vice-chair of the DNC, the chair of the DCCC, the former chair of the DCCC, two vice chairs of the Congressional Progressive Caucus, both Democratic Senate candidates in Florida, the leading Democratic Senate candidate in Illinois, the Democratic Senate candidate in Arizona, and a not-going-to-win Democratic Senate candidate in California.”
Also, ask your Senator to vote no when it comes to the Senate.
