7 Reasons Black Reparations Are Due That Have Nothing To Do With Slavery

4. Fraud

Fraud has been used against the Black community as a form fo deception with the intent of financial gain for generations. Black Americans pay more for the homes they rent, for the mortgages they pay, for insurance, and for financial services.

Wells Fargo has been a standout bad actor among banks, both during the subprime lending boom and the recession it spawned. Watchdogs have shown that Wells Fargo fails to maintain foreclosed properties in Black communities with the same care that it does in white neighborhoods, leading to further depression of home values and more blight.

Its mortgage servicing arm has been at the center of complaints about banks’ refusal to work with underwater borrowers, despite massive federal incentives. And it is an industry leader among banks that are launching their own versions of payday loans, which are such significant debt traps that the Defense Department has identified them as a national security threat and Congress has barred lenders from making them to service members. – Source

In cities with large Black populations, African American drivers pay 41% more for car insurance than whites – even if they are good drivers with good credit. – Source

When it comes to car financing, research by the Center for Responsible Lending (CRL) determined that car buyers who financed vehicles at the dealership in 2009 paid $25.8 billion in interest rate mark-ups. That same study also found that more than half of Black car purchasers (54 percent) were also charged loan kickbacks, compared to only 31 percent of Whites. – Source

Black Americans are also more frequently and aggressively targeted by law enforcement for fines and restitution. To illustrate, after examining data on 9,000 American cities, those with more Black residents consistently collected unusually high amounts of fines and fees—even after controlling for differences in income, education and crime levels. Cities with the largest shares (98%) of Black residents collected an average of $12-$19 more per person than those with the smallest. – Source

This fact was a key instigator of the Ferguson Uprising. Federal Investigations concluded that just about every branch of Ferguson government — police, municipal court, city hall — participated in “unlawful” targeting of African-American residents … for tickets and fines.

To make matters worse, racism makes it far more difficult for Blacks to find employment than whites. Even when Black job candidates have better academic credentials than white applicants, disparities persist. As you can see from the chart below, while a college education results in higher wages—both for whites and Blacks—it does not eliminate the Black-white wage gap. African Americans are still earning less than whites at every level of educational attainment.

7 Reasons Black Reparations Are Due That Have Nothing To Do With Slavery

A recent EPI report, Black-white wage gaps expand with rising wage inequality, shows that this gap persists even after controlling for years of experience, region of the country, and whether one lives in an urban or rural area. In fact, since 1979, the gaps between black and white workers have grown the most among workers with a bachelor’s degree or higher—the most educated workers. More school will certainly increase wages, but education alone is not enough to overcome the effects of racial discrimination – Source

Remember that the systematic discrimination, in particular based on race or gender described above is considered a gross violation of human rights. By defrauding Black Americans of trillions of dollars of wealth, yet another strong argument for Black reparations can be made.

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Written by Asad Malik

Asad is the Executive Officer of The Pan-African Alliance, and the Founder of United Black America.

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