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Black Unemployment Rate Destined To Rise Beyond 14.4 percent!

July 27, 2012 by  
Filed under News, Opinion, Politics, Weekly Columns

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( The black unemployment rate and the slowing of U.S. economic growth are linked. The Commerce Department reported recently the U.S. economy grew at an annual rate of just 1.5 percent from April through June, as the consumer cut back on spending. The linkage between black unemployment and the economy has to do with the rate of growth of the economy. The economy needs to grow at a pace greater than two per cent to have any affect on the national unemployment rate which stands now at 8.2%.

The black unemployment rate stands currently at 14.4%. Blacks usually bare the burden of any increase in unemployment, as they are usually the first laid off as the economy sours and turns downward and are the last recalled as the economy turns upward. This to some extent is reflected in the current unemployment rate figures for June. The rate of unemployment for white males stood at 7.0% while black male unemployment for June was 14.2%.

To understand the U.S. economy and what drives it, you have to look under the hood and identify the major components of its engine. Those components are consumer spending, government spending and exports. Of these three  major components, the consumer is the most important, as the consumer represents approximately 70% of the economic activity of this economy. What does that mean? It means we are a consumer driven economy and not an export economy, like China, which depends primarily on shipping goods to other countries.

We also are not an economy which survives on government spending. These two components, government spending and exports make up in part the 30%. While government spending and income from exports are important, it is the consumer who is the primary driver of this economy. Think of it this way, the fuel used in your car is gasoline and ethanol. The gas comprises about 90% of the mixture. Take away the gasoline and the car does not move. Your car is not designed to just run on ethanol. That is the way the American economy works, also. If you reduce the amount the consumer spends in this economy, the economic engine of this economy stalls. This is exactly what happened, the Commerce Department report also showed consumer spending slowed to an annualized rate of 1.5 percent from April through June, down from 2.4 percent in the first three months of the year. The rise in automobile sales slowed along with other goods. Why did the consumer reduce spending? You can speculate that people with jobs have become in general more cautious as they see the unemployment rate rise.

What is the answer? Well, the simple short answer is find a legitimate way to put a serious amount of money in the consumer’s pocket on a national basis so the consumer can start spending again. Mr. Obama attempted to do it through his Tax Holiday proposal. Remember when he was crisscrossing the country saying if his Tax Holiday legislation wasn’t passed, it would represent an increase in taxes on the middle class? (See the article written for titled “Mr.Obama, Burdening The Black Community (The Tax Holiday Debacle) written March 1st).

Well it did not work for the reasons stated in that article. Therefore, here we are staring another possible increase in black unemployment in the face. Mr. Romney’s proposals are no better. He wants to give additional tax breaks to the very wealthy and reduce regulations on businesses. We only need to look around to see how that is going to work. We are already experiencing that type of economy as the rich percentage of wealth has outstripped the middle class exponentially by most measurements. They already have the money. Where are the jobs?

Blacks may want to bury their head in the proverbial sand ignoring these new numbers from the Commerce Department; however, it will be a mistake. What politicians do and don’t do in Washington affect our lives. We have to get involve and get involved now. We must not let Mr. Obama run away from the truth of our situation and demand that he put a national job creation plan on the table. Based on these new numbers, it looks like things are only going to get worst for us, as we are first in line to feel the pain.

Staff Writer; James Davis

More information about JD and his Deficit Neutral Stimulus Plan Can be founded at



6 Responses to “Black Unemployment Rate Destined To Rise Beyond 14.4 percent!”
  1. Logan says:

    Blacks have become slaves to the demoncratic party. The demoncrats give blacks just enough to keep them under their thumbs. Obama has been in office for almost 4 years and has not helped the blacks at all. Do you think another term is the answer?

    Blacks best chance for improving their lives is with the Republicans. Lincoln was a Republican and did more for the blacks than all most every demoncrat. Clinton was a very conservative democrat and did help blacks. Liberals only want to control the black population not help them.

  2. The mistake the President made was hiring people who once worked for the republican party. All they helped him do is what bush did for the last eight years he was in office, which was to setup a plan to divert more money to the people who already have it. If he at least hired democrats, they might have advised him to split half of thoes hundreds billions given to the same people who got us in this mess in the first place, and give it to small, new businesses, and help bailout the people who were duped into taking loans they had no business taking. As far as this party game, Nothing will ever change as long as the power is in only two parties hands. We need a third party for more compitition, which should force the other parties to commit more to the peoples needs. As far as the Black community, we have to stop waiting for other people outside our community to to what we can do ourselves. We are the largest consumers and spend more than any other group. It could be said, this is the reason the economy is failing. Because the people who spend the most are the people who are suffering the most. But if we start spending part of that trillion we spend in every community but our own, we could solve our own problems and maybe even strenghthen the economy at the same time.

    Black Unity is the solution, and always will be.

  3. KELLOGGS says:

    To Larry n Jay
    Gentlemen , look at your local government.
    All the stealing, all the lay-offs, all the spending, all the arrest of black men, all the school shootings by whites,
    all the the recalls of Chinese products and nothing being done about.
    So gentlemen , it has nothing to do with the democratic party but the Local representatives you think are on your side.
    Look around, how many of them are black? How many of them come in your neighborhood? How many of them do u call?

  4. KELLOGGS says:

    To understand the U.S. Economy and what drives it, you have to look under the hood and identify the major components of its engine.
    Those components are consumer spending, government spending and exports.
    The consumer is the most important, as the consumer represents approximately 70% of the economic activity of this economy.

    My take on all this is this.
    The economy is like it is because now white people have an opportunity to steal this country blind.
    Why? They are losing it to the Asian’s and Chinese.
    Notice all the stores and government services are starting to be run by foreigner.
    All buildings and businesses are being brought up by the Chinese.
    Remember Jobs and Gas prices control the pricing in white America.
    Government controls the laws in white America.
    That’s why the economy is the way it is.

    will do a part 2 for this one

  5. Larry says:

    As black people we need to break away from the death grip of the democratic party. Pres. Obama has shown us what he thinks of us by granting defacto amnesty to illegal aliens thereby taking resources that are meant for americans and making them available to those that shouldn’t even be here.What will our children have to look forward to? We must stop being silent in the face of this onslaught-even when it is one of own that is perpetrating this horrendous act. We would be screaming bloody murder if the president were white.

  6. Jay says:

    Great article. Hopefully Black people will get more involved with working with their Local representatives; to engage their State representatives in supporting a job creation act that will actually work!

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