October 01, 2004

Ensuring the rise of the black Entrepreneur Class

The "Infant Industry" argument in favor of subsidizing black business districts

In defense of the “Africa Town” proposal, by the Detroit city council, I would like call as my witness the argument of Infant Industry. In trade between nations, developed countries with mature industries have a comparative advantage in producing certain goods and services, over developing nations who are just embarking upon the industry…infants to the industry, if you will. Thus, such a nation is often allowed to place trade tariffs and restrictions on imports from developed nations with comparative advantage, so that the infant industry can grow, be profitable and eventually competitive with mature industries. In fact, when Great Britain was the leader of the world, by virtue of being the creator of the industrial revolution, the USA used this argument to protect its industries from British imports, which had the comparative advantage during those times.

Thus, in essence, you have one human entity rationalizing discrimination via protectionism, against another human entity, for the goal of promoting economic and business success of the former. If those entities happen to be races or nations, the principle is the same and the precedent has been set.

In light of this, I believe that the black communities, manifesting in this case as the city of Detroit, should have the right to employ the infant industry argument to circumvent laws against discrimination by race. Discrimination to promote racial equality is not moraly equivalent to discrimination to promote racial superiority. The black Business community is a developing community in its infancy, relative to what manifest among other races in this nation. Most other races have a strong history of entrepreneurship, capital flows and patronage, relative to the black community. Moreover, many come from nations or homelands where the entrepreneur spirit was allowed to flourish, given that they were not oppressed by a larger majority who conditioned them to simply be workers and consumers, as is the case here in America.

Since black people are in our infancy as producers, we should be allowed exceptions and protections to build up our business community in the same way that the USA created protections to build up its industries. Having a designated zone “African Town”, designated for black business and subsidized by the local government is in essence no different from what developing nations and industries have done to become competitive. It should not be a permanent subsidy or protection, but rather a dynamic tool that will allow black producers or businesses to reach equilibrium and success relative with other ethnic or racial groups. Upon the time, the exemption and restrictions could then be dropped and all business would be allowed to compete head to head without favoritism.

If the USA did this to become competitive in the world against Britain and France, why cannot black people do this so that we can become competitive business owners within the United States?


10 Comments:

At 11:26 AM, Blogger NmagiNATE said...

All we have to do is cite Black WallStreet.
Even under "Separate But Equal" anything that resembled Black Independence (and rivalry or opposition to White American domestic hegemony) was/is to be summarily quashed by any rationale.

This is tantamount (and is actually part and parcel and functionally equivalent) to what Stanley Fish noted in his essay - "Reverse Racism, or How the Pot Got to call the Kettle Black" - detailing Pres. Bush's own words that readily expose America's hypocrisy:

"Not to make [a] distinction is... to twist history and forget the terrible plight of African-Americans in the more than 200 years of this country's existence. Moreover, to equate the efforts to remedy that plight with the actions that produced it is to twist history even further."

http://www.breakthrough.tv/act/act_now_learnmore.cfm?id_Article=40&id_SubArticle=24

 
At 11:39 AM, Blogger Noah TA said...

Of course you are right again Brother. This is what I call racial Jujitsu. For those who do not know, Jujitsu is a form of fighting where one uses the leverage and momentum of their opponents against them. If someone throws a punch at me, I can then use that punch to work to my advantage.

This is what white America is doing by intent or ignorance, which works to subdue blacks from reaching equality. They are using the language and laws that were used to protect us from white supremacy oppression, to work in their favor to keep us off balance and in a state of disequilibria relative to them. For example, in their fight against Affirmative Action, they will quote Martin Luther King Jr. “I have a Dream Speech” in which he laments that he wishes for a world were people would be judged by the content of their character and not the color of their skin.

This is taking the verbiage from the movement and using it as justification to not allow the targeting of blacks, which serves to preserve the effects of disadvantage inherited from a history of targeting blacks for negative reasons. The most efficient way of undoing the inequality that is the resultant of targeting blacks negatively, is to target blacks positively going forward until such time that equality is restored. This is when the come out with their racial jujitsu attacks upon us….AND IT IS WORKING…unfortunately…in part to the NegroCons.

 
At 11:52 AM, Blogger Scott said...

"Discrimination to promote racial equality is not moraly equivalent to discrimination to promote racial superiority. "

I am glad you realize that Africa-Town would be discriminatory, that is the main point that pisses off people. If they just said we are going to give business help to people who had been residents for over 15 years there would no arguing against Africa-Town.

I do think that there are arguments that can be made for "Discrimination to promote racial equality".

I personally don't think government handout every turn into equality for the masses. Yes affirmative action has helped the talented 10th of black America but it has not helped the majority of black Americans.

Africa-town is another plan that would help the 10th. The few who want to and have the ability to run a business.

I am not against the Idea of creating a Business Improvement District which is all this is. But to exclude Mexicans and others based on race alone is unfair and needlessly problematic.

 
At 12:03 PM, Blogger Noah TA said...

Scott, whether venture capital comes from the public sector or private sector, it should not make a difference. Venture capital does not flow into the black community from private sources unfortunately. Even Banks, the traditional source of financing ventures are often reluctant to invest in business who business plan targets the black community and whose owners are black. Thus, the capital backing is not going to come if not from the government. In truth, it is a wise investment for the city, because these businesses, if successful, will create tax revenues. If the concept really takes off, then the city and other businesses will benefit from the tourist dollars coming into the city. Cities are always competing to draw tourist, conventions, companies, and talented individuals, because it benefits the city in the long run in regards to positive name recognition, tax revenues and the like. It is not a HAND OUT, but an INVESTMENT

 
At 12:17 PM, Blogger Scott said...

NmagiNATE great link. -- thanks

 
At 1:14 PM, Blogger Scott said...

"Venture capital does not flow into the black community from private sources unfortunately." This is a piss poor rationalization. But understand your comments are going to be less well thought out that your posts.
http://www.blackenterprise.com/ExclusivesEKOpen.asp?id=489
"Study: Black Spending Power Tops $630 Billion"

That is $630 Billion every fucking year. Now explain why we can't invest in ourselves 1% of that.

"Projections show that the buying power of African Americans is likely to increase by 169.5% to $921 billion by the year 2008."

So don't tell me there is no money for private venture capital.

 
At 1:29 PM, Blogger Noah TA said...

Piss poor rationalization...what are you talking about??? I was simply making a statement of FACT...that there is no venture capital currently flowing into black business ventures (relative to what is available to invest). I never said that there was NO MONEY AVAILABLE for black venture capital...I simply made the statement that no monenies were being invested. Besides, it is your argument that is a piss poor reason why the government could not invest in its own future...via the proxy of investing in black businesses. Nothing that you have said thus far serves a reason why black Detroiters should not spend their tax dollars representing their interest.

 
At 1:35 PM, Blogger Scott said...

I never said they should. Just to clarify my point if you missed it.

"I am not against the Idea of creating a Business Improvement District which is all this is. But to exclude Mexicans and others based on race alone is unfair and needlessly problematic."

 
At 1:39 PM, Blogger Noah TA said...

Scott...you are the classic Negro devils advocate...and I mean that literally and figuratively. You always chime in with your nay saying...often times your nay saying is not even a proper representation of what was stated...as in your previous comment. I never said that the potential for venture capital from blacks does not exist in theory...I simply stated the practical reality that, for whatever reason, it does not flow. The government of the City of Detroit has stepped up to the table with a 30 million offer...I can bet that the no private venture capitalist will come up with a mathing of those funds...in order to make this come into fruition. You got some money to invest in Africa Town Scott? Lol...lets have it!

 
At 1:58 PM, Blogger Noah TA said...

Well, the Mexicans who are in America, as well as all other races, came here by choice. When they chose to come here, whether they knew it or not, they were accepting the liabilities of Americas past, as well as, the assets of the present, neither of which they were responsible for creating.

The right of the descendants of African Slaves to help themselves, via the representation of their tax dollars upon their interest, is a right born from the liability of Americas past.

When you inherit America or purchase it by choice, you inherit the assets and the liabilities as a package deal. The Mexican, Arabs and no other group are qualified to tell us that it is unfair for America to allow the repayment of the liabilities to black people, born from the history of America mistreatment of our ancestors. When they have walked the walk with the Africans, then they can object.

 

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