Yesterday’s show was on the Great White Hoax of manufactured racism in America. Today’s is on Black Capitalists, the title of a provocative new book by Rachel Layrea. But is this a great black hoax? Or might her focus on race and class really be a blueprint for a more ethical 21st century capitalism? Laryea, who holds a PhD from Yale and works in wealth management at JPMorgan Chase, argues that Black capitalists can strategically use the tools of capitalism to create social good, not just profit. But...
Yesterday’s show was on the Great White Hoax of manufactured racism in America. Today’s is on Black Capitalists, the title of a provocative new book by Rachel Layrea. But is this a great black hoax? Or might her focus on race and class really be a blueprint for a more ethical 21st century capitalism? Laryea, who holds a PhD from Yale and works in wealth management at JPMorgan Chase, argues that Black capitalists can strategically use the tools of capitalism to create social good, not just profit. But in a week when Jeff Bezos's lavish Venice wedding sparked protests about wealth inequality, can any kind of capitalism - either black, brown or white - ever truly serve social justice? And with the dismantling of DEI initiatives across America, is Booker T. Washington's style self-reliance the only path forward for Black economic empowerment?
1. Black capitalism means using wealth-building strategically for social good, not just profit .
Laryea:"To be clear, a Black capitalist is someone who identifies as a Black person and strategically repositions themselves within the economic system in order to create social good... it's someone who is still kind of in pursuit of excess resources, but it's also with the intention to create and produce social good."
2. Race and class are inextricably linked in America's economic system
Laryea: "When you think about systemic inequality, that's predicated on racism, implicated in systemic inequality focused on racism is also a story about inequality when it comes to classism as well... there is a correlation between race and class."
3. Black people face different standards and expectations as they accumulate wealth Laryea: "When people ascend the kind of economic social ladder, they are held to different standards than their non-white counterparts... oftentimes correlations that we see around wealth and whiteness are not questioned. But when we see black economic thriving, we question why they should be thriving."
4. Communities can't rely on external institutions to solve economic inequality Laryea: "The cavalry is not coming. We see the strategic kind of dismantling of DE&I initiatives, programs that have aimed to create access and channels to opportunity... it really starts with us and looking within and creating those mechanisms ourselves."
5. Traditional capitalism is fundamentally exploitative, requiring a different approach
Laryea: "What's wrong with capitalism is that it is predicated on exploitation, extraction, harm of some sense... You can have a billionaire exist while still have people who don't have access to meet their fundamental needs to food, water, shelter. Those two things should not coexist."
Like apple pie, everybody loves the idea of ethical capitalism. But just as most “homemade” apple pie in stores today comes from a factory, not some rustic kitchen, most for-profit capitalism - whether practiced by black, white, or brown entrepreneurs - ends up focused singularly on profit. Laryea's example of a unicorn fintech company (ASUS) may help people build credit, but it's still a billion-dollar business extracting value from financial transactions. Blueprints remain just blueprints. I’m wary of coloring capitalism.
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