A Letter to My White Friends and Colleagues. Steven S. Rogers

Introduction

      Dear White friends and colleagues,

      I have never written to you before, but I am doing so now because the country, and specifically the Black community, needs your help. There is a cancer in our country that keeps resurfacing over and over. That cancer is the government public policies that have worked to create and maintain the disparity between Black and Whites in all areas of their lives, including perpetuating the wealth gap. In response to these cancerous policies, we see protests and civil unrest, which are akin to chemotherapy being administered to fight a cancer. There is much that Whites can do to unravel the harm of these policies. In the finance arena, the only real cure for America is the elimination of this wealth gap, which would make the Black community as healthy, safe, and self-sufficient as the White community.

Therefore, I am asking individuals to redress the problem primarily created by the government but that benefits White Americans. Your help is needed in the form of wealth sharing. I am not talking about a penalizing redistribution of wealth. I am recommending a wealth sharing that happens organically and intentionally via commerce, investments, savings, philanthropy, and government policy. This includes:

      I strongly believe that these means will eliminate the wealth gap and finally address fundamentally our country's racial problems practically and substantively.

My concern comes from my familial devotion to the improvement of the Black community and is the reason why I wrote this book that focuses on solutions to the problem of wealth disparity between Black and White Americans. It is my belief that until this problem is addressed in a systematic way, similar to the systemic anti-Black practices and policies that are its root causes, that the social unrest will continue. If peaceful coexistence is to exist between Blacks and Whites, the wealth gap, where the average White person has a net worth of $170,000 compared to $17,000 for the average Black person, must be eliminated.¹ This gap does not exist because Whites are smarter than Blacks, nor does it exist because Whites save more than Blacks or have worked harder than Blacks. These commonly held beliefs are falsehoods of mythic proportions, refuted by objective empirical research.²

The reason for the racial wealth gap is simple, but barbaric. One scholar noted that slavery is the primary reason why Blacks hold 1% of the country's wealth today, compared to ½% immediately after slavery ended in 1865.³ It stretches back to the moment those 20 abducted Black Africans were dragged to our shores in 1619, only 15 years after the first settlers landed in Jamestown, Virginia, in a ship called the White Lion. For 246 years, there were over 12 generations of zero wealth accumulation for Blacks, compared to the accumulation of hundreds of billions for Whites. The financial benefits to Whites were best described by a Duke University professor, Peter Wood, who said, “Slavery it seems to me was an extraordinary goose that laid the golden egg…. You had workers that you didn't have to pay, and you owned their children as soon as they were born. It's a preposterous system.”⁴

      American slavery was such a pervasive system in its enslavement and treatment of Blacks that financial wealth inured to the benefit of Whites whether an enslaved Black was alive or dead. Specifically, the financial benefits of enslaving Black people was ingrained in the fabric of almost every industry in the United States, including insurance, education, and banking. In the book and the movie 12 Years a Slave, we follow the story of Solomon Northup, a free Black man who was kidnapped and pressed into bondage. At a moment in the narrative when Northup was going to be lynched by a White employee on the plantation where he lived, a bank mortgage ended up being a primary reason why his life was spared. Another White plantation employee stopped the hanging because killing Northup would have resulted in the bank expecting immediate repayment of a $400 loan. Northup's Black life mattered only because a bank was owed money.

When we think of mortgages, we imagine banks providing loans to buy inanimate assets such as real estate, but during slavery, the White banking industry expanded their mortgage portfolios by providing loans to buy Black people as well as issuing new loans using Black enslaved people as collateral to buy more Black people. This is similar to a homeowner who owns her home free and clear getting a new mortgage. Therefore, banks in the north and south made more profits from mortgages on human beings than on real estate. Historian Bonnie Martin found that in some states, there were periods when slaves served as partial collateral for more than 80% of all loans.⁵ At one time in Louisiana, the frequency with which owners used enslaved Blacks as collateral