A Possible Reparations Program

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A financial summary of this reparations program is shown in Table 1.  The government expense is shown in the Amount column in trillions of dollars.  The per person figure is an estimate of the total value that could be received by individuals.  Category 1 is a financial asset that will be for every Descendant.  It is important to note that the funds for categories 2 and 3 are based on choices or conditions at an individual level and may not be for every Descendant.  For example, category 2 includes government funds for college/trade school, real estate purchases and small business loans.  Descendants who elect these services get this value in the form of government payments directly to the parties involved (i.e. college). 

 Thomas Craemer quantified the payment African Americans would have earned at the market wage rate of labor for 24 hours/day for life from 1776 - 1865.  According to Darity/Mullen, A 5% interest rate brings the estimate to $17 trillion in 2019 dollars.  This approach is deemed acceptable for the purposes of this estimate but has two deficiencies.  First, the market wage rate would have been much higher if the millions of African Americans had been included in the labor market.  Second, the model is a calculation of base wages only and does not include the compounding wealth that could not be achieved overtime.  Third, this model is financial only and does not account for the multi-generational impact of physical, emotional and psychological trauma endured by enslaved African Americans.

The substantial size of this payment could present challenges both on a micro-distribution level and on its impact on the macro economy.  This fund could be set up to encourage recipients to hold the value in a structured asset with dividend payments.  Assuming a 3% dividend, a fund of this size would yield around $13,000 annually.  Additionally, if the fund grows at 7% annually, Descendants could receive annual cash payments from that growth which would be an additional $45,000 annually bringing the total annual income from the fund to $58,000.  This figure is equal to or exceeds the median income of a single earner home in 30 states and would sustain a modest lifestyle.  Descendants could elect to rest, pursue hobbies and passion projects, or get more involved in their local community.  The ability for the Descendants to rest is a powerful and much deserved notion for those whose ancestors were afforded none.

"Rest is a radical notion to the Black body." - Resmaa Menakum

Two of the leading discrepancies in this country are the wealth and education gaps between Black and white Americans.  This section aims to redress these in five ways. 

1. Subsidized real estate investments (Source: The Color of Law - Richard Rothstein) - The reparations program would apply a 75% government subsidy on real estate.  For example, a home valued at $320k could be purchased by a Descendant for $80k (the remainder paid by the government).  This is meant to allow Descendant families to step into real estate equity that they were excluded from during the 1930s-1960s.  A modified version of this program could be made available to non descendant-Black Americans if their families were in the United States during that period of disenfranchisement. A special incentive could also be established for reinvestment in farmland.
2. The second is a program to fund higher education or trade school for all Descendants.  Under this program, beneficiaries can receive full tuition, room and board to any 4 year college or full payment to attend a trade school (plus certification fees).  This program (perhaps modified) could also be applied to non descendant Black Americans.
3. A third program is a government subsidy covering the interest on small business loans for up to 5 years for beneficiaries.  This would alleviate the risk aversion experienced by Black entrepreneurs.  This program (perhaps modified) could also be applied to non descendant Black Americans.
4. The fourth program in this category includes a free annual meeting with a financial advisor.  This could be a service provided by one of the Black Business Development Bank described later.
5. Finally, this program will facilitate a review of wrongfully incarcerated Black people resulting in their liberation, record expungement and additional services to facilitate their successful reentry into the general population.

There is no way to begin to quantify the pain and suffering endured by the African American community over the last 400 years in the United States.  No programs here will come close to truly remedying this experience.  However this estimate looked at four areas to address. 

1. The first is free monthly therapy for all Descendants starting at age 5.  This service could be aided by the Emancipation Healing Centers described later.  This therapy is critical to begin to unpack the multi-generational trauma associated with chattel slavery and the 150 years that followed.  Emotional well being is essential to a successful reparations program.  For services of this kind to be available, substantial investment will be required to train and certify Black therapists who can provide these services.
2. Another part of this program is a general reimbursement for medical expenses. This is to compensate for the overall impact of racism on physical health (also known as “weathering”).  The government would reimburse Descendants for 10% of general health expenses annually.
3. The third part is a direct investment in doulas, midwives and other culturally appropriate, community practices to ensure the health and wellness of Black mothers.  It is critical to reverse the trends of pre and post-natal complications and fatalities experienced by Black mothers in today's health system.
4. The final program is one that addresses a few diseases that disproportionately impact African Americans. These are byproducts of housing discrimination which, starting with redlining in the early 1900s, forced many African American families into overcrowded communities in less desirable areas (i.e. near industrial zones and in food deserts).  Housing discrimination continued in the 1930s in the form of discriminatory insurance practices which created ghettos and exacerbated poor health outcomes.  Asthma, diabetes and hypertension are linked to environmental causes which are rooted in housing and community.  On average, there are 3 African Americans with these diseases for every 2 White Americans.  The proposal here is to have the government cover 33% of expenses for all African Americans suffering with these diseases.

 A critical component to making reparations successful is a robust investment in supporting agencies and organizations.  The National African American Reparations Commission (NAARC) has a 10 point reparations program that includes several organizations to support a reparations program.  This estimate includes an annual cost of $20 billion for these organizations.  A summary of the organizations is below.  These organizations will be led by a National Reparations Bureau (as described by Darity and Mullen) which will be an umbrella organization to support the network or agencies described below.

    The reparations program will include funding for an African Knowledge Program.  This program will reconnect African Americans with African culture.  According to the National Coalition of Blacks for Reparations in America (N’COBRA), the first of five injuries suffered by African Americans is the violent repression of personhood and nationhood.  The cultural re-connection can be aided by expanded use (and government subsidies) of the African Ancestry DNA tests which shows specific tribal affiliations.  This will empower African Americans with direction to learn the culture specific to their ancestry.  Cultural education programs can include food, fashion, religion, language, music, art, customs, coming of age rituals and more.  

    The reparations program will establish a National Reparations Trust Authority.  This authority will run sovereign land for African Americans.  “These lands are to be utilized for major educational, commercial, industrial, economic/business and health/wellness institutions and enterprises to benefit people of African descent.”  It will also support the restoration and enhancement of African American agricultural development.  

    Another organization would be the Black Business Development Bank.  This bank will provide grants and loans to socially responsible for-profit entrepreneurship and economic ventures that are dedicated to building the Black community. 

    The Black Health and Wellness Agency will establish Emancipation Healing Centers.  These centers will help the African American community “address and overcome the damages of Post Traumatic Slavery Syndrome and racism”.  It will establish regional systems of Black controlled Health and Wellness Centers, “fully equipped with highly qualified personnel and the best 21st century facilities to offer culturally appropriate, holistic preventive, mental health and curative treatment services”.  It will also set standards for culturally accountable health care services nationwide.  Specialized programs should be established for prenatal, childbirth and maternal care.  This organization will serve as a watchdog to identify and eliminate food deserts, environmental hazards stemming from infrastructure, and to ensure adequate, safe, accessible recreational facilities and programs.

    The National Board of Education of African Ancestry will develop educational culture and formats designed for African American students.  It will set African American curriculum standards nationwide (covering history, art, etc.) for year-round implementation for all students.  It will support the training and cultural awareness of non-African American educational professionals including teachers and staff.  The board will advocate and support Black students in the pursuit of fields where there is racial under representation.  The board will also advocate for the official recognition of Black languages.

    The African American Housing and Finance Authority will consist of a residential planning agency.  This agency will “plan and construct holistic and sustainable “villages” with affordable housing and comprehensive cultural, educational, health and wellness, employment and economic services”.   The authority will also set standards for zoning changes and provide resources for African American communities targeted for gentrification.  The Authority will also assist with strategic financial, commercial, industrial, agricultural and technology-oriented business/economic enterprises for the benefit of Black America as a whole.

    The African American Public Broadcasting organization will produce and/or distribute African American media, culture, entertainment, news and history.  The Smithsonian and National Parks organizations will include an organization for African American Sacred Sites which will erect memorials commemorating African American history, especially the sites of lynchings, riots and massacres.

    Finally, the Criminal Justice Transformation Agency will lead abolitionist efforts, set revamped criminal justice standards and provide job, education and housing services for those emancipated.  As part of this initiative, reparations will also include the elimination of the 13th Amendment exception clause which permits the enslavement of those convicted of crime.  This agency will also establish standards to criminalize racist policy and actions including but not limited to violating the Voting Rights Act, the Equal Housing Act, and the Civil Rights Act