The Blacks have Been the Worst Affected by the Foreclosure and Unemployment Crisis
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African Americans have been the worst affected by the foreclosure and unemployment crisis because they are the largest recipients of sub-prime loans in the country. They are disproportionately represented in the government work force and receive various benefits from the government from everything from tax to education loans. As such, austerity measures will definitely have a harsh affect on the African-American middle class. This, in turn, will cause them to turn away from Obama.
While there are talks in the Obama administration about closing down Fannie Mae and Freddie Mac, their total losses have amounted to $150 billion, which are being supported by taxpayers. However, there have been worries that winding them down would put the careers of minorities at grave risk. Among all the employees of Fannie and Freddie, 44% and 50% were black, respectively.
In Washington D.C., the number of government cuts black leaders have approved of has been devastating. When Mayor Adrian Fenty gave his support to chancellor of schools Michell Rhee, who fired teachers numbering in the hundreds, mostly from the black community, the wards lying to the east of Anacostia cut him off. In 2010, many black voters threw out Fenty who had previously voted for him.
African Americans are over-represented among the government work force. These jobs comprise the backbone of all Afro-American middle class employees. The pay scale of the federal governments and the benefits awarded has, in recent years, far outpaced that of the private-sector.
From the first year of this decade, the number of federal employees with incomes over $150,000 went up ten times. The figure doubled during the initial two years of the Obama government. In 2009, the average salary of federal servants, after factoring in benefits, was $123,000 – double salaries found in the private-sector ($61,000).
Thanks to these salaries and benefits, Washington ranks first in all the metro regions in regards to per-capita income. The three congressional districts situated north and west of Washington in Maryland and Virginia ranks among the highest in the country in regards to average income.
This so-called “great society” began in the middle of the 1960’s. The following half a century has turned into the salad days of government employees. However, no other segment of the population has benefited as much as American blacks.
But the deficit is causing this picture to change fast. Obama is cutting off big chunks from welfare spending, which blacks have benefited from the most. Black voices are being raised against Obama already.
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