Recently, I pondered the possibility of President Obama using executive powers to provide reparations for past misdeeds in America, including slavery, Jim Crow laws, and various forms of discrimination. I was roundly criticized for saying out loud what has been demanded in the black community for decades.  Still, I think I am right, although the way it’s done, it will not be about mailing out a bunch of checks with letters of apologies.

One Acre in the Suburbs

Sustainability also means creating "geographies of opportunity," places that effectively connect people to jobs, quality public schools, and other amenities. Today, too many HUD�]assisted families are stuck in neighborhoods of concentrated poverty and segregation, where one’s' zip code predicts poor education, employment, and even health outcomes. These neighborhoods are not sustainable in their present state.  —HUD Secretary Shaun Donovan, February 23, 2010

This goal of the administration was put into hyperdrive in 2013 when the Department of Housing Urban Development (HUD) announced the ambitious project of mapping every single neighborhood in America. The goal is to force the integration of those wealthier neighborhoods that are lacking racial diversification. The administration insists this is the perfect way to address the inherent unfairness that perpetuates economic and social imbalances. Moving poor black families into rich white neighborhoods serves the same purpose as ‘Forty Acres and a Mule.’

While no one will call it reparations, it fits the theme of social justice, but even that masks the real goal of President Obama.

Ultimately, it is about President Obama cobbling together the perfect utopia, which I think has always been his main goal. A centrally planned nation where there are no super rich or super poor; and few wise men and women who take care of our needs and wants and where outcomes are predetermined.  All citizens have to do in return is to give up all of their Constitutional guaranteed rights and individual ambitions.

That would be transformational for America indeed, but not new in the history of the world. Nor has it ever worked. Before this month is over, HUD will unveil the next step in the greatest social engineering project in American history. The good news is that if you don’t like your neighbor, you will soon have another. The bad news is that you don’t like your neighbor, you might be the one forced to move.

However, I will follow up when the plan is officially announced. Yesterday, HUD Secretary Julian Castro was grilled on the topic in Washington, D.C. He remained elusive on details, but he offered these reasons for such a dramatic power grab by the federal government at the expense of local governments.  According to Castro, families could get out of poverty if they had the following:

• Good Transit
• Good Schools
• Good Housing

This is such a disappointing statement from a government official, especially one who might be the vice presidential candidate for the Democrats next year.

What is good transit? Most urban areas have schools within walking distance or mass transit readily available for students. I took the subway to high school, but I had to drive my daughter to high school in the suburbs. I am a good driver, but I don’t think that qualifies as good and certainly not convenient traffic.

Schools aren’t the problem, but the conundrum of watered-down curriculums designed to placate those already living in poverty is a major issue. However, if we must keep it real, dropping out or skipping college without a skill such as welding or construction is a much bigger reason for the persistent cycle of poverty.

A House Has To Be A Home

I finally understand
for a woman it ain't easy trying to raise a man
You always was committed
A poor single mother on welfare, tell me how ya did it

-Tupac

Better housing isn’t a misleading ‘woe-is-me’ line that only encourages a defeatist attitude. It is not the house, but it is how the house is treated. It’s not the house, it’s whether it’s a home capable to bringing out the best in its occupants. A mud hut could be a great home and churn out great students ready to embrace life. Not having any heat or hot water, along with rodents are all major issues, but not insurmountable.

What are insurmountable are the long odds where children grow up in a home with a single-mother as head of household. In such households, 39.6% of families were poor and 51.9% lived in extreme poverty.

Suspension of Disbelief 

Well we're movin’ on up
To the east side
To a deluxe apartment in the sky

-Theme from the Jeffersons

It’s galling that the same philosophy that brought America the war on poverty and has controlled schools and cities would now suggest the only solution is to infuse well-off neighborhoods with poor people…it is a superficial approach that smacks of disdain for success and the notion of being rewarded for achievements. On the contrary, the rewards are going to those that achieve fewer things.

The American public is supposed to suspend the disbelief as this narrative of social justice and redistribution is being sold as a cure.

The good news is that for the moment, the American public seems wary of the income inequality ploy, but they are more open about the notion of class mobility. We shouldn’t confuse class mobility by moving people into neighborhoods where they cannot ordinarily afford to live.

 

Movin’ on up like the Jefferson family is the American dream and we all applaud it, because it came with hard work, but it underscores the fact that it can be done.

When it happens, that’s utopia.

There’s been some big breaking news in social media and the stock market…the beleaguered CEO of Twitter (TWTR), Dick Costolo, announced he is stepping down. The change is effective July 1, but he will remain on the board of directors.

Last night, the company held a press conference [SOT].

As you can see from the chart below, the stock has been a huge disappointment. Although from time to time, the shares have rallied mostly on takeover scuttlebutt.

When TWTR hit a $53.00 on April 8^th, there was talks of Google finally offering a bid making the rounds.  The unimpressive execution finally hammered the shares and probably sealed Costolo’s fate.

TWTR 3 Year

Silicon Valley superstar Jack Dorsey will be the interim CEO as the search goes on. There’s no doubt that there could be larger rivals vetting the entire company while the company is vetting resumes.

Today’s Session

The major equity indices indicated significantly lower this morning as the rally remained further subdued. The Bureau of Labor Statistics (BLS) released its producer price report for the month of May. From April, the producer price index (PPI) rose 0.5%, surpassing the consensus estimates of +0.4% and significantly rebounding from the 0.4% decline experienced in the prior month. However, on an annual basis, prices were down -1.1% which is a slight improvement from the April decline of 1.3%. Let’s keep the powder dry and watch the market from the sidelines.

Comments

Black people per capita are more prone to be on welfare and this takes away the opportunity for success. "Teach a man to fish feed him for life, give him a fish feed him for a day." Brad T. on 6/12/2015 9:55:37 AM

Charles you as always say it as it is with such clarity. This stands out for me, "All citizens have to do in return is to give up all of their Constitutional guaranteed rights and individual ambitions." Not going to happen, insurrection and civil war in a way will occur. Our individual freedoms are embedded in our genes, its why most of our ancestors came to this country and why others are still coming now. Keep up the good words. Arcadia Roger on 6/12/2015 10:07:01 AM

thank you for having the courage to talk about this issue - many would not. I would actually support some form of reparations if it would help heal race relations, but I am afraid it would not. Joe Brown on 6/12/2015 10:11:46 AM

I totally agree with Charles assessment of the causes of poverty in America. My children go to a very good school in the Los Angeles area. This school encourages diversity by allowing children from adjacent poor cities to apply and go to these schools. The poor children come to school everyday without homework done. The parents never get involved with the school or interact with the teachers. However, these children wear $200 Nike shoes to school, have the latest video games. All of the poor kids have smart phones, the wealthy parents frequently feel that giving young children a phone is a distraction. Few of these children participate in athletics, band, leadership or other extracurricular activities. In short, neither the children or the parents get involved. The parents of the poor children act like they are "victims of the system". They are demanding and frequently blame the teachers for the child failing. So perhaps President Obama might try focusing his energy on educating the parents that their success is based upon their efforts, self discipline and development of an intact family that includes two parents and a father! The path out of poverty is not a state secret. Reparations for the "victims" are next. This will only re-enforce the notion that poor people are victims and not in control of their own destiny. I know, I came from poverty. Educated my self, served my country in the USAF and have raised and educated four children. It can be done. But you have to work at it. Your country does not "owe" you success! Patrick Webb on 6/12/2015 10:30:05 AM

Obama was raised by Communist parents. His social justice and re-distribution of wealth ideas, beliefs and actions suggest "the apple doesn't fall far from the tree". I worry that one day I am going to wake up and find we are now a communist country. Look at what he has made IRRELEVANT already: 1) The Constitution 2) The American Public 3) the House and Senate. When are the Republicans and, even Democrats, going to stop this President? His disregard for the American people, the Constitution, the House and Senate are all becoming more and more threatening as each day passes! The American Public elected an all-Republican House and Senate to stop his means of governing [pen & phone], his deceit, and his secrecy. So far it appears we are beginning to have a one-party system. The Republicans need to use their powers to stop�or at least slow this dangerous President. I love this country and I love Capitalism. I do not want to see the continuance of the destruction of our Country - day by day. Do you? Remember what happens when good people do nothing! FMT on 6/12/2015 11:27:04 AM

"You cannot help the wage earner by punishing the wage payer." A. Lincoln William hutchinson on 6/12/2015 12:41:53 PM

A reparation of this magnitude will do nothing but increase animosity among the other people's in our great melting pot who will be forced to pay the bill. Jobs, and willingness to work, are the answers. Doug on 6/12/2015 12:48:58 PM

There are not homes in wealthy neighborhoods available for HUD to take over... so what's the mechanism for proceeding? Im perplexed.... Lacy on 6/12/2015 1:11:41 PM

We're all going to be living theatre with this plan. Just applique the images onto the characters and they will instantly become better-educated, useful, prosperous and responsible citizens. Patricia Flynn on 6/12/2015 4:58:20 PM

Instead of extolling "single motherhood" and how hard it is to raise a family, why not bring to everyone's attention that single motherhood indicates bad selection of a mate and poor decision making. In this day and age pregnancy is preventable. Lena on 6/12/2015 7:05:23 PM

Until Black men stay and live/raise the Children they are creating the trevails of urban black families will continue and the society as a whole will suffer. I have witnessed families where both parents work multiple jobs and raise wonderful children. The principle of this generation sacrificing to elevate the next generation and then that generation doing the same for the next is the cure for American Poverty. But, as lond as the gov't doles out enough to make life bearable without too much sacrifice and perserverence the plight of the poor and especially urban blacks will continue! garro on 6/13/2015 12:38:36 PM

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