How to do it

by Troy Henry

BACKGROUND

Upon arrival in America, Black Americans were enslaved for several hundred years.  And the impact of this systematic and institutional practice still has a multi-generational impact on many Black Americans today.  The enslavement and de-humanization of the Africans brought to America for economic and white lifestyle purposes is truly the original sin of this country.  Our government made numerous promises of reparation (40 acres and a mule). Yet real efforts to compensate African Americans have been paltry to non-existent.  Black communities today continue to reflect inhumane conditions that are the repercussion of approximately 400 years of pain and suffering. 

A nation of people does not just snap out of this type of institutional racism.  It takes time and proactive efforts to truly attempt to right the wrongs of this sin.  Historically, oppressors have compensated their victims.  The people of Germany compensated the Jews for the Holocaust.  America compensated the Japanese people as a result of the WWII internment.  However, the White American community has never fully addressed the most heinous of all punishments inflicted on a people that are largely responsible for building this great country.

Reparations For Slavery

PERSPECTIVES

There has been much written recently about the need for reparations for Black Americans, and most of these articles have been thoughtful and “on point”. I would like for you to reference several outstanding articles that prompted me to write this body of work.  Each has a unique perspective and discussion regarding the need and benefits of reparations.

The link below is a CNBC article profiling the need and growing support for reparations.

https://www.cnbc.com/2020/08/12/slavery-reparations-cost-us-government-10-to-12-trillion.html

The link below provides the perspective of the wealthiest Black American (Robert Smith Jr) regarding reparations.

The link below  gives you the perspective of one of America’s great entrepreneurs (Bob Johnson) regarding reparations.

https://www.thenewamerican.com/usnews/politics/item/35888-black-billionaire-johnson-every-black-american-should-get-a-350k-reparations-check#disqus_thread

The article below attempts to establish the value necessary to properly compensate Black Americans reparations.

While each of these articles and many more do an outstanding job of justifying the necessity for Black American reparations, none of them fully address the high-level implementation of such a program.  The remainder of this article will discuss a practical approach to funding the program and the benefits associated with it.

RELATED: WE NEED MORE THAN SYMBOLIC CHANGE

FUNDING SOURCE

Today, the current US stock market including NYSE, NASDAQ and OTC markets have a value of approximately $37 Trillion.  This figure captures the current market value for all publicly traded enterprises.  The Federal Government has approximately $300T in assets under management in the form of property and other assets.  While it is impossible to trace each asset and company to the act of slavery or any derivative activities, many of these enterprises (public and private) were directly or indirectly the beneficiaries of this heinous systemic sin of slavery.

My approach for reparations for each individual Black American, would target any individual with a gross income of $500,000 annual income or less based on your most recent tax return.  Neither I (small business owner), Rob Smith (Vista Equity CEO), LeBron James (NBA great) or many others Black Americans would participate in this program, because they have successfully and permanently overcome the scars of slavery.  Also, individuals who immigrated to the US after 1990 would also be excluded from the program even though their ancestors may have experienced slavery, it was not in the USA and therefore would not qualify.  Based on the above qualifiers approximately 5 million out of the 45 million Black Americans would not qualify.  Based on the numbers above, a reparations payment of $10Trillion would pay to create a one-time payment of $250,000 to every Black American born before 1/1/2021 or whatever date is appropriate.

Reparations Now or No?

Is Money Available?

So how do we generate $10T without crippling the entire US economy?   Answer: Every publicly traded company would pay a 15% one-time tax on the market value of their company.  Since most companies would not have that amount of funds on hand, its payment could be made in the form of additional shares of contributed stock to the fund.  While this would cause an immediate dilution of share value, it does not put any company at a competitive disadvantage since their competitor would be subject to the exact same tax and repercussions.  As a result, over time the market will respond to this tax much like it has done to the Corona Virus.  This would generate approximately $6T for the reparations fund.

The 2nd source of funds would be the federal government.  The Federal government has the ability to issue one-time payment funds like what was done for the Corona Virus.  In addition, the federal government has un-used and under-utilized property that could be contributed to the reparations fund.  While some of this land may be less desirable, it would represent value to the fund and could be monetized if necessary.  This federal contribution would represent an approximately $4T contribution to the fund.

The reparations funds would be managed on the behalf of the Black American recipients by 10 Black-owned securities firms ($1T each), thereby making them significant players in the financial community with the power and ability to train future financial leaders of America.  The financial management firms would commit to a minimum 6% annual rate of return to remain in the program.

PARTICIPATION

Each of the 40 Million Black American qualified recipients would have the option to take the cash as a non-taxable lump sum of money or as a cash dividend (non-taxable) from the fund.  Any recipient of the funds must agree not to receive any other federal government subsidies such as: food stamps, Section 8 housing voucher, etc.  Also, this would assist the federal government in reducing its entitlements budget.  For Black Americans stuck in the entitlement system, these funds represent access to self-sufficiency and self-determination.

The impact on the Black community would be immediate and extremely positive.  Allow me to give you an example of the fund’s effect.

Example 1:

Assumption: family of 4, husband and wife with 2 kids (3 & 5years old)

Recipient qualifies for $250,000 times 4 family members equals $1M

Recipient chooses to leave the funds with the fund manager and receives a 6% annual dividend equal to $60,000.

In addition to their normal income, the family has $60K non-taxable income to pay for a better school, home, or new business

Example 2

Assumption:  Single individual (age 25)

Recipient qualifies for $250,000

Recipient chooses to payoff $50,000 in debt and purchases a home without a mortgage for $200,000.

The recipient can now continue their life debt free.

Use of the proceeds can have a myriad of potential positive and negative examples, One essential element to this program will be that anyone choosing to take their funds out of the program must enroll in a financial management course to aid them in the best course of action for using these funds. Only after a person successfully completes the course will funds be distributed.

BENEFITS of REPARATIONS

There are a significant number of benefits to this reparation program that can transform our country and attempt to make up for the nations original sin.  The US budget would be less burdened with entitlement programs due to the program, thereby allowing the government to increase funding for roads, public education, and other priorities.  America would be a more educated nation since more and better educational opportunities will emerge.  There will be more innovation due to an increase in entrepreneurship because lack of capital cripples many small businesses.  Crime will be reduced since the economic conditions for many of our fellow Black Americans will have improved significantly. 

SUMMARY

Reparations will benefit all of America and truly compensate our most deserving citizens.  Also, reparations will diminish numerous social ills that plague portions of America today.  Most Importantly, reparations will fairly compensate Black Americas while evenly distributing this one-time economic pain.  This reparation program will help balance our nation’s budget.  Reparations will begin to truly level the playing field for all Americans.

13 thoughts on “Reparations for Slavery”
  1. Great article Troy. You and I both know that will never happen. The establishment would BURN IT TO THE GROUND FIRST!!! I like the way you broke it down though.

  2. Familiarize yourself with ADOS. That is where the most compelling and well researched argument lies. We need to stop treating “black” people as flat “blackness.” Reparations owed by the United States to US citizens has had to bear the costs of white supremacy since slavery and up until now. At the very least read the works of William Sandy Darity.

  3. I would like to get $250,000. I am a working class white man from Alabama. My ancestors died in the civil war. Our family lost our wealth. We have never recovered. I demand reparations.

  4. Why are blacks always begging? Work hard and stop doing crimes and you could do better. I ain’t paying my taxes for reparations. No no no to reparations unless we all get a check.

    1. Actually, no group of Americans has worked harder & put their lives on the line for so little in return. They were locked out of American freedom & capitalism for two centuries by every level of government, including the first 89 years of this country’s existence during which they had a 100% tax on their labor. Then they were locked out of the handouts other Americans were able to use for wealth building (Homestead Act, FHA, GI Bill etc) until the 1960s. They were also locked out of the labor market during the periods that built the American middle class. So no, this isn’t begging – this is restitution for the trillions that gov’t policies cost this group of Americans.

  5. In the 1st paragraph is lots of manuactured allusions, illusions, delusions, & confusions. The words illustrate defective reasoning and convolted illogical ideas and statements embellished from many inaccurate proposals.
    It’s intent is to intimidate and terrorize from bad and false posturing.
    It’s underlying power and engine is the blindness to one’s “envy, covetousness, and greed”, which illustrates intoleance and enmity towards God.
    Many have lusted for reparations. Since Adam and Eve, mankind has done lots of evils upon each other, and many could herald the same desire to receive reparations from those who have harmed others.
    There is some bible accounts where God orchestrated and commanded that some people received reparations. They got it becasue the Obeyed God.
    Those people, were them who God knew, they were his real authentic 100% chosen ones, and these people dedicated themselves and families to live for God as their only Leader in all manners of conduct, not governments or politicians.
    TRUE Godly people were daily dedicated to God, called by his name, humble people, they prayed and fasted to worship God, they seeked Gods wisdom, and they turned from all their wicked ways. If there alligence and loyalty and lifestyles showed such, then God protected them and gave them His victories over enemies who were defeated and destroyed and all the plunder and goods and wealth was “Gods reparations” back to “His People”.

    The writer of this article, surely has a “prejudice & implicit bias” with his fellow man for the way history and life has happened, and how God has allowed the roads of life to happen, to others in which now he seeks compensation? He seems to want to “sue God” for the ways that God let things turn out? Also, there is the impression that he wishes he or his people were never taken to this land.
    I think “Lincoln” offered all slaves a return to their native land, but most deceided to stay and retrofit into the white mans country, the white mans government and the white mans cultures and the white mans religions.
    Why? if they went back to their homes, their black friends might capture then again and sell them to other people and take all their assets.
    Today, none or a miniscule few blacks never complain of the recently announced 33 million people today in slavery around the globe in many nations and countries.
    The USA people of the past died trying to end USA slavery. Many whites spent years trying to remove the strife, hate and enmity among the people, and has done much to erradicate bad practices.
    The odd delusion is, that when people today are taken from slavery and abuses
    and bad governments around the globe,,, well, tell me,,, where do people bring people of color to?
    HERE, the USA, why? Because this is the best and safest nation that takes in refugees and helps them to get on their feet and all at the expense of, us, and the
    benevolence acts of the USA people.
    Often, the nation does more for the refugees than its own, is a complaint.
    If the bogus idea of reparations was implemented, rest assure, that within 3 years that it will all end up back in the white mans pockets, banks and financial places via the decadent paths of Hedonism, Paganism, False religions, charlatons, drugs, gambling casinos, and the lust of the flesh and lustof the eyes.
    See, God says this and God will not be mocked. He knows the hearts of hmans and their disloyalty to Him.
    Humans are vulturous Idolators, and Love to please their flesh and there blindness to these internal sinful lifestyles which leads them into more delusions and more illusions, and then to walk and live a persistent violation of all the 10 commandments till the day he dies!
    WE never need a 11th commandment, because after violations of 10 man is pretty well mentally & morally dead to truth, and live trapped into a 24/7 sinful conduct in all manners of life committed to follow the ways of evil, because they were beguiled by the serpent.
    Gone and will believe any Lie!
    God wants some “reparations” too, when ya gonna pay up?
    ……………….
    2020 Sept

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