In her book
The Color of Money: Black Banks and the Racial Wealth Gap, Baradaran explains how the program was innovated in Richard Nixon’s administration. As he took office in 1968, black Americans reeled from generations of discrimination. Instead of mobilizing the large federal government response needed to quell racial inequality through reparations or targeted anti-poverty programs, the president nimbly “co-opted the black power movement’s rhetoric of economic self-determination to push a segregated black economy, thereby justifying his neglect of other proposals for meaningful reform.”
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This program was black capitalism—a series of meager tax breaks and incentives touted as enabling a black entrepreneurship that would supposedly redress generations of racialized American plunder. It was a farce—a decoy made of Styrofoam and plastic. But its minuscule price tag and rhetorical appeal made it a political masterstroke that grew into the go-to policy for American presidents.
“Carter did it, Reagan did it, Clinton did it, Obama did it, [and] Trump is doing it now with Opportunity Zones,” Baradaran told me. “Opportunity Zones is black capitalism. It’s been denuded of the word ‘black,’ but it’s essentially the same idea.”
“We’re pretending like we’re helping distressed communities through capital, but it’s actually not capital for the communities themselves. It is development incentives. It is rich private-equity firms and hedge funds getting tax incentives to do stuff, build stuff, and to create stuff in these distressed communities. They get the upside, and they’re protected from the downside because they are going to get tax credits. That is an extension of Nixon’s brilliant decoy,” she continued.
“It looks like we’re helping, but we’re actually not,” Baradaran said. “All it does is prop up a few black businesses to sort of allow for the segregated market to continue breeding inequality.”
While Nixon played off the self-determination rhetoric during the Black Power movement, Trump taps into the language of uplift favored by rappers today. Drawing from the entrepreneurial spirit that flows through the genre, Trump’s Opportunity Zones proposal has found strange bedfellows in business-minded rappers like Nipsey Hussle.
In February,
Forbes ran an article on Nipsey Hussle titled “
Inside Nipsey Hussle’s Blueprint to Become a Real Estate Mogul.” The piece plotted out Nipsey’s entrepreneurship in an Opportunity Zone in Crenshaw and discussed his plans to expand “a broader Opportunity Zone-based fund” in 10 cities with his business partner David Gross, a Los Angeles–based real-estate developer. The expansion plan centered on collaborating with local celebrities—like rapper TI in Atlanta—to build a network of “tax advantaged” businesses in low-income neighborhoods.
In his wake, many publications recounted how Nipsey’s businesses touched the lives of Los Angeles residents and provided a lasting sense of community and ownership. And yet it’s difficult to separate programs like Opportunity Zones that assist high-profile black entrepreneurs like Nipsey “to buy back the block” from the cynical policies of politicians like Trump who ruthlessly undermine plans promoting systemic racial justice.
For decades, programs providing tax breaks and incentives to a few high-profile black entrepreneurs have sucked all the air out of policy conversations addressing racial economic inequality. These dialogues focused on upper-middle-class black entrepreneurs obscure the plight of everyday black folks living in segregated areas. They ignore poor and working-class people, who need direct investment the most. For example, when publications like
Complex run stories describing Nipsey’s Opportunity Zone funds as the “
Economic Version of Black Lives Matter,” they miss the point. Black Lives Matter—
a movement focused on radical redistributive policy for all black people—
is the economic version of Black Lives Matter.
And if history serves as our guide, it can be profoundly counterproductive to support economic-justice agenda premised on the altruism of black entrepreneurs.