Friday, November 19, 2010

Does Obama Have Bragging Rights with GM IPO?

US auto industry rebounds with Obama in the driver's seat

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

President Barack Obama gained some bragging rights this week. The emergence of General Motors by way of a$20.1 billion dollar initial public offering (IPO) was a shot heard around the world. The IPO is the largest in American history, and largely unexpected by most of the financial community.

Just a year ago, General Motors found itself suffocating under the stigma of receiving a government bailout, and the Obama administration was heavily criticized for providing $36 billion in taxpayer funds to keep the company afloat. The argument by Obama was that allowing GM to fail would cause the loss of hundreds of thousands of American jobs, something that the president wasn't willing to tolerate. In an uncomfortable spurt of patriotism, the president's camp took the bold step of bailing out the company that many thought should be allowed to fail.

President Obama certainly has both the right and need to brag about the rise of GM. In the same way Republicans were quick to blame him for allegedly worsening the economic downturn, they must also allow him to soak up the credit when good things happen. Whether we are faced with good or bad economic times, the president is usually given more responsibility than he deserves. Such is the nature of politics.

Click to read.

Saturday, November 6, 2010

Dr. Boyce on CNBC: Cutting Taxes for the Rich is a Very Bad Idea

kudlow

 

Watch Dr. Boyce Watkins explain on CNBC that extending the Bush tax cuts for the wealthy is bad for America.   Click here to watch

Friday, November 5, 2010

Boyce Watkins on CNBC: Why are Republicans Fighting So Hard for the Wealthy Already?

 

Dr. Boyce appears on CNBC to ask why the Republicans are already fighting to extend Bush tax cuts for the wealthy.  To watch the video, please click here.

Friday, October 29, 2010

The Importance of Owning Your Own Business – Dr. Boyce Video

Dr. Boyce Watkins and Danielle Douglas

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

In case you didn't know this, one of the things that most people think about every single day is how they are going to make enough money to get by. Life is tough and finding enough money to live can be even tougher. What's worse is that the black community's struggle to build economic institutions and obtain financial security are things that keep us from being truly liberated in a fundamentally and historically racist society. The link between civil rights and economic prosperity was the seminal reason for my book, "Black American Money."
The commitment I made to the black leadership and the audience at the "Measuring the Movement" forum this year (hosted by Al Sharpton and the National Action Network) was to promote the idea of black entrepreneurship. Entrepreneurship is not just a matter of having your own business. It can also be as simple as finding some extra streams of income in order to obtain critical financial security. In this economy, you have no job security if you've only got one job. You have to find (what I would call) "a side hustle."

 

Click to read.

The Invested Life – 10/29/10

 

Chicago:

(video) Tom Forde talks about whether a Roth IRA is right for him, and what he’s learned as he’s researched it:

http://bit.ly/aGO9uC

(text) while Matt Sapaula says that financial security is important, but insuring yourself is every bit as vital:

http://bit.ly/bhh8eC

Portland:

(video) Kathleen Lansing explains why her road to retirement is scary, but it makes the small business owner proud to hear about the value of her life’s work:

http://bit.ly/9XdF7n

(text) While Jenn Meacham looks back on the most important financial lesson she learned, at age fourteen:

http://bit.ly/cY3cUS

Los Angeles:

(video) Lisa and Brandon Schindelheim explain how switching roles taught her about finance, and him about he difficulties in being Mr. Mom:

http://bit.ly/bkM7w5

(text) While Candace says that’s it important to educate not only yourself about finances, but your kids as well:

http://bit.ly/aDm6yX

New York:

(text) Jennifer Sherwood explains why shopping in fancy stores might be a rush, but so is saving money:

http://bit.ly/cAQsyV

(text) While Dr. Boyce Watkins says that you don’t need to have big money to build a portfolio:

http://bit.ly/a4e8YR

Colorado:

(text) Michael Jake is glad to hear that his business has grown enough to start hiring, but has his concerns:

http://bit.ly/ajLbzk

Dallas:

(text) On our show, we’ve seen former NFL star Winfred Tubbs thinking about buying a house. In this new blog, he reveals that he’s had to scrap those plans and live in his condo instead until the real estate market improves:

http://bit.ly/bZNNn6

(text) While Ed Butowsky talks up the value of utility stocks:

http://bit.ly/cQiuZW

Miami:

(text) Suzan McDowell reveals her list of the 10 must-by priorities she can’t live without, and what she learned about herself while compiling it:

http://bit.ly/bWYiX7

(text) While Ben Tobias explains that if you don’t know what’s important to you, you’ll never effectively maximize your happiness:

http://bit.ly/9e6k3c

Sunday, October 24, 2010

Is Racism an Occupational Hazard for African Americans?

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

Most of us know Hanes Brands as the company that has Michael Jordan peddling underwear. The company is also responsible for other leading brands such as Champion sports apparel and Playtex, among others.

The company is now in the middle of controversy after an African American employee, Yunusa Kenchi, filed suit for discrimination. An embarrassing email has allegedly surfaced in which Kenchi was referenced using the n-word. The employee has taken the case public, and Hanes has yet to respond.

 

Click to read.

Tuesday, October 19, 2010

Black News: Magic Sells Lakers Stake for $35 Million

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

Magic Johnson has officially put an end to an important era of professional sports. Johnson, a long-time staple in the stands at Los Angeles Lakers games, is no longer an owner of the team. TMZ is reporting that while riding his private jet, Johnson signed a deal to sell his five-percent stake in the team for a cool $35 million.
The Lakers are the most valuable team in the NBA with a 2010 market value of $607 million. Johnson is also a valuable commodity himself, with a net worth estimated at half a billion dollars. This is the latest move in a series of impressive business decisions made by the NBA Hall of Famer.
I still remember that day 18 years ago when Magic Johnson announced on national television that he was HIV positive. I was standing in my dorm room with my two roommates and my girlfriend, who was in tears. She didn't know a lot about sports, but she certainly knew about Magic Johnson. It was a sad day for all of us, since we were counting the days until Magic would move on to the afterlife.

 

Click to read.

Sunday, October 17, 2010

Meet Dr. Boyce Watkins

Q: What do you stand for?

A: I stand for fairness and doing what is right.  I am not a Finance Professor who happens to be black, I am a black man who happens to be a Finance Professor.  There is a great deal of inequality in America that runs along racial lines.  This is due to the fact that our country has built a 400 year social, financial and educational infrastructure that promotes the advancement of one group over the other.  It is my job as a public scholar to challenge this imbalance and work to find solutions to these problems.  My primary tools of choice are education and economic empowerment.  I work hard to teach youth, especially African Americans, the value of being highly educated and the additional value that comes from becoming Financially independent and empowered. Those were the choices that changed my life and gave me the freedom and strength to express myself honestly, creatively and (some think) intelligently.

I also want to challenge the NCAA to rethink the way it treats college athletes.  As a Finance Professor, I am not sure how we can justify earning millions for our coaches and administrators,  while allowing the sources of labor (the athletes) and their families to live in poverty.  This is wrong and unAmerican, for capitalism should give us the rights to freely negotiate our wages.  When we engaged in our campaign on CNN, ESPN and CBS to challenge the actions of the NCAA, people thought I was trying to attack them.  The truth is that I don't enjoy attacking anyone, I only want to fight for fairness.  One thing that my students have always said about me (whether they love me or hate me) is that I am fair.  I call it for what it is.


Q: Your work can be controversial, why do you do it?

A: I ask myself that question every single day!  Personally, I believe that the role of the black scholar in America is to work hard to uplift our communities.   Our intellect is needed, and in addition to engaging in scholarly research that lies in dusty academic journals, we should become active in our communities and throughout the world.  I believe strongly in the concept of Scholarship in Action.  The thing about Scholarship in Action is that it requires the combination of intellect, creativity, curiosity, commitment, passion and courage that stands at the root of all true genius.  I do not consider myself a genius, but I wake up every day thinking "I am one day closer to my last day on this earth.  How can I get the best return on my investment?"  That is what keeps me going.

Click to read more.

Friday, October 15, 2010

New Birth, Eddie Long’s Church, Gets Sued Yet Again

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

A woman who was once employed by the New Birth Missionary Baptist Church is suing, alleging that other employees retaliated against her when she complained about being sexually harassed. Tama Colson filed suit in the U.S. District Court of North Georgia, with the suit asking for unspecified damages.
Colson says that another employee showed her a picture of a penis on a cell phone. She says that when she complained about the incident, other employees retaliated against her. She is claiming that the church is responsible for the harassment she experienced, as well as the retaliation and emotional distress.
"New Birth has a strict policy against sexual harassment that requires employees to report the complaint within 48 hours of the abuse," Long and church spokesman Art Franklin told CNN.
"Tama Colson's complaint allegedly happened in October of 2009," the statement said. "Although, Tama Colson was aware of the New Birth sexual harassment policy she did not make her complaint known to New Birth authorities until August of this year. New Birth moved swiftly to launch an investigation that is ongoing.”

 

Click to read

Thursday, October 14, 2010

Dr. Boyce Watkins: Black America Must Outgrow the Jay-Z Business Model

"Boyce Watkins"

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

Jay-Z is an amazing rapper.  Some think that he’s been in the game for a bit too long, but I don’t agree.  Personally, I think “Jigga” simply reflects the fact that hip-hop itself is aging.  Jazz was once solely the domain of rebellious teenagers, but now you’re sure to hear it playing in every old folk’s home across America.  The same is going to be true for hip-hop.

Jay-Z has said repeatedly that he will stop making music, and I’m sure that one day he will.  However, there is one area in which we need to retire Jay-Z: In his role as the pre-eminent black businessman in America.  It’s not that Jay-Z is a bad role model, it’s just that he’s been exhausted.

Don’t get me wrong, Jigga has made significant amounts of money by busting rhymes on his left and selling clothes on his right.  Good for him.  But is he really the best business role model for young black males, who are already consumed with a culture that teaches them that all they can be are rappers or athletes?  No, he is not.  Young black women also find that their leading role models in business are women like Oprah and Beyonce, both of whom keep us hyper-fixated on the entertainment industry.   It’s time to make a change.

Click to read.

Monday, October 11, 2010

CBC Joins Dr. Boyce Watkins in Call on Black Unemployment Issue

Congressional Black Caucus

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

From Black America Web via Clutch Magazine

On the heels of September's mixed unemployment report, the Congressional Black Caucus renewed its call for President Barack Obama and Congress to do something to specifically address the nation's high black joblessness rate.
The country's unemployment rate remained stuck at 9.6 percent, according to Bureau of Labor Statistics. The economic monthly report was a mix of good news and bad. The good: The private sector added 64,000 jobs last month. The bad: Government agencies cut 159,000 jobs, many of them federal Census workers and state and local employees.

 

Click to read.

Friday, October 8, 2010

Dr. King vs. Obama: What Would One Say About the Other?

by Mike Green, Huffington Post

When unemployment in Black America topped 16 percent and Black teen unemployment skyrocketed to an outrageous 45 percent this summer, the voices of outrage were muffled in the pockets of a few media that cared to cover the crisis. The majority of media wrung their collective hands over 9 and 10 percent unemployment challenges in White America, with overall teen unemployment hovering at 23 percent.

Dirty Secret

"A dirty little secret is that many jobs are not going to come back," says Johnathan Holifield, founder of Trim Tab System, LLC, a personal development and organizational leadership methodology, which applies innovation concepts and tools to generate exponential impact.

"Under the old model, recovery meant increased productivity, which meant increased hiring, Holifield said. "That is no longer the case. Because of the ingenious uses and applications and adoptions of new technology throughout our economy, we will continue to experience productivity growth but we will not have the level of job replacement and hiring that our recoveries in the past have been accustomed to."

Dear President Obama ...

Dr. Boyce Watkins, founder of Your Black World, underscores Holifield's point. He wrote a public letter to President Barack Obama that stated in part:

"In addition to massive unemployment, wealth inequality in America remains a persistent problem, causing African Americans to bear the brunt of this economic crisis in ways that are unimaginable to other Americans. Our homes are facing foreclosure more often and we are less able to rely on a source of background wealth to help us get through the toughest times.

"Yet, while we are the least prepared for the recession, we are being hit with a downturn that is twice as forceful as that being experienced by the rest of America. In fact, even after the recession is over, our unemployment rate will probably be as high or higher than the rate that white Americans are agonizing over right now. The United Nations has investigated this issueas a human rights violation, because it appears that we live in a nation that accepts a black underclass as a default way of life.

"To this point, your administration has remained disturbingly silent on the issue of black unemployment. The silence is deafening, but the economic hardship is loud and clear. I am concerned that many of your key economic advisers are unable or unwilling to process and empathize with the depths of black economic misery in America."

Never-Ending Recession

Dr. Watkins called on President Obama to institute political efforts and policy measures that would help create urban jobs through congressional legislation and generate more government contracts with African American companies.

At theLoop21.org, Dr. Watkins made a compelling case that suggests even when the economy recovers, the burden of unemployment for Black America will still be in double digits while the nation celebrates a long-awaited return to prosperity. He states:

"Our country spent 400 years firmly placing black folks at the bottom of the social totem poll, only allowing us to recently participate as laborers in the American economic system.

"The conclusion is that even during good economic times, it is acceptable in the eyes of the Obama Administration for black unemployment to be worse than it is for whites during a recession. The recession will never end for us."

 

Click to read.

Wednesday, October 6, 2010

Lack of Funding is a Huge Hurdle for Black Entrepreneurs

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

Danielle Douglas, an entrepreneurship expert and CEO of Inspire Enterprises, conducted a survey of African Americans interested in owning their own businesses. The survey,which can be found here, was qualitative in nature, asking questions about the pitfalls that people run into when trying to become either full-time or part-time entrepreneurs.
Douglas made it clear that the greatest obstacle that African Americans face when trying to start their own business is a lack of access to capital. In an interview with AOL Black Voices, Douglas said this:
"Overwhelmingly, respondents number one frustration is lack of financial resources as it relates to start up capital , access to capital in general, and identifying viable resources to help them attain capital."

 

Click to read.

Tuesday, October 5, 2010

Wednesday, September 29, 2010

Why Do Black Athletes Go Broke? Let’s Figure Out Why

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

I am participating with MSN in a project called "The Invested Life." The program represents the launch of a series of web-based episodes that teach the fundamentals of investing to regular, everyday people. I've worked on the show for months, and I'll be engaged in the project for the rest of the year. It's been an interesting jump into the world of film making, with scripts, production schedules and all that good stuff. I've gained a newfound respect for how hard real actors and actresses actually have to work.
A guest on the show is a man named Winfred. Winfred is a former NFL athlete who found himself done with sports and trying to make sure that his wealth lasted until retirement. He made an interesting point that for many athletes, the challenge of retiring young with virtually no skill set can be a one way ticket to the poor house. As a man who is concerned about the plight of the black athlete, I constantly see men who've traded away their entire educational future in exchange for a very short and meaningless life of glamor in professional sports.

Click to read.

Dr. Boyce Watkins joins MSN’s “The Invested Life”

 

Click to watch Dr. Watkins’ episodes.

Thursday, September 23, 2010

Barack Obama Ditches His Top Economic Advisor

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

President Obama's top economic advisor, Lawrence Summers, is finally. out the door. The former Harvard University President resigned from Obama's Council of Economic Advisors amidst questions about his performance. Summers came to represent the very worst of the economic crisis. He was the man in charge, next to the man in charge, as the world came to associate Harvard University economists with the financial destruction of America.
Summers wasn't a bad economist, but he was hardly an adequate representative of the American people. He was part of the academic aristocracy, the nephew of (not one, but) two Nobel Prize winners and the son of two Yale university professors. Needless to say, Summers was born with a silver spoon in his mouth and doesn't know a thing about economic struggle. He worked hard for what he ultimately received, but quite a few doors were open to him from birth. He personified the white male affirmative action program that has been in existence since slavery. At the very least, the chances of a black man having two Yale professors in his family (let alone a Nobel Prize winner) are virtually non-existent due to Jim Crow. So, if Lawrence Summers had been born as one of "us," we wouldn't even know his name.

 

Click to read.

Wednesday, September 22, 2010

Dr. Boyce on CNBC: Should the Estate Tax Be Repealed?

boyceoncnbc

 

Click to watch Dr. Boyce Watkins discuss estate taxes – Video is here.

Tuesday, September 21, 2010

African American Woman Says She’s Exhausted of Defending Obama

Black Woman Tells Obama I'm Exhausted of Defending You

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

A black woman stood up in the Town Hall Meeting held by President Barack Obama yesterday and made a comment that got the attention of the world. She mentioned that she was "exhausted" from trying to defend the president to his critics:
I am one of your middle class Americans and, quite frankly, I'm exhausted... I'm exhausted of defending you. I'm exhausted of defending your administration, defending the mantle of change that I voted for. And I'm deeply disappointed with where we are right now.
I have been told that I voted for a man who said he was going to change things in a meaningful way for the middle class. I am one of those people and I'm waiting sir. I'm waiting. I don't feel it yet. And I thought, while it wouldn't be in great measure, I would feel it in some small measure... And quite frankly Mr. President, I need you to answer this honestly: Is this my new reality?
(Thelightnc.com)

 

Click to read.

Monday, September 20, 2010

Black in America on CNN: Their Incorrect Analysis of the Black Wealth Gap

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

I was recently checking out some of CNN's special, "Black in America," the show they seem to do once a year. In the series, African Americans are analyzed like lab rats in a cage, with producers highlighting every dysfunction imaginable, as if we have a monopoly on counter productive behavior. Although I've always had a good relationship with CNN, I can barely stomach some of what I see. This is not to say that black folks are perfect: but the idea that we are somehow less perfect than whites is nothing short of paternalistic, White Supremacist thinking.
The segment that threw me through the roof was one covering the wealth gap between blacks and whites. In this particular Black in America segment, CNN shows that the wealth gap between blacks and whites is $28,000 to $140,000, with whites being the leaders. They then go on to state that African Americans save and invest less than whites. I give a "check" on most of these numbers, I have no problem with the data.

 

Click to read.

Sunday, September 19, 2010

Your Black News: HBCU TV Network to Launch This Fall

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

NewsOne.com is reporting that there are plans to launch a 24-hour network dedicated to HBCUs. The network is set to be focused on "edutainment" and lifestyle for Historically Black Colleges and Universities. The company behind the platform, C3 Media LLC says that the network is set to fill a niche within the cable industry that has barely been reached in the past.

Much of the programming will also feature various sports teams sponsored by black colleges all across America. "The idea and vision behind the creation of the HBCU Network is to preserve and celebrate the African American colleges and universities, while also providing opportunities for their growth and further prosperity," CEO Curtis Symonds told NewsOne. "At the same time, we are passionate and excited about building a strong media brand and network from the ground up."

 

Click to read.

Thursday, September 16, 2010

Black Athletes Under Attack: NFL Owners May Lock Out the Players

by Dr. Boyce Watkins, Syracuse University 

For NFL fans and those who have teams in their cities, there's something you should know. Like a dark cloud hanging in the sky on a bright, sunny day, a pending NFL lockout is waiting on the horizon. A lockout is sort of like a strike, but the workers aren't the ones calling for it. Instead, team owners are the ones calling for a halt in NFL activities, where the league will be shut down and games cancelled. Even if games aren't cancelled, we might be forced to endure another season of tacky replacement players, and nobody wants that.
The AFL-CIO has decided to put it's power behind the NFL Players Union in this battle with team owners. The organization sent a letter to the owners of NFL teams, warning them that a lockout could have a powerfully detrimental effect on workers and fans in cities all across America. They also warned that cities could lose $140 million in revenue.

Click to read.

Wednesday, September 15, 2010

Black Scholars Watkins and Metzler on CNBC – 9/15/10

Video thumbnail. Click to play

Click to Play

Black Scholars Dr. Boyce Watkins and Dr. Christopher Metzler Discuss "Keeping The Bush Tax Cuts" on CNBC

Monday, September 13, 2010

Open Letter to President Obama: Let’s Deal with Black Unemployment Right Now

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

Dear Mr. President,


I write this letter with all due respect to yourself, as well as the office of the presidency. Your historic rise up the political ladder has been nothing short of inspirational, and your extraordinary vision has positioned you as one of the most celebrated leaders in the history of the United States. As a fellow scholar and African American male, I applaud your achievements. I am especially excited about how you, Michelle, and your beautiful daughters present such a magnificent image of the African American family.
While the black community remains inspired by your achievements and overwhelmingly sympathetic to your challenges from conservatives, there are concerns that the economic plight of black Americans has not been a priority for the Obama Administration. To be sure, opinions on this matter are far from unanimous. But the numbers tell a story that needs to be heard.

 

Click to read.

State AG Wants to Take Fisk University’s $74M Art Collection

Monday, September 6, 2010

African American Unemployment Rises 700% More Than White

by Dr. Boyce Watkins, Syracuse UniversityScholarship in Action 

This weekend, I was on the radio with Rev. Jesse Jackson. He'd just completed a march in Detroit, for jobs, peace and justice, only to find that his SUV was stolen upon arrival. But when I asked him if he was OK, his response was quite telling of the leader that he is: He simply said that the car doesn't matter at all when there are so many people suffering across America.
Well, the nation-wide suffering for African Americans has just intensified with the recent unemployment data delivered by the Bureau of Labor Statistics. It's most recent report showed that while white unemployment only went up from 8.6 percent to 8.7 percent, black unemployment went up from 15.6 percent to 16.3 percent. This increase of seven percent is at a rate that is 700 percent of the increase of white Americans.

 

Click to read.

Saturday, September 4, 2010

Kodak Pays Millions for Discrimination

Friday, September 3, 2010

Tom Joyner Starts a Company to Get HBCUs Online

by Dr. Boyce Watkins, Syracuse University 

Radio show host Tom Joyner has decided to start making investments in the educational arena. Joyner has announced that he will help found a company designed to support Historically Black Colleges and Universities (HBCUs) in their quest to create online and distance learning programs.
Joyner's foundation has donated quite a bit of money to HBCUs. He is also a proud advocate for these campuses, which have struggled a great deal during the recent recession. Taping into additional revenue provided through online programs would provide a much needed boost for many black colleges and universities.

 

Click to read.

Thursday, September 2, 2010

Dr. Julianne Malveaux Speaks Up for Detroit Suffering

by Dr. Boyce Watkins, Scholarship in Action 

This week, Bennett College President and prominent black scholar Dr. Julianne Malveaux wrote a strongly-worded article about the economic suffering taking place in the city of Detroit. In the article, Malveaux describes Detroit as Ground Zero for the black economic experience over the past two years.
"Only one in four young black men graduates from high school in Detroit. The rest are lost and left out, swallowed by a city where urban blight, industrial desertion, and educational failure define daily life. Detroit is ground zero, exemplifying the absolute worst of urban life."
Dr. Malveaux goes on to highlight the problems that are caused in our communities by decaying schools and poor investment in urban infrastructure. She mentions that President Obama was quick to support the automakers in Detroit, yet there are quite a few urban citizens of the city who have yet to feel relief.

Click to read.

Wednesday, September 1, 2010

When You Die, Who’s Responsible For Your Debts?

by Dr. Boyce Watkins, Syracuse University 

 

You are going to live forever.  Death is beneath you.  Those who depend on you financially will always be able to rely on your immortality as a guaranteed source of financial security.  I hope you don’t think I’m lying, being sarcastic or sounding flat out silly. Perhaps you do.

Ok yes, I was being silly.  But the reality is that most of us are equally ridiculous when it comes to our perception of death and how our sudden passing could financially ruin those who care about us.   Death doesn’t care how many appointments you have, how many projects you’re working on, or how many plans you have for the future.  It just takes you, and it’s always at the least convenient time.  That’s the nature of the Grim Reaper, who might not be nearly as malicious as the bill collectors seeking to get their money back after you’re gone.  
While comprehensive financial planning is beyond the scope of this article, I can share a few tips on dealing with debt in the event of your death.  This information could help you when dealing with a deceased relative, and it should also be shared with your relatives in case you pass on unexpectedly. 

 

Click to read.

Dr. Boyce Watkins: How to Teach Your Kids About Money

by Dr. Boyce Watkins, Syracuse University 

Given that our children are likely our greatest expense and greatest love, perhaps it might be helpful to discuss how we teach them about money.  If you raise your kids to be financially responsible, they can be assets to you during retirement.  If they are taught about money in the wrong way, they become horrible economic liabilities that leave you riddled with guilt.  So, although I don’t claim to know everything about child rearing, I thought I’d share some guidelines you might want to consider when it comes to teaching your kids about money.

 

Click to read.

Sunday, August 29, 2010

Bad Financial Decisions of Fantasia

by Dr. Boyce Watkins, Syracuse University, Scholarship in Action 

One of the most magnificent voices in all of music is owned by Fantasia Barrino, the singer out of North Carolina. Most of us know that Fantasia attempted suicide recently. Of course the suicide attempt led to instant national media attention, and she was all over the news telling her story. Her management team, understanding the value the incident could have for her brand, pushed out the Vh-1 special before you could say the words "publicity stunt."
Now, I'm not here to say that I know what happened to Fantasia or whether the suicide attempt was genuine. But one thing that remains fundamentally true is that she'd been highly upset over the decline of her career. Also, we know that the television specials and additional PR from the incident have put Fantasia in the limelight in a way that far exceeds what she had access to last month. The final thing we know is that Fantasia is working furiously in the studio to get an album out in order to profit from the re-establishment of her celebrity status. Unfortunately, her team may be looking to replicate the experience of Jennifer Hudson after her difficult experience last year.

Click to read.

Monday, August 23, 2010

Dr. Boyce on CNBC – 8/23/10

Click to watch – Dr Boyce in a heated argument with Ben Ferguson over taxation of the rich

Friday, March 12, 2010

How Much Dough is Earned in March Madness Anyway?

'March Madness' isn't amateur, it's big league exploitation

by Dr. Boyce Watkins

In 2006, the chairman of the House Ways and Means Committee, Bill Thomas, sent a letter to NCAA President, Myles Brand. In this letter, Thomas had this to say:

"The annual return also states that one of the NCAA's purposes is to 'retain a clear line of demarcation between intercollegiate athletics and professional sports.' Corporate sponsorships, multimillion dollar television deals, highly paid coaches with no academic duties, and the dedication of inordinate amounts of time by athletes to training lead many to believe that major college football and men's basketball more closely resemble professional sports than amateur sports."
In this letter, Thomas makes a very clear point that is also being mentioned by academics, coaches, former athletes, students, attorneys and fair-minded Americans throughout the country: the NCAA is a professional sports league. To call collegiate athletes in revenue-generating sports "amateur" is like calling Barack Obama a part-time politician in training.

Companies pay CBS Sports $100,000 dollars for a 30-second ad during the early rounds of March Madness. This cost jumps to $1 million dollars for a 30-second spot during the Final Four. The NCAA's contract with CBS is an 11-year, $6.1 billion dollar TV rights deal, with the NCAA hauling in over half a billion per year in revenue. The amount of money made during March Madness exceeds that which is earned in the playoffs for the NFL, NBA or Major League Baseball. The average coach in March Madness earns roughly $1 million dollars per year and schools typically hire their basketball coaches without giving a "you-know-what" about the academic standards of the coach they've chosen to hire (you hear that Kentucky)?

Now, who said that any of this could be defined as "amateur"?

 

Click to read




Thursday, March 11, 2010

Dr. Boyce: Why African Americans are More Optimistic than you Think

Why African-Americans are more optimistic despite fewer jobs

According to a recent survey by Experian, African-American consumption grew by over 50 percent from the year 2000 to 2008 ($590 billion to $913 billion), and it is expected to grow to over $1.2 trillion dollars by the year 2013. The study also shows that blacks are more economically optimistic than whites, with 36 percent of us stating that we expect our financial future to improve, as opposed to 31 percent for all adults.

The Experian study says a couple of things: First, it says that black people love to consume and that we are getting better at it. In fact, black people have historically been very good at buying things and working hard to get them, but we are not very good at production, investment and saving our money. We grab our tax refunds and run to the mall. We become highly paid corporate lawyers in order to purchase the house and car we really can't afford. We are chubby kids in the economic candy store, accelerating our collective addiction to the monetary engines controlled by corporate greed.

 

Click to read




Wednesday, February 17, 2010

Dr. Boyce: Russell Simmons Rants on Banks

russell_simmons

by Dr. Boyce Watkins 

Hip hop mogul Russell Simmons seems to feel that banks are not treating the poor in a proper fashion. This week, in a rant on his site, “The Global Grind,” Simmons had this to say:
“They trick customers into doing things that are not good for them through lack of transparency, and surprise them with new fees when they can least afford it. I’m learning an important lesson about ethics or lack of ethics in this industry. In fact, I’m fighting with a bank right now that doesn’t know what kind of ass whipping they are going to get when I expose them for the abusive practices and exuberant fees they are charging the poor. What they are doing is trying to double their already outrageously high fees in exchange for providing absolutely nothing to my customers.”
Simmons went on to try to create a “movement” by adding a call to action:

“Let’s start the biggest public discussion ever about how banks treat us and expose these banks for their unequal treatment and unconscionable conduct. The time is now.”

 

Click to read.

Tuesday, February 16, 2010

The Economic Policy Institute – 2/16/10

 

12/07/09
American Indians and the Great Recession—Economic Disparities Growing Larger
Issue Brief

11/12/09
Getting Good Jobs to People of Color
Briefing Paper

07/21/09
Unequal unemployment—Racial disparities in unemployment vary widely by state
Issue Brief

03/09/09
Stuck in Neutral: Economic Gains Stall Out for Asian Americans and Pacific Islanders in 2000s
Briefing Paper

10/31/08
Hispanics and the economy: Economic stagnation for Hispanic American workers, throughout the 2000s
Briefing Paper

09/18/08
Reversal of fortune: Economic gains of 1990s overturned for African Americans from 2000-07
Briefing Paper

01/18/08
What a recession means for black America
Issue Brief

Web-only Content

Date
Title
Type

12/16/09
A bleak future for black children
Analysis & Opinion

12/09/09
High unemployment: A fact of life for American Indians
Economic Snapshots

11/12/09
Reversing the Decline in Good Jobs [event]
Other

11/10/09
Jobs creation effort needs to focus on good jobs
Economic Snapshots

09/18/09
Three lessons about black poverty
Analysis & Opinion

07/08/09
African Americans see weekly wage decline
Economic Snapshots

04/22/09
Among college-educated, African Americans hardest hit by unemployment
Economic Snapshots

09/05/08
Jobs Picture, September 5, 2008 - Special Issue
Economic Indicators

08/04/08
Understanding the black jobs crisis
Viewpoints

06/10/08
Subprime mortgages are nearly double for Hispanics and African Americans

Monday, February 15, 2010

Congressional Black Caucus “Funny Money”

Corruption in the Congressional Black Caucus threatens African-Americans

by Dr. Boyce Watkins 

From left are, Rep. Donald Payne, D-N.J., Rep. John Lewis, D-Ga., Rep. Edolphus Towns, D-N.Y. and Rep. Charles Rangel D-NY. (AP Photo/Pablo Martinez Monsivais, File)

Does anyone think that the Congressional Black Caucus works for the interests of the African-American community? Well, think again. It appears that, according to a scathing report in The New York Times, African-Americans don't have the money to buy the CBC's loyalty. At the very least, they do not appear to be the top priority for a legislative group that has allowed dollar signs to complicate its priorities.

The New York Times article details a highly suspicious network of foundations and charities that seem to funnel money to CBC members in exchange for influence in Washington. The political and charitable wings of the CBCtook in $55 million dollars between 2004 and 2008, with only $1 million of that coming through their political action committee; the rest came through their unregulated network of foundations, which are allowed to escape campaign finance laws designed to keep legislators from being bought by corporate America.

While the CBC argues that the funds are used to support charitable causes in the African-American community, it seems that the foundation spends more time "big balling" with elaborate corporate events than it spends actually doing work for the community. Federal tax records show that the CBC Foundation spent more money on the caterer for its annual dinner, $700,000 dollars, than it spent giving out scholarships. As my mama used to say, "That's just trifling."
Even more disturbing are the relationships that the Congressional Black Caucus has formed with industries that clearly do not have the interests of the black community at heart, including the Internet poker industry, cigarette manufacturers, alcoholic beverage producers and rent-to-own companies. Many rent-to-own companies operate in predominantly black neighborhoods and are effectively electronic drug dealers: They give consumers a quick high today in exchange for unethically high fees and massive amounts of debt. Well guess what? The CBC is one of the reasons that the rent-to-own industry has been allowed to expand its operations in urban communities where CBC members don't even live.

Click to read.

Friday, February 5, 2010

Dr. Boyce Watkins on MSNBC: The State of the US Economy

Dr. Boyce Watkins on MSNBC: The State of the US Economy

Wednesday, February 3, 2010

Black News: Homeowners Walking Away from Mortgages

Image: Benjamin Koellmann

updated 12:25 a.m. ET, Wed., Feb. 3, 2010

In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.

“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.

Click to read.

Thursday, January 21, 2010

Charges Filed in NAACP Embezzlement Case

A former NAACPexecutive was charged in Fulton County, Ga., with embezzling $275,000 from the U.S. civil rights organization, NAACP officials say.

The Rev. Amos Brown, administrator for the NAACP's Atlanta chapter, said former NAACP official Judith W. Hanson and Hanson's former assistant, Saundra Douglass, are accused of embezzling funds during their time with the Baltimore-based organization, The Atlanta Journal-Constitution said Tuesday.

Authorities allege Hanson, who served as the executive director of the NAACP's Atlanta chapter, and Douglass used NAACP funds for personal expenses during a six-year period.

 

Click to read.

Wednesday, January 20, 2010

African American News: Study Finds Financial Benefits to Marriage

Historically, marriage was the surest route to financial security for women. Nowadays it's men who are increasingly getting the biggest economic boost from tying the knot, according to a new analysis of census data.

The changes, summarized in a Pew Research Center report being released Tuesday, reflect the proliferation of working wives over the past 40 years — a period in which American women outpaced men in both education and earningsgrowth. A larger share of today's men, compared with their 1970 counterparts, are married to women whose education and income exceed their own, and a larger share of women are married to men with less education and income.

"From an economic perspective, these trends have contributed to a gender role reversal in the gains from marriage," wrote the report's authors, Richard Fry and D'Vera Cohn.

 

Click to read.

Tuesday, January 19, 2010

Facebook Plagued by Fake Haiti Fundraisers

Fake fundraising efforts for the Haiti disaster are spreading like wildfire on Facebook. Dozens of fan pages have been set up, urging users to join and promising a $1 donation for each member. One group this weekend attracted 1.5 million members before it was disabled.

Meanwhile, during the weekend, Facebook officials had to beat back a rumor that the firm had promised a $1 donation for every member that changed their status to include a message about Haiti.

"This status is being tracked, the owners of facebook have confirmed they will send $1 to the rescue fund for the Haiti earthquake disaster for everytime this is cut and paste as a status," read one form of the bogus claim. "You only have to leave it for a minimum of 1 hour. Lets all do our bit to help."

Facebook spokesman Barry Schnitt said the firm took aggressive steps to quell the rumor. It posted a note on its blog on Saturday warning about the bogus message.

"Beware of scams and hoaxes and ensure that your donations for Haiti get to the right places," the social networking company wrote on its blog. Contrary to a current meme, Facebook is not donating $1 for statuses, however we are sharing reputable resources via the "Other Pages" tab on the Global Disaster Relief on Facebook Page."

 

Click to read.

Saturday, January 16, 2010

Wyclef’s Charity Under Questioning

Haiti's musician Wyclef Jean, left, arrives at the airport in Port-au-Prince on Wednesday, Jan. 13, 2010, the day after a 7.0-magnitude earthquake hit his country. (AP Photo/Lynne Sladky)

(AP)

Groups that vet charities are raising doubts about the organization backed by Haitian-born rapper Wyclef Jean, questioning its accounting practices and ability to function in earthquake-hit Haiti.

Even as more than $2 million poured into The Wyclef Jean Foundation Inc. via text message after just two days, experts questioned how much of the money would help those in need.

"It's questionable. There's no way to get around that," said Art Taylor, president and chief executive of the Better Business Bureau's Wise Giving Alliance, based in Arlington, Va.

Taylor reviewed Internal Revenue Service tax returns for the organization also known as Yele Haiti Foundation from 2005 through 2007. He said the first red flag of poor accounting practices was that three years of returns were filed on the same day — Aug. 10 of last year.

In 2007, the foundation's spending exceeded its revenues by $411,000. It brought in just $79,000 that year.

click to read.

Thursday, January 14, 2010

US Insurers Have Limited Exposure to Haiti

U.S. insurers may have very little exposure to the massive losses caused by the earthquake that struck Haiti.

Haiti is one of the smallest insurance markets in the Americas, with a total non-life insurance premium income of just under $20 million, "which reflect the country's poverty," according to a report Wednesday from Newark, Calif.-based Risk Management Solutions Inc. By comparison, the total net premiums for property and casualty coverage in the U.S. in 2008 totaled nearly $441 billion, the most recent figures available from the Insurance Information Institutes 2010 Fact Book.

 

Click to read.

Saturday, January 9, 2010

Your Financial News: Jobs Come and then Go

chart_job_losses_010810_3.top.gifBy Chris Isidore, senior writerJanuary 8, 2010: 11:31 AM ET

NEW YORK (CNNMoney.com) -- Employers once again slashed a substantial number jobs off their payrolls in December, according to adisappointing report from the government Friday. But there was a small glimmer of hope as well.

The payroll number for November was revised to a net gain of 4,000 jobs. That's the first increase in jobs in nearly two years. The government had previously indicated that 11,000 jobs were lost in November.

Click to read.

Thursday, January 7, 2010

Your Black News: Black Leaders Fight for Census Funds

The nation’s black newspaper executives are asking for $10 million from the U.S. Census Bureau to advertise for the 2010 Census, but the government is reportedly only offering $2.5 million.
NNPA officials told Richard Prince - who writes a diversity column for The Robert C. Maynard Institute for Journalism Education - that the NNPA would use the $10 million in advertising to encourage African Americans across the country to participate in the 2010 Census.  
Commerce officials said the Census Bureau would take a second look at its $300 million communications campaign to determine if there are ways to make it better. The bureau kicks off its ad campaign next month and will conduct its head count via mail and door-to-door canvassing next spring.
Last month, a coalition of civil rights leaders met with U.S. Commerce Secretary Gary Locke in an effort to prevent an undercount of African-Americans in the upcoming 2010 Census. In 2000, the Census Bureau said about 4.5 million people were mistakenly overlooked - mostly African Americans and Hispanics.

 

click to read.