Economic Gains: Charting the Biden Administration’s Impact on Black Detroiters

With the 2024 presidential election drawing near, President Joe Biden has turned his focus toward securing the Black vote, a demographic vital to his reelection hopes. In a strategic move, Biden recently visited the Wisconsin Black Chamber of Commerce in Milwaukee, a city known for its Democratic leanings yet showing signs of waning voter enthusiasm.

During his speech, the President highlighted the significant economic improvements and growth in business opportunities within underrepresented communities. This focus is seen as an attempt to reconnect with Black voters, who have expressed increasing skepticism about the current economic landscape.

“Biden’s administration has been under scrutiny for its economic policies, particularly among Black communities,” White House official Tom Perez, Director of Intergovernmental Affairs, told the Michigan Chronicle. “However, there’s undeniable progress, especially in the realm of Black-owned small businesses, which we’re witnessing a boom in, thanks to recent governmental initiatives.”

The President’s remarks delved into how his administration’s economic strategies and recent investments have fostered this growth. The spotlight was on the American Rescue Plan and the Bipartisan Infrastructure Law, legislation credited with injecting new life into small businesses and addressing long-standing equity issues.

Biden’s choice of Milwaukee for delivering these remarks is seen as a tactical decision. The city represents a historically Democratic audience whose engagement has dulled in recent years, making it a critical target for revitalizing support.

Closer to home, here in Detroit, the impact of these federal initiatives is palpable. The local Black entrepreneurial scene has seen a remarkable surge post-pandemic. Entrepreneurs and small business owners in the city attribute this growth to the conducive environment created by the administration’s policies.

In October, the pace of hiring across the United States showed a modest slowdown, with employers adding 150,000 jobs, indicating a resilient labor market amid economic uncertainties and rising interest rates that have increased borrowing costs for both businesses and consumers.

Although the job growth in October, down from September’s impressive increase of 297,000 jobs, was less robust, it was still strong enough to demonstrate ongoing demand for labor and a stable economy. The United Auto Workers’ strikes against automakers in Detroit had an impact, potentially reducing the job gains for October by about 30,000, according to economists. The strikes concluded recently with tentative agreements that provided improved wages and benefits for union workers.

When the Michigan Chronicle mentioned the share of strikes here in the city this year, Perez said, “President Biden was the first sting president to walk a picket line and he walked a picket line in Michigan with the UAW and they got a settlement that is incredibly good for the workers, it’ll grow auto sales and auto manufacturing in the state of Michigan and frankly across America.” Perez goes on to mention the casino strikes and the efforts of the Biden administration, “We were actively monitoring those casino strikes, I was talking to one of the unions involved in the strike and they told me that the conclusion that casino workers are getting considerably generous raises that they wouldn’t have generally gotten if it wasn’t for this labor action.”

Perez says that the union movement right now has undergone a renaissance across America, and the attitudes of Americans in the context of unions have been the most positive today since they have been in 50 years. “When we have these successful union movements, it’s not only good for everyone, but it’s disproportionally good for Black America because they’re disproportionally represented in organized labor, so these labor actions are particularly good for Black communities.”

The national unemployment rate experienced a slight uptick, going from 3.8% to 3.9% in October. For Black entrepreneurs in Detroit and elsewhere, 2023 presented a mix of both encouraging and challenging economic news. In Detroit, known as the nation’s “biggest and blackest” city, the economic landscape has been shifting positively, marked by a significant drop in high unemployment rates in various communities.

March 2023 saw the National Bureau of Labor Statistics report a milestone for Detroit, with the city’s unemployment rate falling to 5.8%, the lowest in 23 years. A key player in fostering local employment is Detroit At Work, a city agency dedicated to providing training and job opportunities. This agency has played a crucial role in equipping residents for in-demand jobs in sectors such as healthcare, information technology, advanced manufacturing, construction, skilled trades, and the growing automotive industry. The philosophy behind Detroit At Work is that a strong and fulfilled job market is essential for driving the local economy forward. “The black unemployment rate is 5.8%, and to give perspective, it was 9.2% when President Biden and Vice President Harris took over, so we see it plummet, and that’s what we want to see,” said Perez. “We’re creating really good middle-class jobs in Michigan, and we’re continuing to invest in cities and specifically infrastructure projects in Detroit. We’ve worked closely with Mayor Duggan and Governor Whitmer to make sure that we’re investing in Detroit.”

Nearly three years into President Joe Biden’s tenure, the United States is witnessing a sustained low unemployment rate, a promising indicator for the nation’s economic health. The latest report from the Bureau of Labor Statistics reveals that the U.S. lowered the unemployment rate to 3.7%. This figure is a decrease from the 3.9% in October and a significant drop from the 6.3% rate at the onset of Biden’s presidency in January 2021. This period marks the longest duration of unemployment below four percent in half a century.

However, unemployment figures alone do not fully capture the state of the economy. Factors such as reduced job-seeking activity or employment in low-wage positions can paint a different picture despite low unemployment rates. According to Senior Advisor Perez, such scenarios could signify “bad” low unemployment.

Conversely, a decrease in unemployment accompanied by an increase in job-seeking and hiring activities is generally viewed positively. Notably, the unemployment rate for Black Americans, though improved, remains nearly twice the national average. It has fallen to 5.8% in November from 9.2% at the beginning of Biden’s term.

The report also highlights job growth in sectors such as manufacturing, construction, and health care, where Black workers are disproportionately represented. While the Black unemployment rate has not reached the White House’s target, Perez notes that it indicates increased bargaining power for workers.

Despite the progress in reducing unemployment, economic concerns continue to loom large for many Americans. Recent surveys, including a Gallup poll, underscore the economy as a primary concern for Americans. At least a third of respondents in the Gallup poll identified the economy as the most pressing issue facing the country. This sentiment reflects the ongoing challenges the Biden administration faces in addressing economic disparities and ensuring the well-being of all Americans.

A recent CBS News survey conducted from December 6-8 has revealed that 39 percent of Americans and 51 percent of those aged 65 and older view the economic challenges during the COVID shutdowns of 2020 and 2021 as the most severe in recent history. Furthermore, 46 percent of respondents feel their standard of living has declined compared to that of their parents.

These perceptions of economic hardship are prompting the White House to highlight its achievements, particularly the low unemployment rate, as the 2024 presidential election approaches. In this vein, the Biden-Harris 2024 campaign has launched a new advertisement targeting Black voters early in the campaign cycle. The ad, titled “List,” showcases the economic initiatives of President Joe Biden and Vice President Kamala Harris, focusing on how their policies aim to foster economic growth in Black communities.

Featured in the ad is Darren Riley, a Black entrepreneur and small business owner from Detroit. Riley discusses the impact of the Biden-Harris agenda on communities like his across the nation. He specifically mentions the significance of Biden’s $1.2 trillion Infrastructure Investment and Jobs Act and the multibillion-dollar Inflation Reduction Act, describing them as monumental for areas that often receive funding last.

“My community is usually last on the list to receive any type of funding,” says Riley. “The policies and things that he puts in place are striving to make a difference for these matters. How to put food on the table for our kids and families, how to get the next job, how to skill up.”

Riley praises the administration’s policies for addressing crucial issues such as job creation, skill development, and providing for families. He asserts, “Joe Biden is actually doing stuff that helps everyday people,” emphasizing the President’s focus on both the present and future well-being of Americans.

The campaign plans to air this ad on television and digital platforms that have a high viewership among Black audiences in key urban centers like Detroit, Philadelphia, and Milwaukee. These cities are strategically important in battleground states. This ad is part of a broader early investment strategy by the Biden-Harris campaign to consolidate Black voter support for the upcoming 2024 election.

“Black Americans are starting small businesses in record numbers and it’s not a coincidence that this is happening during the Biden-Harris administration,” said Perez. “We want to make sure that the rising tide lifts all boats and not just the yachts, and we want to make sure that zip codes never determine destiny, and that’s why we’ve invested so heavily in Detroit and other cities alike across the country.”

Will the Biden administration’s strategy of utilizing campaign ads and visits to predominantly Black cities be effective in persuading Black voters? Given the efforts they’ve made and the instances they’ve shown up, is it sufficient for the Black community to feel acknowledged and valued? Specifically, what does the Black community, particularly in Detroit – recognized as the blackest city in America – require to truly feel seen, heard, and appreciated?

As the election year approaches, Biden’s administration seems keen on not only touting their economic achievements but also ensuring that these messages resonate with key voter blocs – Black people.

 

About Post Author

From the Web

X
Skip to content