The current level of conversation about reparations,
The current level of conversation about reparations,

particularly on the national stage, is probably
particularly on the national stage, is probably

greater than anything that might have been taking
greater than anything that might have been taking

place in the United States since the reconstruction
place in the United States since the reconstruction

era. Reparations as a way to make amends for the
era. Reparations as a way to make amends for the

atrocities of slavery and to reduce the persistent
atrocities of slavery and to reduce the persistent

wealth gap has recently gained momentum.
wealth gap has recently gained momentum.

14 trillion dollars in reparation is an appropriate
14 trillion dollars in reparation is an appropriate

statement. Black Americans possess two point six
statement. Black Americans possess two point six

percent of the nation's wealth, but make up 13 percent
percent of the nation's wealth, but make up 13 percent

of the population. That racial wealth gap is a
of the population. That racial wealth gap is a

starting place for any reparations program.
starting place for any reparations program.

A number of states, towns and institutions have begun
A number of states, towns and institutions have begun

to grapple with the idea.
to grapple with the idea.

As of August 12, one forty two Congress members have
As of August 12, one forty two Congress members have

co-sponsored H.R.
co-sponsored H.R.

40, the bill that establishes a commission to study
40, the bill that establishes a commission to study

reparations. That is compared to only two in 2014.
reparations. That is compared to only two in 2014.

Even Joe Biden has said he supports the bill.
Even Joe Biden has said he supports the bill.

But a real program could be costly.
But a real program could be costly.

This hardly seems the time to burden the economy with
This hardly seems the time to burden the economy with

more debt, more taxes.
more debt, more taxes.

Essentially, what you want to do is stimulate economic
Essentially, what you want to do is stimulate economic

growth for all our benefit.
growth for all our benefit.

This is not small money.
This is not small money.

This is a trillion dollars that we're talking about
This is a trillion dollars that we're talking about

more or less.
more or less.

Separate social program for this entity that you've
Separate social program for this entity that you've

carved out that you called black people.
carved out that you called black people.

I'm against that. The US is far from a concrete
I'm against that. The US is far from a concrete

national compensation plan.
national compensation plan.

Still months of racial justice protests push the
Still months of racial justice protests push the

concept to the center of the national debate.
concept to the center of the national debate.

In the event that it becomes a reality.
In the event that it becomes a reality.

What would a potential reparations program look like?
What would a potential reparations program look like?

And can the U.S. afford it?
And can the U.S. afford it?

Black Americans lag behind whites in almost every
Black Americans lag behind whites in almost every

category of economic well-being.
category of economic well-being.

They are far less likely to be employed, own their
They are far less likely to be employed, own their

home, inherit money, accumulate wealth, and earn as
home, inherit money, accumulate wealth, and earn as

much as white counterparts.
much as white counterparts.

The median net worth of a white household is one
The median net worth of a white household is one

hundred seventy one thousand dollars.
hundred seventy one thousand dollars.

For blacks, is just a bit over seventeen thousand
For blacks, is just a bit over seventeen thousand

dollars. There is the whole ecosystem of segregation
dollars. There is the whole ecosystem of segregation

having created the lack of opportunity ladders,
having created the lack of opportunity ladders,

whether it's through underfunded schools, over-policed
whether it's through underfunded schools, over-policed

neighborhoods. We have embedded residential home
neighborhoods. We have embedded residential home

values in race.
values in race.

So, your home is worth more if you live in a mostly
So, your home is worth more if you live in a mostly

white neighborhood. The best we can do is in fact to
white neighborhood. The best we can do is in fact to

erase racial wealth differences in the United States
erase racial wealth differences in the United States

by building black asset positions to a level that is
by building black asset positions to a level that is

similar to the average wealth held by white
similar to the average wealth held by white

Americans. What do we want?
Americans. What do we want?

When do we want it? Now. Though reparations has been
When do we want it? Now. Though reparations has been

studied. Practicality has often taken a backseat to
studied. Practicality has often taken a backseat to

morality. Scholars who have worked on calculating
morality. Scholars who have worked on calculating

compensation, don't always agree.
compensation, don't always agree.

For about 30 years, William Darity has discussed the
For about 30 years, William Darity has discussed the

rationale and design of reparations.
rationale and design of reparations.

Today, he says it will cost the United States
Today, he says it will cost the United States

government between 10 trillion dollars and 12 trillion
government between 10 trillion dollars and 12 trillion

dollars. To put that in perspective, in 2019.
dollars. To put that in perspective, in 2019.

The US GDP was about twenty one and a half trillion
The US GDP was about twenty one and a half trillion

dollars. The share of wealth in the possession of
dollars. The share of wealth in the possession of

black Americans ought to match at least match the
black Americans ought to match at least match the

share of the population.
share of the population.

A more conservative estimate looks at the 40 million
A more conservative estimate looks at the 40 million

acres that should have been allocated to the four
acres that should have been allocated to the four

million freedmen. The present value of that land is
million freedmen. The present value of that land is

about one and a half to two trillion dollars.
about one and a half to two trillion dollars.

If above thirty five million black Americans are
If above thirty five million black Americans are

eligible, the minimum estimate would amount to between
eligible, the minimum estimate would amount to between

forty thousand dollars and sixty thousand dollars per
forty thousand dollars and sixty thousand dollars per

person. Darity argues that as the culpable party, the
person. Darity argues that as the culpable party, the

government needs to foot the bill.
government needs to foot the bill.

The federal government has the capacity to create new
The federal government has the capacity to create new

resources in this way.
resources in this way.

Congress could direct the Federal Reserve to create a
Congress could direct the Federal Reserve to create a

fund of some sorts as well.
fund of some sorts as well.

Either as a complement or as the entire basis for
Either as a complement or as the entire basis for

funding this project, especially since it can be
funding this project, especially since it can be

conducted over the course of ten years.
conducted over the course of ten years.

But I think that the one thing that we have to be very
But I think that the one thing that we have to be very

careful about with any new federal expenditure program
careful about with any new federal expenditure program

is what are the inflationary risks?
is what are the inflationary risks?

All government money has to come from somewhere else.
All government money has to come from somewhere else.

Now, it could sort of borrow that money.
Now, it could sort of borrow that money.

I mean, it essentially printed, which right now the
I mean, it essentially printed, which right now the

interest rates are very low, but they're not going to
interest rates are very low, but they're not going to

always be. And we do have long run obligations in
always be. And we do have long run obligations in

terms like Social Security and Medicare that we're
terms like Social Security and Medicare that we're

going to have to meet someday.
going to have to meet someday.

So and we're running up huge deficits and huge amounts
So and we're running up huge deficits and huge amounts

of debt in order to deal with the COVID crisis.
of debt in order to deal with the COVID crisis.

Given all of that, simply adding more debt on top of
Given all of that, simply adding more debt on top of

it doesn't strike me as being a particularly fiscally
it doesn't strike me as being a particularly fiscally

prudent course of action.
prudent course of action.

Inflation and the cost of adding to the national debt
Inflation and the cost of adding to the national debt

are two of the biggest barriers to extending or
are two of the biggest barriers to extending or

expanding federal programs.
expanding federal programs.

To avoid inflation, Darity proposes trust accounts or
To avoid inflation, Darity proposes trust accounts or

some form of an endowment where the recipient can
some form of an endowment where the recipient can

spend the percentage of the money on an annual basis,
spend the percentage of the money on an annual basis,

and keep the rest in an interest earning account.
and keep the rest in an interest earning account.

The idea is that the amounts of those direct payments
The idea is that the amounts of those direct payments

should be sufficient to eliminate racial wealth
should be sufficient to eliminate racial wealth

differences in the course of the decade.
differences in the course of the decade.

We think that the delivery of funds to individuals is
We think that the delivery of funds to individuals is

the most precise and accurate way to address the
the most precise and accurate way to address the

wealth differential.
wealth differential.

Wealth does not fall from the sky.
Wealth does not fall from the sky.

It's not as if there exist a fixed amount of wealth is
It's not as if there exist a fixed amount of wealth is

simply there and we have to decide who has it.
simply there and we have to decide who has it.

Wealth is created, wealth is generated.
Wealth is created, wealth is generated.

The real issue here are differences between the
The real issue here are differences between the

populations in the capacity to generate wealth.
populations in the capacity to generate wealth.

If you redistribute, you may have a short term impact.
If you redistribute, you may have a short term impact.

But in the long run, unless the differences in these
But in the long run, unless the differences in these

populations, in their capacity to generate wealth, to
populations, in their capacity to generate wealth, to

start businesses, to effectively take risks, to save
start businesses, to effectively take risks, to save

and accumulate within their families, unless those
and accumulate within their families, unless those

factors are addressed, the underlying structure will
factors are addressed, the underlying structure will

push you back into a situation of inequality again.
push you back into a situation of inequality again.

You could simply tax that money, in which case you're
You could simply tax that money, in which case you're

simply taking money out of the pockets of some people
simply taking money out of the pockets of some people

and putting it in pockets of other people.
and putting it in pockets of other people.

That's not increasing wealth at all.
That's not increasing wealth at all.

Now, it will make some people better off who don't
Now, it will make some people better off who don't

have savings, that don't have financial assets today,
have savings, that don't have financial assets today,

but it's going to come at the expense of the economy
but it's going to come at the expense of the economy

as a whole. Compensation programs can take many forms.
as a whole. Compensation programs can take many forms.

In nineteen eighty eight descendants of Japanese
In nineteen eighty eight descendants of Japanese

Americans forced into internment camps during World
Americans forced into internment camps during World

War Two received twenty thousand dollars each.
War Two received twenty thousand dollars each.

Germany has paid over 70 billion dollars to more than
Germany has paid over 70 billion dollars to more than

eight hundred thousand Holocaust victims.
eight hundred thousand Holocaust victims.

Reparations programs for descendants of slaves could
Reparations programs for descendants of slaves could

adopt a single method or several at once.
adopt a single method or several at once.

One example is baby bonds.
One example is baby bonds.

While the idea won't replace reparations, Darrick
While the idea won't replace reparations, Darrick

Hamilton argues that they can act as a powerful
Hamilton argues that they can act as a powerful

complement. These accounts would be targeted at poor
complement. These accounts would be targeted at poor

children and help them pay for college, buy a home or
children and help them pay for college, buy a home or

start a business. One is a retrospective economic and
start a business. One is a retrospective economic and

racial justice program to pay a debt and also close
racial justice program to pay a debt and also close

the racial wealth gap. And the other one is
the racial wealth gap. And the other one is

prospective in the sense that it ensures that in a
prospective in the sense that it ensures that in a

race conscious way, everyone will in perpetuity have
race conscious way, everyone will in perpetuity have

access to capital and it works toward mitigating
access to capital and it works toward mitigating

concentrations in the future of wealth.
concentrations in the future of wealth.

According to Hamilton, baby bonds would increase by a
According to Hamilton, baby bonds would increase by a

guaranteed annual rate of two percent and the initial
guaranteed annual rate of two percent and the initial

deposit would be between twenty five thousand dollars
deposit would be between twenty five thousand dollars

and sixty thousand dollars, depending on the financial
and sixty thousand dollars, depending on the financial

situation of the child.
situation of the child.

One study argues the policy could decrease the racial
One study argues the policy could decrease the racial

wealth gap by more than 10 fold.
wealth gap by more than 10 fold.

It's based on the presumption that there are about four
It's based on the presumption that there are about four

million babies born each year.
million babies born each year.

And if you seeded every account at about twenty five
And if you seeded every account at about twenty five

thousand dollars, then twenty five times four million.
thousand dollars, then twenty five times four million.

And then you add some infrastructure costs of running
And then you add some infrastructure costs of running

the program so the baby bonds would cost less than one
the program so the baby bonds would cost less than one

hundred billion dollars a year.
hundred billion dollars a year.

And then one could talk about that in the scale of
And then one could talk about that in the scale of

what we currently spend.
what we currently spend.

So one hundred billion is about two percent of federal
So one hundred billion is about two percent of federal

expenditures now. It is much less than we spend with
expenditures now. It is much less than we spend with

our tax policy on subsidizing the assets of the
our tax policy on subsidizing the assets of the

wealthy. So if one were to think about the cost of
wealthy. So if one were to think about the cost of

baby bonds, the scale of other asset expenditures, it
baby bonds, the scale of other asset expenditures, it

pales in comparison.
pales in comparison.

This is sort of a precursor of a universal basic income
This is sort of a precursor of a universal basic income

in the sense that it's going to people regardless of
in the sense that it's going to people regardless of

qualifications. It may have some means testing to it.
qualifications. It may have some means testing to it.

It may not, depending on the on how the program is
It may not, depending on the on how the program is

actually played out.
actually played out.

The country has been discussing reparations one way or
The country has been discussing reparations one way or

another since slavery officially ended in 1865.
another since slavery officially ended in 1865.

But the protests following George Floyds killing have
But the protests following George Floyds killing have

trusted racial inequality to the forefront.
trusted racial inequality to the forefront.

According to a recent Reuters poll, one in five
According to a recent Reuters poll, one in five

Americans support the idea that the country use
Americans support the idea that the country use

taxpayer money to pay damages to descendants of
taxpayer money to pay damages to descendants of

slaves. A 2009 Gallup poll found a twenty nine percent
slaves. A 2009 Gallup poll found a twenty nine percent

are in favor of such a program.
are in favor of such a program.

In that same survey, 16 percent of whites were in
In that same survey, 16 percent of whites were in

favor of cash payments.
favor of cash payments.

That number has to be put in context because when
That number has to be put in context because when

Michael Dawson and Ravana Popoff did a survey in the
Michael Dawson and Ravana Popoff did a survey in the

year 2000 about American attitudes towards
year 2000 about American attitudes towards

reparations, they found that only four percent of
reparations, they found that only four percent of

white Americans were in favor of reparations for Black
white Americans were in favor of reparations for Black

Americans. And so it does represent somewhat of a sea
Americans. And so it does represent somewhat of a sea

change from the proportion that existed in the year
change from the proportion that existed in the year

2000. We also have evidence that close to half of
2000. We also have evidence that close to half of

millennials are actually in favor of reparations for
millennials are actually in favor of reparations for

Black Americans. We may be in a moment where the
Black Americans. We may be in a moment where the

conversation can be pushed forward in a far more
conversation can be pushed forward in a far more

positive way. If you want to tackle problems of
positive way. If you want to tackle problems of

disadvantage and social exclusion, don't do it in
disadvantage and social exclusion, don't do it in

terms of race. I think that's very bad for the
terms of race. I think that's very bad for the

country. I think it's of the wrong way to think about
country. I think it's of the wrong way to think about

social obligation to each other.
social obligation to each other.

We're not tied to each other because we belong to
We're not tied to each other because we belong to

these different racial groups.
these different racial groups.

Even if you don't care about justice for black
Even if you don't care about justice for black

Americans, I think if you care about the soul of
Americans, I think if you care about the soul of

America, reparations will heal all of us.
America, reparations will heal all of us.

Local efforts to fund reparations are starting to
Local efforts to fund reparations are starting to

develop. Recently, the City Council of mostly white
develop. Recently, the City Council of mostly white

Asheville, North Carolina, voted to apologize for
Asheville, North Carolina, voted to apologize for

slavery and offer funding to help black homeowners and
slavery and offer funding to help black homeowners and

businesses. Evanston, Illinois, made a similar move in
businesses. Evanston, Illinois, made a similar move in

2019 using tax proceeds from recreational cannabis
2019 using tax proceeds from recreational cannabis

sales to fund the program.
sales to fund the program.

I can't be sure that even a more optimistic moment will
I can't be sure that even a more optimistic moment will

actually translate into a full and comprehensive
actually translate into a full and comprehensive

reparations program.
reparations program.

But the present moment seems to afford more of an
But the present moment seems to afford more of an

opportunity to move forward than any moment I've
opportunity to move forward than any moment I've

experienced in my lifetime.
experienced in my lifetime.