Why is Oprah the Only Black Person on the Forbes 400?
by Mazher Ali
This column originally appeared on CommonDreams.org on November 16, 2012

Oprah Winfrey is the only African American on the Forbes 400, a list of the wealthiest people in the U.S. In fact, she's one of only six known Black billionaires in the world, and she's the only Black woman with a fortune worth more than a billion dollars.

Let's take stock of how truly remarkable it is that Oprah became OPRAH— "Queen of Talk," media mogul, widely-heeded librophile, heavy-hitting do-gooder, and one of the world's richest people.

First, note that the Forbes 400 isn’t terribly representative of the U.S. demographic. While Blacks comprise 13 percent of the total population, the Forbes list is only one quarter of one percent Black. The Forbes 400 is a men’s club, with women—the majority of whom inherited their fortunes—making up just 10 percent of the total list. And, with well over half of the Forbes 400 having inherited a substantial fortune and 17 percent having family members on the list, it should be clear that financial success isn’t just a product of intelligence and strong work ethic—often privilege and birthright are all it takes.

Racism and white supremacy have been hallmarks of this country since the original colonists washed ashore, and that legacy, which continues to this day, is evident in the current racial economic divide. The median Black family, for example, has only 10¢ of wealth for every dollar of white wealth. Based on the rate of progress Blacks have made over the past 30 years, it would take over five hundred years for them to reach wealth parity with Whites.

Women have long waited for opportunities to participate as fully in the economy as men. Though women have worked outside the home since the 1800s, they were, throughout history, systemically barred from resources and institutions that could have helped to move them more quickly toward economic parity with men. Today, women earn but 77¢ for each dollar men earn, and there’s no rational argument for why that should continue to be the case.

Class barriers restrict the economic mobility of those born poor. The rules of our economy heavily favor the wealthy, making the adage, “the rich get richer and the poor get poorer,” truer by the day. Over 40 percent of those born into the bottom fifth of the economy are likely to stay at the bottom. Over 40 percent of those born into the richest fifth are likely to maintain or enhance their socioeconomic positions.

Our country isn’t a beacon of opportunity as it’s so frequently depicted. Neither is it the cradle of democracy that those in power would have us believe. There are similarities between our current system and the nobility and family dynasties of the past. Money has poisoned the well of democracy. The richer you are, the louder your political voice—an idea made more literal with the Supreme Court’s Citizens United ruling that equated political spending with free speech.

In this post-Civil Rights era, white supremacy has adapted to function in insidious ways and continues to undermine our social order. Discriminatory policies and practices may be less visible, but the millions of minority victims of predatory lending, citizens who face systemic disenfranchisement by conservative voter suppression efforts, women whose freedoms and self-determination are under attack, and poor communities that are wading through the sludge of poverty can attest to their influence.

Post-racialists, on the other hand, argue that race is no longer a factor. To “pull the race card” is to be divisive. Let the past be the past, they say. If you’re thinking, Well, if Oprah did it…, consider that some people, because of race, ethnicity, gender, socioeconomic status or anything else beyond their control, have to work harder than others to realize a life of economic security.

As an African American and a woman and a person born in poverty, Oprah has faced more obstacles to financial success than most, if not all, of her contemporaries on the Forbes list. But, as we celebrate her miraculous rise, we can’t deny the existence of those burdens for members of racial and ethnic minority groups and for millions of poor Americans. Oprah is the exception, not the rule. Public policies are intended to govern the masses, and they should be designed to ensure the well being of the masses, rather than overfill the cups of the few.

Mazher Ali is the communications coordinator for United for a Fair Economy, a national group working to spotlight the causes and consequences of extreme inequality and racial injustice and supporting the movement for a more equitable economy. 

 

 

Amid all the post-election excitement, we also want to celebrate the amazing work of some of UFE’s Tax Fairness Organizing Collaborative (TFOC) partners and other contributors in the state progressive tax movement.

In New Hampshire, our allies prevented a constitutional amendment to ban the state’s income tax. This is a huge win, and it’s one that can be looked to by other states facing regressive policy initiatives. Much hard work is still to be done in the Granite State, but we’re optimistic. That a broad and diverse coalition was able to come together to stop this measure bodes well for positive change in New Hampshire.

Oregon also enjoyed two exciting victories. TFOC partner organizations Tax Fairness Oregon and Our Oregon worked hard to save the Oregon estate tax from repeal. They won a resounding victory for fairness, and ensured that hundreds of millions of dollars would continue to flow to vital services in the Beaver State. As well, measure 85, which eliminated the Corporate Kicker Tax passed with ease, and will allow for much needed revenue for Oregon’s public education system.

Since 2004, conservative activists, led by the corporate-conservative American Legislative Exchange Council (ALEC), have tried with all their might to enact Taxpayer Bills of Rights (TABOR) measures in 30 states. Florida's TABOR, which would have limited public investment and revenue, while requiring a supermajority to override these limits, would have severely hamstrung the state's ability to fund vital services for Floridians. In state after state, voters have turned down this extreme measure, and this year, Floridians joined in that rejection! This was made possible by amazing organizing efforts, combined with voter education and mobilization to stop such a restrictive and economically harmful measure.

Here are a few things we can all take away from these inspiring election day triumphs:

1. To achieve victory you have to educate, not just by telling the voters why they should be for or against a measure, but by also learning from them how these measure affect them and their communities.
2. Organizing still works, even on the less-than-sexy matters of fiscal policy and ballot measures. Effective partnership-building contributed greatly to these successes. Don’t go it alone. We’re stronger and louder when we pool our resources and work together.
3. There is still a tremendous amount of work required to establish fair, progressive tax structures in states across the country. While much of the focus over the next few months will be about federal taxes and budget issues, we can’t forget that the tax fairness movement has to continue at all levels of government.

These statewide election day victories can be models for what’s possible in your state and beyond. We congratulate all of those involved in those efforts and are excited to help keep building momentum for tax fairness and a more just and equitable economy.

Powell

In a CNN.com op-ed, Donna Brazile reminds us that race is still a factor in our country. A recent AP poll actually shows a rise in both anti-Black and anti-Latino attitudes. And indeed, the very same people who promote the idea of the United States as a post-racial society remain eager to exploit racial resentment for their own gain. 

Brazile urges us to beware of snobbishly deceptive "dog-whistle" politics. With a little bit of active listening, you'll recognize "dog-whistling" as an underhanded compliment. Take former New Hampshire Governor John Sununu's recent comment about Gen. Colin Powell's support of a certain African American U.S. president.

"You have to wonder whether that's an endorsement based on issues or that he's got a slightly different reason for supporting President Obama...I think that when you have somebody of your own race that you're proud of being president of the United States, I applaud Colin for standing with him."

This crafty mash-up of words, to some, might sound innocuous, polite, even. But, the hidden signals  — "You have to wonder..." or "somebody of your own race" — are merely the stubborn tars of racism, covered in the weightless feathers of empty accolade with, "I applaud Colin."

If you noticed the scum dripping from that statement, CONGRATS! You heard the dog whistle! Language, however, is but one of the ways racism manifests itself in our supposedly "post-racial" society.

Brazile looks to rapidly shifting U.S. demographics as one dimension of racial bias. She cites UFE's 2012 State of the Dream report (yay for us!), which explains that by 2030, the majority of those under 18 will be people of color. By 2042, non-Whites will comprise the majority of the U.S. population. Mix in the fact that 80% of retirees are White and own a significantly greater portion of the country's wealth than younger, minority communities, and you'll see what's essentially a racially-charged class war.

The more disturbing effects of modern-day racism are the social and economic deterioration. People of color are earning and building wealth reserves at alarmingly lower rates than their white counterparts. Predatory banking practices, cuts to public services, and voter disenfranchisement efforts are ravaging communities of color and further muffling their political voices. And, concentrated poverty turns poor communities into zones of social toxicity that are difficult to escape, especially for young people who know only that hopeless reality.

We can't expect to meaningfully address race and class inequities until we build a more cohesive national community. The sooner we accept not just our history of racial division but also the current racial divide, the sooner we can start working together to provide shared opportunity to all people.

Public policies are intended to be a reflection of a country’s values and priorities. In reality, tax and economic policy outcomes represent the wants of the financially enriched, not the needs of the bottom 99%.

The U.S. may be a melting pot of cultures and ethnicities, but wealthy, white males comprise the vast majority of our supposedly representative legislature. Nearly half of Congressional members are millionaires. In 2010, the median net worth of U.S. Senators and Representatives was $2.63 million and  $756,765, respectively, compared to a median net worth of $66,740 for U.S. households.

On the other hand, two historically marginalized groups—women and people of color—are dramatically underrepresented at the policy tables. Women account for only 16.8% of Congress (27% of them are women of color). People of color represent only 15.1% of Congress, with only four seats in the Senate.

As such, the interests of the wealthy dominate public debates while policies of particular importance for women and communities of color struggle for acknowledgement, let alone forward movement. Deficit hysteria has prompted harmfully misguided cuts to the social safety net while maintaining unnecessary tax cuts for the wealthy, painting a frightening picture of who our elected officials actually serve.

Throughout the presidential campaign, many have the criticized candidates for being “out of touch” with the majority of Americans. It can be reasonably argued that, with a few exceptions, Congress is as well. A recent report by the Institute for Policy Studies (IPS) points out that some legislators have been loyal advocates for the 99%, while others have not.

The report, “A Congressional Report Card for the 99%,” grades Senators and Representatives based on their voting histories on inequality-related Congressional actions. While the report’s focus is mainly on policies addressing economic inequality, it leaves room for a deeper analysis of the impacts of policies on persistent racial and gender disparities.

Nearly all of the 40 congressional actions evaluated by IPS—including bills related to taxes and the federal budget, jobs and wages, education, housing, poverty, and healthcare—have disproportionately affected communities of color and women.  

The Paycheck Fairness Act, for example, would have helped to ensure equal pay for equal work. This measure would have been a boon for women, who still make 77¢ to every dollar a man makes. The Senate failed to secure the 60 votes needed to advance the Act. The oppositions’ main argument—that the bill would burden small businesses—is unfounded and yet another strike in the conservative war on women.

Another bill, the Half in Ten Act, aims to cut poverty in half in the next ten years. The poorest among us, who are disproportionately people of color, were experiencing economic hardship long before the Great Recession began. Blacks and Latinos respectively make up 27.6% and 25.3% of those in poverty and would benefit greatly by this effort. The bill has 68 co-sponsors but has yet to reach a vote in the House or the Senate. Unfortunately, as politically polarized as Congress has become, even the most sensible policies, like Half in Ten, struggle to gain traction.

Moving forward, we should push lawmakers to more carefully examine the impacts of policies on those hardest hit by inequality, like women and people of color. As citizens, we must all fight to make ours a more truly representative democracy, where the voices of those with the biggest bank accounts carry no more volume than those with the smallest.  

United for a Fair Economy is hiring! We are looking for two individuals to help us support the movement for economic justice. 

• PROGRAM ASSOCIATE,
  TAX FAIRNESS ORGANIZING COLLABORATIVE
  United for a Fair Economy is seeking a dynamic and detail-oriented program associate to assist in coordinating the Tax Fairness Organizing Collaborative, a nationwide network of state-level tax fairness groups that use community organizing as the primary vehicle for political influence. The TFOC Program Associate will work with the TFOC Program Director to connect and strengthen the capacity of TFOC members to advance progressive tax reform at the state and federal levels, while simultaneously identifying and pursuing opportunities to elevate the work of the TFOC nationally. As an ‘organizer of organizers,’ this is a unique opportunity for an individual with strong interpersonal skills, a hands-on leadership style, and a deep appreciation for policy and community organizing. LEARN MORE >>>
   
• DEVELOPMENT ASSOCIATE
  The development associate plays a central role in helping United for a Fair Economy (UFE) meet its annual fundraising goals, currently $1.3 million for FY 13. As a member of UFE’s development team, the development associate is responsible for coordinating small to mid-level donor campaigns including the production of direct mail and online fundraising and phone-a-thons; supporting general donor stewardship mailings, producing a quarterly newsletter (printed and electronic); coordinating donor events such as house parties and donor visits; assisting with the production of grant applications; maintaining the development database and assisting with gift processing and acknowledgement. S/he will work closely with the development director, development team, and communications team. LEARN MORE >>>

FOR IMMEDIATE RELEASE: September 24, 2012

NEW REPORT:
Forbes 400 Reinforces Flawed "We Built It" Claims &
Misleads About Wealth & Opportunity in the U.S.

Boston, MA—Forbes Magazine calls their list of the 400 richest Americans the "definitive scorecard of wealth in America," but a new report asserts the magazine is misleading. Born on Third Base: What the Forbes 400 Really Says About Wealth & Opportunity in America, released this week by Boston-based non-profit United for a Fair Economy, examines the sources of wealth for members of the Forbes 400 and uncovers the role of inheritance and privilege in economic mobility. The report urges Forbes to stop glamorizing the "self-made man" while minimizing the other factors in wealth accumulation, including tax policies, birthright, gender, and race.

The report finds that 40 percent of the Forbes 400 list inherited a sizable asset from a family member or spouse, and over 20 percent inherited sufficient wealth to make the list. In addition, 17 percent of the Forbes 400 have family members on the list.

"Forbes spins a misleading tale of what it takes to become wealthy in the U.S. by understating the overwhelming impact of birthright and privilege," said Shannon Moriarty, co-author of the report. "Economic success should be a function of achievement, not just a guarantee for people lucky enough to be born into wealthy families. The Forbes 400 shows that birthright and family privilege are still very much at play in the American Dream."

The report explains that the net worth of the Forbes 400 grew fifteen-fold between the launch of the list in 1982 and 2011, while wealth stagnated for the average U.S. household. In 1982, the wealth threshold for the Forbes 400 was $75 million; today, every person on the list is a billionaire.

Women accounted for just 10 percent of the list in 2011, and nearly 90 percent of those women inherited their fortunes. The whiteness of the Forbes 400 list also makes clear the racial wealth divide. In the past two years, just one African American made the list. "Instead of asserting that ‘the American dream is very much alive,’ Forbes should acknowledge that the opportunity to become wealthy has never been equally shared," said Moriarty. "The billionaire members of the Forbes 400 are exceptions, not the rule."

Born On Third Base takes Forbes to task for their misuse of the loaded term "self-made" and the undervaluing of privilege and social capital in financial success. "We disagree with Forbes claim that 70 percent of the list made their fortunes entirely from scratch," said Brian Miller, executive director of United for a Fair Economy and co-author of the book The Self-Made Myth. "The 'self-made' and 'I built this' narratives wrongly present the opportunity to become rich as equally attainable by all people in today's highly stratified society. Forbes’ story also ignores the important contributions of others and the role of government in the success of the wealthiest Americans."

"Tax policies have for decades been tilted in favor of the very wealthy," said Tim Sullivan, federal policy coordinator at United for a Fair Economy. "Tax rates on capital gains have been slashed to historic lows, which is of particular benefit to the likes of the Forbes 400." The report explains that the wealthiest 0.1 percent (including those on the list) receive half of all net increases in capital gains. "Drastic cuts to the federal estate tax made under George W. Bush and extended with the 2010 Obama tax deal have made it easier for wealthy families to keep and amass even greater fortunes," said Sullivan.

"As was once said of President George W. Bush, many of those on the Forbes 400 were ‘born on third base’ but claim to have ‘hit a triple,’ and the Forbes 400 list perpetuates this falsehood," said Moriarty.

United for a Fair Economy is launching a petition to coincide with the release of the Forbes 400 and the Born on Third Base report, asking Forbes to tell the whole story of wealth and opportunity in the U.S. Download the report and see the petition at http://www.faireconomy.org/BornOnThirdBase2012. Co-authors of Born on Third Base and authors of the book The Self-Made Myth are available for interview. 

United for a Fair Economy is a national, independent, nonpartisan, 501(c)(3) non-profit organization working to raise public awareness of the destructive effects of concentrated wealth and power and supporting the movement for greater economic equality. Learn more at http://www.faireconomy.org.

###

FOR IMMEDIATE RELEASE: September 24, 2012

NEW REPORT:
Forbes 400 Reinforces Flawed "We Built It" Claims &
Misleads About Wealth & Opportunity in the U.S.

Boston, MA—Forbes Magazine calls their list of the 400 richest Americans the "definitive scorecard of wealth in America," but a new report asserts the magazine is misleading. Born on Third Base: What the Forbes 400 Really Says About Wealth & Opportunity in America, released this week by Boston-based non-profit United for a Fair Economy, examines the sources of wealth for members of the Forbes 400 and uncovers the role of inheritance and privilege in economic mobility. The report urges Forbes to stop glamorizing the "self-made man" while minimizing the other factors in wealth accumulation, including tax policies, birthright, gender, and race.

The report finds that 40 percent of the Forbes 400 list inherited a sizable asset from a family member or spouse, and over 20 percent inherited sufficient wealth to make the list. In addition, 17 percent of the Forbes 400 have family members on the list.

"Forbes spins a misleading tale of what it takes to become wealthy in the U.S. by understating the overwhelming impact of birthright and privilege," said Shannon Moriarty, co-author of the report. "Economic success should be a function of achievement, not just a guarantee for people lucky enough to be born into wealthy families. The Forbes 400 shows that birthright and family privilege are still very much at play in the American Dream."

The report explains that the net worth of the Forbes 400 grew fifteen-fold between the launch of the list in 1982 and 2011, while wealth stagnated for the average U.S. household. In 1982, the wealth threshold for the Forbes 400 was $75 million; today, every person on the list is a billionaire.

Women accounted for just 10 percent of the list in 2011, and nearly 90 percent of those women inherited their fortunes. The whiteness of the Forbes 400 list also makes clear the racial wealth divide. In the past two years, just one African American made the list. "Instead of asserting that ‘the American dream is very much alive,’ Forbes should acknowledge that the opportunity to become wealthy has never been equally shared," said Moriarty. "The billionaire members of the Forbes 400 are exceptions, not the rule."

Born On Third Base takes Forbes to task for their misuse of the loaded term "self-made" and the undervaluing of privilege and social capital in financial success. "We disagree with Forbes claim that 70 percent of the list made their fortunes entirely from scratch," said Brian Miller, executive director of United for a Fair Economy and co-author of the book The Self-Made Myth. "The 'self-made' and 'I built this' narratives wrongly present the opportunity to become rich as equally attainable by all people in today's highly stratified society. Forbes’ story also ignores the important contributions of others and the role of government in the success of the wealthiest Americans."

"Tax policies have for decades been tilted in favor of the very wealthy," said Tim Sullivan, federal policy coordinator at United for a Fair Economy. "Tax rates on capital gains have been slashed to historic lows, which is of particular benefit to the likes of the Forbes 400." The report explains that the wealthiest 0.1 percent (including those on the list) receive half of all net increases in capital gains. "Drastic cuts to the federal estate tax made under George W. Bush and extended with the 2010 Obama tax deal have made it easier for wealthy families to keep and amass even greater fortunes," said Sullivan.

"As was once said of President George W. Bush, many of those on the Forbes 400 were ‘born on third base’ but claim to have ‘hit a triple,’ and the Forbes 400 list perpetuates this falsehood," said Moriarty.

United for a Fair Economy is launching a petition to coincide with the release of the Forbes 400 and the Born on Third Base report, asking Forbes to tell the whole story of wealth and opportunity in the U.S. Download the report and see the petition at http://www.faireconomy.org/BornOnThirdBase2012. Co-authors of Born on Third Base and authors of the book The Self-Made Myth are available for interview. 

United for a Fair Economy is a national, independent, nonpartisan, 501(c)(3) non-profit organization working to raise public awareness of the destructive effects of concentrated wealth and power and supporting the movement for greater economic equality. Learn more at http://www.faireconomy.org.

###

Our latest report, Born On Third Base, takes the Forbes 400 list to task for spinning a misleading tale about the self-made man and what it takes to become wealthy in America. The Forbes 400 and its extreme examples of economic mobility are the exceptions, not the rule. 

CHECK OUT THE REPORT, TAKE ACTION or READ THE PRESS RELEASE.

MEDIA ADVISORY — September 20, 2012

Contact:
Shannon Moriarty, [email protected], 617-423-2148 x108
Maz Ali, [email protected], 617-423-2148 x101

What:
New report exposes how the Forbes 400 list misleads about the real sources of wealth and economic opportunity in the United States. Email campaign launching to coincide with the release of the 2012 Forbes 400.

When:
The Born on Third Base report is available now at http://www.faireconomy.org/bornonthirdbase2012.

Why:
Forbes claims that their list of the 400 richest Americans is “the definitive scorecard of wealth in America,” but the Forbes 400 does not tell the whole story.

Forbes understates the impacts of birthright and family privilege.

• Roughly 40% of the 2011 list received a significant advantage by inheriting a sizeable asset from a spouse or family member.
• More than 20% received sufficient wealth to make the list from their inheritance alone.

Forbes ignores the other side of the coin — that the opportunity to build wealth is not equally shared.

• The net worth of the Forbes 400 grew fifteen-fold between the launch of the list in 1982 and 2011, while wealth stagnated for the average U.S. household.
• The racial wealth divide is starkly apparent from the overwhelming whiteness of the list. The 2011 Forbes 400 had only one African American member.
• Women accounted for just 10% of the 2011 list, and of the women on the list nearly 90% inherited their fortunes.

Tax policy is tilted in favor of the wealthy members of the Forbes 400 list.

• Tax rates on capital gains have been slashed, which especially benefits members of the Forbes list. The richest 0.1% receive half of all net increases in capital gains.
• Drastic cuts to the federal estate tax passed in the Bush tax cuts and the 2010 Obama tax deal allow the Forbes 400 to pass on more of their massive fortunes to their heirs, contributing to the growth of inequality and entrenching a class of super-wealthy heirs.

For more information, please contact Shannon Moriarty or Maz Ali (see above).