Politics, Poverty and Race: The Aftermath of Katrina
By Donald A. Stukes MBA, CPA

The national debate has been revved up again about the sensitive issues of race, and poverty. Unfortunately, this article does not provide the answers but hopes to instill greater debate and provide a back-drop for greater pro-activeness.

Katrina has left the current Administration scurrying to answer questions about the slow response to the storm with much attention centered on race. There have been a plethora of talk shows, news articles and public debates about what Americans witnessed after the storm hit. The question everyone tries to find an answer to is, was it race or poverty that resulted in the slow response to Katrina?  What the hurricane did do is blow to the forefront the issue of poverty and race in America. Inistrictibly tied to poverty is race as there are a disproportionate number of African-Americans and Hispanics that fall into the definition of poverty as defined by the federal government. Interestingly, no one has discussed how politics has played a role in this sad chapter in our history.

Any debate about poverty and race needs to incorporate politics as an overlay as there clearly is a nexus of the three. Any discussion about poverty and race without the inclusion of politics is shallow and meaningless. The political decisions employed in the past and still today have contributed to this socio-economic and racial divide. One must be mindful that it was the government’s political decision years ago to provide farmers in the South with subsidies not to farm certain crops, which help lead to the demise of sharecropping in the South. This forced many of the sharecroppers (largely poor and Black) to the urban cities like New Orleans unprepared to make a living in this new environment.  It will be the future political decisions that will be the major catalyst for change or participant to complacency. All are watching to see what approach the administration will take to address poverty in America, which has been low on the "to do list." In the order of priority, everyone has a list of "must do," "should do" and "if time permits." Addressing poverty by this administration is at the "if time permits" category.

“Katrina has been an attention-getting experience for this administration,” said Bruce Gordon, President and CEO of the NAACP. “It’s clear that the administration has not had (Black and poor people) as high on their priority list as they should have.” In a Washington Post/ABC poll, 68 percent of those who were directly affected by Katrina (those evacuated) said they believed, “the federal government would have responded more quickly to rescue people trapped by floodwaters if more of them had been wealthier and white rather than poorer and Black."

There can be no debate that if Katrina had hit Boca Raton or Ft. Lauderdale versus New Orleans, the federal government would have taken a more aggressive approach to readiness and post-hurricane cleanup. Boca and Ft. Lauderdale are both wealthy and predominately white communities. More importantly, this is a critical fund raising basin for the current administration. The evacuations would not of been an issue but certainly the aftermath would have been handled in a more timely, diligent and compassionate manner. The administration could not afford to have its political supporters and their homes under water for too long. Conversely, in New Orleans, the cause and effect of a slowed response was considered not a major politic liability, at least they thought.

What percentage of the affected residents voted in the last election? What percentage of the affected citizens has contributed time or money to a political campaign (local, state or federal)?  As they always say, “out of sight, out of mind." How many of the affected citizens who are not registered to vote or did not vote in the last Presidential elections will register or vote this time around? Those unregistered or who do not participate in the electoral system by voting should have learned a very painful lesson. Although you may not have material financial wherewithal, your vote does still count and that there is strength in numbers, which can create a voice to be reckoned with. This is the leverage to be used to facilitate change that will impact the needs for better housing, health care, education, social welfare and inclusion for all.

We know no one wants to talk about poverty. No one wants to talk about race. And certainly, no one wants to talk how politics affects poverty and race. I will note that during the last Presidential elections, John Edwards, Al Sharpton, and Dennis Kucinich did make poverty a central theme of their campaigns. So here we did see the direct involvement in the political process. Terry N. Neal of the Washington Post said, “race remains the most powerful undercurrent in politics today." Oh, is that so right!

“What we’ve been trying to do is what we believe will help close the gap we see in America in terms of education, health case, home ownership and wealth,” said Ken Mehlman, chairman of the Republican National Committee. The solutions to this deep rooted problem are not easy and will not turn the tide over night but a gallant effort is required while the issue is still in minds eye. One thing is for sure, the solution has to be attacked by both sides of the equation. The government's policies need to address the inequities of access and provide well meaning programs for economic creation that have the meat to become successful. At the same time, one must be more politically astute and self determined.

Politics provides the foundation for the legislative process impacting all economic and social welfare policies today and the political system, in its current form, is manipulated by big business and connected lobbyist. Until poverty and race are perceived to have an impact on “the bottom line” or until those citizens who need help with obtaining better jobs, better education, and better health care galvanize as a cohesive voting block, poverty and race will remain on the "to do list" as an item "if time permits."

Donald A. Stukes is a principal in White Plains, New York-based Asset Solutions International, Inc., an investment banking boutique that focuses on corporate restructuring and mergers & acquisitions.


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