The black political economy paradigm and racial economic inequality

Identity construction can influence economic behavior as well as economic status. In "The Black Political Economy Paradigm and the Dynamics of Racial Economic Inequality," Stewart and Coleman examine the impact of collective race-based identity on economic factors including income and level of participation in the market economy. The term black political economy (BPE) refers to the intersection of race and class statuses. Through the lens of the BPE paradigm, it is possible to understand the broader social, political, and psychological factors involved in various forms of structural inequity. Whereas traditional and neoclassicial economic theories ignore the function of race in the economy, the BPE paradigm reintroduces racial identity and racism into the complex social science of economics. Although the Stewart and Coleman article has several flaws, it opens the door for discourse related to race and wealth disparity.

The BPE paradigm recognizes that race is not just individually but also collectively constructed, and also that individuals are often powerless to assign their own racial identity. In fact, racial classification is frequently based on how a person is perceived in the community, which is why some African-Americans can opt to "pass" as white and others cannot or choose not to. Although the authors make some egregious generalizations and unsubstantiated statements, such as the "importance of collective economic interests among African-Americans that originates in the communal traditions of traditional African societies," the importance of introducing race to macroeconomic and microeconomic concerns cannot be underestimated (119). As a social science, economics has an obligation to explore the role race plays in individual and collective behavior.

The authors ignore the diversity within the African-American community itself, and do not account for two distinct but related economic phenomena: one, the collective empowerment of black communities via the generation of self-sustaining microeconomies; and second, the increased participation in the global market economy by blacks from diverse backgrounds including blacks in the Caribbean. Moreover, the authors fail to address the centrality of gender to any discussion of either social class status or economic status. It would also be helpful if the authors offered more specific details regarding the structure, function, and mechanisms of discrimination.

At the same time, the authors do recognize the impact of labor market discrimination, which occurs at multiple junctions from birth throughout the educational cycle and onto the community-level constraints upon job availability. Essentially, there are several external and internal factors that impact the lack of economic growth within African-American communities. Identity construction is indeed a complex process that has internal (psychological) as well as external (sociological) ramifications. Recognizing the importance of racial identity to community cohesion is one thing; it is quite another to propose suggestions for how to reconcile non-white identity with the clear need for status, upward social mobility, and respect.