For Martin Luther King Jr., pursuing an end to racism while neglecting poverty and joblessness was like clapping with one hand—silent and ineffective. King believed that racial justice and economic justice must move in lockstep. The two ideals were synonymous in many ways.
Guaranteed basic income was central to this belief. In his final book, Where Do We Go From Here: Chaos or Community?, Dr. King called guaranteed income the most effective solution to poverty, one that—by relieving the burden and anxiety of paying for essentials—would bring about both economic and emotional security for Black Americans. To Dr. King, guaranteed income was not just a solution for racism but a force for Black liberation and abundance.
Despite King's endorsement, guaranteed income has often been derided as a pie-in-the-sky measure encouraging laziness and irresponsibility for the five decades since his assassination. These sentiments are tied to the age-old and disproven view that income is solely a reflection of one's abilities and drive, rather than the legacies of racism and the entrapments of generational poverty.
These tightly-held views have enabled an economic landscape disappointingly similar to Dr. King's in 1967. As of last year, just 36 percent of Black Americans had an emergency fund in case of sudden health or financial emergencies. Nearly 40 percent found making ends meet in any given month challenging. Inflation and the pandemic have only exacerbated these issues, forcing many to decrease or altogether stop saving. Long-term, this unstable or insufficient income—which affects even those working multiple jobs—has contributed to far lower homeownership, and ultimately, wealth for Black Americans.
Fortunately, in recent years, guaranteed basic income programs have resurfaced in policy discussions at all levels, thanks mainly to Stockton, Calif.'s former Mayor Michael Tubbs, who developed one of the nation's first program in 2019. The success of the program—which increased participants' full-time employment and reduced feelings of anxiety and depression—inspired cities across the country to implement their pilot programs in pursuit of their own success stories.
As the country's largest disburser of guaranteed basic income payments, MoCaFi is honored to be a part of this change. MoCaFi disbursed $65 million through our online banking platform in 10 cities, reaching over 20,000 people. In Birmingham, we supported Embrace Mothers, a program for single mothers, 94 percent of whom were Black. In Los Angeles, we helped facilitate the country's most extensive guaranteed basic income pilot program, distributing $38 million to over 3,000 families.
And though these programs stretch from California to New Jersey to Alabama, their success has remained a throughline. A guaranteed basic income allowed a senior citizen to buy herself clothes for the first time in years. It helped a guitar teacher who lost her job during the pandemic start her music school. It kept a woman imminently facing homelessness off the streets.
We committed ourselves to these initiatives not only because we believe in Dr. King's vision but because we believe every American deserves to participate fully in our economy—to open savings accounts for their children's higher education, to build the business they've always dreamed of, to purchase a home they will pass on through generations. We committed ourselves to these programs because, like Dr. King, we see this participation as a pathway to prosperity.
Dr. Martin Luther King Jr.'s vision for America—one that should be reflected upon today and every day—has yet to be realized. Yet, in pockets of this country, his vision has inspired policies like guaranteed income, rooted in respect, love, and the belief in every American's right to participate fully in the American Dream. These cities are models for the future, one where prosperity is not a dream but a promise at birth.
Wole Coaxum is the founder of MoCaFi, a financial technology company aiming to close the racial wealth gap and expand access to banking services for underbanked and unbanked communities.
The views expressed in this article are the writer's own.
Uncommon Knowledge
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