Stock Market Charlie Viewpoint: Vol 5: From Consumers to Producers: Building Lasting Wealth in the Black Community

Did you know the dollar circulates within the Black community for only about six hours? This striking fact reveals a deeper challenge: many in the community function more as consumers than producers. To build lasting economic strength, the focus must shift from spending power to ownership, production, and investment. True community wealth grows when we create, trade, and reinvest in what we build. This post explores how moving from consumption to production can unlock opportunities and build sustainable wealth in the Black community.

Local Black-owned bakery storefront with fresh bread

Understanding the Current Economic Flow

The six-hour circulation statistic means that money spent in the Black community quickly leaves and rarely returns. This rapid exit limits the ability to build wealth locally. When dollars leave, they do not support local businesses, create jobs, or fund community projects. Instead, the money flows to outside corporations or businesses that do not reinvest in the community.

This pattern has roots in historical and systemic barriers, including limited access to capital, discriminatory lending practices, and fewer opportunities for entrepreneurship. While consumer spending is essential, relying mainly on it without building production capacity creates a cycle where wealth is hard to accumulate.

Why Production Matters More Than Consumption

Consumption is necessary for any economy, but production is what creates value and wealth. When community members own businesses, produce goods, and offer services, they control the flow of money. This control allows for reinvestment in the community, job creation, and wealth building.

Key benefits of shifting to production include:

• Job creation: Local businesses hire community members, reducing unemployment.

• Wealth retention: Profits stay within the community instead of leaving.

• Economic independence: Ownership reduces reliance on external entities.

• Community development: Businesses can fund local projects and services.

  
  

For example, a Black-owned manufacturing company that produces clothing locally not only sells products but also employs workers, pays local taxes, and supports other local suppliers. This creates a cycle of economic activity that benefits the entire community.

Steps to Shift from Consumer to Producer

Changing the economic dynamic requires intentional action. Here are practical steps individuals and communities can take:

1. Support Black-Owned Businesses Actively

Supporting existing Black-owned businesses helps them grow and reinvest. This means choosing to buy from local stores, restaurants, and service providers whenever possible. It also means encouraging others to do the same.

2. Build Skills and Knowledge for Entrepreneurship

Education and training in business management, finance, and production skills empower more people to start and run businesses. Community programs, workshops, and mentorship can provide this support.

3. Increase Access to Capital

Access to affordable loans and investment is crucial for starting and expanding businesses. Community development financial institutions (CDFIs) and credit unions focused on serving Black entrepreneurs can help fill this gap.

4. Create Cooperative Models

Cooperatives allow community members to pool resources and share ownership. This model can reduce risks and increase collective wealth.

5. Invest in Local Infrastructure

Building facilities like manufacturing centers, markets, and business incubators creates spaces where production can thrive.

Examples of Success in Production and Ownership

Several Black communities and entrepreneurs have demonstrated how production leads to wealth building:

• Detroit’s Black-owned manufacturing firms have revitalized neighborhoods by producing goods locally and hiring residents.

• Cooperative grocery stores in urban areas provide fresh food while keeping profits within the community.

• Tech startups founded by Black entrepreneurs create jobs and attract investment, expanding economic opportunities.

  
  

These examples show that with the right support and focus, production can transform communities.

Community workshop teaching small business skills

The Role of Investment and Reinvestment

Building wealth is not just about making money but also about how money is used. Reinvesting profits into new businesses, education, and community projects multiplies economic benefits.

Investment can take many forms:

• Personal investment: Using savings to start or grow a business.

• Community investment: Pooling funds to support local projects.

• Impact investment: Attracting outside investors interested in social and economic returns.

  
  

Reinvestment creates a cycle where wealth grows and spreads throughout the community, rather than leaking out.

Overcoming Challenges

The path from consumer to producer is not without obstacles. Common challenges include:

• Limited access to capital: Many face difficulties securing loans or investments.

• Lack of mentorship: New entrepreneurs often need guidance.

• Systemic barriers: Discrimination and unequal opportunities persist.

• Market competition: Competing with large corporations can be tough.

  
  

Addressing these challenges requires coordinated efforts from community leaders, policymakers, and financial institutions. Programs that provide funding, training, and support can make a significant difference.

How Individuals Can Contribute

Everyone can play a role in this economic shift:

• Choose to buy from Black-owned businesses.

• Learn about entrepreneurship and share knowledge.

• Invest time or money in local ventures.

• Advocate for policies that support Black business ownership.

  
  

Small actions add up when many people commit to building production capacity.

Hands crafting handmade goods in a Black-owned artisan workshop

Moving Forward Together

Building lasting wealth in the Black community means focusing on producing opportunities, not just purchasing products. When the community controls production and investment, it creates a foundation for economic independence and growth.

This shift requires effort, education, and collaboration. By supporting Black-owned businesses, developing entrepreneurial skills, increasing access to capital, and reinvesting profits locally, the community can change the flow of money and build wealth that lasts for generations.

The six-hour circulation of the dollar is a call to action. It reminds us that true economic strength comes from ownership and production. The next step is clear: build, create, and invest in what we want to see grow.