The Anti-Trust Law of 1890 along with nepotism are two reasons the Minority Business Development Agency (MBDA) may be able to make a strong legal case for affirmative action (race-based services).
Eighty-seven percent of American businesses are family-owned or controlled. They represent 54% of U.S. GDP and 59% of employment, meaning family-owned businesses directly affect more than half of U.S. workers”
FORTUNE, Andy Unanue May 29, 2023 (1)
In addition, 85.6% of the businesses in the US are owned by White business owners who plan to pass the business to their children, according to business demographics performed by Lending Tree(2). These statistics alone presents a market place dominance that, at the very least, needs to be monitored. However, the funding gap that exists for minority owned businesses as reported by Bankrate only strengthens the concern.(3)
The Anti-Trust Law of 1890, also known as the Sherman Antitrust Act was put in place to curb monopolistic practices and promote fair competition in the marketplace.
The concentration of business ownership within specific racial or ethnic groups, as highlighted by the statistics on White-owned, family businesses, and the potential impact on fair competition in the market place gives additional strength to the existence of affirmative action.
The MBDA’s focus on services based on race isn’t just about giving special treatment. It’s a way to address existing inequalities and fix past race based advantages that may have created an unfair market place.
The argument for focusing on race based services gets even stronger when we consider the effects of nepotism and giving special treatment based on family ties or ” The Tommy Boy Syndrome”.
The information from Fortune and Lending Tree simply reminds us that a continued focus on race and gender is still needed.
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