7255: Racial Recession.

From The New York Times…

A Racial Divide Is Bridged by Recession

By Shaila Dewan

McDONOUGH, Ga. — During the housing boom, Henry County, a suburb of Atlanta, had its share of racial tension as more and more blacks joined the tens of thousands of others pouring in, creating a standoffish gap between the newcomers and the county’s oldtimers.

But the recession has begun to erase those differences.

Blacks and whites have encountered one another in increasing numbers recently in the crowded waiting rooms of the welfare office and at the food pantry, where many of both races have ventured for the first time. Struggling black-owned businesses are attracting the attention of white patrons. Neighbors are commiserating across racial lines.

At the Division of Family and Children Services, Keasha Taylor, 36 and black, helped explain the system recently to a white mother. Ms. Taylor, who was there because her family had been evicted, told the mother, who was in line for food stamps, that a child with acute asthma might be eligible for Social Security.

“Right now, a lot of white people are in this situation,” Ms. Taylor said, recalling the conversation later. “We’re already used to poverty; they’re really not.”

Denese Rodgers, the county director of social services, who is white, has held several lunch meetings at A J’s Turkey Grill, owned by Diane Walker, a black woman, in hopes of helping business.

“It was in one of our abandoned strip malls, a forlorn looking kind of place, but when you walk in, it’s just pristine,” Ms. Rodgers said. “She’s doing everything right, it’s just not full.”

Peggy Allgood, a 54-year-old black woman who lost her job and four-bedroom house and is now living in a trailer park, said she had noticed the recession obliterating racial differences up and down the economic scale.

“It’s gotten to the point where everyone I talk to, their hours have been cut, their jobs have been cut,” Ms. Allgood said. “My neighbor, she’s white, she’s trying to find a job. She hasn’t had any luck.”

The recession hit Henry County, for years one of the nation’s fastest growing areas, at a time when it was already struggling to come to terms with startling demographic change. In 1990, the county was almost 90 percent white. Now, as its population has more than tripled to 192,000, according to 2008 census estimates, the white percentage of the population has shrunk to 60 percent.

The county’s elected government is still all white and Republican, and some leaders and newcomers alike have tried in various ways to make local board and governments more diverse. But nothing else has worked to remove barriers as quickly as economic hardship.

“There used to be a lot of racial tension here, but everybody knows that we need each other to survive this recession,” said Eugene Edwards, the president of the Henry County branch of the National Association for the Advancement of Colored People. “People now, they seem to be starting to care for one another.”

Once fueled by construction, the county has been left by the recession with a blighted crop of abandoned white utility hookups, meant for new subdivisions, sprouted in the woods.

Last year, the Chamber of Commerce took a multiracial group of leaders to the Birmingham Civil Rights Institute, but such officially sponsored efforts at bonding have slowed.

“The recession has pretty much tied folks down to survival mode,” said Steve Cash, the executive director of the Henry Council for Quality Growth, who is white. “A lot of things that were happening before aren’t happening now.”

And a lot of things that were unheard of before are happening now. Women in Jaguars pull up to the local food pantry, and former millionaires hunker down in grand, unsellable homes.

One reason blacks have not gained more political power is that they are not heavily concentrated in any single area in the county — the cul-de-sacs carved out of farmland and pastures in the last decade became racially mixed enclaves for the upwardly mobile. Now, the foreclosure notices and uncut lawns in those same subdivisions reinforce the notion that everyone is in the same sinking boat.

Statistics also suggest that the recession’s burden is falling with similar force on both races. In June 2006, 55 percent of the families receiving food stamps were black, and 44 percent were white. Those percentages remain the same today, although the size of each group has increased by about 50 percent.

Unemployment claims follow that pattern: in January 2008, 49 percent of those who filed for unemployment were white, and 45 percent were black. In August 2009, 49 percent were white, and 48 percent were black.

Across the country, there have been many reports about the recession’s racial divide, as blacks have lost their jobs and houses at far higher rates than whites. But Henry County, about a 30-minute drive south of downtown Atlanta, has a very different profile from the rest of the nation. In Henry, the median income of black families, $56,715 in 2008, approaches that of whites, $69,728 (nationally, the average income gap was $20,000). Blacks in Henry County, many of whom are retirees from the North or professionals who work in Atlanta, are more likely than whites to have a college degree.

That does not mean that Henry County is a perfect laboratory of equality. Blacks made up a disproportionately high number of those seeking government assistance both before and after the slowdown. Since 2006, the number of blacks on Medicaid has more than tripled, outpacing the increase among whites.

And as in the rest of the country, blacks in Henry were more than twice as likely as whites to take out risky sub-prime mortgages, meaning more black families than white are struggling to keep their homes.

Keith and Kenya Rucker, who are black, recently declared bankruptcy in an effort to keep the home they bought for $155,000 with an adjustable-rate mortgage when they had two incomes, before Mr. Rucker lost his job as a restaurant manager. Both said they could not rely on family members for help with their ballooning payments.

“I’m not racist, but it’s harder for black men,” Mr. Rucker said, as his wife huddled with their 8-year-old daughter, KéUnica. Mr. Rucker, who is from Orlando, Fla., echoed many experts who say that middle-class blacks have fewer resources, either financial or social, to fall back on if they get into trouble. “Where I’m from,” he said, “every friend that I had is a drug dealer, locked up, on drugs or dead.”

But Dennis and Jenny Duncan, a white couple who once owned millions of dollars in real estate assets as former developers, felt equally stymied. Interviewed in the lavish home they built for themselves, they said the sheriff had just come to call and told them their belongings would soon be seized to satisfy debts. Unlike Ms. Rucker, neither has a college degree, making work difficult to find.

The idea that the recession is an equalizer has become accepted in Henry County. Both black and white residents were hesitant to say that either race had taken a greater hit. But Ms. Taylor, the black woman who dispensed advice at the county food stamp office, said there were some notable distinctions between blacks and whites.

“They’re a little weaker than we are at handling things like this,” she said, adding without rancor, “but I know they get more sympathy than we do.”