The Rise of Black Capitalism

 “The establishment of wealth is fundamental to social and political progress.”

 – Black Fortunes

Before the Civil War began in 1861, there were nearly 500,000 free blacks in the United States, representing 10-12 percent of the black population at the time.  Despite the obvious hurdles, free blacks experienced both freedom and persecution as they built businesses, established social institutions, and worked to abolish slavery.  By the time of Reconstruction, however, following the end of the war and the freeing of the slaves, many new challenges would appear, including the rise of the KKK, Black codes, and the Jim Crow laws, adding new barriers to their already disadvantaged lives. 

But all would not wither under the weight of their oppression; many would not only survive but thrive. 

In Shomari Wills's 2018 book, “Black Fortunes”, Wills tells the story of the first six American-born black millionaires, four women and two men, who didn’t just beat the odds, but did so under conditions antithetical to America’s promise of equal opportunity for all.  

America produced its first millionaire in the early 1800s, when entrepreneur John Jacob Astor first succeeded in the fur trade, then in shipping and real estate.  Astor’s achievement came just a decade after the signing of the Declaration of Independence, which declared that all men are created equal and endowed with the rights to life, liberty, and the pursuit of happiness.   

But not all Americans had such an opportunity.  Slavery continued until the Emancipation Proclamation in 1863 began its demise, before the Thirteenth Amendment permanently ended the practice in December of 1865.   During that time, blacks born into slavery or to formerly enslaved parents had considerably more obstacles to overcome. 

The first black millionaire in the United States was Mary Ellen Pleasant, who was born free in 1814 in Philadelphia.  Her first husband, James Smith, was a wealthy plantation owner of mixed ancestry who freed his slaves after becoming an abolitionist.  Upon his death, Mary Ellen inherited thousands of dollars, which she used to expand her empire for more abolitionist work.  She advantaged herself during the Gold Rush by building businesses to help miners, including boarding houses and laundries.  Investing, moneylending, and strong money management helped Pleasant reach her million-dollar mark in the mid-1870s.

Two of the three other women, Annie Turbo and C.J. Walker, built hair care and beauty brands by developing their own products to help black women.  These brands would be among the earliest national brands of hair care in the United States.  Each would make their millions in the early 1900s.  The last female millionaire, Hannah Elias, would make her money the old-fashioned way, as a sex worker.  One of her customers, a wealthy white man, would lavish her with cash and gifts that allowed her to build a real estate empire in Harlem, creating a haven for blacks in New York.    

The two men, Robert Reed Church and O.W. Gurley, both got their start in real estate, buying up land and businesses in Memphis and Tulsa.  Church, the only millionaire who was born into slavery, would become the largest landowner in Tennessee as he participated in the elevation of Beale Street in Memphis as a mecca for black artists.  O.W. Gurley would develop a 35-block district of 300 self-sustaining Black-owned businesses in the Greenwood district of Tulsa, Oklahoma, that famously became known as Black Wall Street.  Its presence would be short-lived as the 1921 race rioters would loot and burn thousands of homes and businesses in one of the deadliest riots in American history. 

In addition to racial discrimination and lynch mobs, each navigated the usual problems of a millionaire, like overspending, lawsuits, and bad marriages.  Yet, when the time came, all saw opportunities and acted on them, leading to their unprecedented riches.

For blacks who wish to “own the whites”, a modern cultural war troll, a return to capitalism is their only answer.  If the accumulation of capital and ingenuity worked for blacks in the antebellum and post slavery America, it will work today.  America’s first black millionaires not only brought opportunity and safety to newly freed black Americans, but they showed that self-reliance and economic self-determination were also their birthright as American citizens.  Wealth is the foundation of opportunity for a better life and well-being.  If you can't beat them, you might as well join them.  America’s first black millionaires showed the way. 

Today, there are nearly 2 million black millionaires in the United States, primarily in the areas of entertainment, the media, and sports, where blacks account for 75 percent of the players in the NBA and 65 percent in the NFL.  These opportunities not only allow for wealth creation and personal autonomy, but also for the potential of generational wealth.  This is the magic of capitalism, white or black.