This article was written by Dedrick Asante-Muhammad, president of the Joint Center for Political and Economic Studies.
“When machines and computers, profit motives and property rights, are considered more important than people, the giant triplets of racism, extreme materialism, and militarism are incapable of being conquered.” — MLK, Beyond Vietnam 1967
Dr. King’s words from 1967 summarize today’s political moment, which we have analyzed in our report “State of the Dream 2026: From Regression to Signs of a Black Recession.” Instead of putting the lives of the average and economically insecure American first, there has been a policy embrace of mass deregulation that advances corporate profits and concentrates wealth, a slashing of government and government programs meant to advance upward economic mobility, as well as a deployment of military forces across the country, increasing distrust and tension across the population. This historic regression corresponds with a recessionary environment for Black America.
A Black recession taking shape
The economic landscape for Black Americans in 2026 is troubling, with unemployment rates signaling potential recessionary conditions. By December 2025, Black unemployment reached 7.5%, a stark contrast to the national rate of 4.4%. This disparity highlights the persistent economic inequalities faced by Black communities, exacerbated by policy shifts that have weakened the labor market. The volatility in Black youth unemployment further underscores the precariousness of the situation, as rates fluctuated dramatically in the latter months of 2025.
Dismantling racial equity infrastructure
The Trump administration’s executive orders have systematically dismantled structures aimed at promoting racial equality. By targeting programs such as Lyndon Johnson’s 1965 Equal Employment Opportunity executive order and defunding agencies like the Minority Business Development Agency, the administration has shifted federal support away from disadvantaged businesses.
As a result, Black-owned firms risk losing contracts and resources tied to federal programs, potentially leading to job losses and reduced economic growth in impacted communities. These changes threaten billions in federal revenue for Black-owned firms and undermine efforts to move beyond racial inequality in the workforce.
Federal policy that deepens inequality
The One Big Beautiful Bill Act, passed in 2025, further entrenches inequality by providing tax cuts that disproportionately benefit high-income households and corporations. While working families gain some relief through tax credits and deductions, the act simultaneously reduces investments in programs that address poverty. Specifically, cuts to Medicaid and nutrition funding, along with increased costs for state SNAP programs, limit access to essential services for low-income households, worsening the situation for marginalized communities.
Technology without guardrails
The technology sector, a critical component of the American economy, is also affected by the removal of safeguards and by the disregard of civil rights considerations. Executive orders like “Removing Barriers to American Leadership in Artificial Intelligence” have stripped away protections that could advance inclusion in this rapidly growing field. As a result, the future of the American economy risks reinforcing past inequalities.
A crisis of leadership
Dr. King’s call for strong, aggressive federal leadership in addressing racial inequality remains highly relevant. However, instead of eradicating structures of inequality, current leadership is implementing policies that reduce government jobs and dismantle agencies responsible for preventing predatory economic practices. These policy choices undermine longstanding efforts to combat racial and economic disparities.
We need deliberate and urgent action
The systematic withdrawal of protections, investments, and accountability mechanisms is reinforcing economic inequality that has grown over the past decades. The One Big Beautiful Bill Act, through permanent tax cuts for the wealthy and diminished support for working families, exemplifies the regressive economic policies that coincide with rising Black unemployment. As Dr. King stated, “we refuse to believe that the bank of justice is bankrupt,” but urgent action is required to counteract these policy-driven trends before generational losses mount.
The State of the Dream 2026 report warns that unless we act deliberately and urgently, economic and racial inequalities will become entrenched, resulting in generational loss. The core question is not inevitability, but whether we will move beyond our nation’s history of racism, materialism, and militarism, and — as Dr. King urged — embrace “the fierce urgency now” to advance equity.