Race has played a large role in the United States both socially and economically, and the history of black barbershops provides a fascinating lens through which to view that role. This article traces the evolution of these institutions. In particular, I was unaware that capital accumulated from barbering was used to launch life insurance companies which became some of the largest black-owned enterprises in the world. John Merrick, a barber who owned several shops in Durham, started North Carolina Mutual–still in operation today and the only insurance company domiciled in North Carolina with a charter dated before 1900. North Carolina Mutual’s headquarters was located on Durham’s Parrish Street along with another large black-owned financial institution, Mechanics & Farmers Bank. Their presence earned Parrish Street its nickname: “Black Wall Street.”
So why start a life insurance company instead of, say, opening more barbershops? At the time, most insurance companies refused to insure African-Americans. As our clients know, life insurance is an essential component of building a safety net, providing financial security for those you care about in case the unexpected occurs. Merrick and others’ use of proceeds from barbering to begin these insurance companies gave black citizens much greater opportunity for financial planning and security. It’s critical that everyone have access to life insurance, which is one of the most basic (but also surprisingly complex and flexible) tools we use to serve the needs of our clients and those they care about.
Want to discuss the article or your own safety net? Get in touch!
-Sam
