Dear Russell,
I've followed your career for years and consider you to be one of the founding fathers of Hip Hop, as well as a pillar in American society. You've shined a light on the power of entrepreneurship in the Black community. You've taught rappers and Black men that by understanding business, we can be true players in the game, and not spend our careers being played by corporate America.
Your recent venture into Consumer Finance, called "The RushCard" is yet another example of your impressive entrepreneurial spirit. As a Finance Professor, a Black man and a fellow entrepreneur, I applaud you.
Many misinterpreted my critical analysis of the RushCard in the New York Times to imply that I think your efforts are evil and somehow harmful to urban America.
What many people don't realize about scholars is that a good academician does not see things in Black and White. Rather, we see all the shades of gray, giving credit where it is due, and providing constructive critiques where necessary. This form of intellectual leadership sometimes means saying things that are not popular or apparent. But my expertise is in Financial Psychology, not Player Haterology, so I don't dislike you or your business in any way.
To be clear, I don't have a problem with the existence of the RushCard. I don't have a problem with the profitability of your business model. I certainly do not have a problem with Russell Simmons. I refuse to allow the media to place two Black men nose to nose as rivals, when in fact, we are both fighting for economic equality in a capitalist and historically imbalanced society.
The RushCard would not sell if people did not need it and I agreed with much of your response to my critique. Your comparison of RushCard fees to high NSF fees from standard bank accounts is entirely accurate. Additionally, the RushCard helps many Americans who cannot obtain a bank account. This is a reminder that our new president should help pass legislation to ensure that all Americans have access to basic services, since we should all have a place to deposit and cash our paychecks.
Where I hope to see continued improvement in the RushCard is with regard to the fee structure. In comparison with other prepaid debit cards, the fees on the RushCard could be a bit more competitive. I'd also like to see you find ways to allow those who purchase the RushCard to improve their credit scores by using the card. Finally, I encourage you to use your role as a community leader to more aggressively combat the financial literacy problems which continue to plague Black America. The legacy of slavery and the inability to transfer intergenerational wealth has created a gaping hole in our ability to access and manage critical financial resources. So, those of us who are blessed with the opportunity to fill these gaps must embrace business models that assertively pursue the double bottom line of financial prosperity and community empowerment.
I encourage you to continue your promising work. You are an inspiration to millions, and I am far from being a critic. In fact, should some of these changes be implemented, I may consider buying a RushCard for one of my daughters..... the Baby Phat logo is pretty nice.
Best wishes to you and yours,
Dr. Boyce Watkins
Dr. Boyce Watkins is a Finance Professor at Syracuse University and founder of YourBlackWorld.com. He makes regular appearances in national media, including CNN, BET and The Wendy Williams Experience. He is also the author of "Financial Lovemaking 101: Merging Assets with Your Partner in ways that Feel Good." For more information, please visit www.BoyceWatkins.com. 10 of the Best Rewards Cards
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Comments: (12)
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By: James Smith on 4/28/2009 2:19PM
Excellent commentary. This is balanced and I hope that Russell listens. The RushCard should be improved to ensure that he is truly serving the community.
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By: MommyFrazzled on 4/28/2009 2:57PM
Well said! I was impressed with Russell Simmons for implementing the Rushcard. His response to the article was spot on and you did right stopping it dead in its tracks before the media tries to make something bad out of a positive effort put in place for not just black people but anyone who may need a RushCard.
So again kudos!
p.s. Get your daughter one..I give my daughter her allowance on hers and she feels like an adult because she can track her balance and knows what she spends. It's amazing how fugal they get when they see their own money flying out the door on paper! Great for her future!
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By: Sam Monrovia on 4/28/2009 3:11PM
I went back and reviewed your critique and your interview with the NY Times.
What are your afraid of Doc.? Making Russell mad?
Mr Simmons, like you sir is a hard core capitalist. Both of you fine gentlemen have found a way to get rich and both of your avenues could have only been traveled in a capitalist country. I only wish I could have a talent that could have made me rich; but I must hit the time clock and listen to those who know. When I need financial advice listening to a financial professor from a distinguish American University is a great place to start. If I need to know anything about rap music or being a thug I’ll watch BET Raps featuring Mr. Simmons’ and ‘nem’. You give sound advice in the field of financing and your critique on the Rush Card is nothing for you to shy away from. But I see you did any way. Well...
Sam Monrovia
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By: kcn9971 on 4/28/2009 6:53PM
Hey, Dr. Boyce did Russell promise you a "Platinum" RushCard? maybe you can use it to buy some breath mints, when your done kissing Russell's ass!!
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By: Triciagirl on 4/28/2009 7:40PM
He's not kissing his ass. He is being diplomatic. I think that when I read between the lines, I can see that Dr Boyce is saying that the Rush card has serious problems. But I agree that black men are too often pitted against one another in the media.
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By: Henry Hale on 4/30/2009 8:46PM
My exact feelings also. There is no cowtowing to Russell Simmons, but an effort to make it clear that his critique is not a direct condemnation of the man himself.
In Dr. Watkins opinion, there are some issues with the RushCard that he wants to see addressed. And, as he said, we should never feel that it is inappropriate for one Black man to give constructive feedback to another Black man. This form of communication is productive in our society and works well, especially when outside forces are not allowed to manipulate it into a conflict between the parties.
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By: Storeylady on 4/29/2009 11:46AM
I applaud Mr. Boyce for being and behaving like an intelligent Black Man and explaining in greater detail what he meant. All of the "a-- - kissing" comments are from people who appear to have bought into the attempt to pit the two men against each other. Mr. Boyce did not back down, he simply clarified his position. Well said, and now it should be "squashed".
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By: Cheryl F. on 4/29/2009 7:38PM
I agree. Mr. Boyce did the right thing and I hope to hear Russel Simmons does the right thing as well. Its about time we as a race learn to stick together. Pay no attention to the "signifying monkeys".
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By: monique on 5/06/2009 10:43AM
Thank you! The last thing I need are two of the Black men that I respect killing each other off in the media. If Russell and Dr. Boyce have an issue, they should settle it behind closed doors. That's why I like this site, because they give them an opportunity to address one another as brothers and not as enemies. The New York Times would not allow that.
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By: Mali Mutombo on 4/30/2009 9:01PM
I too was surprised that Dr Watkins went back on his words, it was a critique of Russells Simmons card which was well founded. I wish Dr Watkins would have asked Russell Simmons his intentions before critiquing the cards. His intentions seem OK. But he offeres no plan to proceed to the next step from his card. What's missing in the media, is the view of having us discuss our own issues with each other, instead of to the biased media. I believe CNN is filling that Void with their series Black in America. As members of an often marginalized minority,we need to analyze and self critique our actions. Find our own mistakes and correct them. I think Dr Watkins was right I just feel he could have chosen his words and his platform better.
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