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Nation of Islam economic programme (1934-1975)

Your Supermarket, South Side, Chicago, circa 1970 (Photograph courtesy of Ebony Collection, NMAAHC)

In acknowledgement of Black History Month, The Royal Gazette continues the publication of stories throughout February on African-American and global African people, events and institutions, and their contributions in history. Here historian Nafeesa Muhammad describes the often-lauded but understudied economic programme of the Nation of Islam, and focuses on the economic development plans put in place under the Nation’s longtime leader, Elijah Muhammad, and their impact on African-American economic advancement both in and beyond the organisation

The Honourable Elijah Muhammad led the Nation of Islam from 1934 until his death in 1975. The NOI is an Islamic religious organisation founded in Detroit, Michigan, in 1930. Its followers are mostly Black people who are often referred to as the Black Muslims. Under Elijah Muhammad’s leadership, the NOI brought a message of self-reliance, independence, and respect to Blacks who were often confined to poor inner-city neighbourhoods because of racial discrimination under systemic White supremacy.

From very early in the movement, Elijah Muhammad was the spiritual and organisational leader of the Nation of Islam. However, Muhammad actually credited the founding of the NOI to Wallace Fard Muhammad, who in 1930 began teaching Blacks an unorthodox form of Islam in the poverty-stricken areas of Detroit. His ideas and beliefs appealed to the approximately 8,000 Detroit Blacks, who quickly joined his movement between 1930 and 1934. Among these converts was Georgia-born Elijah Poole who later became the Honourable Elijah Muhammad, the leader of the NOI when Fard Muhammad mysteriously disappeared in 1934. Elijah Muhammad preached that Wallace Fard Muhammad was Allah (God) and that he was Fard’s messenger.

Elijah Muhammad led the expansion of the NOI beyond Detroit to other cities, often recruiting from among the most impoverished urban Blacks. He gave them a Black nationalist philosophy centred on the fight against the systemic oppression of White America. Muhammad’s message enhanced the psychological self-image of Blacks but it also focused on helping individual Blacks and the Black community develop economic success. While the NOI advocated economic self-reliance since its inception, Muhammad in 1964 introduced the Three-Year Economic Plan — also known as the National Savings Plan — specifically to help Blacks achieve financial independence. Under this plan, he urged Black people to sacrifice for three years, purchasing no more than what they needed and in line with their incomes to save money. While he urged this programme for NOI members, he hoped that all Black Americans would follow these ideas as well.

For members of the NOI, however, a large portion of the savings would be sent to the NOI headquarters in Chicago, where the organisation’s leaders would allocate it towards collective economic development, including the purchase of arable land where vegetables could be grown and cattle could be raised. The plan also encouraged NOI members to purchase commercial real estate and timberland. The timber could be used to build homes for poor Blacks. Lands with clay could be used to manufacture bricks, which could be used to build brick homes that would then be sold at affordable prices to indigent people in Black communities.

The Three-Year Economic Plan required NOI members who could afford to do so to pledge one tenth to one third of their income to economic development. Members were also required to patronise NOI-owned businesses or to open their own economic enterprises, which would be advertised in Muhammad Speaks, the NOI’s official newspaper.

With a peak membership of 70,000 by the early 1960s, the NOI’s Three-Year Economic Plan used the collective savings of the members to expand and concentrate Black capital to develop both organisation-owned and individual member-owned businesses. These businesses in turn promoted the NOI’s goal of an independent, self-contained, and Black-controlled economy. In Chicago alone, the NOI organised 15 different businesses, including Your Supermarket, Shabazz Grocery, Chicago Lamb Packers, Shabazz Bakery, Good Foods, Shabazz Restaurant and Salaam Restaurant, Shabazz Barber Shop, and a clothing factory. Across the US, NOI businesses by 1970 included grocery stores, dress shops, dry cleaners, bakeries, and restaurants that provided food, cooked meals and clothing to both Muslims and non-Muslims at affordable prices.

In the mid-1960s, the NOI purchased and developed farms in Michigan, Alabama, and Georgia that provided fresh meat and vegetables for its growing number of urban supermarkets. Despite opposition from local Whites in the South — including Ku Klux Klan members who poisoned or shot cattle and attempted to sabotage crops — these NOI farms provided meat and produce delivered by a fleet of NOI trucks, and at one point an airplane, to NOI stores. As such, the NOI had created the first Black-owned national food production and distribution network, a longstanding dream of Black nationalist organisations.

NOI businesses also offered a wide variety of employment opportunities for inner-city residents, including serving as managers, clerks, secretaries, bakers, cooks, butchers, waiters, accountants, mathematicians, technicians, plumbers and carpenters. Muslims and non-Muslims were employed in NOI-owned businesses. In 1958, for example, the NOI operated a dry-cleaning plant located at 608 East 63rd Street in Chicago. The plant was managed by Herbert Muhammad, one of Elijah Muhammad’s sons, and directly employed five NOI members full time. Although the plant had two NOI delivery trucks, non-NOI members also were employed, often using their own vehicles to assist in the pick-up and delivery of dry cleaning in exchange for a 35 per cent commission on merchandise collected from and distributed to customers.

While Muhammad Speaks was officially the newspaper of the NOI from 1960 to 1975, it was also one of the organisation’s most profitable enterprises. The newspaper grew rapidly because of the national network of male NOI members who distributed it. By 1969, the NOI produced the paper with an all-Black printing crew in one of its buildings on a printing press capable of turning out 50,000 copies per hour. By the end of 1969, 400,000 copies of Muhammad Speaks were printed per week. Those numbers grew to a record 950,000 in one week in 1974, making the paper one of the largest Black-owned publications in the nation.

Although the NOI urged women to prioritise working in the domestic sphere as wives and mothers, many women contributed to the Economic Development Plan serving in leadership roles as captains, lieutenants and secretaries. They also worked as teachers, directors and principals within the NOI’s parochial schools, the University of Islam. Moreover, women wrote for and edited the Muhammad Speaks newspaper and some became managers and shopkeepers of the movement’s businesses. Sister Ethel Sharieff, a daughter of Muhammad, was also involved in these economic activities. Sharieff managed the NOI clothing shop for women in Chicago, which employed three full-time Muslim women and at times hired non-Muslims. Many non-Muslims also patronised the clothing store.

Some Muslim employees indicated that they made more economic progress and were more economically secure than other Blacks from similar socioeconomic backgrounds. They attributed their economic security to their adherence to Muhammad’s Three-Year Economic Plan, which helped them to save money by eliminating the desire to purchase liquor, tobacco, expensive clothes and cars. They also saved money by restricting their diet to one meal per day, when possible, in accordance with NOI guidelines, which in turn reduced food expenditure.

The NOI’s economic development programme peaked in the late 1960s and early 1970s. With an estimated 250,000 active members worldwide in 1975, the Nation had a formidable base of customers and employees to ensure the prosperity of many of their enterprises. With this additional capital, the NOI began acquiring large existing businesses. In 1968, the NOI purchased a four-storey, 60,000 sq ft building in Chicago’s South Side for $1 million. The building was used to accommodate the Muhammad Speaks newspaper operations. That same year, the NOI purchased a combined restaurant and supermarket — Salaam Restaurant and Your Supermarket — in Chicago for another $1 million, along with a lamb slaughterhouse for $100,000, which provided meat for the restaurant-supermarket.

In January 1973, the NOI gained a controlling interest in the Guaranty Bank and Trust Company. This South Side Chicago bank expanded under NOI management to hold more than $10 million in assets and employ more than 500 people by 1975. This “bank for the Black man,” as Elijah Muhammad called it, reflected now decades-old capital accumulation practices by the NOI and indicated that the Nation was one of the wealthiest Black organisations in the United States.

By 1974, NOI enterprises had taken on an international dimension with its agreement with a Peruvian fishing distributor to provide one million pounds of whiting fish from that South American nation. NOI members sold the fish door-to-door in Black neighbourhoods to Muslims and non-Muslims alike, promoting it as three times cheaper than land-produced meat, easier to digest — and, unlike catfish, whiting was not a “bottom feeder”. In 1974, minister Abdul Rahman Muhammad, from Atlanta, estimated that 200,000 pounds of fish were sold in the month of September alone.

By 1975, the Nation of Islam operated hundreds of businesses throughout the US, which collectively employed more than 11,000 people. The estimated annual revenue from these businesses was approximately $30 million per year. At the time of the death of the Honourable Elijah Muhammad on February 25, 1975, the net worth of the NOI totalled $80 million. That wealth was used to enhance the economic security of its members and to support the expansion of the NOI’s religious mission and the establishment of more than 75 temples across the US in 1975.

The NOI’s economic programme declined after Elijah Muhammad’s death. Wallace D. Muhammad, Muhammad’s son, began to dissolve the NOI’s business enterprises owing to mismanagement. Wallace also de-emphasised the NOI’s Black nationalist agenda and moved the organisation towards Sunni Islam. In 1977, minister Louis Farrakhan, who served as the NOI’s national spokesman from 1967 to 1975, reinstituted the NOI that Elijah Muhammad established, and has since repurchased many of the farms and businesses that were lost during the post-1975 shift. The NOI or its individual members continue to own and operate several businesses in Chicago, New York, Atlanta and Los Angeles.

Originally starting from a base of 8,000 impoverished Detroit residents in 1934, the Honourable Elijah Muhammad had transformed the Nation of Islam into an economic powerhouse with an enormous impact on the national Black community, which included both Muslims and non-Muslims.

Muhammad, N. (2020, April 01) The Nation of Islam’s Economic Program, 1934-1975. Retrieved from https://www.blackpast.org/african-american-history/the-nation-of-islams-economic-program-1934-1975/

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Published February 27, 2021 at 8:00 am (Updated February 26, 2021 at 9:38 pm)

Nation of Islam economic programme (1934-1975)

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