Thursday, October 01, 2020

The Economic Cost of Racism

 Racial inequality has cost the US economy $16 trillion in wealth over the last two decades, The banking giant Citigroup said in a report. Addressing racial equity gaps could add $5 trillion to US growth over the next five years, Citi said.

It pointed to the drag from unequal pay, housing discrimination, education disparity and other longstanding ills in the United States and it lays out a gamut of issues, including policing and voting rights. 

"Addressing racism and closing the racial wealth gap is the most critical challenge we face in creating a fair and inclusive society and we know that more of the same won't do," said Citigroup Chief Executive Michael Corbat.

The report notes the sizeable wage gap for Black and Hispanic workers, the result of "an extended history of job discrimination, plus unequal access to quality education in the US."

It noted the problem of financial "redlining" that has left Black consumers more vulnerable to predatory lenders, or to unfavorable terms from banks.

No comments: