Racial inequality is pulling the American economy down
Persistent racial inequality holds back US GDP. The U.S. failure to bridge the gap between whites and African Americans has cost the economy up to $ 16 trillion over the past 20 years, according to an analysis released by Citigroup this week..
Report on inequality in wages, education, housing and investment highlights the racial tensions that sparked the riots in the country.
«The 400-year-old enslavement of black people in America has consequences that persist to this day, despite a number of laws that ensure equal access to various aspects of social life.», – by Citigroup experts.
All of this is happening against the backdrop of protests that gripped major US cities over the outrage of the black community over the attitude of the police towards their ethnic group. It’s worth noting that the pandemic has exacerbated inequality in America, hitting the working class particularly hard..
«Coronavirus crisis reveals long-standing racial tensions that have plagued the country for centuries», – says Citi report.
The economic impact of the pandemic, combined with repeated incidents of police brutality against black Americans, was too great to ignore, experts say..
The findings in the Citi report clearly show that while the US has made great strides in tackling racial inequality, there are still many challenges. For example, white families have eight times more assets and assets than African American households. The homeownership rate in the United States among whites is nearly 80%. Blacks are five times more likely to go to prison than whites and make up 33% of the US prison population. Income for African American men peaks earlier and lower in volume (ages 45-49 and $ 43,849) than for white males (ages 50-54, $ 66,250)
Experts believe these gaps are holding back the economy as a whole.
«Social inequality manifested itself in economic costs that hurt individual families, communities, and ultimately the entire U.S. economy», – says Citi report.
Some key metrics suggest that the gap between people of color and whites has gotten worse.
Citi finds that gaps in home ownership and college education are wider than they were in the 1950s and 1960s..
The report highlights the long-term impact of discriminatory housing practices.
«Fifty Years of Restrictions on Property Ownership Means African American Families Have Missed Out on the Benefits of Higher Home Prices — key aspect of fundraising», – Citi experts say.
The health care crisis is exacerbating racial divisions in the United States. Black Americans are hardest hit by the pandemic, dying 2.4 times more often. In addition, they are much more likely to work in jobs such as health care, catering and childcare, and therefore cannot perform their duties remotely.. African American businesses were hit harder than other ethnic groups between February and April, according to the National Bureau of Economic Research..
Federal Reserve Chairman Jerome Powell recently expressed concern about how inequality is damaging the economy.
Citi report lays out a blueprint for how government and corporate America can help tackle inequality.
«Closing the history of entrenched segregation and active discriminatory policies in an era of genuine equality will require radical reforms at the individual, corporate and government levels.», – Citi economists said.