{"id":93784,"date":"2020-09-25T10:40:02","date_gmt":"2020-09-25T02:40:02","guid":{"rendered":"http:\/\/www.namnewsnetwork.org\/?p=93784"},"modified":"2020-09-25T10:40:04","modified_gmt":"2020-09-25T02:40:04","slug":"us-unrest-discrimination-against-blacks-has-cost-us-economy-16-trillion-citigroup-report","status":"publish","type":"post","link":"http:\/\/namnewsnetwork.org\/?p=93784","title":{"rendered":"US unrest: Discrimination against Blacks has cost US economy $16 trillion – Citigroup report"},"content":{"rendered":"\n
\"Kentucky<\/a><\/figure>\n\n\n\n

Kentucky Attorney General Daniel Cameron, pictured here with President Donald Trump<\/em><\/strong><\/p>\n\n\n\n

WASHINGTON, Sept 25 (NNN-AGENCIES) — The United States\u2019 longstanding discrimination against minority groups, especially Blacks, is biting the US economy hard. <\/p>\n\n\n\n

A new report by US-based firm Citigroup claims the US economy lost $16 trillion due to racism and discrimination faced by Blacks since 2000.<\/p>\n\n\n\n

The report noted that the loss includes gaps in wages, access to housing and higher education and investment in Black-owned businesses.<\/p>\n\n\n\n

The report adds to the plethora of research that has attempted to quantify the economic impact of systemic racism in the U.S.<\/p>\n\n\n\n

Citigroup arrived at the $16 trillion figure by estimating that:<\/p>\n\n\n\n

. Wage gap suffered by Black Americans cost the US economy $2.7 trillion,<\/p>\n\n\n\n

. $218 billion lost as a result of the housing deficit between Blacks and Whites,<\/p>\n\n\n\n

. $90 billion to $113 billion lifetime income lost because of discrimination from accessing higher education, and<\/p>\n\n\n\n

. $13 trillion in business revenue lost in the last 20 years because of discrimination in lending to Africa American entrepreneurs. <\/p>\n\n\n\n

The study warned that not acting to reverse discriminatory practices against Blacks could further cost the US economy. Citigroup estimates that the US economy could see a $5 trillion boost in the next five years if racial gaps are closed.<\/p>\n\n\n\n

According to the report, the gaps in many cases remain wide 60 years after the Civil Rights Movement. In some cases, including in homeownership rates and college degree attainment, the gaps are wider now than in the 1950s and 1960s.<\/p>\n\n\n\n

\u201cThese gaps are apparent in unemployment, net worth, debt levels, wages, peak income, financing for businesses, spending on education, and rates of imprisonment and sentencing levels,\u201d the study noted.<\/p>\n\n\n\n

\u201cRacial inequality has always had an outsized cost, one that was thought to be paid only by underrepresented groups,\u201d said Raymond J. McGuire, Vice Chairman of Citigroup and Chairman of Banking, Capital Markets and Advisory at Citi.<\/p>\n\n\n\n

He added: \u201cWhat this report underscores is that this tariff is levied on us all, and particularly in the U.S., that cost has a real and tangible impact on our country\u2019s economic output. Now, more than ever, we have a responsibility and an opportunity to confront this longstanding societal ill that has plagued Black and brown people in this country for centuries, tally up the economic loss and as a society, commit to bring greater equity and prosperity to all.\u201d<\/p>\n\n\n\n

Citigroup said the incarceration rate among Black Americans, conscious bias in hiring and voter suppression all play a role in hindering the effort to close the racial gap in the U.S.<\/p>\n\n\n\n

According to Moody\u2019s Investor Service, 44% of Black households owned their homes in 2019, compared with 74% of white households. \u201cThe disproportionate representation of Black households in poorer income and wealth brackets in the US suggests that those households have been more affected by the macroeconomic trends that have led to a broad rise in inequality,\u201d said Moody\u2019s Vice President William Foster.<\/p>\n\n\n\n

\u201cThese trends include globalization of trade, capital and labor; displacement of labor through automation; rising educational requirements alongside highly uneven quality of schooling; and uneven access to credit.\u201d<\/p>\n\n\n\n

Also, data from the U.S. Federal Reserve show that between 1995 and 2016, White households\u2019 net worth grew 43%, to $61,200, between 1995 and 2016, while it remained flat at $35,400 for Black families.<\/p>\n\n\n\n

Last year, a study by consulting firm Mckinsey examined how racial discrimination and other inequalities have reduced America\u2019s wealth. The firm noted that U.S. GDP could hit 6% if the racial wealth gap is closed by 2018. \u201cThe country has over a trillion dollars to gain from the effort,\u201d the study concluded. — NNN-AGENCIES
<\/p>\n","protected":false},"excerpt":{"rendered":"

Kentucky Attorney General Daniel Cameron, pictured here with President Donald Trump WASHINGTON, Sept 25 (NNN-AGENCIES) — The United States\u2019 longstanding discrimination against minority groups, especially Blacks, is biting the US economy hard. A new report by US-based firm Citigroup claims the US economy lost $16 trillion due to racism and discrimination faced by Blacks since […]<\/p>\n","protected":false},"author":11,"featured_media":93786,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[208],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/93784"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=93784"}],"version-history":[{"count":0,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/93784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/93786"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=93784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=93784"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=93784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}