Inequality Has Cost The U.S. Economy Trillions Of Dollars Over The Past 20 Years [Infographic]

Eufemia Didonato

A new report published by Citigroup C estimates that racial inequality has cost the U.S. economy a mammoth $16 trillion over the past 20 years while the failure to close wage gaps has resulted in up to $12 trillion in lost GDP. Citigroup arrived at the initial figure by finding […]

A new report published by Citigroup
C
estimates that racial inequality has cost the U.S. economy a mammoth $16 trillion over the past 20 years while the failure to close wage gaps has resulted in up to $12 trillion in lost GDP. Citigroup arrived at the initial figure by finding that the provision of fair and equitable lending to Black entrepreneurs would generate $13 trillion in revenue while closing the Black racial wage gap would result in a further $2.7 trillion. Improved access to housing credit would have also resulted in 770,000 more Black homeowners since 2000 which would have added $218 billion to the economy while better access to education would have boosted lifetime incomes by $113 billion.

The level of racial disparity highlighted by the report is jarring and Citigroup states that it is getting worse as a result of the pandemic. The problem isn’t just a racial one, however, something that’s starkly illustrated by the failure to close the wage gap. If the white male-white female wage gap had been closed 20 years ago, it would have led to nearly $5 trillion being generated. The gulf in earnings between white men and Blacks and Hispanics is also colossal and its elimination in 2000 would have resulted in a GDP gain to the tune of $7 trillion. The report states that if the above gaps were closed today, $5 trillion would be added to U.S. GDP over the next four years, growing the economy by 0.4% percentage points annually.

*Click below to enlarge (charted by Statista)

Next Post

Digital Door Lock System Market Analysis, Insights And Geography Forecast Till 2026 | Fortune Business Insights

The MarketWatch News Department was not involved in the creation of this content. Sep 24, 2020 (The Expresswire) — Rising development of smart home across nations is a key factor anticipated to drive the global digital door lock system market, says Fortune Business Insights in a report, titled “Digital Door […]