The racial wealth gap in the United States has long been a pressing issue, exacerbated by the COVID-19 pandemic. A coalition of investors, business leaders, and civil society groups is urging the Biden administration to implement significant reforms in business and finance to tackle rising inequality.
With high unemployment rates and many businesses closing permanently, the pandemic has disproportionately affected minority communities and people of color. In stark contrast, Forbes magazine reported a record-setting year in 2020, adding 493 new billionaires despite the economic downturn.
Research from The Washington Post highlights that nearly eight million Americans fell into poverty in the latter half of 2020. In response, the coalition calls for the creation of a White House Initiative on Inclusive Economic Growth to foster more socially responsible markets.
President Biden has prioritized addressing racial economic inequality, evidenced by the passage of a $1.9 trillion stimulus package and a proposed $2.3 trillion infrastructure plan aimed at pandemic recovery. Additionally, Biden is seeking a $9 billion increase for the Department of Housing and Urban Development to expand federal housing assistance and promote affordable housing programs.
A 2017 report by the Economic Policy Institute underscores the persistent disparity, noting that the average wealth of white families is seven times that of black families. Economists suggest that closing the racial wealth gap could boost the US GDP by 4-6% by 2028, according to a McKinsey and Company report.
However, experts argue that more comprehensive measures are needed beyond stimulus packages and housing expansions. Affordable education, business support programs, student loan debt relief, and other critical issues must be addressed to effectively bridge the wealth gap.
The COVID-19 pandemic has further highlighted and intensified these economic disparities, making it imperative for policymakers to take robust action to ensure a more equitable future for all Americans.
Reference(s):
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