DISCLAIMER:
I aim to shed light on the disparities that exist against African Americans, not to generalize or diminish the experiences of anyone. This post focuses on the economic impact of racism on a national scale.
It is no secret that racism has inflicted hardships on minorities throughout our nation for years now. One would think that all forms of segregation in the United States would crumble after the Civil War and Civil Rights Acts, but sadly, nationwide protests and persistent occurrences of hate crimes prove that wrong. Focusing on just African Americans, the US economy has lost more than $16 trillion due to the discrimination of this group of people since 2000. Citi, a financial service corporation, estimates that if we are to address and eliminate the deep-rooted racism against African Americanss, our economy could witness a boost of up to $5 trillion dollars in the upcoming years.
These staggering numbers are derived from an analysis of disparities in African American housing, wages, education, and access to resources compared to white people; it’s not something we can simply brush aside. We as a nation bear the responsibility to look into the literal costs of discrimination.
Now, let’s dissect this $16 trillion loss:
A potential $13 trillion went down the drain when African Americans were denied an estimated 6.1 million jobs due to discrimination. Despite advancements with desegregation, the unemployment difference remains incredibly high. To this day, when faced with the hiring decision between Devonte Harris and Christopher Adams, Devonte stands less of a chance. In fact, a study done by UC Berkeley and UChicago economists showed that 10% fewer African American applicants were called in for an interview than the equally qualified white applicants. This not only perpetuates injustice, but also brings our economy’s numbers down.
When looking at employed African Americans specifically, there was a $2.7 trillion loss in income because African Americans were paid wages less than white counterparts. To put that into perspective, for every dollar the average white man makes, the average Black man is paid 71 cents. Black women facing both racial and gender disparities are paid an even less proportion of 63 cents. Whether we like it or not, numbers add up over time, burdening our nation.
For those of you unfamiliar with the concept of House Credit, it is a tax reduction applied to people who cannot afford the complete payment on their houses, commonly given to those of low income. Now, it is not quite fair when African Americans are kept from the benefit; the discrimination in that sector alone resulted in a $218 billion loss.
The education gap takes another toll, amounting to a loss of $90 billion to $113 billion. Even today, African Americans still fight the battle of unequal educational resources. Because of this lack, they are prevented from securing spots at prestigious schools and well-paying jobs. And even when they do get admission into great places, many attribute their success to affirmative action policies; not only do they have a tough time reaching certain levels, but they are also subjected to backhanded remarks that undermine their hard work.
All of these factors intertwine like dominoes. Not being able to secure a job or earning a lower wage leaves one with limited money, let alone the inability to receive House Credit. How are they meant to attain valuable education without financial resources? This naturally draws a cycle of being unable to find a well-paying job, or even a job for that matter, simply because their achievements and contributions are not valued, even though they are just as capable as any other race.
The ultimate worry is that though people are aware of the issue, the growth to fixing it has been moving far slower than it should be. With our nation begotten from treating African Americans as less-than, that mindset has been carried among generations of Americans. It is important to move beyond just hiring more African Americans or providing more educational opportunities, as the economic ramifications of racism are undeniably catastrophic. The only way to mitigate these devastating economic losses is to increase the quality of community, where everyone has equal opportunity to thrive. I mean, what is the point of hiring Devonte when there is no effort to foster an environment in which he feels like he belongs?
Resources
Name Discrimination Study Finds Lakisha And Jamal Still Less Likely To Get Hired Than Emily And Greg