Citigroup: U.S. Economy Lost $16T Due To Discrimination Against Black Americans
Citigroup found in a new study that since 2000, U.S. gross domestic product lost $16 trillion as a result of discrimination against Black Americans in a range of areas, including education and business loans, according to NPR.
- Failing to reverse discriminatory practices will continue to cost the U.S. economy. Citigroup found that addressing key areas of discrimination would give the economy a $5 trillion boost over the next five years.
- The study noted four key gaps between Black Americans and whites, NPR reported:
• $13 trillion lost in potential business revenue because of discriminatory lending to African American entrepreneurs, with an estimated 6.1 million jobs not generated as a result
• $2.7 trillion in income lost because of disparities in wages suffered by African Americans
• $218 billion lost over the past two decades because of discrimination in providing housing credit
• And $90 billion to $113 billion in lifetime income lost from discrimination in accessing higher education
- NPR noted that Citigroup’s findings are not new, writing that “Various studies have shown similar findings, and experts have called for similar action for years, though so far progress has been slow.”
"We believe we have a responsibility to address current events and to frame them with an economic lens in order to highlight the real costs of longstanding discrimination against minority groups, especially against Black people and particularly in the U.S.," wrote Raymond J. McGuire, a vice chairman at the bank and the chairman of its banking, capital markets and advisory team.