Sep 24, 2020 - Economy & Business
Citi: Racism cost U.S. economy $16 trillion
Since 2000, U.S. GDP has lost $16 trillion as a result of anti-Black discrimination, a new study from Citi global economist Dana Peterson and global chief economist Catherine Mann finds.
What they're saying: "The analysis in the report that follows shows that if four key racial gaps for Blacks — wages, education, housing, and investment — were closed 20 years ago, $16 trillion could have been added to the U.S. economy," Citi vice chairman Raymond J. McGuire says in the report.
- "And if the gaps are closed today, $5 trillion can be added to U.S. GDP over the next five years."
By the numbers: The study highlights the areas where discrimination has cost the U.S. economy most significantly:
- $13 trillion lost in potential business revenue from discriminatory lending to Black entrepreneurs, with an estimated 6.1 million jobs not generated as a result.
- $2.7 trillion in income lost because of disparities in wages.
- $218 billion lost because of discrimination in housing credit.
- $90 billion-$113 billion in lifetime income lost from discrimination in access to higher education.