Racial inequality has cost the US economy $ 16 trillion in wealth.
New York, United States:
Racial inequality has cost the U.S. economy $ 16 trillion in wealth over the past two decades, Citigroup said in a report Thursday.
The banking giant – highlighting the drag on pay inequality, housing discrimination, education disparities and other long-standing ills in the United States – simultaneously pledged $ 1 billion in ‘initiatives for the needs of black-centric businesses.
“Tackling racism and closing the racial wealth gap is the most critical challenge we face in creating a just and inclusive society and we know that more things will not do the same,” said Michael Corbat, CEO of Citigroup in a press release.
“Citi is committed to leading the way and investing in communities of color to build wealth and a strong financial future.”
The brilliant 104-page report, which features a photo of a punch between a white and black person on its cover, presents a range of issues, including police and voting rights. Its publication comes as US businesses face pressure to address growing public concerns about racism.
The report notes the significant wage gap for black and Hispanic workers, the result of “a long history of discrimination in employment, as well as unequal access to quality education in the United States.”
Citigroup has highlighted the problem of financial redlining which has left black consumers more vulnerable to predatory lenders, or to adverse bank conditions.
Black entrepreneurs also face more barriers to financing than white businesses, the report says, noting that “if black-owned businesses pass the gauntlet on a myriad of measures, but still do not receive funding, then epsilon may be a bias “.
Closing the racial equity gap could add $ 5,000 billion to US growth over the next five years, Citi said.
Citi has pledged a number of measures, including $ 550 million to support the home ownership of people of color and affordable housing by minority developers. Other programs support minority depositories, vendors, and black-owned entrepreneurs.
Citigroup also pledged to strengthen its policies to become “an anti-racist institution,” including addressing biases in software design and the portrayal of people of color in marketing materials.
U.S. companies unveiled more social initiatives in the wake of nationwide racial justice protests earlier this year, but skeptics say more concrete action is needed to back expressions of outrage after George’s murder Floyd.
Much of American business remains dominated by white men at the highest levels, although Citigroup earlier this month brought in Jane Fraser as the first female CEO of a major bank. Citi CFO Mark Mason is African American.
