Cost of racism: U.S. economy lost $16 trillion because of discrimination, bank says

September 23, 2020 ☼ racismeconomy

Source: MPR News - Link

Nationwide protests have cast a spotlight on racism and inequality in the United States. Now a major bank has put a price tag on how much the economy has lost as a result of discrimination against African Americans: $16 trillion.

Since 2000, U.S. gross domestic product lost that much as a result of discriminatory practices in a range of areas, including in education and access to business loans, according to a new studyby Citigroup. It’s not an insignificant number: By comparison, U.S. GDP totaled $19.5 trillion last year.

And not acting to reverse discriminatory practices will continue to exact a cost. Citigroup estimates the economy would see a $5 trillion boost over the next five years if the U.S. were to tackle key areas of discrimination against African Americans.