Economic benefits of erasing racial gaps in jobs, income, and assets Racial inclusion and income inequality are key factors driving regional economic growth, and are positively associated with growth in employment, output, productivity, and per capital income, according to an analysis of 118 metropolitan regions. Eliminating racial gaps in income in 2011 would have boosted earnings by $687 billion, much of which would recirculate in the economy and create more jobs, and would have increased U.S. GDP by $1.2 trillion. Regions that became more equitable in the 1990s—with reductions in racial segregation, income disparities, or concentrated poverty—experienced greater economic growth as measured by increased per capita income.Making a national economy’s income distribution 10 percent more equitable prolongs its typical growth spell by 50 percent. Raising the national minimum wage from $7.25 per hour to $10.10 per hour would put $51.5 billion annually in the pockets of affected workers, who are disproportionately people of color, and would create approximately 140,000 new jobs every year. Preventing foreclosure and ensuring fair access to credit and stable home ownership would have prevented
significant wealth losses for communities of color. In 2012 majority-people-of-color ZIP codes lost an average of $2,200 per household, and ZIP codes with above-average shares of people of color lost $2,000, compared to $1,300 in majority-white ZIP codes. From 2006 to 2008 a $260.1 million investment in affordable housing leveraged roughly $470 million in additional public and private funds and resulted in nearly $1.4 billion in direct, indirect, and induced economic activity. This level of activity generated roughly $62.5 million in state and local tax revenue.
For too many families, economicsecurity—having enough money to cover a family’s basic needs
and enough savings or assets to invest in its future—has become increasingly elusive. Economic security can be thought about as a three-ingredient recipe: Good jobs that pay enough in wages to cover a family’s basic needs, other benefits including health care and retirement savings, and provide stable and consistent employment. Sufficient wealth or assets to weather short term economic setbacks and invest in the future. A dependable social safety net that provides income and other support—for example, food and child care—during periods of unemployment, disability, or poor health.
significant wealth losses for communities of color. In 2012 majority-people-of-color ZIP codes lost an average of $2,200 per household, and ZIP codes with above-average shares of people of color lost $2,000, compared to $1,300 in majority-white ZIP codes. From 2006 to 2008 a $260.1 million investment in affordable housing leveraged roughly $470 million in additional public and private funds and resulted in nearly $1.4 billion in direct, indirect, and induced economic activity. This level of activity generated roughly $62.5 million in state and local tax revenue.
For too many families, economicsecurity—having enough money to cover a family’s basic needs
and enough savings or assets to invest in its future—has become increasingly elusive. Economic security can be thought about as a three-ingredient recipe: Good jobs that pay enough in wages to cover a family’s basic needs, other benefits including health care and retirement savings, and provide stable and consistent employment. Sufficient wealth or assets to weather short term economic setbacks and invest in the future. A dependable social safety net that provides income and other support—for example, food and child care—during periods of unemployment, disability, or poor health.
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