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Racism cost US economy $16 trillion

WASHINGTON (Axios): 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.

“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.”

The study highlights the areas where discrimination has cost the U.S. economy most significantly:

  1. $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. $2.7 trillion in income lost because of disparities in wages. 3. $218 billion lost because of discrimination in housing credit.
  3. $90 billion-$113 billion in lifetime income lost from discrimination in access to higher education.
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