A new McKinsey report reveals another tier of economic-racial disparities in the U.S. that stems, among other things, from systematic discrimination against the U.S. black population. According to the report, 19% of black American families, about 3.5 million households, have a “negative net worth.” That is, in permanent insolvency, so that through them there is no ability to repay debts by realizing assets such as a house, car, rent and more. By comparison, only about 8% of white families in the United States are in a similar situation.
According to the report prepared by the Consultative Agency on the economic situation of “Black America”, the reason for this is a long history of discriminatory policies on the part of the government and the private sector, which has hurt their capital accumulation over time. The report was published over the weekend ahead of “Liberation Day” (June 19), a day that marks the end of slavery in the United States.
The analysis was conducted earlier this year and examines employment gaps and large economic disparities faced by black Americans. The authors of the study said that black workers make up 12.9% of the workforce in the country, but earn only 9.6% of total salaries in the U.S. McKinsey further found that 4.3 million more households have a net worth of less than ten thousand dollars (including assets that can be sold). % Of black families, compared to 8.2% of white.
The US economy is hurting
The employment gaps between blacks and whites have resulted in a $ 220 billion annual gap between the salaries earned by black Americans today and what they would have earned had their share among different employment areas been equivalent to their share of the population, the report said. “In such a situation, the total wage of blacks would have risen by 30% and would have attracted another million workers to the world of work,” it was written.
Addressing the large wealth gaps between blacks and whites has far-reaching implications for the living conditions of all Americans. The lesser participation of black Americans in the labor market is hurting the entire economy.
The study also determined how black Americans, who make up about 13 percent of the U.S. population, are concentrated in low-wage occupations and less in high-wage careers. While blacks make up only 5 percent of the country’s doctors and 4.5 percent of software developers. , A profession with a median salary of only $ 23,000 a year, and a third of all security guards and bus drivers of student transportation are black. Looking ahead does not foresee a better future. Disappear by 2030.
“The racial wage gap is a product of both inequality in representation and wage disparities within employment categories and this is a surprisingly concentrated phenomenon,” the report’s authors wrote.
The situation of women is worse
Due to the economic role that black women play in the household, their advancement in the field of employment is essential to address the gaps. The report cites their previous analysis from last year, the largest in its field according to their statement, which found that out of 590 American companies they surveyed that employ more than 22 million people, for every 100 men promoted to management positions, only 58 black women were promoted. “Women of all races are less represented in management positions, but black women face the double barrier of sexism and racism,” it read.
The authors of the report argue that the imbalance does not depend on the will of blacks in the U.S., as the clichés hint at the “American Dream.” They say only a combination of government and private sector intervention is key.
In conclusion, the authors noted that “centuries of structural exclusion will not be erased in an instant,” especially in light of the fact that these are inter-system-integrated tools. However, they emphasize that the “status quo is not a fate for black Americans or for the entire U.S. economy. “Some progress can be achieved quickly in some places and in other cases it can take many years.”