Inequality Hurts the Economy

Historical and ongoing policy and practice have held back Black and brown people and communities and led to extreme racial inequities. In DC, white households have 81 times the wealth of Black households and 22 times the wealth of Latinx households. Wealth disparities are also tied to racial disparities in health, income, and education.

Research also shows that inequality hampers economic growth, innovation, and the distribution of power and resources and, conversely, suggests policies that redistribute resources and lower levels of inequality that strengthen economies. 

Nationally, if inequality by race, ethnicity, and gender were eliminated, our economy would experience dramatic, positive shifts. Truly equal opportunity would mean that:

• Black, Latinx, and Asian workers would earn nearly 61 percent more, on average, with women of color earning 88 percent more. Total income in the United States would increase by about one-third, or $4.3 trillion.

• GDP would be 33.5 percent higher and tax revenue to invest in thriving communities would jump by about $1.2 trillion at the federal level and $636 billion at the state and local level.

• The national poverty rate would drop by nearly 40 percent, overall, and the rates for Black and Latinx people by about half.

When we repair the harms that perpetuate inequality, everyone will benefit.