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Racism cost the US economy $16 trillion over the last 2 decades, Citi study finds

Racism cost the US economy $16 trillion over the last 2 decades, Citi study finds

Marguerite Ward

Race-based discrimination and inequality has cost the US about $16 trillion in lost gross domestic product over the last two decades, according to a new study published by Citi, first reported by Bloomberg.
The lost GDP is a result of Black Americans earning less than white Americans, having less access to home and small business loans, and limited access to higher education.
If the US could immediately end "the most severe forms of economic discrimination against African Americans," US GDP would see a $5 trillion boost by 2025, Bloomberg reported.
In 2019, McKinsey estimated that the racial wealth gap will cost the US economy up to $1.5 trillion between 2019 and 2028.
“We have a responsibility and an opportunity to confront this longstanding societal ill,” Citigroup vice chairman Raymond McGuire said in the report.
Citi recently announced a $1 billion commitment toward closing the racial wealth gap in the US.
Citi is not the only company making this kind of commitment. Mastercard also recently pledged to invest $500 million toward closing the racial wealth gap and promoting financial inclusion among Black people.