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COMMENTARY: America’s Racial Wealth Gap Could Cost Economy $1.5 Trillion

NNPA NEWSWIRE — “Black families are underserved and overcharged by institutions that can provide the best channels for saving,” states the McKinsey Global Institute (MGI) report, The economic impact of closing the racial wealth gap. “For instance, banks in predominantly black neighborhoods require higher minimum balances ($871) than banks in white neighborhoods do ($626). Unsurprisingly, 30% of Black families are underserved by their banks, and 17% are completely disconnected from the mainstream banking system because of a lack of assets and a lack of trust in financial institutions.”

Published

3 years ago

August 25, 2019

Oakland Post

Charlene Crowell is the Center for Responsible Lending’s communications deputy director. She can be reached at Charlene.crowell@responsiblelending.org.

By Charlene Crowell, NNPA Newswire Contributor

America’s nagging racial wealth gap has been the focus of many research reports and economic policy debates. Now new research analyzes the strong connection between disproportionate wealth and financial services and products that are either shared or denied with consumers of color.

Authored by the McKinsey Global Institute (MGI), The economic impact of closing the racial wealth gap, identifies key sources of the nation’s socioeconomic inequity with its accompanying racial and gender dynamics along with family savings, incomes, and community context.

“Black families are underserved and overcharged by institutions that can provide the best channels for saving,” states the report. “For instance, banks in predominantly black neighborhoods require higher minimum balances ($871) than banks in white neighborhoods do ($626). Unsurprisingly, 30% of Black families are underserved by their banks, and 17% are completely disconnected from the mainstream banking system because of a lack of assets and a lack of trust in financial institutions.”

Additionally, according to the MGI report, the nation’s overall economy is affected by racial wealth gaps, estimating that between 2019 and 2028, the cost of economic losses to the general economy will be in the range of $1.0-$1.5 trillion.

Black America’s “racialized disadvantage” was created through historical forces – including private business practices and public policies that together advantaged white consumers while often excluding or relegating Black Americans. For example, the National Housing Act of 1934 limited housing options for Black Americans by assigning a D-rating to neighborhoods in general decline and occupied by lower-income residents.

Fast forward to more recent times, the Federal Reserve in 2017 found that Black consumers are 73% more likely than whites to lack a credit score due to “credit redlining”. This term refers to where a consumer lives to be the central determining factor in whether to approve credit, rather than the actual credit profile.

Among the MGI report’s other key findings are that:

Black Americans can expect to earn up to $1 million less than white Americans over their lifetimes;
Black men with no criminal records are less likely to receive job interviews than are white men with criminal records;
The median wealth of a single Black women is $200, while that of a single white man is $28,900; and
Black families are up to 4.6 times more likely to live in areas of concentrated poverty, than are white and Latino families;

Geographically, 65% of Black Americans reside in one of only 16 states. The states are also areas that score below the nation’s national average of 77 state performance metrics spanning economy, education, economic opportunity, fiscal stability, infrastructure and more: Alabama, Arkansas, Delaware, Florida, Georgia, Illinois, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, South Carolina, Tennessee, and Virginia.

“This study represents a critical look at the key components of wealth-building: access to community and family assets, ability to save, access to homeownership and availability of good jobs,” said Tom Feltner, Director of Research with the Center for Responsible Lending (CRL). “At every step it points to a widening racial wealth gap between Black families and white families.”

“With today’s Black homeownership rate hovering around 40%, while 73% of similarly situated whites own their homes, access to responsible mortgages remains more of a dream than a reality,” added Keith Corbett, a CRL EVP.

When student loan debts and criminal incarcerations are factored into the racial wealth divide, an even more bleak scenario is disclosed.

“Incarceration is estimated to reduce annual wages by 40% — not including the lost wages during the time served – for the formerly incarcerated,” states the MGI report, “reduces their economic mobility, and even increases the risk of school expulsion six times for their children….[B]lack men without criminal records are actually less likely to receive job interviews than are white men who have criminal records.”

For Black women, gender brings a dual “wage penalty”, according to the report. Median earnings for Black women are only 65% as much as those earned by white men, and 89% of median earnings for Black men. Black women typically borrow more in student loans, so their lower earnings bring stronger financial challenges in repayment years. As a result of these and other factors, the median wealth of a single Black woman is only $200, while that of a single white man is $28,900.

Both male and female Black college graduates are prone to support their families more so than their white college classmates. The financial assistance shared with older family members reduces the amount of disposable dollars that might have contributed more to paying down student debt or beginning financial investments like mutual funds or certificates of deposit.

“Education, while quite beneficial to those who attain it, is not an equalizer,” said Aracely Panameño, CRL’s Director of Latino Affairs. “And financial innovation and debt, even if well underwritten, can never undo historical racial discrimination that results in financial marginalization. Moving forward this situation can only be addressed through bold federal and state laws and policies that create equity of opportunity for all.”

Authors of the MGI report would likely agree.

“A number of simultaneous and mutually reinforcing initiatives will likely be necessary,” states the report. “This work will be neither simple nor easy, but targeted, productive efforts will likely strengthen the economy, increase economic and social equity, and improve the quality of life for families.”

Charlene Crowell is the Center for Responsible Lending’s communications deputy director. She can be reached at Charlene.crowell@responsiblelending.org.

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Brittney Griner Sentenced to More than 9 years in Russian Prison

NNPA NEWSWIRE — The lawyers of WNBA star Brittney Griner, Maria Blagovolina and Alexander Boykov, said in a written statement following the verdict announcement that the court ignored all the evidence they presented and that they will appeal the decision. “We are very disappointed by the verdict. As legal professionals, we believe that the court should be fair to everyone regardless of nationality,” Attorneys Maria Blagovolina and Alexander Boykov said in a statement.

Published

4 days ago

August 4, 2022

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

WNBA Superstar Brittney Griner has been sentenced to more than 9 years in a Russian prison following her conviction on drug charges.

Her lawyers called the verdict a disappointment and vowed to appeal.

The lawyers of WNBA star Brittney Griner, Maria Blagovolina and Alexander Boykov, said in a written statement following the verdict announcement that the court ignored all the evidence they presented and that they will appeal the decision.

“We are very disappointed by the verdict. As legal professionals, we believe that the court should be fair to everyone regardless of nationality,” Attorneys Maria Blagovolina and Alexander Boykov said in a statement.

“The court completely ignored all the evidence of the defense, and most importantly, the guilty plea. This contradicts the existing legal practice.

“Taking into account the amount of the substance (not to mention the defects of the expertise) and the plea, the verdict is absolutely unreasonable. We will certainly file an appeal,” they added.

Russian officials contended that Griner committed the crime on purpose. They also levied a fine totaling about $16,400 American dollars on the basketball star.

Authorities arrested Griner on Feb. 17 at an airport in Moscow after finding less than a gram of cannabis oil in her luggage.

She has been detained since then.

Recently, American officials revealed that the Biden-Harris administration had offered notorious arms dealer Viktor Bout in exchange for the release of Griner and Paul Whelan.

“Today, American citizen Brittney Griner received a prison sentence that is one more reminder of what the world already knew: Russia is wrongfully detaining Brittney,” President Biden said.

“It’s unacceptable, and I call on Russia to release her immediately so she can be with her wife, loved ones, friends, and teammates. My administration will continue to work tirelessly and pursue every possible avenue to bring Brittney and Paul Whelan home safely as soon as possible.”

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Report: Human Rights Violations in Prisons Throughout Southern United States Cause Disparate and Lasting Harm in Black Communities 

NNPA NEWSWIRE — “The U.S. has long failed to live up to its international human rights treaty obligations on eliminating racial discrimination, perhaps more so in the area of mass incarceration and prison conditions than in any other context,” said Lisa Borden, Senior Policy Counsel, International Advocacy at the Southern Poverty Law Center.

Published

4 days ago

August 4, 2022

Stacy M. Brown

NNPA Newswire

NEW YORK – The Southern Prisons Coalition, a group of civil and human rights organizations, submitted a new report to the United Nations Committee on the Elimination of All Forms of Racial Discrimination on the devastating consequences of incarceration on Black people throughout the southern United States.

With the long-term goal of eliminating all forms of racial discrimination in the criminal legal system, including the carceral system, the report describes the widespread, disparate harms resulting from the arrests, harsh prison sentences, and incarceration on Black communities.

The report also cites the devastating impacts of solitary confinement, prison labor, the school to prison pipeline, and incarceration of parents on Black families.

On August 8, 2022, the UN will review the United States’ compliance with the International Convention on the Elimination of All Forms of Racial Discrimination for the first time since 2014.

Among the ongoing stark racial disparities throughout prisons in the southern United States, Black people are five times more likely to be incarcerated in state prisons.

In states like Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Texas, where Black communities comprise 38% of the total population, Black individuals account for as much as 67% of the total incarcerated population.

While incarcerated, Black people are more than eight times more likely to be placed in solitary confinement, and they are 10 times more likely to be held there for exceedingly long periods of time.

By submitting the report to the United Nations, the Southern Prisons Coalition hopes to solicit concrete recommendations from the UN Committee as well as commitments from the United States delegation about their plans to address systemic issues in the United States prison system, particularly in the South.

According to the report, several states in the United States have also failed to meet several of the UN’s Standard Minimum Rules for the treatment of incarcerated people, including:

Work should help to prepare incarcerated people for their release from prison, including life and job skills;
Safety measures and labor protections for incarcerated workers should be the same as those that cover workers who are not incarcerated;
Incarcerated workers should receive equitable pay, be able to send money home to their families, and have a portion of their wages set aside to be given to them upon release.

“The U.S. has long failed to live up to its international human rights treaty obligations on eliminating racial discrimination, perhaps more so in the area of mass incarceration and prison conditions than in any other context,” said Lisa Borden, Senior Policy Counsel, International Advocacy at the Southern Poverty Law Center.

“We hope the Committee will help to shine a light on these very dark truths and prompt the U.S. to take its obligation to make significant improvements more seriously.”

“The abuses of forced labor are inextricably tied to racial discrimination in our nation,” said Jamila Johnson, Deputy Director at the Promise of Justice Initiative.

“In Louisiana, for instance, people are still sent into the fields to labor by hand in dangerously high heat indexes, for little to no compensation, and with brutal enforcement reminiscent of slavery and the era of ‘convict leasing’.”

“This report reveals the suffering of Black people in southern U.S. prisons, whose stories of marginalization and discrimination echo the racial subjugation of slavery and convict leasing during our country’s most shameful past,” said Antonio L. Ingram II, Assistant Counsel at the Legal Defense Fund.

“Despite widespread knowledge of the longstanding racial inequalities in the criminal legal and carceral systems, the United States continues to allow egregious human rights violations to persist for Black incarcerated people in violation of international law. This report serves as a sobering reminder of how far we need to go.”

Read the full report here.

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Celebrate your birthday with 10 free items

NNPA NEWSWIRE — Is your birthday coming up, and you’re not sure how to celebrate? Beat the summer heat by grabbing free ice cream at Cold Stone Creamery, or a daiquiri at WhoDaq Daquiris “The Daiquiri Shoppe.” Not in the mood for sweets? Head over to Jersey Mike’s or McDonald’s. Check out the rest of these Top 10 places giving out free items on your special day.

Published

5 days ago

August 4, 2022

admin

By Angelina Liu, Entertainment Editor of The Trendsetter / Texas Metro News

Is your birthday coming up, and you’re not sure how to celebrate? Beat the summer heat by grabbing free ice cream at Cold Stone Creamery, or a daiquiri at WhoDaq Daquiris “The Daiquiri Shoppe.” Not in the mood for sweets? Head over to Jersey Mike’s or McDonald’s. Check out the rest of these Top 10 places giving out free items on your special day.

1. Chocolate Secrets

At Chocolate Secrets, located at 3926 Oak Lawn Ave, Dallas, TX 75219, you can celebrate your birthday by getting one free piece of candy under their candy cases.

2. WhoDaq Daquiris “The Daiquiri Shoppe”

Head to WhoDaq Daquiris “The Daiquiri Shoppe”, located at 684 W Pioneer Pkwy Suite 100, Grand Prairie, Texas 75051, to claim a free small personal daiquiri on your birthday. Quench your thirst with signature flavors such as “Strawberry Shortcake” or “Bahama Mama.”

3. Sephora

Sign up for a free, Beauty Insider account and receive your choice of 250 bonus points, Laura Mercier, Amika or Tatcha sets on your birthday. The choice of powders, lipsticks and skincare is bound to make you look fabulous for your special day.

4. Starbucks

Need a quick pick-me-up on your birthday? Starbucks has it covered! Join the Starbucks Rewards Program seven days prior to your birthday and make one purchase. Starbucks will then email you a coupon for a free food or beverage item two days before your birthday. The birthday reward qualifies for anything on the menu, including any size handcrafted drink or food item.

5. Jersey Mike’s

In the mood for a sub? Head over to Jersey Mike’s and receive a free sub and drink. Make sure to sign up for the Jersey Mike’s Subs Email Club prior to your birthday to receive this reward. Nothing tastes quite like melted cheese and meat in between a toasted baguette, along with an icy cold drink.

6. The Cheesecake Factory

Celebrating with friends? Tell your server it’s your birthday and receive a free treat as well as a song. It may be mildly embarrassing, but hey, it’s free!

7. Culver’s

Need something cold and sweet to beat the Texas heat? Head to Culver’s for a free sundae when you sign up for their rewards program. The sweet creaminess will surely not disappoint.

8. IHOP

Want to indulge in a sweet breakfast before birthday festivities? Join the International Bank of Pancakes rewards program to receive a free stack of pancakes on your birthday. Pair your pancakes with a choice of chocolate chips, syrup, fresh fruit or a dollop of whipped cream.

9. McDonald’s

Need a snack before embarking on your next birthday adventure? Download the McDonald’s app and join MyMcDonald’s Rewards to receive free large fries. Mmm, the taste and smell of fresh, perfectly salted french fries.

10. Smoothie King

Want to celebrate your birthday with a healthier option? Enjoy a birthday smoothie at Smoothie King. Download the Smoothie King app to receive this offer.