A new report highlighting racial disparities between white Americans and minorities has lawmakers and experts calling for policy and regulatory changes.
“If we don’t work to close the racial wealth gap it will ultimately lead to the American economic gap causing our economy to fall behind China,”,” said U.S. Rep. Marcia Fudge (D-Ohio), chair of the Congressional Black Caucus. “If the fastest growing communities in our country are not afforded the same economic and educational opportunities to participate in our economy, how can we continue to compete in the world?”
Fudge, who supports reallocating 10 percent of all government monies into 400 poverty-stricken counties across the U.S., was one of many speakers at the Color of Wealth Summit at the Capitol on Thursday, a day-long event highlighting a new report “Beyond Broke: Why Closing the Racial Wealth Gap is a Priority for National Economic Security”. The summit was hosted by the Center for Global Policy Solutions.
In the report, 67 percent of African Americans and 71 percent of Hispanics are listed as liquid asset poor versus 34 percent of white Americans. A person of color has approximately seven cents for every dollar of net worth held by a white American.
Recommendations in the report include:
- Congressional passage of living wage policies
- Transparent mortgage relief programs
- Expansion of the Social Security cap on taxable wages so that high-wage employees can contribute more
Many lenders may remain cautious about financing new loans to minorities with questionable credit, and critics of the Obama administration say it is not doing enough to hold financial institutions accountable.
“Low and moderate income people can not get financing,” said Bruce Marks, founder and CEO of the Neighborhood Assistance Corporation of America. “Banks are not being regulated… prices will go down again and there will be another mortgage crisis.”
http://www.talkradionews.com/congress/2014/05/01/going-broke-racial-wealth-gap-may-limiting-economic-growth.html#.U2OZifldW54