Government attempts to dismantle discriminatory policies and practices that have placed people of color at a financial disadvantage have largely failed. This is due in part because public buy-in is inconsistent. As much as people say they want a leveled playing field, they tend to chafe when called upon to relinquish their own privileges.
Yet the persistence of the racial wealth gap continues to stifle the country’s economic potential. Consulting firm McKinsey & Co. estimates the dampening effect of the racial wealth gap on consumption and investment will cost the U.S. economy between $1 trillion and $1.5 trillion between 2019 and 2028. That’s 4% to 6% of the projected GDP in 2028.
