Biden introduces measures to “reduce the racial wealth gap” Business and Economy News


The steps are aimed at stopping housing discrimination and supporting minority businesses on the anniversary of the Tulsa massacre.

The administration of U.S. President Joe Biden announced a series of steps aimed at “helping to bridge the racial wealth gap and reinvest in communities that have been left behind by failed policies.”

The White House announced the measures, which seek to crack down on housing discrimination and support minority businesses, on the centenary of Tulsa, Oklahoma. race massacre of 1921, in which a white mob killed up to 300 blacks in the Greenwood neighborhood, known as “Black Wall Street.”

“The destruction in the Greenwood neighborhood and its families was followed by laws and policies that made recovery nearly impossible,” the White House said in a statement Tuesday.

The administration added that subsequent policies blocked black Tulsans from ownership and access to credit; that the construction of federal highways in Greenwood cut off the black population from economic opportunities; and that the chronic divestment “denied Black Wall Street a good shot at reconstruction.”

“These are the stories of Greenwood, but they resonate in countless black communities across the country,” the White House said, hours before Biden set out on a trip to Tulsa to commemorate the massacre.

The new measures include launching “a first interagency effort to address inequality in housing appraisals and making rules to aggressively combat housing discrimination” and use the “federal government’s purchasing power” to increase hiring of the government with “50 percent disadvantaged companies”.

The administration also highlighted a number of grants included in Biden’s American Jobs Plan, a $ 2.7 trillion package aimed at rebuilding the U.S. economy and infrastructure for which the administration has been working to give Congress support.

The grants in question “would create jobs and generate wealth in communities of color,” the White House said.

Observers say racial disparities in the U.S. they persist for generations, limiting wealth creation opportunities for Latino and black families and reducing their ability to pass on property to their children.

Data from the Consumer Finance Survey show that the average black household had a net worth of $ 24,000 in 2019, or nearly 90 percent less than the average white household.

Property rates are also much lower in communities of color, with only 49% of Latinos and 45% of black Americans owning their own homes, compared to 74% of white Americans.

The ownership rate of black Americans has experienced a larger decline than that of white Americans since 2001, down 5% compared to the 1% drop in white Americans.

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