Failure on Fiscal Relief Will Widen Racial Inequality
No matter which party is in power next year, Washington should focus on full employment for Black Americans.
Full employment can help reduce racial inequality.
Photographer: Tim Boyle/Getty Images
The prospects for another round of U.S. fiscal relief anytime soon have all but disappeared. This lack of action will hurt most all Americans, but minority groups in particular. And if nothing is done, the damage may not be reversed for generations. Consider that White Americans have, on average, seven times as much wealth as Black Americans. This gap widens with age, leaving Black families with fewer resources to buy homes, start businesses, invest in their children’s college education and leave an inheritance.
The divide means that Black families went into the Covid-19 pandemic with a thinner financial buffer. Only 14% of Black families had easily accessible savings that would cover six months of expenses, compared with 36% of White families. The relief provided by the Coronavirus Aid, Relief and Economic Security (CARES) Act was a lifeline to all families, especially people of color. The extra $600 a week in jobless benefits and its expanded eligibility were key to shoring up the savings of Black families. Altogether, the CARES Act meant almost all families, Black and White, had enough to cover six months of expenses.