RELEASE: Despite Economic Gains, Racial Inequities Are at Risk of Worsening
Washington, D.C. — A new column released today by the Center for American Progress revealed that while the U.S. economy and labor market remain strong, inequities along racial and ethnic lines persist and that in efforts to combat inflation, the Federal Reserve risks widening these gaps.
The study highlighted that the effects of continued rate increases by the Federal Reserve will fall across the economy unevenly, disproportionately hurting people of color and the economic progress they have made during the recovery. Economic progress following the pandemic-induced global recession has been impressively inclusive of people of color compared with prior recoveries, but as businesses invest less in new projects, slow down construction, and restrict hiring, the most vulnerable groups will experience a more severe erosion of employment and wages. The column states that decision-makers should address inflation by implementing measures that provide supports for child and home care, invest in renewable energy production, increase supply of affordable housing, and intensify antitrust enforcement so that workers do not suffer from rate hikes and lose the wage and employment gains they have made in the recovery.
“Workers of color have benefited from a successful economic recovery and have seen strong gains in employment and wages,” said Justin Dorazio, a research associate for Racial Equity and Justice at CAP and author of the column.“But the gaps persist. And to fully close inequities in our economy, the Fed must not overstep with aggressive hikes, and Congress needs to advance policies that support wages and employment for people of color.”
Read the column: “7 Facts on Racial Equity and the Economic Recovery” by Justin Dorazio
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