Park writes: "Senator Elizabeth Warren recently warned that minority
families and businesses continue to suffer disproportionately from the
lingering effects of the Great Recession and called on the country's banks
to step up to assist local communities."
Senator Elizabeth Warren. (photo: Joshua Roberts/Reuters)
Elizabeth Warren Calls on Banks to Invest in Minority Neighborhoods,
Businesses
By Isaac Park, The American Prospect
29 April 16
Warren Calls on Banks to Invest in Minority Neighborhoods, Businesses
Senator Elizabeth Warren recently warned that minority families and
businesses continue to suffer disproportionately from the lingering effects
of the Great Recession and called on the country's banks to step up to
assist local communities.
Warren noted that most Americans experienced severe hardships during the
economic downturn. "In 2013, the median income of white households was 13
times that of black households," she said. But she also underlined the fact
that large financial institutions had specifically targeted minority
homebuyers with subprime loans that had a devastating impact on their
finances.
"The housing collapse destroyed trillions of dollars in family wealth," the
Massachusetts Democrat told the Center for Global Policy Solutions' "Color
of Wealth" summit in Washington last week. "But the crash hit African
American families like a punch in the gut." "White households lost on
average 11 percent of their wealth," she added, "but black households lost
over 30 percent of their wealth." Given these disparities, Warren argued
that "the federal government [needs] to make real investments in communities
of color."
The Center has released a study, "The Color of Entrepreneurship," that
documents racial disparities in the business sector. According to the
report, racism has blunted the benefits of minority-owned businesses: The
U.S. economy continues to forgo about 1.1 million minority-owned businesses
due to historic and current instances of discrimination. The report
concluded that if those businesses were up and running, they would
potentially create nine million jobs and increase the U.S. national income
by $300 billion.
The center's analysis of business ownership survey data from the Census
Bureau found that while the overall number of minority-owned businesses
grew, the number of firms owned by African American men dropped by 2.3
percent. Black men were the only group to experience a decline.
Minority- and women-owned businesses have also experienced declines in
average sales. In 2012, firms owned by men regardless of race had higher
average sales than companies owned by women. Among male-owned businesses,
white-owned firms saw the highest average sales in 2012, and black-owned
firms the lowest. Similarly, firms owned by white women had the highest
average sales and those run by black women, the lowest.
Most minority-owned businesses saw a decline in average wages as well.
Employees working for companies owned by American Indian women saw a 6
percent drop in average pay, the biggest drop in the survey.
American Indian men and Hispanic men also experienced steep declines in
wages, at 5.8 and 5.6 percent respectively. Employees working for firms
owned by white women and white men saw a 0.2 percent and 1.3 percent
decrease in average wages, respectively. However, workers employed by firms
owned by black men saw a 1.2 percent increase in average pay.
The report suggested several ways to close the wealth gap, ranging from tax
credits for new minority entrepreneurs (which could attract venture capital)
to staving off tuition and fee hikes at state universities so that young
entrepreneurs leave college with less debt and more money to invest in a
business.
Warren proposed expanding the Community Reinvestment Act, a Carter
administration-era reform that encourages commercial banks to invest in
low-income communities. Federal officials make "deliberate policy choices
that favor those with money and power," said Warren. "The American people
are holding up our end of the bargain. But for too long, many banks have not
been holding up their end, and that has got to stop."
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Senator Elizabeth Warren. (photo: Joshua Roberts/Reuters)
http://prospect.org/blog/tapped/warren-calls-banks-invest-minority-neighborh
oods-businesseshttp://prospect.org/blog/tapped/warren-calls-banks-invest-min
ority-neighborhoods-businesses
Elizabeth Warren Calls on Banks to Invest in Minority Neighborhoods,
Businesses
By Isaac Park, The American Prospect
29 April 16
Warren Calls on Banks to Invest in Minority Neighborhoods, Businesses
enator Elizabeth Warren recently warned that minority families and
businesses continue to suffer disproportionately from the lingering effects
of the Great Recession and called on the country's banks to step up to
assist local communities.
Warren noted that most Americans experienced severe hardships during the
economic downturn. "In 2013, the median income of white households was 13
times that of black households," she said. But she also underlined the fact
that large financial institutions had specifically targeted minority
homebuyers with subprime loans that had a devastating impact on their
finances.
"The housing collapse destroyed trillions of dollars in family wealth," the
Massachusetts Democrat told the Center for Global Policy Solutions' "Color
of Wealth" summit in Washington last week. "But the crash hit African
American families like a punch in the gut." "White households lost on
average 11 percent of their wealth," she added, "but black households lost
over 30 percent of their wealth." Given these disparities, Warren argued
that "the federal government [needs] to make real investments in communities
of color."
The Center has released a study, "The Color of Entrepreneurship," that
documents racial disparities in the business sector. According to the
report, racism has blunted the benefits of minority-owned businesses: The
U.S. economy continues to forgo about 1.1 million minority-owned businesses
due to historic and current instances of discrimination. The report
concluded that if those businesses were up and running, they would
potentially create nine million jobs and increase the U.S. national income
by $300 billion.
The center's analysis of business ownership survey data from the Census
Bureau found that while the overall number of minority-owned businesses
grew, the number of firms owned by African American men dropped by 2.3
percent. Black men were the only group to experience a decline.
Minority- and women-owned businesses have also experienced declines in
average sales. In 2012, firms owned by men regardless of race had higher
average sales than companies owned by women. Among male-owned businesses,
white-owned firms saw the highest average sales in 2012, and black-owned
firms the lowest. Similarly, firms owned by white women had the highest
average sales and those run by black women, the lowest.
Most minority-owned businesses saw a decline in average wages as well.
Employees working for companies owned by American Indian women saw a 6
percent drop in average pay, the biggest drop in the survey.
American Indian men and Hispanic men also experienced steep declines in
wages, at 5.8 and 5.6 percent respectively. Employees working for firms
owned by white women and white men saw a 0.2 percent and 1.3 percent
decrease in average wages, respectively. However, workers employed by firms
owned by black men saw a 1.2 percent increase in average pay.
The report suggested several ways to close the wealth gap, ranging from tax
credits for new minority entrepreneurs (which could attract venture capital)
to staving off tuition and fee hikes at state universities so that young
entrepreneurs leave college with less debt and more money to invest in a
business.
Warren proposed expanding the Community Reinvestment Act, a Carter
administration-era reform that encourages commercial banks to invest in
low-income communities. Federal officials make "deliberate policy choices
that favor those with money and power," said Warren. "The American people
are holding up our end of the bargain. But for too long, many banks have not
been holding up their end, and that has got to stop."
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http://e-max.it/posizionamento-siti-web/socialize
