Discrimination Has a Price

Cost Of Racism: U.S. Economy Lost $16 Trillion Because Of Discrimination

A Waste of Human Potential / A drag on Economic Growth

Whenever we exclude people and their potential, it comes at a cost to all of us. Discrimination comes in many forms. The EEOC investigates discrimination complaints based on an individual's race, color, national origin, religion, sex, age, disability, sexual orientation, gender identity, genetic information, and retaliation for reporting, participating in, and/or opposing a discriminatory practice.

Whenever we discriminate there is a cost in lost potential. Two thirds of the US economy is based on consumer spending. By holding people  from participating in the economy, we're hold back potential for economic growth.

Citigroup did some research on the issue. The study found that over the past 20 years the US economy lost $16 trillion to racial discrimination against African Americans alone. Ending discrimination would give a $5 trillion boost to the economy over the next five years.

Specifically, the study came up with $16 trillion in lost GDP by noting four key racial gaps between African Americans and whites:

• $13 trillion lost in potential business revenue because of discriminatory lending to African American entrepreneurs, with an estimated 6.1 million jobs not generated as a result
• $2.7 trillion in income lost because of disparities in wages suffered by African Americans
• $218 billion lost over the past two decades because of discrimination in providing housing credit
• And $90 billion to $113 billion in lifetime income lost from discrimination in accessing higher education

This is only the beginning when it comes to lost potential. The GDP is adversely affected by all forms of discrimination. Two more examples:

• Age Discrimination $850 billion per year (AARP)
• Gender Inequality $2 trillion per year (Katica Roy - Fast Company)

Minorities Have Positive Economic Impacts

It is reported that the LGBT community currently contributes over $1.7 trillion to the U.S. economy. The findings from this research have strengthened the LGBT community’s leverage for inclusion. (asae Research Foundation) Imagine the boost to the economy without discrimination.

It's not just the money

How does discrimination impact social inclusion?

Discrimination affects people’s opportunities, their well-being, and their sense of agency. Persistent exposure to discrimination can lead individuals to internalize the prejudice or stigma that is directed against them, manifesting in shame, low self-esteem, fear and stress, as well as poor health. A survey regarding HIV-related stigma and discrimination among people living with HIV in Asia and the Pacific, for example, found that half to three-quarters of respondents felt either shame, guilt and/or low self-esteem. -UN

When US News and World Report looks at the best places to live in the world, it looks beyond broad access to food and housing. They look to quality education and health care, to employment that will sustain us, quality of life may also include intangibles such as job security, political stability, individual freedom and environmental quality.

What social scientists do agree on is that material wealth is not the most important factor in assessing a life lived well. The results of the Quality of Life sub-ranking survey reflect that sensibility.

Canada is ranked on top for the fifth straight year. Survey respondents view the North American country as No. 1 for being politically stable, No. 4 for having a well-developed public education system, and No. 2 for having a good job market, a perception supported by independent research. The North American country is seen as possessing the most well-developed public health care system.(Quality of Life Rankings). Seven European countries made the list.

In a society that functions optimally, those who can should naturally want to provide for those who can't. That's how it's designed to work. I truly believe we're here to take care of one another.

- LeVar Burton