The Business Case for Racial Equity

Publication date: 
April, 2018

By 2050, our country stands to realize an $8 trillion gain in GDP by closing the U.S. racial equity gap. “Closing the gap” means lessening, and ultimately eliminating, disparities and opportunity differentials that limit the human potential and the economic contributions of people of color.

This report seeks to expand the narrative associated with racial equity by adding a compelling economic argument to the social justice goal. Beyond an increase in economic output, advancing racial equity can translate into meaningful increases in consumer spending, as well as federal and state/local tax revenues, and decreases in social services spending and health-related costs.

The potential economic and social gains are significant. In fact, they are of great importance to a country that increasingly faces challenges to its global competitiveness from countries with larger populations and faster economic growth. By 2050, more than half of U.S. workers and consumers will be people of color. As America confronts human capital constraints on our workforce, we must look to the potential of all and take deliberate, realistic, and proven measures to enable the full participation of all.

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