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Touting economics as key fix for US inequality
Touting economics as key fix for US inequality

Touting economics as key fix for US inequality

The US economy lost US$16 trillion over the last 20 years because of discrimination.
Jo-Mare Duddy Booysen
Andrea Shalal - Dismantling racial inequalities that have plagued the United States since its founding will boost economic growth and create new jobs for everyone, top advisers to president Joe Biden have said, laying out a central tenet of the new administration's agenda.

Biden's top domestic policy adviser Susan Rice said there was clear evidence that fixing inequality was essential for the overall US economy to thrive and prosper.

"These aren't feel-good policies," Rice on Tuesday told reporters at a White House briefing ahead of executive actions planned by Biden to promote racial justice reforms. "The evidence is clear, investing in equity is good for economic growth."

The US economy had lost US$16 trillion over the last 20 years because of discrimination, Rice said, citing figures published by Citigroup in September 2020.

Closing the gaps in income and opportunity could "add US$5 trillion to the US economy over the next five years, and over six million new jobs for all Americans," she said.

‘POTENT TOOL’

Treasury secretary Janet Yellen, in her welcome letter to staff, said a central goal of the agency should be harnessing the US economy to right past wrongs.

"Economics isn't just something you find in a textbook," Yellen wrote. "I believe economic policy can be a potent tool to improve society. We can - and should - use it to address inequality, racism, and climate change."

Biden said acting now was "the right thing to do," but emphasised it would also improve the lives of all Americans.

Rice and Yellen are key players in a Biden economics team that includes inequality and labour market specialists who say they will prioritise policies aimed at helping women and minorities who have been hardest hit by the Covid-19 pandemic.

Biden's economic team includes people who have experienced poverty or faced discrimination in housing, employment or economic opportunity, and say they see government policies as a powerful way to redress persistent disparities. – Nampa/Reuters

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Allgemeine Zeitung 2024-11-24

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