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New report reveals the economic implications of closing the gender and race gaps

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Yahoo Finance’s Alexis Christoforous and Sibile Marcellus discuss a new Bank of America report showing the implications of closing wealth gaps.

Video Transcript

ALEXIS CHRISTOFOROUS: It turns out having diversity in the workforce isn't just about doing the right thing. It also makes economic sense. That's according to analysts at Bank of America. Yahoo Finance's Sibile Marcellus joins us now with that one. Sibile, what are they saying in that report?

SIBILE MARCELLUS: Alexis, they're saying that post-COVID America can build back richer with diversity and inclusion as society's core economic principles. Now that's according to Bank of America. Now closing the gender and race gaps back in the 1990s would have generated close to $70 trillion in cumulative gains in 2019.

Now the pandemic has been a national nightmare. As we know, it's created vast financial devastation. But here's the silver lining. It could be a catalyst for America to get another shot at building back right and fairer. Now, not closing the gap has a huge, hefty economic toll.

Now what we're seeing is that the country's racial wealth gap has only gotten worse. It has skyrocketed from 1984 to 2013-- so we're talking about the span of three decades-- significantly. When you look at leadership in companies, Fortune 500 companies, I can count on one hand how many Black CEOs there are-- three-- right now.

So when you look at what can be done in terms of improving the US economy, this is really what we need to do, is close the gender and racial gaps. In fact, Bank of America is saying that gender and racial biases are restricting the US economy. If we closed the gender employment gap, what that would generate an additional $600 billion in labor compensation annually. Closing the racial employment gap would generate $150 billion annually.

And you look at overall, America could generate $2.6 trillion more in economic output, just by closing the gender and racial gap. That's how important this issue is.

ALEXIS CHRISTOFOROUS: Wow, hard to argue with numbers like that for sure. Sibile Marcellus, thanks so much for that report.