The virus-related economic downturn has crushed the nation’s labor market and proven uniquely damaging for black workers.
The road to recovery, so far, has been uneven for whites and blacks, though the Federal Reserve will never admit monetary policy exacerbates inequalities.
We asked Neel Kashkari on Wednesday if the NYFed will launch QE6 and open market operations to buy equity ETFs until black unemployment reaches zero…
Employment trends for June show more blacks were out of work than white folks (even after the Federal Reserve printed trillions of dollars, lowered interest rates to near zero and the federal government deployed trillions more over the last several months), fueling the racial unemployment gap to five-year highs.
Jobless rates for both groups fell in June, but the rate for whites came down at a much faster rate. The white unemployment rate fell 2.3 percentage points to 10.1% from 12.4%, while the rate for Blacks dropped 1.4 points to 15.4% from 16.8%.
At 5.3 percentage points, the gap is now the widest since May 2015 and exposes an important economic component of racial inequality at a pivotal moment in U.S. race relations.
In recent weeks, the country has witnessed protests over police brutality against African Americans, particularly Black men. – Reuters
Job loss and gains by race – notice the job recovery has been much slower for blacks than whites and Latinos.
Black workers have some of the highest exposure to the services industry – and less likely to work remotely.
Even before the recession, black folks earned lower wages, had lower homeownership, owned fewer stocks, and accumulated less wealth than whites.
The long-term damage to black workers during this recession will be severe – the Fed and the federal government will never admit their policies have failed the black community – that is why universal basic income is ahead.