A new report on the state of black Americans offers a sobering look at inequality in America

A recent McKinsey report highlights the deep inequality faced by Black Americans, stating that it will take three centuries to beat current disparities without intervention, or at least a decade in the case of a multi-trillion dollar stimulus plan.

The report, “The State of Black Residents: The Importance of Place for Racial Equity and Outcomes,” highlights that while black suburban residents are faring higher, they’re underrepresented in such communities. Racial disparities are most pronounced in megacities (like Houston, Los Angeles, etc.) and stable cities (like St. Louis, Cincinnati, etc.), where about half inhabited by black people. In these areas, black residents earn roughly 60% of what their white counterparts earn, highlighting systemic inequalities.

Although Black outcomes have improved over the past decade, the racial gap between Blacks and whites persists or, in some cases, widens. The report noted that unless there are significant improvements in Black outcomes, it could take 110 to 320 years to shut these gaps. McKinsey notes that its estimates are conservative and assume that rates will remain at the current level.

The report notes that this solution cripples the larger U.S. economy by stopping thousands and thousands of people from reaching their full economic potential. However, because these places will not be homogeneous cities, a one-size-fits-all approach is prone to fail. But the report identified two key areas that theorized would have a “domino effect” on Black communities across the country: reasonably priced housing and early childhood education.

The report estimates that while roughly $2.4 trillion would have to be spent on housing, the return on investment would help future residents by improving economic mobility and academic outcomes. The costs of early childhood education are high, especially for the Black population, because it consumes roughly 23% of their income. According to the report, the solution is kindergartens financed from public funds. The report noted that because Black women make up about 17% of early childhood educators, investing $78 billion annually in this technique could be a double boon for Black economic mobility.

The report calls on philanthropists to become involved in solving socioeconomic problems, noting that they have a tendency to present after they see the broad advantages of a social program. “You can get more support from philanthropy.”

The report concludes that it’s hoped that the research presented will spur serious motion.

“Through this research, we hope to illustrate the scale of the solutions needed and highlight the importance of adapting these solutions to each social context,” the report says. “While the road to better outcomes for Black residents is long, and the road to parity even longer, the journey can be made shorter if stakeholders step up and step up. No matter where they live, all Black residents across the country should be able to thrive.”

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