Home Economy Racial segregation is costing the US billions of dollars a year

Racial segregation is costing the US billions of dollars a year

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Deeply entrenched racial bias and segregation, however, are limiting the nation’s potential and hampering economic growth by billions of dollars annually, the financial research firm’s chief economists says.

“Racial segregation and bias is costing all Americans,” Mark Zandi, Moody’s chief economist told CNN Business. “If we focus on this issue, and try to address that, it benefits everyone.”

Earlier this month, Moody’s Analytics published a report that teased out the macroeconomic effects of segregation within US communities. In that research, Zandi and fellow economists found that greater long-term economic growth occurred in more integrated communities.

By Moody’s estimates, if all US communities’ racial geographic makeup matched that of the nation’s most-integrated communities, it would likely lift America’s GDP growth rate to 2.7% from 2.4% during the next decade.

The Moody’s research comes on the heels of recent reports from Citigroup, McKinsey, the

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