The radio program Marketplace held a conference on this issue recently that I thought might be worth discussing. The link to the conference is here
The event is 10am to 12pm, please RSVP on Meetup: here
The general question was can the Fed do anything about the topic? One Fed manager (MN) pointed out that he had successfully changed his bank’s hiring practices to recruit more minorities so that the employees better reflected the metro area itself. A good start.
My issue is that the solution seems self-evident to me and that the linked discussion leaves out a core component of that solution, which is the link between the Fed and corporations themselves. The Fed manipulates interest rates that corporations use to leverage debt to employ new workers and invest in new technology. So, to me, the issue is simple: why not have the Fed lower interest rates on loans corporations can use to rebuild inner-city ghettos (city build rather than nation-build)? There would only be one condition on that money: the resulting gentrification would have to include 50% minority hiring and housing.
My question is the following: if this is so blatantly obvious, what has prevented this from happening all this time?
I can also hear some objections already.
1. Corporations can avoid the loan to avoid having to hire minorities. 2. Corporations can say they can never find enough minority talent to fill positions. (BLS statistics over decades belie that point. Since I know people will decry that reference, I have included screenshots of that data in the photo section rather than have everyone have to click a link.) 3. This is socialism. The Fed (or by consequence, the govt) cant tell corporations where they can or cannot go or who to hire.
Worthy of a chat?
Join Zoom Meeting https://us02web.zoom.us/j/83626830660
Meeting ID: 836 2683 0660 One tap mobile +16699009128,,83626830660# US (San Jose) +12532158782,,83626830660# US (Tacoma)
Dial by your location +1 669 900 9128 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 301 715 8592 US (Washington D.C) +1 312 626 6799 US (Chicago) +1 646 558 8656 US (New York) Meeting ID: 836 2683 0660 Find your local number: https://us02web.zoom.us/u/kdVCOAPuL1
Photo by Blogging Guide on Unsplash
