Transcripts For CSPAN3 Hearing On Race And Gender-Based Weal

Amass wealth and raised to help overcome those obstacles it. This is about an hour and a half law. The committee will come to order. I know its that all shall be present. Without objections the committee has authorized to declare a recess at the committee at any time without objection, they will accept the full committee on the subcommittee are authorized to participate in todays hearing. The committee is meeting today, pursuant to notice the testimony on examining the racial engender and wealth gap. I now recognize myself four minutes to give an opening statement. Todays hearing is rendered allround a subcommittee exists and the racial and wealth gap is real and acceptable and actually much larger than people think it could be get total access the cash retirement now or youre home and then subtracting abilities such as Credit Card Debt, student loans, mortgage to reach your net worth. But according to the United States in borough, the net worth of white households was 130,000 and 800 dollars. The white Media Network of while the network of the households was 17,530. And for black households it was 9590 dollars. For nearly all working families the, most powerful wealth Building Tools are homeownership and retirements. However due to Structural Racism and rered lining and practices and out white disparity in the list goes on. With long with predatory lengths of disproportion and communities of color and it is been more difficult for certain families to actually build wealth across multiple generations. There is always talk about disparities in come between men and people of color. But social and economic differences should not explain the way racial inequities. Todays reality in which the Home Ownership for black households today is the same as it was in 1967. When race pace discrimination in housing was legal. It did not happen by accident. Weve heard all of those stories. Racial agenda inequities or not caused by individual behavior but steeped in systems that perpetuate past injustices. And this will help leaders who confront the reality that these systems then outcomes emanate from an unjust hierarchy of the United States was built. According to richard ross stein he says we needed a cast system of African Americans and geographically and separated by racial explicit Government Policies and most of these policies are now off the books and have never been remedied and their effect indoor. Flow for that reason, i am proud to have the hearing to identify the undermining issue that perpetuates the gender wealth vied and help set up the stage for the solutions to impromptu saving the nation. Barriers to wealth and accumulation remains the growing issue facing our communities. In particular, my constituents and Congressional District of ohio and the nation at large. There is no one size that fits all and i call him my colleagues of this committee to give this topic my full attention it deserves and Work Together multifaceted federal policy solutions. I yield back and reserve the balance of my time for the chair of the Financial Services committee to chairwoman maxine waters. The chair now recognizes the Ranking Member congresswoman for her full five minutes and for her opening statement. I think the chair and thank you so much for putting together this hearing today and a critical hearing as we direct congressional efforts towards addressing the racial gender pay and wealth gaps. In 1976 one in 20 women were the sole breadwinners and their households and by 2013 it was one in four. And today, women are the breadwinner and nearly two thirds of families with children. There were substantial games in the participating in the workforce and growing our economy. We must ensure that women have equal access to opportunities to support their families safe for the future and build assets. The good news is that we have seen a tremendous improvement and how women are compensated in the past few decades and a 2018 pay scale study which i would ask madam chair that we submit for the record. Without objection. Comparing men and women with similar experience industry and job levels found that women actually received, 98 cents for every dollar earned by men and this is fantastic progress. But, there is so much to be done. Particularly in addressing the wealth gap and the managers gap. And ensuring that the American Workforce is more flexible and Family Friendly so that mothers can participate without facing unnecessary hurdles or sacrifice of the wellbeing of their children and americas next generation. As a woman i worked before, during and after i had my children. And grandchildren. I have always been a passionate defender of equal pay for equal work and order to close the pay gap and empower war women and people of color to be leaders in our workforce. I am proud cosponsor of hr 1925 and the wage equity act. This legislation would empower employees to utilize Flexible Work arrangements and create proactive incentivize businesses to fix this disparity. Protect individuals and negotiating employment based upon merit and not salary history. Target negotiation, education for women and protective employees and discussing their compensation what their colleagues. In 2017, the Accountability Office found that women are under represented in Financial Services industry especially in management. In this industry in mathematics, mathematicians and physicists that work alongside but women receive a far fewer degrees in math, statistics, computers its an engineering compared to men. The under representation of women and minorities in well paid stem careers as one of the underlying causes and creating greater diversity in education and doing it at an early age is critical. Not only for the opportunities for minorities and finance but for all workforce sectors. It is key to sustaining robust Economic Growth in the United States which isnt a letter yesterday to the g8 all which would like to submit for the record in that chair without objection. Requesting a study to assess how firms are supporting participation among women in these programs at the secondary undergraduate and graduate levels. And what best practices firms are using to recruit and with stem degrees. This study will help us to continue to define the strength and the u. S. Industry and i thank you and i will now yield the remainder of my time to the Ranking Member of the Financial Services committee mr. Patrick mchenry. I appreciate the chair for holding this meeting but the things are pretty simple. American syrup full and equal access to the same economic opportunities. That indicating their gender or wealth gap tells us that this is not the case. Financial firms and other companies of all types have recognized the consequences in this country. And firms were taking our steps to address underlined and women and minority length save lives and the Financial Literacy in where we leave in child care policies that i have been supportive of and pushes for higher participation in stem programs that up an effective. So thank you for a special tank thanks and for your initiatives and for looking forward to a good hearing. Thank you. Today, we welcome the testimony of a very diverse and distinguished panel of five witnesses, thank you. First we welcome testimony of dedrick asantemuhammad, the chief of race wealth and community at the National Camp Unity Coalition he. Overseas the and our seas Small Business program and mr. Dedrick asantemuhammad overseas their Small Business program as well. Prior to his role he was a senior director of the Economic Department and executive director of the financial freedom. Next we welcome the testimony of Kilolo Kijakazi who is the Institute Fellow at the urban institute. Miss Kilolo Kijakazi let me do that again, Kilolo Kijakazi, closer research is focused on Economic Security and Structural Racism and the wealth gap. Publications include African American Economic Development and Small Business ownership. Shes an adviser for the closing the Womens Wealth Gap Initiative and was a member of the Bipartisan Commission or Retirement Security and personal saving. We next welcome the testimony of doctor the researcher and specializing in an external evaluation and to increase Faculty Diversity and bring under representing groups into Stem Science Technology engineering and mathematics. Doctor Mariko Chang Pyle is a National Expert and he wealth gap especially gender and racial dimensions of wealth and equality. She is also a Founding Member of closing Womens Wealth Gap Initiative and a member of the Insights Centers experts of color network. Next we welcome the testimony of sallie l. Krawcheck who, is the chair of the network and a 135,000 strong Global Professional womens network. Miss sallie l. Krawcheck is the ceo and cofounder of they digitally First Mission to trim an Investment Platform for women. Before launching miss sallie l. Krawcheck a built a successful center as a ceo and smith barring and u. S. Trust and City Private Bank and stanford bernstein. Shes also the chief Financial Officer for city proof. Finally we welcome the testimony of doctor lisa cook and associate professor as part of economics at the jane Madison College at Michigan State university. She served as president of the National Economic association from 2015 to 2000 and and currently serves as codirector of the American Economic Association Summer training program. Prior to this academic appointment of among faculty and the Universal School of government. She was also the Deputy Director for African Research for the center of International Development and Harvard University. Wow a huge reminder that the testimony will be limited to five minutes. Without objection your written statement will be part of the record. The witnesses are reminded to turn on your microphone and the three lights in front of you. Green means go, yellow means wrap up and red means stop. Men were going to first art with miss kijakazi and you are now recognized for five minutes to give an oral presentation of your testimony. Chairwoman joyce beatty and wagner and other members of the subcommittee, thank you for inviting me to testify today. The views expressed their my own and should not be attributed to the urban institute and its trustees or its funders. This hearing represents a critical step in work that has been done to bring racial and gender wealth gaps to national attention. My remarks will focus on three key points. First, the racial wealth gap is not the result of bad financial choices by people of color. It was created through Structural Racism. Second, to understand and effectively address the racial wealth gap, we need more expensive collection that is federally funded. Third, the gap can be closed but it will require hold Equitable Solutions that focus on policy change and not changing peoples behavior. The ration wealth gap is the difference in net worth between families of collar and white families. Comedian wealth of white families in 2016 are ten times the wealth to black families and a wealth of the research that demonstrates the wealth gap was created by policies for the institutional practices and designed to facilitate the accumulation by white families while impeding wealth is building by the families of color. These policies include Human Trafficking and bondage and building the wealth for white people a policies are restricted back home and Business Owners of the educational opportunities. The family has experience the loss and especially and the displacement of the deportation thereafter. Native americans lost much of their land in Natural Resources in the treaties and forced displacement. Including the home stand act that the americans face special fees and regulations that make them less competitive or white people. Japanese americans were interned during world war ii and losing their freedom and their assets. It was not until 1900 where the state legislation among womens controlled their property and labor market discrimination existed into the 19 seventies and more recently, families of color was for some crime mortgages and they qualified for loans resulting in the loss of Home Ownership inequity. The wealth gap persists even when black families make all of the right and good choices. Black people with college to please and wealth in White High School dropouts and black people who work fulltime have less mauve than unemployed why people and to black families are a single parent white families and may have had the feud First Research that is designed of the ration wealth gap and the data not only by race and ethnicity but the country of origin and affiliation. If the study was limited to the five cities, we need federally funded Data Collected periodically to better understand the drivers and the racial agender wealth gaps and Foreign Policy makers. A possible solution is to expand the reserve board survey and Consumer Finance and the racial and gender wealth gaps are not the problems that require bold and equitable policy solutions and eliminate them. Baby bonds are a solution opposed by Derrick Hamilton that would give all newborns a publicly funded ranging from 500 dollars to 60,000 dollars a. Based on the familys wealth and was held by the federal government and became a young adult and use them and an asset like Higher Education. And they closed the gap and they baby bonds could be covered and our existing taxes for asset building. Over 70 of tax expenditures are to help income earners are a more equitable use of subsidies is a really great cost of baby bonds. In summary, wealth gaps are caused by discriminatory policies and practices thank you. Thank you so much miss Kilolo Kijakazi. I would like to recognize mr. Dedrick asantemuhammad provide minutes. Good afternoon and thank you for inviting me here as the chief of race wealth at the Investment Coalition to speak about the racial divide it was must be done to address this critical issue. He ncrc has grown into based organizations to promote the services of Affordable Housing in entrepreneurship and vibrant communities for america is working families. Groundbreaking work of dr. Kilolo kijakazi and Mariko Chang Pyle there, is growing recognition of the challenge of dropped and growing glacial wealth divide. For racial inequality is racial economic inequality. The race it inequality is racial wealth inequality. As the demographics continue to change, the race so wealth divide is primarily challenged to disenfranchise minorities and the american middle class. As the report referred to in the notes since the 19 eighties, the black and latino families have stuck adolescent and thousand dollars. Why white household is about 105,230 40,000. Despite the growth of white wealth they have slightly declined about three 4000 to 82,000. Showing the wealth divide as the american middle class as a whole. Similar to the divide theres been a racial equality for the assets in the portfolio. This is ownership and for the last 40 years homeownership is below 50 an