This Week in ESG and Impact Investing

Posts

America's Racial Wealth Gap in 8 Graphs, Eric Gordon and Luke Newton, Creative Investment Research

America's Racial Wealth Gap in 8 Graphs The racial wealth gap in the United States represents one of the most persistent and pressing issues of economic inequality. The latest infographic by Eric Gordon and Luke Newton, "America's Racial Wealth Gap in 8 Graphs," offers a stark visual representation of this disparity, highlighting the urgent need for targeted interventions and systemic change. Here’s a breakdown of the key findings from the infographic: Economic Cost and Opportunity The Black-white wealth gap is not just a social and moral issue—it has significant economic implications. The gap is expected to cost the US economy $1 trillion to $1.5 trillion per year by 2028. By closing this gap, US economic output (GDP) could be 4-6% higher in 2028. This potential for growth underscores the importance of addressing racial wealth disparities not only for social equity but also for economic prosperity. Industry Representation The infographic reveals that only five indu

Data, Impact, and Accountability: Lessons from the 2024 Aid Transparency Index. Luke Newton and Eric J. Gordon, Creative Investment Research

Data, Impact, and Accountability: Lessons from the 2024 Aid Transparency Index On July 16th, the Center for Sustainable Development at Brookings hosted “ Aid data, impact, and the Sustainable Development Goals ” to spotlight the 2024 Aid Transparency Index launch. The event featured presentations by Gary Forester , Publish What You Find CEO, and Laurel Patterson , Director for SDG Integration at the United Nations Development Programme, Global Policy Network. Brookings Senior Fellow George Ingram then moderated a panel discussion consisting of Christophe Tocco , Senior Deputy Assistant Administrator at USAID, Zacharey Carmichael , Senior Economist for Agriculture & Food Global Practice at the World Bank, and Samuel Kobina Annim , Professor of Economics and Head of the Ghana Statistical Service. Forester’s presentation focused primarily on what was revealed in the 2024 Aid Transparency Index , which surveyed over 166,000 independent aid projects. The index achieved its hig

Insights from Semafor’s “Banking on the Future: The Next Era of Fintech” Conference. Eric J. Gordon, Creative Investment Research

Luke Nelson (left) and Eric Gordon (right) at the Semafor Fintech Conference Insights from Semafor’s “Banking on the Future: The Next Era of Fintech” Conference Last week, the global news organization Semafor hosted a conference featuring prominent fintech leaders discussing the industry's future amid recent technological, political, and legal developments. Fintech is fundamentally reshaping financial systems, influencing consumers' daily lives worldwide, often without their explicit recognition. At the conference, I was particularly captivated by discussions on the scale of Fintech’s adoption, the impact of Section 1033, and the implications of advancements in artificial intelligence. Witnessing industry leaders discuss their excitement about the future revealed the collaborative efforts driving technological and regulatory innovation in the Fintech sector. Fintech is here to stay: Nearly 9 out of 10 people today utilize Fintech applications, and the average person uses 3 to 4

Federal Reserve Chair Jerome Powell at the Senate Banking Committee. Luke Newton, Washington and Lee University (W&L), Creative Investment Research.

The semi-annual Senate Banking Committee hearing was held on July 9 with the Chairman of the Federal Reserve, Jerome Powell, as witness. While the hearing may not have been particularly eventful, it served as a lesson on the link between American monetary policy and politics. It also provided insight on what's in store for the US economy. The United States Senate Committee on Banking, Housing, and Urban Affairs is chaired by Senator Sherrod Brown (D - OH) with Tim Scott (R - SC) serving as the ranking member. Both began the hearing by thoroughly dressing down Chairman Powell for the state of the economy over the last few years. Their opening statements served as a strong display of political grandstanding with little sincerity behind their words. Chairman Brown blamed the increase in price levels and inflation on corporate greed and constantly referred to 'the good citizens of Ohio' that he represented, while Tim Scott spent his time attacking Bidenomics and fear mongering

REPORT: BLACK WOMEN AMONG THOSE HIT HARDEST BY WAGE DISPARITIES

According to a new report from Oxfam America, "a much larger percentage of Black Americans, particularly women in that group, now make less money than their peers nationwide. While 23% of all U.S. workers are bagging low wages as defined in a report under $17 an hour, the proportions are much higher when broken down by race and gender. Some 32% of Black workers earn less than $17 an hour, versus 21% of white workers, based on a fresh analysis by Oxfam, which describes itself a global organization fighting inequality to end poverty and injustice. And 35% of Black women earn low wages, compared to 29% of Black men, 25.9% of white women, and 17.4% of white men." William Michael Cunningham, (CEO, Creative Investment Research), declared that the lack of federal action on increasing the minimum wage and reducing income inequality led to wider gaps and more significant hardships for the communities. He voiced Black women are often doubly disadvantaged due to both racial and gender d

June 2024 Producer Price Index (PPI) Up 0.2 percent: Impact on Minority Businesses

The Producer Price Index (PPI) for final demand increased 0.2 percent in June, following a period of stability in May and a 0.5 percent rise in April, as reported by the U.S. Bureau of Labor Statistics. Over the past 12 months, the index for final demand rose by 2.6 percent, well below the 11.7% increase in March, 2022. Breakdown of June's PPI Changes: Impact on Minority-Owned Firms Minority-owned firms, which often operate in sectors such as retail, transportation, and warehousing, can be significantly affected by fluctuations in the PPI: 1. Retail Sector: The rise in margins for trade services and retailing, including automobiles, fuels, and lubricants, could lead to higher costs for minority-owned retail businesses. This could squeeze profit margins unless these costs can be passed on to consumers. 2. Wholesale Trade: Minority firms involved in machinery, vehicle, and professional equipment wholesaling might benefit from higher margins. However, those dealing in machinery and eq