This Week in ESG and Impact Investing

September, 2024 Unemployment: Key Findings White unemployment stands at 3.6% , relatively stable compared to earlier months. Black unemployment  at 5.7% , a significant decrease from its peak of 6.4% in March 2024. Asian unemployment remains low at 4.1% , showing little fluctuation. Hispanic or Latino unemployment  at 5.1% , consistent with previous months. Analysis: Total nonfarm payroll employment increased by 254,000 in September, and the unemployment rate fell from 4.2 to 4.1 percent. The higher unemployment rates among Black individuals continue to signify systemic employment challenges. Asian individuals have maintained a lower unemployment rate, while Hispanic or Latino populations also face notable but slightly elevated rates compared to Asians. While the decline in Black unemployment suggests some improvement, it remains significantly higher than other groups. Conclusion: The September, 2024 unemployment data highlights ongoing disparities in employment across racial and et

The US is currently facing the possibility of a government shutdown if Congress does not pass a funding bill or a stopgap measure before October 1. A short-term spending bill has been proposed to fund federal agencies for about three months, temporarily averting a shutdown. Government shutdowns occur when Congress fails to pass the 12 annual appropriation bills required to fund federal agencies. Under the Antideficiency Act, federal agencies cannot spend or obligate any money without an appropriation from Congress. When this happens, non-essential functions cease until Congress acts, leading to a government shutdown. Government shutdowns can be used as a political tool by parties to push their agendas. For example, a party may refuse to pass a funding bill unless certain policy demands are met. This tactic can create significant leverage, as the threat of a shutdown puts pressure on the opposing party to negotiate and potentially concede to some demands to keep the government running

In 2021, the United States experienced 48,830 gun-related deaths, including murders, suicides, accidental deaths, and law enforcement incidents. Over the past decade, more than 167,000 people have died from gun violence , with 324,000 injured. These figures highlight the severe impact of gun violence on American society. As of 2024, there are approximately 82.88 million gun owners in the U.S., with 43% of households owning at least one firearm. The country has over 500 million civilian-owned firearms , reflecting a deep-rooted gun culture. Firearms typically cost between $400 and $800, with a median cost of around $600. Ammunition ranges from $0.08 to $3 per round, totaling between $80 and $3,000 for 1,000 rounds, with a median cost of approximately $1,540. Gun range fees vary from $10 to $50 per hour, totaling between $120 and $600 for 12 visits, with a median cost of around $360. Therefore, the rough median estimate for buying and using a firearm multiple times per year, excluding

The recent interest rate cuts by the Federal Reserve could have notable impacts on minority-owned businesses, both positive and challenging. Here’s a breakdown of key points: 1. Lower Borrowing Costs: One of the most immediate effects of a rate cut is the reduction in borrowing costs. For minority businesses, which often face higher barriers to accessing capital, lower interest rates can make loans more affordable, allowing for investment in growth, hiring, and equipment. This is particularly helpful for small businesses that rely on lines of credit or business loans for daily operations.  2. Increased Access to Capital: Minority-owned businesses, historically underserved by traditional financial institutions, may benefit from the easing of credit conditions. Lenders could be more willing to offer better terms or approve loans that were previously out of reach. This can encourage these businesses to expand operations, hire more employees, and increase their overall competitiveness in t

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As the 2024 election season heats up, economic policy proposals are once again at the forefront of the national debate. Vice President Kamala Harris, widely recognized for her work in the Senate and in the White House, has introduced a comprehensive economic strategy known as " Kamalanomics ," built on principles of inclusive growth, social equity  and targeted investments in underserved communities. The debate on Tuesday between Harris, the Democratic presidential nominee, and former President Donald Trump, the Republican nominee, highlighted the stark contrast between their economic visions. Trump advocated for a return to his administration's focus on deregulation and tax cuts, while Harris championed her plan for inclusive growth and social equity. As the debate unfolded, Harris emphasized the need for targeted investments in underserved communities, framing these efforts as essential for a sustainable and equitable economic future. While this approach aims to reduce

Résumé : Crimes violents : Les taux de crimes violents ont connu des fluctuations notables à partir de 2018. Il semble y avoir des augmentations et des diminutions périodiques, certains mois présentant des pics importants. Crimes contre les biens : Les crimes contre les biens suivent un schéma assez similaire à celui des crimes violents, avec des fluctuations qui peuvent indiquer des effets saisonniers ou d'autres influences externes. Analyse : Les tendances saisonnières : Les taux de criminalité, en particulier les infractions contre les biens telles que les cambriolages et les vols, présentent souvent des tendances saisonnières. Par exemple, les mois d'été peuvent être marqués par des taux de criminalité plus élevés en raison de l'augmentation des activités de plein air, tandis que les mois d'hiver peuvent être marqués par des taux plus faibles en raison de conditions météorologiques plus difficiles. Facteurs externes : Les conditions économiques, les activi

Die Wahrnehmungen von Kriminalität und Sicherheit sind drängende Themen in den USA. Um den aktuellen Stand zu veranschaulichen, wurde der Real-Time Crime Index (RTCI) erstellt. Der RTCI sammelt in Echtzeit Kriminalitätsdaten, die von Strafverfolgungsbehörden im ganzen Land gemeldet werden. Er soll Trends messen, indem er die Datenerfassung standardisiert. Daten des RTCI zeigen, dass der Diebstahl von Kraftfahrzeugen mit einem Gesamtanstieg von 88% den höchsten Anstieg aus allen Kriminalitätskategorien abbildet. Danach folgen die Kategorien Mord (26%), schwere Körperverletzung (16%), Gewaltkriminalität (5%) und Eigentumskriminalität (2%). In einigen Bereichen ist die Gesamtzahl der Verbrechen jedoch in diesen sechs Jahren auch zurückgegangen. Einbruchdiebstahl zeigt den höchsten Rückgang insgesamt (-22%), gefolgt von Raub (-13%), Vergewaltigung (-11%) und Diebstahl (-7%). Die Analyse dieser Daten ergab, dass landesweit die Kriminalitätsrate im dritten Quartal am höchsten und im ersten Q

Key Trends White Unemployment: Steady Rate : The unemployment rate for white workers has remained largely consistent, fluctuating between 3.1% to 3.8% from April 2023 to August 2024 . This shows stability with no major spikes, indicating that the white workforce has seen fewer disruptions during this period. Recent Increase : There's a slight uptick in July 2024 and August 2024 at 3.8% , but it's  within a stable range. Black/African American Unemployment: Higher Rates : The unemployment rate for Black workers is significantly higher, moving from 4.8% in April 2023 to 6.1% in August 2024 . This continues to reflect the long-standing disparity in unemployment rates compared to white workers. Fluctuations : There’s a notable rise in March 2024 where Black unemployment spiked to 6.4% , followed by slight drops and increases throughout the summer. These fluctuations may be attributed to sector-specific changes that disproportionately affect Black workers. Asian Unemployment: Lo

Real Time Crime Index: Violent Crimes, 2018 to 2024. Perceptions on crime and safety are pressing issues in the US. In an attempt to illustrate the current state, the Real-Time Crime Index  (RTCI) was created. The RTCI samples crime data reported by law enforcement agencies across the country in real time. It purportedly measures trends by standardizing data collection. Data from RTCI shows that the crime category with the highest increase is motor vehicle theft, with an overall rise of 88%. Following this are the categories of murder (26%), aggravated assault (16%), violent crime (5%), and property crime (2%). However, over these six years, the total number of crimes also decreased in some areas. Burglary shows the highest decrease overall at -22%, followed by robbery (-13%), rape (-11%), and theft (-7%). The analysis of this data revealed that nationwide, the crime rate is highest in the third quarter and lowest in the first quarter. Additionally, July statistically sees the most cri

This summer, my partner and I decided to travel across Europe, using only trains to reduce our environmental impact. For several years now, I’ve struggled with flying due to its significant pollution. However, I am a passionate traveler, so I’ve been looking for ways to continue exploring while minimizing my carbon footprint. As we considered more sustainable travel options, we concluded that utilizing the European rail network—superior in quality compared to the American system—was the best solution. The two images below show the American and European rail networks, clearly illustrating that the European network offers far more choices. Here is the itinerary we followed in the summer of 2024. To get to Europe, we had no choice but to fly. Our flight departed from Boston and landed in Amsterdam, with a layover in Iceland. However, once in Europe, we traveled exclusively by train: Amsterdam (Netherlands), Warsaw (Poland), Krakow (Poland), Prague (Czech Republic), Bratislava (Slovakia),

The July 2024 PCE index indicates a 0.2% increase in prices, with a 0.4% rise in real personal consumption expenditures (PCE). The price increase, although modest, could affect minority businesses by reducing profit margins due to higher costs for goods and services. While overall income and spending are growing, the continued increase in spending on essentials like housing and utilities, and motor vehicles may reduce disposable income among minority consumers, potentially leading to decreased demand for non-essential products and services offered by minority businesses. For more detailed information, visit the full release here .

Federal Reserve Chair Jerome Powell's August 23, 2024 speech  was a significant announcement forecasting future Fed interest rate policy. With inflation moving closer to the 2% FOMC target, occurring without a sharp rise in unemployment, the statement set the stage for possible rate cuts in September.  Mr. Powell reviewed challenges to the post-pandemic economy, including supply constraints and demand surges. He noted the Fed's commitment to supporting a strong labor market while gradually easing policy restraints. (See: Does Asymmetric Monetary Policy Exacerbate Asymmetric Outcomes? https://www.impactinvesting.online/2024/06/does-asymmetric-monetary-policy.html .) For several reasons, this approach is particularly relevant to minority firms: 1. Access to Capital: Lower inflation and stable interest rates improve borrowing conditions. Minority businesses, often more reliant on external financing, benefit from easier access to affordable credit. 2. Labor Market Stability: Minori

Vice President Kamala Harris recently unveiled her economic plan, which builds upon and expands several initiatives from the Biden administration while adding new elements aimed at addressing economic challenges faced by American families. Her plan, dubbed the "Opportunity Economy" agenda, focuses on lowering costs for essential goods and services, particularly targeting housing, healthcare, and groceries. Key Components: 1. Housing: Harris proposes constructing three million new homes to address the housing supply crunch, which is more ambitious than Biden's two-million-home plan. She also advocates for a $40 billion "innovation fund" to encourage local governments to find solutions to housing shortages and make it harder for investment companies to buy up large numbers of rental properties, which has driven up rent prices. (See: Comments to the CalPERS Board of Administration, July 15, 2024 on Housing and Environmental Investing.) 2. Healthcare: Expanding on B

The Consumer Price Index (CPI) for July 2024 provides important insights into the current inflationary environment, critical for understanding the economic challenges faced by minority-owned businesses. Here's an analysis based on the key points from the CPI release: Overview of the CPI Data: - Overall CPI Increase: The CPI for All Urban Consumers (CPI-U) increased by 0.2% in July 2024, following a 0.1% decline in June. Over the last 12 months, the all-items index rose by 2.9% before seasonal adjustment, marking the smallest 12-month increase since March 2021. - Shelter Costs: The shelter index rose by 0.4% in July, contributing nearly 90% of the overall increase in the all-items index. Shelter remains a significant factor, crucial for minority-owned businesses operating in areas with high rent or property costs. - Energy and Food Prices: The energy index was unchanged in July, following declines in the previous two months. The food index increased by 0.2% for the month, consistent

Overall, the July 2024 Producer Price Index (PPI) for final demand increased by 0.1% in July, driven largely by a 0.6% rise in the prices for final demand goods, particularly due to higher energy costs. However, prices for final demand services fell by 0.2%, marking a significant shift that could affect various sectors differently. For minority-owned businesses, which are often concentrated in service-oriented sectors, the decline in prices for final demand services could signal reduced revenue potential, especially if these businesses rely on service contracts where prices are under pressure. This is exacerbated by a 1.3% drop in trade services, which measures the margins received by wholesalers and retailers. Minority businesses in retail and wholesale may face squeezed margins, impacting profitability. Conversely, businesses engaged in manufacturing or those that rely heavily on energy inputs may find the increase in energy costs challenging. The 12.9% spike in diesel fuel prices, i

The potential economic outcomes for minority-owned businesses under a Trump administration versus a Harris administration differ significantly due to their contrasting policy approaches, economic priorities, and historical records. This analysis explores the expected impacts on key areas such as access to capital, regulatory environment, market opportunities, and government support programs. Trump Administration 1. Access to Capital Pros: The Trump administration's focus on deregulation could make it easier for financial institutions to operate fraudulently, but might also increase the availability of loans, at least initially Cons: Deregulation may lead to less stringent lending practices, which could result in higher risks and potentially higher costs of borrowing for minority businesses. 2. Regulatory Environment Pros: A concerted push for reduced regulation might lower compliance costs for businesses, allowing minority-owned enterprises to allocate more resources to growth and

In July 2024, the U.S. unemployment rate rose to 4.3%, accompanied by an increase in nonfarm payroll employment by 114,000 jobs. This result reflects ongoing sector-specific dynamics and variations across different demographic groups. Key sectors such as health care , construction, and transportation and warehousing experienced job growth, while the information sector saw job losses. Sectoral Employment Trends 1. Health Care: Continued to show strong job growth , a trend consistent with the increasing demand for health services and an aging population. 2. Construction: Experienced an upward trend in employment, likely driven by ongoing infrastructure projects and residential construction activities. 3. Transportation and Warehousing: Benefited from the sustained demand for logistics and delivery services, partially due to e-commerce growth. 4. Information Sector: Faced job losses, potentially due to restructuring, automation, and the evolving digital landscape reducing demand for tradi

The second quarter surge in GDP could create more business activity for Black healthcare and affiliated businesses. https://www.blackenterprise.com/alert-new-version-black-healthcare-firms-should-prosper-most-from-growing-economy/

The Personal Consumption Expenditures Price Index (PCE) index, which measures the average increase in prices for goods and services consumed by individuals, rose by 2.5% year-over-year in June 2024. This increase in consumer prices can impact minority-owned businesses in several ways: - Cost Pressures: Consumer prices falling relative to May can lead to decreased costs for raw materials and other inputs, relaxing profit margins for minority-owned businesses, which often operate with tighter margins compared to larger, established firms. - Consumer Demand: On the flip side, given the latest GDP report showing inflation having risen by 2.8%, consumer demand is likely to have also risen. Between more demand for goods and services, along with a lower cost of production, this latest report is a net positive for minority business owners, provided their cost pressures have alleviated enough to accommodate the rise in consumer demand. Given the often price-sensitive customer base of minority-o

Investments in Black Maternal Health. See:  https://blackwomenomics.com/ Portfolia , a women’s health capital venture fund, hosted a webinar on July 23 rd entitled, “An Overview of How to Invest in Women’s Health.” The event was moderated by Portfolia CEO Trish Costello and Portfolia Investor Relations Director Brittany Freehan. Femtech, software services and technology centered around women’s health, may be the largest overlooked investment opportunity in the marketplace, with women’s health a severely underinvested sector. Despite gaining the largest percentage increase in national research, ironically, there are few women at the top of women’s research, Costello explained. The excuse offered by industry insiders is that participating women could become pregnant, compromising the research. As such, femtech is not currently able to maximally benefit women health’s across health, medicine, and general biological services, signaling widespread investment opportunities.  Costello co

On July 25, 2024, the Bureau of Economic Analysis (BEA) released the first estimate for Gross Domestic Product (GDP) for Q2 2024 and GDP by industry. These indicators provide critical insights into overall US economic health and have significant implications for minority-owned businesses. GDP Growth and Minority Firms:  The estimate for GDP in Q2 2024 indicates a growth rate of 2.8%. This is a good sign, suggesting the economy is expanding at a faster clip than most economists expected. For minority-owned businesses, higher economic growth should lead to greater availability of credit and investment opportunities, vital for the sustainability of minority enterprises. Still, the benefits of this growth is not equitably distributed . Minority-owned businesses face increased competition without proportional access to the resources needed to compete effectively. Industry-Specific Insights:  Industry data for Q2 2024 reveals sector-specific performance that is crucial for understanding th

  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