This Week in ESG and Impact Investing

Some economists argue that working-class Americans who vote for billionaire politicians are driven primarily by shame, status anxiety, and a desire to burn the system down . Of course, the psychology matters—but we examine, below, the fundamental  economic realities that created these conditions in the first place. When we put the economic narrative side-by-side with the data, a more precise conclusion emerges: status resentment is not the cause—it is the symptom . The cause is a long-running economic and policy failure that we predicted   in 1995  and that has never been structurally repaired. This post looks at three core indicators— income, manufacturing employment, and union membership —to show why appeals to dignity resonate, and why toxic and incompetent billionaire “outsiders” can exploit that resonance. 1. Income: The Promise Was Deliberately Broken, Not Forgotten For decades, white working-class Americans were told that productivity gains and economic growt...

BEA’s initial estimate says the U.S. economy grew at a 4.3% annual rate in Q3 2025 , a headline-grabbing figure that would normally signal a strong expansion. But this release arrives with an asterisk: BEA confirms the October–November federal shutdown delayed key source data and forced the agency to publish a hybrid estimate that substitutes for both the “advance” and “second” GDP reports.  At the same time, BEA reports a striking surge in profits: profits from current production jumped $166.1 billion in Q3—up from just $6.8 billion in Q2. The profit increase is broad-based, spanning domestic industries and finance.  Why we believe the 4.3% GDP number is likely overstated  This is not about claiming a conspiracy; it’s about risk-management in a quarter when the nation’s statistical system was disrupted . Shutdown-driven estimation risk is explicit. BEA states the shutdown delayed principal source data and that the estimate relies on a combination of methods norm...

The latest coverage from Reuters and Axios confirms what we’ve been documenting for more than a year : when the U.S. labor market weakens, Black workers—especially Black women and Black youth—are hit first and hardest . Key data callouts (Nov 2025): 🔴 Black unemployment surged to 8.3% , nearly double the national rate 🔴 Black teen unemployment exceeded 30% , a level with long-term scarring effects 🔴 Public-sector pullbacks and service-sector softness are disproportionately harming Black workers This is not a surprise . It is the continuation of a structural pattern we have been tracking in real time. What We’ve Been Saying — And Proving — All Along 📉 Black women lost 198,000 jobs from Jan. to Nov. 2025 , far more than any other demographic group 📉 Employment declines began months before headlines acknowledged labor market weakness 📉 National averages continue to mask racial and gender disparities Our prior analyses: ➡️ Black women’s job losses are the canary in the coal mine ...

The November 2025 CPI release reported a 2.7 % annual rise in consumer prices, with food up ~2.6 % and energy up 4.2 % over the last year. Core (excluding food and energy) rose 2.6 % — driven by shelter (3 %) and medical services (3.3 %). Bureau of Labor Statistics But the CPI estimates for October 2025 were based partly on nonsurvey data due to the federal government shutdown, raising legitimate concerns about accuracy and potential understatement of real inflation pressures.   Below, we infer impacts on Black and minority firms by linking price trends in key CPI categories to industries and geographies where Black and minority firms are disproportionately concentrated and where their customers spend. 2. Industry Breakout: How Inflation Pressures Hit Minority Firms Differently A. Retail & Consumer Services CPI Signals: Food pricing (especially food at home, meats, beverages) remains elevated.  Used cars & transportation services have seen price ch...

Geography and Industry Expose Unequal Impacts on Black and Minority-Owned Firms The latest BLS Employment Situation report makes clear that labor market stress is not evenly distributed. For Black and minority-owned firms, where job losses are occurring matters as much as how many jobs are lost . Geography and industry concentration combine to amplify risk for minority businesses in ways that are largely invisible in national averages. Geographic Concentration Magnifies Risk Black and minority-owned firms are disproportionately concentrated in urban cores, Southern states, and large metropolitan areas that are more sensitive to public spending cycles, service-sector demand, and government employment trends. Key geographic pressure points include: Southern states with large Black populations, where employment growth has slowed in education, healthcare, and public administration Major metro areas reliant on government, nonprofit, healthcare, and hospitality employment Legacy industri...

On December 10, 2025, the Federal Reserve lowered its federal-funds rate by 0.25 percentage points , bringing the target range to 3.50%–3.75% . Federal Reserve The Fed cited slower job growth, a rising unemployment rate, and still-elevated inflation as factors — choosing to act now to support employment, while leaving open further adjustments depending on future data.  For Minority Business Enterprises (MBEs)— most of which operate as small businesses — this decision has potentially significant consequences. Why rate cuts tend to benefit MBEs 💸 Lower cost of borrowing and improved cash flow When the Fed cuts its benchmark rate, banks often reduce their prime and lending rates in response — which tends to make loans, lines of credit, and business-credit cards cheaper.  For businesses with variable-rate debt, this lowers monthly interest payments automatically; for those seeking new financing, access becomes more affordable.  For many MBEs, with thin margins ...

The BEA’s December 5 2025 release reports the following for September: Personal income rose 0.4% vs August; disposable personal income (after taxes) rose 0.3%.  Consumers spent more: current-dollar personal consumption expenditures (PCE) increased 0.3%. But “real” PCE (adjusted for inflation) was essentially flat. The PCE Price Index — the broad inflation gauge for consumer goods and services — increased 0.3% month-over-month . On a 12-month basis, the PCE Price Index rose 2.8% .  Excluding volatile food and energy categories (the “core” measure), prices also rose 0.2% month-over-month and about 2.8% year-over-year.  In short: while incomes and nominal spending ticked up, inflation remains noticeable — pushing up costs for households and consumers. Inflation + Income: What That Means for Black & Minority-Owned Firms Because inflation directly affects the cost of goods, inputs, and consumers’ purchasing power, the rising PCE index has important imp...