Goldman Sachs "Will Close Gender and Racial Gaps"... $10 Billion Investment in Black Women

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Goldman Sachs announced on the 10th (local time) that it will invest $10 billion (approximately 11.42 trillion KRW) over the next 10 years in businesses related to Black women to address income disparities by gender and race.

Goldman Sachs stated that historically, Black women have faced difficulties accessing bank capital and resources, and it plans to increase opportunities for Black women to utilize bank capital. The main investment areas will include domestic work and healthcare, with investments in companies retraining domestic workers, companies that employ many Black women, and healthcare centers in communities with large Black populations.

Goldman Sachs emphasized that the ultimate goal is to reduce income disparities between Black women and other groups.

Goldman Sachs explained that it will create a new model for inclusive growth and that investments in Black women will lead to progress for everyone.

In a separate report, Goldman Sachs analyzed that reducing income disparities between Black women and other groups would create 1.7 million new jobs and increase the U.S. Gross Domestic Product (GDP) by $450 billion annually. It also pointed out that the median income of Black households is 90% less than that of White households, highlighting the severity of the Black-White income gap. The gap widens further when comparing the median incomes of Black women and White men. This is because the hourly wages of Black women are 35% less than those of White men, the report analyzed.

Goldman Sachs CEO David Solomon emphasized in a statement, "There is no better investment than enabling Black women to unleash their economic potential."

Recently, more banks like Goldman Sachs are committing to efforts to close gender and racial gaps. This is in response to criticism that large banks have contributed to widening income disparities by discriminating against people of color in lending and other areas.

JP Morgan Chase announced last year that it would invest $30 billion to reduce racial income disparities. JP Morgan plans to increase loans to Black and Latino homebuyers and small business owners. Bank of America (BOA) announced last month that it would triple its funding to $15 billion to assist people of color in purchasing homes.

Citigroup also announced a $1 billion investment plan last fall. Citigroup estimated that if income and education disparities between Black people and other groups had not widened beyond levels from 20 years ago, the U.S. GDP would be $16 trillion larger.

This content was produced with the assistance of AI translation services.