YouSaid · the spoken record

William Julius Wilson

lines on the record: 26
first: 2020-07-20
most recent: 2020-07-20
sittings or episodes: 1
sources: podcast

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“That really lack that capital, you tend to outperform just because there is that pent up demand. And there are ways to work together with government and partner on these investments to share risk. So many of the investments that we've done, for example, in grocery stores or healthcare facilities around the country, they leveraged really forward thinking federal policies to invest in those spaces where we bore some risk, but they did as well. And so if you can lower the risk, which is part of the risk adjusted return analysis, by working with public sector partners where you are achieving community and economic development goals that are in line with those policies. And that's another way to invest in these spaces and themes very profitably.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Business case I think is quite straightforward underinvestment creates opportunity. We've seen this in the venture space and in many other spaces black founders are underinvested. Black women, for example, black women are starting businesses at the fastest rate relative to any other demographic group right now and they're getting half a percent of venture capital. So there are returns there to be made. And on the real estate side, we have decades and decades of racist federal policies to dig out from Harlem's a great example disproportionately black neighborhood, a whole host of issues. When we started investing there and we did mix income housing, mixed income condos, et cetera, we outperformed because there was such a pent up demand for the type of quality assets that these communities had just been starved from. So I think in a business case is about finding underinvested space.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“emphasizes that at least in her experience these investments generally offer competitive risk adjusted returns given the magnitude of underinvestment that's created pent-up demand as well as opportunities for public private risk sharing”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Private capital. I'll just take a second one education what determines whether you go to college or not. A lot of that is capital. So after you've exhausted whatever, family savings you have, whatever federal student loans you're capable of getting, how do people fill the gap? They fill it through private lending, right? So again, another example where private capital has to be a critical piece in closing that gap yet another example is healthcare. a big topic we're having around the country is the appropriate distribution and connection to health services and that also includes the provision of private capital in terms of clinics and how hospitals are financed. Those are big categories that are both cyclical causes and similarly impact of the racial wealth gap and systemic oppression and racism where private capital is if not the”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The role of private capital is a thousand percent critical. Just starting with the basic premise that the wealth of the average white family is 10x the wealth of the average black family. What are the reasons for that? Your ability to buy a home, your ability to create wealth through entrepreneurship, your ability to have a higher income over your lifetime because of your education, the dense into economic prosperity due to health disparity. So all of those big categories are contributing to that gap and that economic inequality. So then if we go deeper on those specifics, so the ability to own a home. There are a lot of factors in that, but a significant one that we can't ignore is mortgage lending. And who provides mortgages to Americans in this country? Primarily private institutions with private”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Finally, we turn to Margaret Anadou, head of the firm's urban investment group, to discuss the role of private capital in addressing these economic inequities. She argues private capital must play a critical role, given that it sits at the center of wealth creation, from the ability to go to college, to buy a home, or to build a business, and is necessary to help finance investment in minority communities.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The success, the improvement of an African American person, the middle or at the bottom is so tied to the success of his brothers and sisters from other races, also at the bottom. An increase in a minimum wage, for example, is a policy, I'm not arguing here for it, but I want to give you an example, an increase in the minimum wage has the effect of dragging up wages at the bottom. But to the extent that African Americans had disproportionately at the bottom, that race neutral policy disproportionately benefits them. You see? In thinking about the racial earnings and wealth gap, I think it would behoove the country to think about the degree to which it is alarmed about gaps overall because the ideas, they subscribe, would have the corollary effect of reducing The racial income Think this is a point worth emphasizing”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“African Americans own homes and buy homes in large numbers in the go-go years of the housing market. You know what happened? Just at the peak of the book, when in black suburbs around the country, people were leaning back and delighting in this success. Just again, bad timing, the housing bust occurred. Country that is possible about this problem of timing, especially the timing and collapse, especially adversely affects one group, would think about some kind of income support that's related to the shop, that's maybe even raced.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Some examples. Black Americans leave the South and move to the cities of the North and the Midwest in massive numbers, hundreds of thousands. Euclid's Detroit, Chicago. And having settled and unpacked and taken jobs in the steel industry or in meatpacking or in light manufacturing around those cities, what then happened? Shortly after their move, there is sectoral reallocation. So manufacturing collapses shortly after they move. After Americans close the education gap, whereas there used to be a four and a half year education gap in 1960, where the median black person had a fifth, sixth grade education. This is amazing thing. They went from that to closing the high school graduation gap. But as we know, just as they did that, high school graduation doesn't matter anymore. Timing again. There's the housing boom.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“So, a striking thing when one looks at the African American experience is the timing of the move. The timing just as blacks are doing something and they get up to, okay, we're above water, some national force, not necessarily race national force, but a national force arise to devastate the”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Men tall as you're no college work for, you know, God knows how many years. Today, men who are not college graduates are increasingly unlikely to work relative to their college peers. We've got to close the gap where the labor market cares about it. Labor market cares about college level training. That's class one. Task two is that lots of activities or lots of wealth generating behaviors that African Americans might undertake face a liquidity challenge. A liquidity challenge might show up in terms of housing down payment, thinking about ways to relax the liquidity constraint for business ownership, for investment activity, for home ownership, and importantly for migration is important. There is a thing about downside.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The key thing I'm stressing is college level training and closing the gap there is an issue of pressing national concern. The country did a great job at eradicating the high school graduation gap. It was massive in 1950. It is essentially, if one includes the GED, essentially vanished today. But you know what happened? The labor market doesn't reward high school exaggeration. Today, college doesn't only give you a higher wage compared to your high school graduate friend when you do work. It raises the likelihood that you work in the first place. Yes. Yes, that is a big change in the American labor market.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“So, what would be the most effective policy solution to help overcome these adverse economic trends? First and foremost, Charles says, the key is education policy targeted at Black Americans, in particular college education.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Non work is at historically unprecedented levels for all men, but it is at levels not only strictly unprecedented, but merely unimaginable for black men. 30% of prime age black men today are not working. And so we see the surging unemployment and it is growing differentially by race. And so looking just at workers is deeply misleading because it's missing those guys. And when one takes account of those guys, you see that income gaps are worse than we would originally thought.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“And so the gap between the middle and the bottom is really growing. Well, you might ask whether the source is. One source is, among all men in the country, would be institutionalization, incarceration being the most prominent example of that. Then there's unemployment. These are people who are looking for work unsuccessfully. And then there is a growing faction of men who are not in the labor force, meaning they're not working and are not looking. When I say non-work, I use all three collectively. You see? The growth in this thing is in some ways the most fundamental change in men's outcomes in the United States in the last many, many decades, in my view.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Because the incidence of non work, the share of men not working, is rising among all men, it means that the gap between the median and the bottom is growing too. Because the bottom increasingly is not quote low wage, it's no work among men.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“By contrast, we have seen really impressive convergence in rank at the top And so, if one looks at black men who are college graduates and asks where would the 90th percentile such man, the 90th percentile of black men who graduated college, look at his earnings today, where would his earnings place him in the distribution of whites who are college graduates today? You see? He would be not in the 90th because we never had that kind of parody, but he'd be the 80-something, which is really shocking and really that is to be praised.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The gross of what is called the affirmative action and related policies means that at the nation's elite universities and semi-elite, their over 1970 to 1990s or so, a tremendous increase in the number of African American faces in classrooms and on campus. Policies like that have had the effect of dramatically improving the condition of African Americans at the top. Notice though, I'm not saying they're anywhere close to parity. Why is there rewidening at the top? That is the result of the surging economic inequality at the top end of earnings distribution. The 99th guy is running away from the 98th guy. And the two of them together are running away from the 95th guy. And the closer you are to the top, we observe not only expansion or widening, but widening that is accelerated, the higher up we go.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The shape of the overall earnings distribution, this accordion-like thing I mentioned, was the driving force. At the top of the earnings distribution, by far the more important thing seems to have been race-specific advance and retreat. So what is that race-specific advance or retreat? We don't know. There are many things. There are many things at the point. But here's some candidate examples. After 1970, The United States of America opened up opportunities to African Americans never previously available. The country's professions have opened up dramatically at the top end. Similarly, education at the top end has opened up dramatically to”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“The top of the earnings distribution. The earnings gap is actually smaller than at the median. Remember I said there's a 68% gap at the median? At the 90th percentile, it's 48%. That's much smaller, but that's still big. And for the 90th, we have seen, as we saw at the median, some closing up until 1970 and then some rewidening after 1970. Interestingly, the rewidening we have observed since 1970 is smaller than the rewidening observed at the median. And so things got better for the high-end blacks on average and then have gotten slowly worse over time. Now, it turns out that whereas at the median,”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“While the picture looks bleak at the median, Charles says the income gap looks moderately better for top earners, even if it's still wide. And that largely owes to race-specific policies that have disproportionately benefited black men at the top of the”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“And so thought of that way. We see that look a different way to think about how people are doing relative to each other is not just the dollar gap between them, but this thing to say, if I were you, if I look like you, where would I be?”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Imagine we took a black guy of any arbitrary income level or earnings level. Let's ask where he would rank if he were white. We know he will not rank at the median because whites have higher income. How far below the median would he rank in the white distribution in this hypothetical thought experiment? If there's a result that over my career has floured me, that at the median, where the median black person would rank in the white earnings distribution has not improved for 70 years. A man today who's 30 ranks in the overall white earnings distribution where his father would rank. I'll go further. Where his grandfather would rank, yeah, in exactly the same place roughly. Indeed, there were periods where his father did worse than his grandfather by this measure.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Charles explains there are different ways to put the income gap into perspective. In addition to the earnings level gap discussed, there is the earnings rate gap, where in the earnings distribution a black man would rank if he were white. And one of Charles' most striking findings is that this earnings rank gap has barely moved in 70 plus years, leaving an average black man relatively no better off than his grandfather. Here's more from Charles on that.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“That is not to say that there was not a very important role for race-specific changes. Because indeed, in the absence of race-specific changes, improvements, some of the widening we have seen over the last 40 years would have been even worse.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT
“Widening and closing versus forces that are what I call in some of my work race specific, meaning forces that were the product of policies intended to redress racial inequity. Such a force could be an end to racial discrimination in magazines or in law firms. That thing is intended to move African Americans up in the earnings distribution. Yes? That's different from the minimum wage, which applies to everybody, irrespective of race, who earns low income. Overwhelmingly, the more important force at the median has been the former force, what we call distributional factors that apply to the overall shape of the earnings distribution. Overwhelmingly, it more important.”
2020-07-20 · Goldman Sachs Exchanges · Investing in Racial Economic Equality · IDENTIFIED FROM THE TRANSCRIPT