Report: U.S. Default Could Bring $132B Economic Loss For Black Americans

Offering a potentially stormy outlook, Black Americans could face an economic loss totaling a whopping $132 billion if the U.S. government goes into default for a protracted period. According to an analysis from Creative Investment Research, the largest financial blow for Black Americans could come from the nation’s housing market totaling $60.9 billion. The findings are from the firm’s Projected Impact of Federal Government Default on Black Americans: Dire Report. In an interview with BLACK ENTERPRISE, William Michael Cunningham, an economist and owner of Creative Investment Research in Washington, D.C., reflected on the report. He says a setback in the housing market could come from several sources, including the elimination of fair-housing supervision from government regulators not working if the country goes into default. He pointed out that there could be a higher number of home foreclosures in the Black community stemming from increased job losses and an increase in unethical behavior in the housing market due to federal officials’ lack of supervision over the financial services industry. On a larger scale, another estimate projects a default would generate job losses totaling over 7 million, boost the unemployment rate to around 8%, and erase $10 trillion in household wealth. So...