Racial inequality has deteriorated further with COVID-19

In an article in The Charlotte Observer a few days ago by Gene Nichol called “What the pandemic has done to racial inequality in North Carolina,” racial inequality has become even worse. Nichol is a contributing columnist and professor at the University of North Carolina School of Law, with a focus on poverty. The article can be linked to below, but here are a few key paragraphs:

“It doesn’t happen as often as one might wish. But, on occasion, you can still be surprised by what someone says. For example, earlier this month, the Donald Trump-appointed Chair of the Federal Reserve, Jerome Powell, explained to the Senate Banking Committee:

‘Disparate economic outcomes on the basis of race, have been with us for a very long time, they are a long-standing aspect of our economy, and there is a great risk that the pandemic is making them worse. Because the people who are most affected by the job losses are people in relatively low-paying parts of the service industries that happen to skew more to minorities and women, there is a real concern that if we don’t act as quickly as possible to support these people then we’ll leave behind an even more unequal situation. We need to do as much as we can to avoid exacerbating inequality.’

The traditional patterns of racial economic subordination Powell referenced have long dominated every component of life in North Carolina. Today, for example, twice as many African-American Tar Heels live in poverty as whites. The numbers are even worse for Black kids – nearly three times as many are poor as whites.

Racial income disparity is huge. But racial wealth disparity astonishes. Black households, on average, claim less than a tenth of the economic assets of white Tar Heel families. Racial minorities are dramatically more likely, in North Carolina, to be unemployed, uninsured, food insecure, housing insecure, and trapped in low wage work. Such defining disparities have existed throughout the entirety of our state’s history. Radical, systemic, disproportional racial economic impact, as Chairman Powell put it, has ‘been with us for a very long time.’

And then came the tragic, terrifying COVID-19 pandemic. Hundreds of thousands of Tar Heels were cast, anew, into poverty. No Kid Hungry estimates that, this year, one in four Tar Heel children won’t be able to get enough to eat. State food pantries report a 38% increase in demand over recent months. Since March, over half of Black families, and 43% of Latinx households, lost significant employment income sources. Over a third of Latinx renters have been forced to miss monthly payments, jeopardizing their housing. Eighteen percent of all North Carolina adults aged 18-65 are now without any health care coverage whatsoever. Nearly 40 percent of N.C. Latinos now have no medical insurance. As Fed Chair Powell put it, Covid ‘will leave behind an even greater’ landscape of inequality.”

Rather than add my own two cents, I encourage you to re-read the testimony above from Chairman Powell, along with Nichol’s commentary. What is happening in North Carolina is an example of what is going on in other places. People with low income jobs do not have the luxury of working from home, so they must go in or get fired. So, the COVID risks are much greater to a group already at financial risk.

What COVID-19 has done to racial inequality in NC | Charlotte Observer