DIFFERENCE.

TOGETHER WE CAN DRIVE CHANGE.

>> IN RECENT DECADES CHICAGO AND ILLINOIS HAVE LOST A SIGNIFICANT PORTION OF THEIR BLACK POPULATION AND WHILE A NUMBER OF ISSUES HAVE BEEN CITED AS REASONS FOR BLACK FAMILIES TO LEAVE ILLINOIS, A RECENT STUDY SUGGESTS FINANCIAL EQUITY MIGHT ALSO BE A CONSIDERATION.

NOW THE STUDY BY CONSUMER FINANCE WEBSITE WALLETHUB RANKED ILLINOIS THE WORST STATE IN THE NATION FOR FINANCIAL RACIAL EQUITY USING DATA ON EMPLOYMENT LEVELS, INCOME, SHARE OF EXECUTIVES AND HOUSING TO MAKE ITS ASSESSMENT.

JOINING US TO TALK ABOUT HOW ILLINOIS GOT TO THE BOTTOM OF THAT LIST AND WHAT MIGHT HELP ADDRESS IT ARE AUDREY WILSON, PRESIDENT AND CEO OF THE SHRIVER CENTER ON POVERTY LAW, DAMON JONES, ASSOCIATE PROFESSOR AT THE UNIVERSITY OF CHICAGO SCHOOL OF PUBLIC POLICY, AND LINCOLN CHANDLER, SENIOR ADVISER OF THE CORPORATE COALITION OF CHICAGO.

THANK YOU ALL SO MUCH FOR JOINING US.

AUDREY, LET'S START WITH YOU.

WHAT WOULD YOU SAY IS CONTRIBUTING TO THE RACIAL WEALTH GAP IN ILLINOIS, ESPECIALLY COMPARED TO OTHER STATES?

>> WELL, THIS IS NOT UNIQUE TO ILLINOIS.

OBVIOUSLY THE STUDY IS TALKING ABOUT THE UNIQUE IMPACT IT'S HAD IN CHICAGO, BUT THE FACT OF THE MATTER IS THAT THE RACIAL WEALTH GAP IS SOMETHING THAT IS TALKING ABOUT 400 YEARS OF ECONOMIC DISINVESTMENT AND SUBJUGATION, RACIALLY MOTIVATED POLICIES THAT DID NOT END WITH SLAVERY.

THEY DID NOT EVEN END WITH THE ENDING OF JIM CROW, WHICH WAS IN THE MID-1960s.

THEY STILL EXIST TODAY IN PRACTICE AND THAT IS THE REASON WHY WE'RE STILL SUFFERING.

SO WE'RE SEEING THE REMNANTS OF RACIAL RED LINING AND NOT BEING ALLOWED TO GET ACCESS TO HOMEOWNERSHIP AND LOANS, BUT NOW EVEN SUFFERING COMMUNITIES WHERE YOU ARE STILL SEEING A LACK OF ECONOMIC INVESTMENT.

YOU'RE SEEING SOCIAL DETERMINATES OF HEALTH.

SO YOUR ZIP CODE IS BASICALLY DETERMINING YOUR HEALTH OUTCOME AND EDUCATION OUTCOME AND THAT IS CONTINUING TO CONTRIBUTE TO THE RACIAL WEALTH GAP WE'RE EXPERIENCING NOW.

>> DAMON, WE JUST HEARD AUDREY LIST A NUMBER OF FACTORS, BUT I UNDERSTAND YOU HAVE A CAVEAT ABOUT THIS PARTICULAR STUDY.

TELL ME WHAT YOU THINK THIS STUDY ISN'T REALLY TELLING US ABOUT THE RACIAL WEALTH GAP IN ILLINOIS.

>> IT'S JUST THAT WE DON'T HAVE DATA SPECIFIC TO ILLINOIS FOR WEALTH IN PARTICULAR.

WE HAVE DATA FOR THE WHOLE COUNTRY AND WE KNOW THAT THERE ARE HUGE WEALTH GAPS.

THE MEDIAN WEALTH OF A WHITE HOUSEHOLD IS ABOUT TEN TIMES AS MUCH AS A BLACK HOUSEHOLD ON AVERAGE.

IT'S ABOUT EIGHT TIMES AS LARGE AND SO WE CAN'T SAY SPECIFICALLY IN THIS REGION WHAT THE WEALTH GAP IS, BUT THOSE OTHER MEASURES ARE ALSO THINGS THAT ARE GOING TO BE RELATED.

SO IT'S PROBABLY THE CASE THAT THE WEALTH GAP IS LARGER HERE.

WE PROBABLY WOULD DO BETTER TO COLLECT THAT DATA AND, YOU KNOW, BE BETTER TO ASSESS THAT.

>> LINCOLN, WHAT ROLE WOULD YOU SAY CORPORATIONS HAVE IN ADDRESSING THE GAP?

>> SURE.

IN MY VIEW CORPORATIONS DO A LOT OF THE HIRING.

THEY DO A LOT OF THE CAPITAL INVESTMENT.

SO IT SEEMS IMPLAUSIBLE TO THINK WE CAN CLOSE THIS GAP WITHOUT OUR CORPORATIONS TAKING THE LEAD AND REALLY BEING AT THE FOREFRONT OF ADDRESSING SOME OF THESE DETERMINE DERTERMINATORS OF OUR WEALTH.

>> WHAT ROLE DO YOU THINK CORPORATIONS PLAY IN CLOSING THAT GAP?

>> IF JOBS ARE A FACTOR, ABOUT 90% OF THE HIRING DONE IS BY THE PRIVATE SECTOR.

IF IT'S ABOUT PRIVATE INVESTMENT, THE BULK OF THAT COMES AGAIN FROM PRIVATE DOLLARS VERSUS PUBLIC DOLLARS.

EVEN WHEN IT COMES TO PROCUREMENT, THE SAME, I'D SAY SOMETHING LIKE $1 TRILLION IS THE NUMBER IN MY HEAD ABOUT WHAT COMPANIES SPEND, BUT A VERY SMALL PERCENTAGE OF THAT IS SPENT WITH BLACK-OWNED BUSINESSES.

SO ACROSS THE BOARD I THINK CORPORATIONS DEFINITELY HAVE A ROLE THEY CAN PLAY.

>> LET'S GO BACK TO YOU, AUDREY.

WHAT ROLE WOULD YOU SAY GOVERNMENT INSTITUTIONS AND EDUCATIONAL INSTITUTIONS PLAY IN HELPING BRIDGE THAT GAP?

>> ALL THESE INSTITUTIONS CONTRIBUTED IN SOME WAY, SHAPE IS, OR FORM TO THE GAPS WE SEE TODAY THAT PERSIST.

SO WHETHER YOU'RE TALKING ABOUT BANKS, TALKING ABOUT CORPORATIONS, GOVERNMENT SANCTIONS, DISCRIMINATION, WHICH HAS KEPT PEOPLE SUBJUGATED FINANCIALLY, EACH AND EVERY ONE OF THESE INSTITUTIONS IS RESPONSIBLE.

WE NEED TO BE TALKING ABOUT INVESTMENTS, FOR EXAMPLE, IN COMMUNITIES, IN EDUCATION.

FOR EXAMPLE, IN CHICAGO WHEN WE TALK ABOUT PROPERTY TAXES, THAT WHERE ONE LIVES SHOULD NOT DICTATE THE QUALITY OF EDUCATION THEY HAVE, NOR SHOULD IT DICTATE THE QUALITY OF HEALTH OPTIONS.

SO TO BE ABLE TO DISENTANGLE THESE SORTS OF THINGS TO MAKE SURE WE'RE MAKING INVESTMENTS IN COMMUNITIES AT PLACES WHERE PEOPLE ARE MOST DISADVANTAGED SEPARATE AND APART FROM OUR USUAL SCHEMES IS OF PROPERTY TAX AND THAT SORT OF THING.

I THINK IT'S REALLY IMPORTANT.

>> WE'VE TALKED A LITTLE BIT ABOUT DISADVANTAGES, BUT, DAMON, CAN YOU ADDRESS THE SETBACKS AND HOW IT IS HARDER FOR BLACK FOLKS TO KIND OF RECOVER FROM THOSE SETBACKS AS OPPOSED TO OTHER GROUPS?

>> WEALTH IS THE TYPE OF THING THAT COMPOUNDS OVER YOUR LIFETIME.

THE LESS WEALTH YOU START WITH, THE HARDER IT IS TO GROW THAT WEALTH AND THEN WHEN YOU HAVE CHILDREN, YOU BASS IT ON TO THE NEXT GENERATION.

THOSE GAPS WILL JUST GROW OVER GENERATIONS.

YOU SEE A LOT OF STUDIES IN CHICAGO, FOR EXAMPLE, THAT FIND THAT BLACK HOUSEHOLDS HAVE TO DO -- THEY INHERIT LESS FROM THEIR PARENTS.

THEY GET LESS FINANCIAL SUPPORT FOR SCHOOL AND FOR BUYING THEIR FIRST HOME AND THEN THEY ALSO ARE USUALLY SUPPORTING OUR FAMILY MEMBERS MORE.

ALL THOSE THINGS MAKE IT HARDER TO SAVE UP AND BUILD YOUR OWN WEALTH AND THEN WHEN THEY'RE PURSUING HIGHER EDUCATION, THEY END UP WITH MORE DEBT THAN THEIR WHITE COUNTERPARTS AS WELL.

ALL OF THOSE ARE GOING TO BE HEADWINDS WHEN YOU'RE TRYING TO BUILD WEALTH.

>> LINCOLN, JUMPING BACK TO YOU, YOU WORKED WITH SEVERAL ORGANIZATIONS THAT ARE HELPING CLOSE BRIDGE THAT GAP AND YOU MENTIONED THE IMPORTANCE OF JOB PLACEMENT, BUT CONTINUING HIS POINT ABOUT THE LONG TERM IMPACTS, HOW DOES JOB PLACEMENT AND LOOKING AT THE OPPORTUNITIES, LONG TERM OPPORTUNITY IT PROVIDES, WHY IS THAT IMPORTANT THINKING LONG TERM ROOM FOR GROWTH?

>> SURE.

WHEN I SAY JOBS, I THINK THE STATUS QUO THINKING IS SUMMER JOB PROGRAMS AND ADD-ONS TO THE WAY OF DOING THINGS.

A LOT OF THE THINGS WE TALK ABOUT IN THE COALITION IS BUSINESS UNUSUAL, REALLY RADICALLY RETHINKING THE WAY WE HIRE.

THERE'S A LOT OF WORK WE'RE LOOKING AT IN TERMS OF FAIR CHANCE HIRING CALLED SECOND CHANCE.

IT'S REALLY FAIR CHANCE HIRING BECAUSE IN SOME CASES THERE ISN'T A FIRST CHANCE, BUT IT'S ABOUT RECOGNIZING THE BARRIERS THAT PERSIST BUT ARE FIXABLE, BUT IT REQUIRES REAL SUSTAINED EFFORT.

WE'RE LOOKING AT MOVING BEYOND A ONE-TIME THING OR A FUNDED PILOT, SOMETHING THAT REALLY RADICALLY RETHINKS THE WAY WE HIRE.

>> WE'RE RUNNING OUT OF TIME, BUT I WANT TO QUICKLY ADDRESS THE IDEA OF REPARATIONS.

I THINK EVERYONE HERE HAS DIFFERENT VIEWPOINTS ON THE ROLE THAT CAN PLAY CLOSING THAT GAP.

AUDREY, LET'S START WITH YOU.

DO YOU SEE REPARATIONS AS A LONG TERM SOLUTION AND, IF NOT, WHAT DO YOU SEE THAT TO BE?

>> IT'S AN IMPORTANT STEP.

WE HAVE TO UNDERSTAND IF YOU'RE NOT LOOKING AT THE SYSTEM THAT STILL EXISTS TODAY, NO MATTER HOW MUCH MONEY YOU'RE GIVING TO ANVIL, AN INDIVIDUAL, IF WE'RE NOT LOOKING AT FIXING THE SYSTEM THAT'S BEEN IN PLACE SINCE THE INCEPTION OF SLAVERY, REPARATIONS REALLY ARE MEANINGLESS.

THAT'S THE CONTEXT IN WHICH WE HAVE TO THINK OF REPAIRING MORE IN TERMS OF INVESTMENTS AND ALLOWING PEOPLE TO BE ON THE PATHWAY TO RECOVER WHAT THEY HAVE LOST OVER GENERATIONS.

>> I WOULD SAY YOU DO WANT TO FIX THE SYSTEMS, ABSOLUTELY, AND WE ALSO WANT TO HAVE THIS REDRESS AND CLOSURE.

SO FOR LIKE MY FATHER, HE WAS BORN IN 1945 IN NORTH CAROLINA.

THE LONG TERM SOLUTIONS ARE NOT GOING TO AFFECT HIM AND REPARATIONS ARE SOMETHING THAT CAN GIVE THOSE PEOPLE WHO HAD TO ENDURE RACISM THROUGHOUT THEIR LIVES SOME CLOSURE OR SOME REDRESS FOR WHAT THEY WENT THROUGH.

SO I DON'T SEE THEM AS MUTUALLY EXCLUSIVE AND I AGREE.

WE WANT TO CHANGE THE SYSTEM, BUT ALSO MAKE SOME PEOPLE WHOLE WHO HAVE LIVED THEIR LIVES AND BEEN AFFECTED BY RACISM.

>> LINCOLN, I'M SORRY, WE'RE OUT OF TIME, BUT I THINK YOUR POINT ON LONG TERM JOB