She Strengthens

The Unseen Consequences of a Lack of Diversity in Economics

Attending a prominent economics conference hosted by the American Economic Association was a turning point for me. As I scanned the room, I realized that not a single panelist was Black. The absence of representation was striking, and it made me question whether I belonged in the field. This experience highlighted a critical issue: the lack of diversity in economics has far-reaching consequences that affect us all.

The Power of Economics

Economics is the study of how communities, individuals, and companies allocate limited resources. It’s a field that has shaped our world for centuries, influencing decisions that impact our daily lives. In 2008, economists played a crucial role in determining whether the government should bail out big banks to save the economy. However, the racial wealth gap that resulted from this decision still affects Black and Brown communities today.

The Problem of Underrepresentation

When underrepresented groups are excluded from decision-making processes, everyone suffers. The economy is no exception. With a lack of diversity among experts, we risk making decisions that neglect the needs of marginalized communities. This is particularly concerning in the field of economics, where the majority of experts are predominantly white and male.

The Impact on Black and Brown Communities

In the years leading up to the 2008 financial crisis, Black and Brown communities were already facing significant economic challenges. They were targeted by lenders charging high-interest rates, and homes were being foreclosed. These early warning signs were largely ignored by economists, who failed to include Black and Brown voices in their conversations about the economy. As a result, the crisis disproportionately affected these communities, leading to a decade-long recession that cost millions of households their financial stability.

The “Black Women Best” Approach

Janelle Jones, Managing Director of Groundwork Collective, coined the phrase “Black Women Best,” which suggests that if Black women, the most marginalized group in the economy, have access to financial freedom and economic opportunity, then everyone else will too. This approach recognizes that by prioritizing the needs of Black women, we can create a more inclusive economy that benefits all.

The Consequences of Ignoring Black Women

The gender pay gap, the 2008 financial crisis, and the COVID-19 pandemic have all disproportionately affected Black women. If we ignore these statistics, we risk perpetuating a myopic view of the economy. By including Black women in the economic picture, we can make better decisions that benefit everyone.

Towards an Inclusive Economy

The next economic crisis is already here, and it’s essential that we prioritize policies that address the needs of Black women and other marginalized communities. This requires a shift in how we approach economic decision-making, recognizing that the voices of Black women and other underrepresented groups are crucial to creating a more inclusive economy.

The Sadie Collective: A Step Towards Progress

As the CEO and co-founder of the Sadie Collective, a non-profit organization that addresses the pathway and pipeline problem for Black women in economics, finance, data science, and policy, I’ve seen firsthand the importance of creating spaces where Black women can thrive. Our annual conferences have brought together hundreds of Black women in economics and related fields, providing a platform for networking, resource-sharing, and professional development.

The Cost of Exclusion

The absence of Black women from decision-making positions has far-reaching consequences that affect us all. If we want to achieve an inclusive economy that works for everyone, Black women must have visibility in all aspects of economics, from money to policy. It’s time to recognize the value of their voices and perspectives in shaping our economic future.