The U.S. Department of the Treasury has released a report revealing that the recovery from the economic harm caused by the COVID-19 pandemic was the most equitable in recent history. New Department research and Federal Reserve Board data are incorporated into the report, which concludes that the response of the Biden-Harris Administration helped to mitigate the worst predicted economic results for Black and Hispanic families. When compared to previous recoveries, the financial situation of these households is quite stable.
At the start of 2021, the economic outlook for the United States was bleak, with experts predicting high unemployment and below-trend growth. The American Rescue Plan, enacted by Vice President Biden, helped underprivileged neighborhoods recover from the recession more quickly than in the past. As a result, the pandemic's aftermath became the most equitable in recorded history. In the three years following the Great Recession, Black and Hispanic unemployment rates fell faster than they had in previous recessions, and real incomes climbed by twice as much as they had in the previous three years. Black and Hispanic American household wealth also rose dramatically between 2019 and 2022, and the racial wealth disparity shrank.
"This report shows that, as the Biden Administration policies have driven a historic economic recovery, we've also been building the economy we need for the long term - one that allows all communities to reach their economic potential," said Wally Adeyemo, Deputy Treasury Secretary. "The report shows the progress we're making on building a more equitable economy, narrowing the racial wealth gap, and addressing enduring inequities in wealth accumulation. As we continue to implement the Investing in America Agenda, we remain committed to capitalizing on the progress made during the recovery and investing in the people, places, and infrastructure that have been too often left behind."
Key findings from the paper include a decrease in unemployment rates within 20 months after the COVID recession's peak and a rise of 60, 47, and 31% after three years for Black, Hispanic, and white households, respectively. Homeownership rates increased by 2.9, 1.2, and 1.1 percentage points from 2019 and 2022, while foreclosure rates remained low throughout the COVID recession and recovery. The percentage of black and Hispanic company owners reached historic highs during this recession, at 11% and 9.8%, respectively.
