Shelley Stewart III

The disparities on display during the COVID-19 pandemic were a jolt to America’s conscience. Job losses were greater for people of color, many of whom lacked savings to cushion the financial blow. The long-standing issues of underperforming public schools and gaps in digital infrastructure exacerbated learning losses among children of color. With Black workers concentrated in low-wage frontline jobs that could not be done remotely, exposure to the virus and inadequate access to healthcare cost… Show more

The disparities on display during the COVID-19 pandemic were a jolt to America’s conscience. Job losses were greater for people of color, many of whom lacked savings to cushion the financial blow. The long-standing issues of underperforming public schools and gaps in digital infrastructure exacerbated learning losses among children of color. With Black workers concentrated in low-wage frontline jobs that could not be done remotely, exposure to the virus and inadequate access to healthcare cost lives, widening an already sharp racial gap in life expectancy. Show less

The concept of inclusive growth has become central to economic development due to rising economic inequality and its effects on human well-being and prosperity (see sidebar, “What is inclusive growth?”). Indeed, despite the longest economic expansion in US history through much of the 2010s, the Gini index reached 0.485 in 2018—the most inequitable level of income distribution recorded in the United States since the Census Bureau began tracking the metric, and the highest level of income… Show more

The concept of inclusive growth has become central to economic development due to rising economic inequality and its effects on human well-being and prosperity (see sidebar, “What is inclusive growth?”). Indeed, despite the longest economic expansion in US history through much of the 2010s, the Gini index reached 0.485 in 2018—the most inequitable level of income distribution recorded in the United States since the Census Bureau began tracking the metric, and the highest level of income inequality among Group of Seven countries. In terms of wealth inequality, the top 1 percent hold nearly 40 percent of the nation’s net worth as of 2019, the highest on record since the Federal Reserve began collecting survey data in 1989. Show less

Leading members of the financial community discuss the effects and impact of COVID-19 on Black-owned small businesses and Black entrepreneurs and discuss a path forward.

In this episode of The McKinsey Podcast, Diane Brady speaks with partner Shelley Stewart III about the economic benefits of closing the racial wealth gap, leading the new McKinsey Institute for Black Economic Mobility, and strategies to promote racial equity. An edited transcript of their conversation follows

Repairing the frayed social fabric in the United States is one of the most pressing issues of our time. It’s not a new problem. But if we do not address the underlying issues preventing us from achieving equitable growth and inclusion, the economic and social divisions that drove the civil unrest following the murder of George Floyd in May 2020 will only become worse. The new administration has an opportunity to make a forceful case for racial equity by explaining the challenges, highlighting… Show more

Repairing the frayed social fabric in the United States is one of the most pressing issues of our time. It’s not a new problem. But if we do not address the underlying issues preventing us from achieving equitable growth and inclusion, the economic and social divisions that drove the civil unrest following the murder of George Floyd in May 2020 will only become worse. The new administration has an opportunity to make a forceful case for racial equity by explaining the challenges, highlighting the areas of opportunity, and taking bold action to embed racial equity into our national fabric. Show less

Despite decades of efforts by public-, private-, and social-sector organizations, racial inequity has only increased. Can a concerted, coordinated effort reverse this trend?

The right business ecosystems can mitigate or negate the effects of structural obstacles to business building for Black business owners—and add $290 billion in business equity.

Black families in the U.S. possess about a tenth of the wealth white families do. If that wealth gap were closed, $1 to $1.5 trillion in economic output could be created. I believe increasing Black business ownership would play a role in wealth creation and closing the gap.

With the advent of Covid-19, a severe health and wealth crisis is at play for black Americans. James Seth Thompson speaks with McKinsey & Company’s Aria Florant and Shelley Stewart as they break down their extensive Covid-19 research and make the case for investing in black lives and black livelihoods now more than ever.

Amid the rising deaths, infections, and possible economic implosion of the COVID-19 pandemic, the most pressing need in the United States is to save lives and arrest any plunge into a prolonged recession or depression. The crisis is already hitting major social and economic systems, yet black Americans will experience a disproportionate share of the disruption—from morbidity and mortality to unemployment and bankruptcy.

A lack of financial inclusion for black Americans exists at every level of the financial system. Understanding the sources of exclusion is the first step to fixing the system.

A discussion on the impacts of automation on specific communities.

Research shows that automation trends may be widening the racial wealth gap. This article reveals possible interventions that may help African American workers prepare for the future.

The persistent racial wealth gap in the United States is a burden on Black Americans as well as the overall economy. New research quantifies the impact of closing the gap and identifies key sources of this socioeconomic inequity.

Without concerted effort, automation could heighten disparities that already harm minority workers. The kinds of support activities performed by service workers, administrative-support workers, operatives, laborers, and helpers are, not surprisingly, more easily automated than are the directive activities performed by executives, professionals, technicians, and sales and craft workers. And that leaves African Americans especially vulnerable.

McKinsey recently released the results of our first-time research about the earning potential of black families in the United States. The findings were presented to 200 prominent leaders at the first Black Economic Forum (BEF) in late summer. We served as the knowledge partner for the event, hosted by the Executive Leadership Council and Beta Iota Boulé, both of which work to advance black leadership. Shelley Stewart and Jason Wright, McKinsey partners, co-led the initiative.