Almost four years ago, Americans elected President Joe Biden to enact massive, structural change. Over the past three years, landmark federal initiatives like the American Rescue Plan, Infrastructure Investment and Jobs Act, and the Inflation Reduction Act have presented our nation with a once-in-a-generation, $4 trillion opportunity to reshape the fabric of our society—not just to build roads or widen highways—but to rectify historical injustices and ensure that every American, regardless of race or background, has an equal shot at economic prosperity. To achieve this, we have to acknowledge the intrinsic link between racial equity and sustainable economic growth.
This pivotal moment mirrors the era of the New Deal, which cost our country $41.7 billion at the time, but transformed the economy and fabric of society through social programs. Right now, we have a hundredfold of that amount earmarked for reinventing our nation with equity at the forefront. By leveraging the potential of these historic federal policies, we have the power to catalyze sustainable economic development, mitigate climate change, lay the foundation for high-quality jobs, and advance equity for underserved populations.
But time and education around this issue is of the essence. When it comes to federal spending, we have a five-year window to allocate the money and 10 years to spend it. This election, voters must understand whether candidates fall on the issue of making sure marginalized communities receive federal funding.
Recent research by Hyphen and People's Action Institute underscores the connection between informed voting and driving impactful economic change. Surveys conducted by HIT Strategies in cities such as Milwaukee, Wis. and Reading, Pa., revealed alarming levels of unfamiliarity with crucial legislation like the Bipartisan Infrastructure Law and IRA, with awareness levels as low as 38 percent and 44 percent of voters, respectively. But upon understanding the direct influence of their votes on these bills, enthusiasm for civic engagement surged 23 percent. This increase in engagement highlights the power voters wield in holding political leaders accountable for shaping policies with equity as a priority.
Racial equity isn't merely a matter of social justice; it is a fundamental driver of economic prosperity. Small businesses, often led by entrepreneurs of color, are the backbone of our economy. Ensuring these businesses receive equitable support is not just a matter of fairness, it's essential for unlocking our nation's full economic potential. It's imperative that we intervene to ensure the money actually meets communities of color.
Historical trends indicate that funds haven't always reached their intended targets. Take, for instance, the $1.5 billion funding initiative via the first iteration of the State Small Business Credit Initiative (SSBCI 1.0) aimed at supporting small businesses. Despite the pressing need for assistance in marginalized communities, a significant portion failed to reach entrepreneurs of color. This not only stunts the growth of minority-owned enterprises, but also highlights a broader pattern of inefficient resource utilization.
A record-breaking 16 million Americans starting small business ventures, particularly within Black, Hispanic, and Asian American communities, underscores the vast potential for economic empowerment and job creation. With the advent of SSBCI 2.0, we have the power to supercharge private investment in these historically overlooked groups. This means cultivating environments where opportunity and entrepreneurship thrive, and creating high-quality jobs that pave the path toward a more inclusive and prosperous future.
As we approach the upcoming election, we have to prioritize issues that resonate with what communities of color care about. The HIT Strategies survey indicated excitement toward infrastructure initiatives—especially those that center economic support, equity, and the environment. The survey respondents ranked top issues important to them as: ensuring Americans have access to clean water (83 percent very important), lowering prescription drug prices (78 percent), rebuilding infrastructure to connect Americans to each other (77 percent), cleaning up pollution (72 percent), and creating jobs through clean energy projects (67 percent).
There is an opportunity like never before, both ahead of the November election and beyond, to reach voters and build a message they want to hear. This involves ensuring that political leaders not only follow through on their commitments but make them understandable to constituents with a focus on solutions that make a tangible difference in the communities that need them most.
The time for action is now. With the looming uncertainty of November's outcome, the onus is on us to seize this pivotal moment and rebuild our nation with racial equity at its core.
Active involvement in reshaping our country's future requires more than just casting a ballot; we need informed voting and active participation in organizations that prioritize deep listening to community needs—organizations like Hyphen and People's Action. By ensuring that federal dollars are directed toward the areas of greatest need, we can begin to dismantle systemic inequities, foster genuine progress, and build economic prosperity for generations to come.
Archana Sahgal is founder and president of Hyphen.
The views expressed in this article are the writer's own.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
