A recent analysis from the Massachusetts Taxpayers Foundation, a pro-business research group, showed Massachusetts’ gross state product would increase by $25 billion over five years if we were to close gaps in these key areas. According to the same report, leveling college graduation rates of Black and Latinx students to that of white students in Massachusetts would result in an additional $22 billion in state revenues over ten years. 

Another study from The Massachusetts Taxpayers Foundation supports that argument. It found that if Massachusetts could close the economic divide, the state's gross domestic produce would increase by $25 billion over five years. "Just to put that in context, that's the equivalent of creating about 100,000 more jobs," said Eileen McAnneny, the foundation's president.

The Massachusetts Taxpayers Foundation, a highly respected and nonpartisan think tank, released a report last month showing racial disparities in every facet of life. By many measures, these disparities are greater in Massachusetts than they are nationally.

The MBCS – a coalition of 27 diverse business organizations from across the state that advocates for equitable skills development policies – and the MBAE Affiliate Network – comprised of 37 chambers of commerce and industry associations from across Massachusetts – support these bills because they expand opportunities for high school students to earn industry-recognized credentials (IRCs) that are tied to labor market demand and high-wage jobs.

The Massachusetts Business Coalition on Skills (MBCS) appreciates your ongoing efforts to prepare an FY 2022 budget that prioritizes economic recovery and invests in workforce skills development. The MBCS is a coalition of 27 diverse business organizations from across the state that advocates for equitable skills development policies so our current and future workforce can meet employers’ needs.

Tackling the racial wealth gap is a top priority for the Black Economic Council, which is located in one of the most inequitable cities in the country. According to a 2021 report by the Massachusetts Taxpayers Foundation, the median net worth of a white household in the U.S. in 2013 was 11 times greater than that of a Black household. In Boston, the median net worth of white household was 31,000 times greater than that of a Black household in 2014.

Long before the pandemic, Black businesses, organizations, and people in MA faced barriers in receiving equitable access to resources and economic opportunities. A May report from the Massachusetts Taxpayers Foundation found closing the wealth gap in Black and Latinx communities would grow the economy by $25 billion over five years, the equivalent of adding 100,000 jobs.

This report is the final installment in a three-part series on the implications of telework for the Commonwealth of Massachusetts in which we explore what the trend toward telework could mean for the broader Massachusetts economy.

The MTF report estimates that the gross state product would increase by $25 billion over five years if Massachusetts were able to close its racial divide in wages, housing, investments and wealth. According to MTF President Eileen McAnneny, much of that increase would come from the greater number of available workers if more Black and Latino students simply had an opportunity to graduate from college.