The chair of the Dallas Federal Reserve said in an interview that he believes racism is slowing down the economy, and that addressing systemic racial inequality could theoretically improve growth. Speaking yesterday on CBS's Face the Nation, Dallas Fed Chair Richard Kaplan said that, over the years, people of color have made strides in the economy, but the current crisis has been a major step back for them, which he said can slow the eventual recovery.

"But a more inclusive economy where everyone has opportunity will mean faster workforce growth, faster productivity growth, and we'll grow faster," he said. "And so I think we're right to focus on this and bore in on this. It's in the interests of the U.S. The fastest-growing demographic groups in this country are blacks and Hispanics. If they don't participate equally, then we're going to grow more slowly."

Similar arguments have previously been raised with regard to gender as well. A 2016 study by the Organisation for Economic Cooperation and Development (OECD), for example, estimated that gender-based discrimination costs the world economy about $12 trillion a year. A report from the International Monetary Fund made a similar point, saying that gender equality promotes economic diversification and therefore economic resiliency.

Kaplan was reacting to an earlier statement made by the leader of the Atlanta Federal Reserve, Raphael Bostic, who said that this nation has both a moral and economic imperative to fight racism: "By limiting economic and educational opportunities for a large number of Americans, institutionalized racism constrains this country's economic potential," she said. "The economic contributions of these Americans, in the form of work product and innovation, will be less than they otherwise could have been. Systemic racism is a yoke that drags on the American economy."