Harris proposes financial incentives for Black male voter base, including forgivable loans and cryptocurrency support
In a bid to address the financial disparities faced by Black Americans, Vice President Kamala Harris has unveiled a new plan on her website. The plan, aimed at providing 1 million fully forgivable loans of up to $20,000 to Black entrepreneurs, is a significant step towards financial inclusion and wealth-building in underserved communities.
The loans are intended for those who lack resources, connections, or access to capital to start or grow a business. This initiative is part of Harris' Opportunity Economy pledge, which aims to equip Black men with tools to thrive, including buying a home, providing for families, starting a business, and building wealth.
Former Louisiana Congressman Cedric Richmond, who co-chairs Harris' campaign, highlighted that this announcement is a crucial part of Harris' commitment to Black men. The plan comes as polls show Harris trailing prior Democratic candidates in the group's support.
Harris' plan also seeks to expand access to bank accounts and lending for Black men, a demographic that has historically been one of the most unbanked and underbanked. Data from the Minority Business Development Association shows that minority-owned firms are less likely to receive loans and receive lower loan amounts compared to non-minority-owned firms.
In addition to traditional banking, Harris' campaign promises to boost financial innovation around cryptocurrency and other digital assets. This move comes as both Harris and her Republican opponent, former President Donald Trump, have been vocal in their support of the crypto industry. Terri Bradford, a payments specialist at the Kansas City Federal Reserve, stated that crypto and blockchain have the potential to democratize financial services.
However, Graham Steele, the former Assistant Secretary for Financial Institutions at the Treasury Department, noted that the financial inclusion benefits of crypto have yet to materialize due to factors including extreme price volatility, the need for access to a depository institution, and high transaction fees.
Despite these challenges, Harris' campaign pledges to ensure owners of and investors in digital assets are protected by a regulatory framework. No new information about regulations, policy, or technology was provided in the text.
Interestingly, distrust of traditional financial services is a major factor for Black investors' interest in crypto, according to Terri Bradford. This is evident in the findings of Pew Research, which shows that 11.3% of Black Americans do not have a traditional bank account, limiting their access to traditional lending products. Studies suggest that Black Americans are twice as likely to be denied credit by banks, regardless of their credit scores.
Meanwhile, Trump has launched his own crypto-tied firm and gave a keynote address at the Bitcoin 2022 conference in Nashville. This move underscores the growing importance of the crypto industry in the political landscape.
In conclusion, Harris' plan to support Black entrepreneurs with cryptocurrency and banking initiatives is a significant step towards financial inclusion and wealth-building in underserved communities. While challenges remain, the potential benefits of such initiatives cannot be overlooked.
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