Letter to Joe Biden, President of the United States - Warner, Lawmakers lead Bicameral Push for a White House Initiative On Inclusive Government Growth

Letter

Dear President Biden,

We write today to echo the call of our colleagues in the House of Representatives in
support of creating a White House Initiative on Inclusive Economic Growth. The proposal for
such an Initiative was first made by a coalition of more than 50 impact-oriented organizations in
April. We believe the creation of this Initiative would complement your efforts to address the
intersecting crises of the COVID-19 pandemic, systemic racial injustice, and climate change.
The Initiative would serve as a nexus for efforts to reshape capital markets to advance the
interest of working Americans and promote community investing to bring opportunity to
historically marginalized communities.

Over the course of the past eighteen months, we have seen how the economic costs of the
COVID-19 pandemic have been disproportionately borne by communities of color and lowincome workers. According to the National Bureau of Economic Research, approximately
440,000 Black-owned businesses were shuttered in just the first few months of the pandemic.1
Despite well-intentioned efforts in Congress to deliver relief through the Paycheck Protection
Program and other relief measures, many businesses, especially sole proprietorships and others
without long-established banking relationships were tragically left behind. Likewise during the
pandemic, low-wage workers have been disproportionately laid off in hard-hit sectors such as
hospitality and retail, while those fortunate enough to keep their jobs were often at increased risk
of contracting COVID-19 due to the necessity of completing their work in-person.2

While we support passing much of your Build Back Better Agenda through a budget
reconciliation package, we believe it is also essential that the Administration prioritize executive
action to reform capitalism in such a way that short-term profits and shareholder primacy no
longer take center stage. A White House Initiative on Inclusive Economic Growth could play a
central coordinating role between policy councils, executive agencies, and independent agencies
in promoting equitable economic policy. The Initiative could also serve to convene private sector
and civil society organizations that increasingly recognize the critical nature of a transition
towards stakeholder capitalism.

As outlined by the coalition of impact-oriented organizations that put forward the
proposed Initiative, its primary focus would be corporate disclosure and governance reform and
community investing. By changing the incentives for corporations and investors, we can lessen

1 https://www.nber.org/reporter/2020number4/covid-19-small-business-owners-and-racial-inequality
2 https://www.kff.org/coronavirus-covid-19/issue-brief/double-jeopardy-low-wage-workers-at-risk-for-health-andfinancial-implications-of-covid-19/
the disregard too often shown towards workers, environmental harms, or racial and gender
inequity. And by renewing focus on community investing, we can work to mitigate the historic
harms of disinvestment in Black, brown, tribal, and rural communities. Congress took an
important first step towards this end by approving $12 billion towards Community Development
Financial Institutions (CDFIs) and Minority-Depository Institutions (MDIs) last December. We
must build on this progress to enable the generational wealth building and quality jobs needed in
underserved communities.

In developing a comprehensive approach towards these necessary and long overdue
structural reforms to capital markets, numerous agencies will need to be aligned in their efforts,
demonstrating the need for a coordinating body such as a White House Initiative staffed at the
National Economic Council.

As members of the Senate, we will continue to put forward legislation to promote broadbased economic growth. The proposed White House Initiative would complement our legislative
efforts to hold corporations accountable and ensure that the long-term resilience and well-being
of our economy, workers, and planet will take priority over short-term financial pressures. We
thank you for your consideration.
Sincerely,

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