Ohio could add $79 billion annually to its economy by eliminating racial disparities, HPIO analysis

(COLUMBUS, Ohio) – New analysis by the Health Policy Institute of Ohio, which will be publicly released on Friday, July 14, found that if Ohio eliminated racial disparities, by 2050 the state could gain $79 billion in economic output each year, an increase of 10% over current gross state product. 

The analysis is a first-of-its-kind look at the economic potential associated with eliminating racial and ethnic disparities in Ohio. Building on recent national findings, HPIO contracted with researchers from Altarum, a nonprofit and nonpartisan research firm, to measure current differences in income, health and incarceration outcomes experienced across racial and ethnic groups. Researchers then calculated the economic effects of eliminating those disparities. They also quantified the ways Ohio’s changing demographics will affect those economic impacts over time. 

“Beyond the substantial impacts on people and communities of color across Ohio, disparities in outcomes, such as life expectancy and overall health status, represent missed economic opportunities for Ohio businesses, governments and communities,” the report finds.  “By eliminating racial disparities, leaders in Ohio can grow the workforce, increase consumer spending, strengthen communities and reduce fiscal pressures on state and local budgets.”   

In addition to growing the size of Ohio’s economy, the elimination of disparities would also enable the state to gain:

• $40 billion more in total income
• $30 billion more in consumer spending
• $4 billion more in state and local sales tax revenues
• $3 billion in reduced healthcare spending
• $2 billion in increased employee productivity
• $821 million in reduced corrections spending 

The report also includes recommended action steps and examples of how states, counties and municipalities across the country are implementing policies to reduce disparities. 

“Ohioans of all ages and from all sectors, communities and backgrounds can take meaningful steps to dismantle systemic racism and improve the health and economic vitality of the state,” according to the report. 

Members of the media can access an embargoed copy of the analysis. For any questions about the analysis, or if you would like to talk with the report’s authors, please call or text Nick Wiselogel at 614.530.9918 or email nwiselogel@hpio.net.  

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