How Big Tech can help close the digital racial gap
America’s leading technology companies are in a unique position to help solve one of this country’s most pressing problems: the enormous handicap minorities face in the race to the digital future.
In a recent report, “America’s Racial Gap and Big Tech’s Closing Window,’’ our research team found that compared to Whites, Blacks and Hispanics are far less likely to own computers and have access to quality internet connections. As more and more jobs require digital skills, they risk being shut out of the labor market, creating the possibility that, in one generation alone, digitization could render the country’s minorities into an unemployment abyss.
That’s where America’s Big Tech comes in. They have the resources to make a difference. Just during the pandemic period the five biggest tech companies added $2 trillion in market cap. For $15 billion, less than 1% of that total, they could fund a program that could help close the gaps.
Two questions immediately come to mind: why would tech companies want to spend the money and what would this program look like?
The answer to the first question is simple: it would be a case of enlightened self-interest. The success of Big Tech has prompted growing scrutiny of the companies and growing concerns that they wield too much clout over our lives and our economy. Our team’s study found that 2 out 3 Americans now don’t hold a positive view of Big Tech. It is not hard to imagine this attitude translating into higher taxes, fines or anti-trust actions in the near future.
By stepping up to tackle a critical problem, tech companies could change public perception, showing they can use their power to make things better. “It could change the national discourse on these companies,’’ our Global Head of Technology Strategy, Apjit Walia, the author of the report, who believes the move could boost the long-term prospects and returns of Big Tech.
Apjit envisions this program would be targeted at Black and Hispanic households with an annual income of less than $30,000, about 10 million households. It would have three components:
- A five-year effort to offer broadband to those currently unconnected. Price tag: $5 billion.
- A one-time commitment to buy computers for those who lack them: $1 billion.
- A training program aimed at low-income minority middle and high-school students. Over five years as many as six million students could take a one-year course using a combination of online learning supplemented with help from qualified tutors. Price tag: $9 billion.
Big Tech wouldn’t just write the checks. The companies could also roll up their sleeves and take ownership of the program, showing they are committed to seeing it work.
The wealth and income gap between Whites and minorities in this country developed over centuries and our researchers are under no illusion that one program, however well-intentioned, is going to close it. Still, it is not hard to imagine that a high-profile effort such as this could motivate others – from business, government and non-profits – to get involved and do their part.
As the report says, Big Tech is in a position to break the mold and do something no other industry has done, to “Step in and make a sustained effort to reduce the digital racial gap.”
In the report’s view, the investment would have a significant payoff – for the companies, for minorities and for America.