Accelerating Democracy: Creating Pathways to Prosperity

Panel Overview and Context

• Core Premise: The panel addresses the link between deep-seated racial inequality in the United States and the stifling of the nation's economic prosperity.
• Objective: The discussion aims to move beyond abstract calls to action ("we need to do something") toward specific, actionable strategies for creating pathways to prosperity.
• Key Theme: "Accelerating democracy" is defined as the ability for marginalized groups to participate in economic and civic life, with currency redesign serving as a symbolic and practical vehicle for this narrative.

Introduction of Panelists and Organizations

• Cheryl Dorsey (Echoing Green): Describes the organization as a global angel investor in social entrepreneurs, having funded ~700 leaders in 60+ countries since 1987.
  • Notable Investments: Early funders of Teach for America, City Year, SKS Microfinance (first microcredit firm to go public in India, 2010), and Michelle Obama's Chicago Office of Public Allies.
  • Funding Disparity: African-American applicants raised less than half the early-stage investment of white counterparts; women raised slightly more than half of what men raised, despite equal educational pedigree.
• Ed Foster Simeon (U.S. Soccer Foundation): Leads a sports-based youth development program serving ~30,000 children nationally.
  • Methodology: Trains youth coaches to act as mentors, leveraging sports to teach transferable life skills (leadership, teamwork) to the 99% of athletes who will not play professionally.
  • Impact: Focuses on "bending the arc upward" for children in underserved communities by providing positive adult mentorship.
• Andrea Hoffman (Culture Shift Labs): CEO advising senior leaders on diversity and innovation, utilizing a database of diverse elite innovators and investors of color.
  • Success Case: Helped Carnegie Hall increase board diversity, resulting in an African-American trustee donating the largest programmatic gift in the institution's 125-year history.
  • Strategy: Emphasizes celebrating "bright spots" and progress rather than solely focusing on problems.
• Rosie Rios (U.S. Treasurer): Oversees the Bureau of Engraving and Printing and the U.S. Mint; Chair of the Advanced Counterfeit Deterrent Steering Committee.
  • Currency Redesign: Announced a historic decision to feature a woman on U.S. currency for the first time in 120 years, with concepts unveiling in 2020 (centennial of the 19th Amendment) and Harriet Tubman appearing on the $20 bill.
  • Theme: The new currency family is themed "Democracy," marking the first time the Bureau of Engraving and Printing will feature real women rather than allegorical figures like "Lady Liberty."
  • Personal Context: Longest-serving Senate-confirmed official in the Treasury in the current administration; was part of the 2008 transition team during the financial crisis.
• Jose Antonio Vargas (Define American): Journalist, filmmaker, and undocumented immigrant who outed himself in 2011 to advocate for immigration reform.
  • Organization Mission: "Define American" encourages undocumented immigrants to "come out" and mobilize allies (employers, teachers) to support the movement.
  • Economic Impact: Legalizing the estimated 11 million undocumented residents would add $1.2 trillion to the economy over the next decade and create 143,000 jobs annually.
  • Cultural Shift: Compares the coming-out process of the LGBTQ+ movement (which shifted culture before politics) to the current strategy for undocumented immigrants.
  • Constraint: Notes that unlike privileged citizens, undocumented immigrants cannot simply "move out of the country" despite political turbulence.

Structural Barriers and Economic Costs

• Capital Formation Gaps: Social entrepreneurs from marginalized backgrounds face significant access barriers; African-American and female-led social enterprises raise significantly less capital than white male counterparts regardless of talent or pedigree.
• The "Micro-Entrepreneurship" Trap: Andrea Hoffman notes that while minority women-owned firms grew from 1 million (17% of women-owned firms) in 1997 to 3.1 million (33%) in 2015, the average firm size is tiny (roughly one employee per firm), suggesting self-employment rather than scalable business growth.
  • Revenue Data: Minority women-owned firms generated $268 billion in revenue (1997–2015); African-American women-owned firms generated $52.6 billion with 1.3 million firms.
• Mentorship Gap: There are 4.5 million at-risk children with mentors, but 9 million children need mentors, creating a massive deficit in support systems.
• Demographic Reality: 88% of projected U.S. population growth over the next 50 years will come from immigrants, primarily Latino and Asian populations, challenging the historical Black-white binary.
  • California Context: In Los Angeles, 72% of women are women of color; in California, 51% of residents under 25 are Latino.
• Perception vs. Reality: 47% of young white Americans believe discrimination against white people is as big a problem as discrimination against people of color, despite data showing white students receive more private scholarship aid.

Strategic Solutions and Narrative Shifts

• Narrative as a Tool: Cheryl Dorsey argues that the "entrepreneurial narrative" can serve as a counterweight to systemic anti-Blackness and discrimination, empowering young leaders to seize capital and tools.
• Institutional Change: Andrea Hoffman and Rosie Rios emphasize that institutions must move beyond "beating the negative narrative" to celebrating success stories and changing internal cultures.
• Redefining Success: Success must be measured not just by entrepreneurship or Harvard attendance, but by basic outcomes like high school graduation, meaningful employment, and family stability for the 16 million children living in poverty.
• Evidence-Based Investing: Ed Foster Simeon stresses that public and private funds must prioritize evidence-based practices with measurable outcomes, citing a 89% improvement rate in health outcomes for children in their programs.
• Social Capital: The panel identifies "invisible capital" (social capital/interstitial trust) as a critical missing resource for people of color to enter decision-making rooms and secure funding.
• Media Levers: New media and social media are cited as effective tools for shifting narratives, whereas traditional "old media" often fails to move the needle on these issues.

Future Outlook and Challenges

• The "Straight White Man" Question: A central challenge remains how to engage straight white men who feel threatened by demographic shifts, particularly those who have not benefited from recent economic gains.
• Democratic Backlash: Rosie Rios acknowledges the current "messy" nature of democracy, citing global democratic backsliding (Brexit, Trump, Occupy) but argues that public discourse is essential to finding solutions.
• Policy Recommendations:
  • Invest in Human Capital: View human capital (education, mentorship) as the highest ROI investment for GDP and consumer participation.
  • Network Access: Create pathways for marginalized groups to enter trust-based investment networks currently dominated by homogenous groups.
  • Government Role: The administration is required to pursue evidence-based spending; agencies must prioritize interventions with proven results.
• Long-term Goal: The ultimate aim is a society where discussions of race, gender, and orientation become obsolete because inclusivity is the default state.