How the Muni Market's 'Black Tax' Costs Cities Millions

The video discusses the concept of the 'black tax' and its impact on communities like Memphis, where a significant black population faces higher borrowing penalties. The research, motivated by events like George Floyd's murder, examines racial bias in municipal bond markets. Findings reveal substantial pricing differences based on racial demographics, with long-term effects on infrastructure and education, exemplified by Treadwell Middle School. The hope is that increased transparency will lead to fairer pricing and positive community outcomes.

What is the 'black tax' as discussed in the context of Memphis?

How does the percentage of black population in a municipality affect its borrowing penalties?

What motivated the researchers to investigate the municipal bond market?

What were the findings regarding the impact of racial bias on municipal bond pricing?

Discuss the long-term ramifications of the borrowing penalties on educational infrastructure.

What is the estimated borrowing penalty for Shelby County due to its black population percentage?

What is the hope of the researchers in shedding light on the differences in municipal bond pricing?