Banking deregulation reduces racial wage gap

A recent study by a group of Brown University academics found that one of the benefits of a deregulated banking industry is a reduced (but not eliminate) wage gap between blacks and whites. The theory is that when laws preventing banks from incorporating in other states (than they were already operating in) were eliminated, this eventually led to increased competition and it also created better access for entrepreneurs to start up businesses that would employ more people. The more people employed the more likely hood that racial bias would be reduced. The states with the highest racial wage gap before deregulation seemed to have benefited the most after deregulation. Big government advocates that want to punish the banking industry for the recent financial crisis would do well to look over this study carefully before over-reacting with regulatory schemes.