Last week we talked about what actions we were taking to fight for social justice. Part of that has been continuously educating ourselves and learning more about how racism is present in our society today. We recently watched Ava DuVernay’s 13th on Netflix, which we’d highly recommend if you haven’t already seen it. 13th is a documentary that traces the history and link between slavery and today’s mass incarceration. The film’s name comes from the 13th Amendment to the Constitution which makes it unconstitutional for someone to be held as a slave, “except as a punishment for crime whereof the party shall have been duly convicted.” In the film, DuVernay argues that “the way we use the criminal justice system in this country, particularly the way we use incarceration, is really an extension of slavery, that it's a form of racialized control.” If you’re interested in learning more, you can also check out this article Why Prisons Owe Their Cruelty to Slavery, part of the New York Times 1619 project that examines the legacy of slavery in the U.S.
Here’s what we found when we looked into whether or not Good Capital is in any way supporting the prison system in the U.S.
We have helped our clients divest from two of the largest publicly traded prison companies. These companies are largely owned by passive index funds. If you own index funds or target date funds, chances are you are invested in private prison companies.
In our portfolio, we use publicly traded mutual funds that are ESG (environmental, social, governance) rated. Because the funds we invest in are socially responsible, we are proud to say that we are not currently invested in any private prisons.
We encourage you to ask these questions to the other financial companies you work with - your banks, other wealth managers, your 401(k) provider. Are they invested in or lending to private prisons? How can they help you to invest in a way that is anti-racist? What are they doing to promote racial equity?
We all have to be and do better - as consumers, as investors, as human beings.