Published by Inequality.org — Excerpt
Systemic racism has contributed to the persistence of race-based gaps that manifest in many different economic indicators. The starkest divides are in measures of household wealth, reflecting centuries of white privilege that have made it particularly difficult for people of color to achieve economic security. This series of charts begins with a look at the widening of racial wealth gaps in the United States that have coincided with the extreme concentration of U.S. wealth. [Click here to see full text and charts]
The Racial Wealth Divide
By the middle of the 21st century, the United States will be a “majority minority” nation. If we hope to ensure a strong middle class, historically the backbone of the national economy, then the financial health of households of color will become even more urgent than it is today. Closing the persistent “wealth divide” between white households and households of color, already a matter of social justice, must become a priority for broader economic policy.
The median Black family, with just over $3,500, owns just 2 percent of the wealth of the nearly $147,000 the median White family owns. The median Latino family, with just over $6,500, owns just 4 percent of the wealth of the median White family. Put differently, the median White family has 41 times more wealth than the median Black family and 22 times more wealth than the median Latino family.
Families that have zero or even “negative” wealth (meaning the value of their debts exceeds the value of their assets) live on the edge, just one minor economic setback away from tragedy. Black and Latino families are much more likely to be in this precarious situation. The proportion of Black families with zero or negative wealth rose by 8.5 percent to 37 percent between 1983 and 2016. The proportion of Latino families with zero or negative net worth declined by 19 percent over the past 30 years but is still more than twice as high as the rate for Whites. Click here to continue reading.