Understanding the Racial Wealth Gap

A lot of people don't truly understand wealth inequality in the United States.

Mandatory further reading.

(Download this link and read, because you have to know this information)

https://socialequity.duke.edu/sites/socialequity.duke.edu/files/site-images/FINAL%20COMPLETE%20REPORT_.pdf

Since 1983 there hasn’t been any significant changes in wealth for blacks. As you see the line is flat. Keep in mind you must understand there is a difference between wealth and income.

Research and public policy have traditionally focused on education and income as drivers of upward mobility.

A comprehensive understanding of wealth – the value of what you own minus what you owe – demonstrates how vulnerability to economic calamity like the Great Recession can have vastly different consequences. Differences in wealth accumulation are important to examine because wealth – whether invested in a debt-free education, small business creation, housing or retirement savings – generates opportunity and improves well-being. In addition, wealth provides the freedom to innovate. Starting a business, inventing a new product, making land productive, attending vocational training, and making investments all beget greater wealth – but they require liquid wealth to get started. In sum, wealth provides people with initial capital to purchase an appreciating asset, which in turn, iteratively generates more wealth. Accumulated wealth can also be passed on to children, begetting yet more wealth and opportunity in an intergenerational manner.

Source: (Umbrellas Don’t Make it Rain: Why Studying and Working Hard Isn’t Enough for Black Americans, 2015)