The Reason For Racial Wealth Gap Pinpointed
Apparently, doing all the right things” isn’t quite enough for Black folks to close the wealth gap between ourselves and whites…and it all boils down to one big factor.
No it’s not hard work, higher education, or going into more lucrative fields. The bottom line is…inheritance. Many white people are simply born with a claim to substantial amounts of family money.
According to Bloomberg, recent findings from the Federal Reserve’s Survey of Consumer Finances suggest that the gap in wealth between white households and African American homes lands at $13 in net wealth in median white households for every $1 in net wealth of the median black household.
However, the traditional methods of wealth accumulation do virtually nothing for Blacks to begin to close said gap. A study from researchers Brandeis University and public policy group Demos finds that neither attending college,
raising children in a two-parent household, working full time, nor spending less does anything to the racial wealth gap.
For instance, college attendance is one of the number one ways Black people seek to widen their earning potential. While it definitely helps us to earn more and thus accumulate more wealth, the median white adult attending college already has 7.2 times the wealth of the median black adult. The same goes for two-parent homes, full time employment, curbing spending, etc. — the average white person making the same exact moves already has more money.
Another study from Duke University also shoots down the myth of African Americans being too-heavy spenders and over-consumers. At every income level, blacks actally spend less than similarly situated whites.
DAMN…so if all this is getting us nowhere, then what is the answer??
CreativeCommons
Source: bossip.com
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