What Is the Racial Wealth Gap?
Although the term “racial wealth gap” technically refers to the difference in assets owned by different racial or ethnic groups, this gap results from a range of economic factors that affect the overall economic well-being of these different groups. The term reflects disparities in access to opportunities, means of support, and resources.
Federal surveys reveal that a large disparity exists among these racial and ethnic groups in the United States.
Data from the 2019 Survey of Consumer Finances examining assets such as savings, investments, retirement and pensions, and especially home ownership, reveal that White families had eight times the wealth of Black families and five times the wealth of Hispanic families.
Data on “other families”—a diverse category that includes Asians, American Indians, Native Hawaiians, and those who report more than one racial identification, among others—showed that they had less wealth than White families but more than Hispanic and Black families.
This article compares the economic status of four racial and ethnic groups in the United States—Blacks, Hispanic, Native Americans, and Asian Americans—with that of Whites. These groups have experienced both formal, legal discrimination under U.S. law as well as discrimination in U.S. societal attitudes and practices. The somewhat greater emphasis on the status of Black Americans corresponds to the larger number of studies and more detailed information analyzed and available with respect to Black Americans.
… Studies of the racial wealth gap vary somewhat in their relative measures of the different groups’ wealth.
However, all confirm a gap of many multiples between the wealth of White families and the wealth of Native American, Black, and Latinx families. Observers have described the situation as being “as bad or worse than it was before Civil Rights .”
Asian Americans represent a large and financially diverse group that has not, as yet, been studied extensively. Recent research by the Pew Research Center shows it is the most economically divided racial or ethnic group in America: In three and a half decades, income distribution among Asian Americans has gone from being one of the most equal to being the most unequal among the major racial groups in the U.S.
The video below isn’t directly related to the article but contains relevant information about the topic.
Understanding the racial wealth gap
Jul 13, 2020
The largest creators of wealth in America have been Black people. However, racism has prevented them from deserved earnings.