The Racial Wealth Gap: Why A Typical White Household Has 16 Times The Wealth Of A Black One
If all you do is read this Forbes article, you really won’t know why, even though they float some really creative excuses.
The United States is becoming much more racially and ethnically diverse. At the same time, it’s becoming more unequal in terms of wealth and income.
Some people are scratching their heads, I happen to think it’s a sequitur.
Much of that disparity comes from the gap in the home values in white neighborhoods versus the neighborhoods where people of color live. The roots of the gulf stem at least as far back as the 1934 National Housing Act, which redlined black neighborhoods, marking them as credit risks. Though outlawed in the ’60s, the effect persists today in the form of neighborhoods, consisting mostly of people of color, that have high poverty rates, low home values and declining infrastructure.
The cause is therefore something which was outlawed a half century ago.
Less obvious factors have historical roots in prohibitions against teaching slaves to read and the practice of “separate but equal” educational facilities. They continue to matter because parents’ educational level and family income and wealth are strong predictors of children’s educational success.
The cause is therefore things which were outlawed in 1865 and 1954, respectively.
Bummer, because they forgot to blame the KKK.