A new study by researchers at Brandeis University in Waltham, MA claims that in the last 23 years, the gap between the average net worth of African-American families and white families has more than quadrupled:
In examining data from 1984 to 2007, Brandeis's Institute on Assets and Social Policy found that the average white family now has accumulated $95,000 more in total wealth than the average African-American family. One quarter of African-American families, the report notes, currently have no financial assets to protect themselves from financial ruin. By 2007, the average middle income white household accumulated $74,000," the report's authors note, "whereas average high income African Americans owned only $18,000.
The racial wealth gap results from historical and contemporary factors but the disturbing four fold in crease in such a short time reflects public policies, such as tax cuts on investment income and inheritances which benefit the wealthiest, and redistribute wealth and opportunities. Tax deductions for home mortgages, retirement accounts, and college savings all disproportionately benefit higher in come families. At the same time, evidence from multiple sources demonstrates the powerful role of persistent discrimination in housing, credit, and labor markets.
To read more of the report go here.
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