Apparently, when you look at the numbers, the median black wealth isn’t looking so good.
While there have been many looks at African-American’s and the subject of wealth and income, a study recently published by Prosperity Now paints a very bleak outlook for us. The report was first covered by The Guardian, where they interview a Baltimore native building her net worth by $50 a month in order to escape the cycle of declining black wealth.
The study looked at the median wealth (not income) of white, black, and latino households over several years. African-American households have seen a drop in median black wealth from $6,700 to $1,700 from 2010 to 2013.
If this trend holds up, but 2053, when people of color are predicted to represent the majority of Americans, over 50% of African-Americans will have $0 in wealth. We will represent a larger portion of America’s population and a smaller portion of the wealth.
It’s important to note the emphasis on wealth and focus on passing wealth down to future generations. The problem and solution both require giving the same type of head start to future generations that many African-Americans have not had.
What are your thoughts? Leave a comment and share with the community.
Damien is a Personal Finance Nerd and former Facebook Product Manager who started Wealth Noir to help others find wealth. He actively invests in stocks, robo advisors, and cryptocurrency … but loves real estate investing. He holds an MBA from MIT and a Comp Sci & Econ degrees from Unv. of MD. He’s a proud dad, which is his biggest accomplishment.
It’s important to understand how much of this is driven by structural poverty and how much can be influenced by increased financial literacy.
Damien Peters says
I think the drivers of the wealth gap are very clear. I do want to turn the conversation to how we dig ourselves out of the ditch that we have been put into over the last few centuries.
I’m the person who refuses to be told I can’t walk again. Going to tap dance on that doctor’s head.
Celina Falck-Cook says
This is driven by people who don’t know wealth is endless and all can have abundance. It can be achieved by anyone who focuses on creating it without limited beliefs and who is not easily spooked by Freddy Kruegers and downers who write articles as irrational as this one without any truth to it. And what in the world is the “racial wealth divide?” Holy Mother of God, let’s not give any importance to a construct as ludicrous and destructive as this one. This theory is garbage. Projecting something based on data from today 30 years into the future. There are so many variables involved that it is impressive how they could even make this look plausible. Not.