Closing the racial wealth gap: debunking 10 common myths
A report called What We Get Wrong About Closing the Racial Wealth Gap was released this month by a group of economists and researchers from Samuel DuBois Cook Center on Social Equity at Duke University and the Insight Center for Community Economic Development. They report that the racial wealth gap in the United States is “large and shows no signs of closing”; this holds true at all levels in the wealth spectrum:
The white household living near the poverty line typically has about $18,000 in wealth, while black households in similar economic straits typically have a median wealth near zero. This means, in turn, that many black families have a negative net worth.
The 99th percentile black family is worth a mere $1,574,000 while the 99th percentile white family is worth over 12 million dollars. This means over 870,000 white families have a net worth above 12 million dollars, while, out of the 20 million black families in America, fewer than 380,000 are even worth a single million dollars. By comparison, over 13 million of the total 85 million white families are millionaires or better.
The authors then address ten common myths about the racial wealth gap, many of which are just straight-up racist — if only blacks just worked harder, saved more, learned more about financial literacy, etc. — particularly the one about black family disorganization:
The increasing rate of single parent households is often invoked to explain growing inequality, and the prevalence of black single motherhood is often seen as a driver of racial wealth inequities. These explanations tend to confuse consequence and cause and are largely driven by claims that if blacks change their behavior, they would see marked increases in wealth accumulation. This is a dangerous narrative that is steeped in racist stereotypes.
Single motherhood is a reflection of inequality, not a cause. White women still have considerably more wealth than black women, regardless whether or not they are raising children. In fact, single white women with kids have the same amount of wealth as single black women without kids. Recent research also reveals that the median single-parent white family has more than twice the wealth of the median black or Latino family with two parents. These data show that economic benefits that are typically associated with marriage will not close the racial wealth gap (Traub et al. 2017). Having the “ideal” family type does not enable black households to substantially reduce the racial gulf in wealth.
And overall, the authors conclude that the wealth gap is structural in nature, cannot be solved through the individual actions of blacks, and can only be solved through “a major redistributive effort or another major public policy intervention to build black American wealth”.
These myths support a point of view that identifies dysfunctional black behaviors as the basic cause of persistent racial inequality, including the black-white wealth disparity, in the United States. We systematically demonstrate here that a narrative that places the onus of the racial wealth gap on black defectiveness is false in all of its permutations.
We challenge the conventional set of claims that are made about the racial wealth gap in the United States. We contend that the cause of the gap must be found in the structural characteristics of the American economy, heavily infused at every point with both an inheritance of racism and the ongoing authority of white supremacy.
Gosh, it’s almost like if one group of people owned another group of people for hundreds of years — like the wealth of the group was literally the bodies, minds, and souls of the members of the other group — and then systematically and economically discriminated against them for another 100+ years, it’s nearly impossible for them to catch up. (via @eveewing)
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