Today I Read that blacks and latinos families will soon be broke
Last Fall Fortune magazine's Josh Hoxie pointed to the disturbing trends in household wealth by race. Based on analyses conducted by Hoxie and his co-authors Collins, Asante-Muhammed, and Nieves, black and latino households have negative net worths while white households are averaging six-figures.
Quick Summary: Data analyzed indicate that on the whole, black and latino families have substantially less wealth than white families. The researchers identified historical and current government policies, including restricted access to subsidized mortgages and tax expenditures, which have penalized minority families. Bold policy changes and leadership are cited as remedies to the long standing wealth imbalance.
Big Takeaway: By 2053 black families are anticipated to own zero wealth in the U.S. and latinos will follow suit by 2073.
Something I did not know: In 2017, the median black family has $1,700 in wealth, in 1987 they had $6,800. Over the same period, the median white family wealth increased from $102,000 to $116,800.
Makes me feel/think about: The decline in household wealth is real and it is structural! This is infuriating! Learning that home ownership is the fastest route to increasing household wealth, yet government policies and business practices deliberately excluded minorities is beyond frustrating.
This quote was really upsetting: "Black and Latino families with a member holding a four-year degree own just a fifth of the wealth of equivalent white families. In fact, they own less wealth than a white family whose head has just a high school diploma. These numbers represent a troubling trend in which assets and economic opportunities are channeled away from families of color and toward white families."
I am motivated to take action and ensure the levers of economic growth work for everyone. I am reminded that business and money only goes as far as policies allow and its crucial to stay politically engaged to improve access and fairness.