Racial Wealth Gap
It’s no secret that there is a large gap in wealth between Black and white Americans. In 2020, the median household income for white families was $74,912, compared to $45,870 for Black households. And according to the Federal Reserve Board, the median net worth of Black families in the U.S. was only $24,100, less than 15% of the $188,200 median for white families.

Throughout history, Black workers have been and continue to be paid less than their white counterparts and have had a more difficult time building long-term wealth. Bias-related hiring decisions, institutional lack of diversity, and centuries of systemic issues are several key factors that contribute to this wealth disparity between Black and white households.
Did you know?

Redlining was the practice of denying loans based on racial identity. In the early 20th century, Black families were systematically denied home loans in wealthier white neighborhoods. As a result, Black families were cut off from building intergenerational wealth that comes with home ownership, further increasing the wealth gap between Black and white Americans.
TOOLS AND RESOURCES TO EXPLORE
Read:
  • Read this Reuters article to learn about injustices against Black farmers. In the 20th century, Black farmers in the U.S. lost over $300 billion worth of land.

  • This article from the University of Houston covers how a new study from UH Law Center found racial and ethnic disparities in lending industry advertising.
Watch:
  • Watch this video to learn more about how redlining in the 20th century contributed to the racial wealth gap and segregation. (3:03 mins)

  • This episode of Netflix’s series Explained does a great job of demonstrating the major factors that contribute to the racial wealth gap in America. (16:12 mins)

  • This brief 2 minute video provides a brief history of the phrase “40 Acres and a Mule.” (2 mins)
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