From Prosperity Now (https://prosperitynow.org/):
Like you, we see every day the harmful effects of inequality on families, communities and our economy. For years, we’ve known that the racial wealth divide is growing larger, not shrinking. And, while there’s no shortage of evidence for this claim, a report we published last year found that if the trends of the past 30 years continue, it will take the average Black family 228 years to amass the amount of wealth enjoyed by the average White family today.
Although that may seem crazy, our newest research finds that if you examine median wealth trends over the past three decades, the racial wealth divide will only continue to grow—into perpetuity—and it will do so at an accelerated rate.
You read that correctly: if we do nothing, the racial wealth divide will never close. Ever.
This startling finding is documented in our new report, The Road to Zero Wealth, which we published in partnership with our friends at the Institute for Policy Studies.
Among the report’s other findings, IPS and Prosperity Now found that:
- When we exclude durable goods, we see that median wealth for Black and Latino households has declined by 75% and 50%, respectively, over the past three decades. If this continues, by 2053, median wealth for Black families is projected to hit zero, while Latino median wealth will reach zero just 20 years later. Given that the majority of our population will be comprised of people of color by 2043, these findings mean that the median wealth of more than half the country will be $0 in just a few decades.
- The decline in wealth owned by households of color has implications not only for these households, but for our economy as a whole; if current trends continue, the racial wealth divide will greatly hollow out the American middle class. Already, we see that the drastic decline of Black and Latino median wealth is leading an overall national decline of median wealth that has occurred over the last years and will only get worse as time continues.
Sandra, racial wealth inequality has reached a breaking point. The data highlighted above assume that all economic conditions remain the same, and do not account for the devastating impact that policies supported by Congress or President Trump might have on households of color and the American middle class writ large.
We cannot wait for these policies to come to fruition to take action. Please help us equip advocates with the data they need to fight for a fairer economy by reading and sharing The Road to Zero Wealth today.
Thank you for all you do to advocate for a more equitable and prosperous U.S. economy.
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