“White Americans have been provided with up escalators they can ride to reach their goals without hurdles. Meanwhile, Black Americans have been forced onto down escalators which they must run-up to reach their destination.”
The Samuel Dubois Cook Center on Social Equity at Duke University recently released a striking report on Black wealth in America, entitled “Still Running Up the Down Escalator: How Narratives Shape our Understanding of Racial Wealth Inequality,” This 36-page report, written by Natasha Hicks, Fenaba Addo, Anne Prince, and William Darity examines the stark inequalities in the economic situation of Black Americans.
The cover page of the 36-page, in-depth report, published earlier this fall.
“Despite a decade of philanthropic investment and renewed attention from progressive elected officials, policymakers, and advocates, we have yet to make discernible progress in ensuring Black families have the power and freedom wealth bestows,” the report says (page 1).
“The typical Black household’s wealth (in 2019) was $24,100; for White households, it was $188,200. This translates into the typical Black household holding about 12 cents for every dollar of wealth held by the typical White family– a disparity that has remained largely unchanged since 1989 (Kent and Ricketts, 2020).” ( page 6)
Black families are disproportionately shut out of access to opportunities that would improve generational wealth, such as home loans, business loans/ownership, and financial assets. Because of the long history of these inequalities, Black wealth in America has improved little in the last 10 years.
The report continues by analyzing how Covid-19, the worst Pandemic in US History, has widened the wealth gap in America.
“Racial wealth inequality remains a persistent defining American issue, particularly in the wake of the COVID-19 pandemic’s disproportionate toll on the physical and financial health of Black people,” the report says. “The COVID-19 pandemic and the corresponding economic crisis have only exacerbated what was already a collective failing by policymakers and elected officials, who continue to invest in solutions focused on individual behavior instead of systems change.”
Covid-19 placed over 114 million people into unemployment over the course of the pandemic, with an overrepresentation of Black Americans in these figures. The figures below were published in the report to highlight the number of liquid assets and wealth available to white families versus black families in 2019, just one year before the pandemic.
This figure taken from the report shows the median liquid assets by race and income. ( figure 1, page 8)
This figure taken from the report shows the median wealth accumulated by race and wealth quintiles. (figure 2, page 8)
As illustrated by these figures, the average White family in America maintains a leg up financially through both income and assets, which is why when the pandemic …….