The latest figures from the Federal Reserve released on Monday show that the wealth gap between whites and blacks in the United States has remained tight for the past three years, ending in 2019.
The Federation said in a comprehensive report on consumer finance that the average white family has eight times the wealth of a typical black family and five times the wealth of a typical Hispanic family.
By the end of 2019, the average wealth of white families was $ 188,200 and the average wealth of black families was $ 24,100. The average wealth of Hispanic families was 36,100.
The average is significantly higher because there are more white families in the wealth distribution, the federal commented.
The average wealth of white families is $ 983,400, $ 142,500 for black families and $ 165,500 for Hispanics.
The Federal Survey reflects that the wealth growth rate of black families over the past three years has been faster than that of white families. That is, in full dollar terms, the growth rate of blacks has moved away from a small base figure and as a result the distance between whites and blacks has increased slightly. The average wealth between whites and blacks in 2019 rose to $ 164,100 from $ 163,700 in a previous survey.
Both black and white families have not yet been able to recover their wealth before the recession, the federal government said.
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The survey found that the average black or Hispanic family has a liquid savings of $ 2,000 or less, more than four times that of the average white family.
Many black economists have told Marketwatch that the only way to solve the race problem in the United States is to reduce the wealth gap, and that government policies such as the Red Lining have sharpened the roots of slavery and prevented blacks from growing wealth through their ownership.
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According to a federal study, 46% of white families own a home, compared to just 17% of black families.
This gap may reflect parental wealth, as black families are less likely to receive payment assistance from their parents.
In a speech on income inequality on Monday, Loretta Meister, president of the Cleveland Federation, said the United States was creating the most comprehensive economy.
“If steps are not taken to promote an inclusive economy – one in which people have the opportunity to move themselves and their families out of poverty, one of which is that systemic racism does not limit opportunities for which everyone can fully participate – the U.S. economy will not be able to live to its full potential,” he said.
They set an agenda to get more Americans fully involved in the economy: to invest in poorer neighborhoods, end digital segregation, increase access to higher education, and eliminate systemic inequality in credit access.
“This will help ensure that the American dream is not a pipe dream,” Meister said.