Public policies have failed us in ensuring racial wealth equality and equity, especially between White households and households of color, according to a new report from Corporation for Enterprise Development (CFED) and Institute for Policy Studies. They report that “if average Black family wealth continues to grow at the same pace it has over the past three decades, it would take Black families 228 years to amass the same amount of wealth White families have today.”
The wealth divide and opportunity gap between White households and Latino/a and Black households are steadily growing in the country even though people of color are projected to be the majority of the U.S population by 2043, according to the report.
Among the major findings of the report:
The report suggested that, wealth- which includes money in the bank, a first time home, a college degree, retirement savings and all the other countless opportunities afforded by having savings and investments—is key for families to get through difficult circumstances, and empowers and propels them to climb the economic ladder, to effectively get ahead.
Significant policy reforms are imperative to fix the very public policies and unfair wealth-building programs which have contributed to the current wealth gap, the report concludes.