It will take 228 years for the wealth of Black families to catch up to that of Whites.
That alarming calculation was compiled from the findings of a new study by the Corporation for Enterprise Development and Institute for Policy Studies.
The study found that between 1983 and 2013, Black household wealth only grew from $67,000 to $85,000. Latino household wealth went from $58,000 to $98,000, while White household wealth skyrocketed from $355,000 to $656,000.
If these rates continue, by 2043, the average wealth growth per year for Black households will be $765, for Latinos $2,254, and for Whites, $18,368.
Dedrick Asante-Muhammad, Director of the Racial Wealth Divide Project at CFED, said of these disproportionate economic disparities: “To make it even worse, it’s 228 years to even catch up to where Whites are today.
“In 2043 when minorities will be the majority, that wealth disparity will be a million dollars. We’re going in the wrong direction.
“We are not on a path toward racial economic equality, we’re on a path to growing inequality as the country is becoming more and more people of color.” Asante-Muhammad added, “That’s going to be a severe problem for the national economy.”
Emanuel Nieves told NewsOne Now guest host Joia Jefferson Nuri there are a number of “systematic barriers” that are limiting the ability of Latino and African-American families from building wealth.
Nieves cited employment disparities, income inequality, low rates of entrepreneurship, lack of access to capital and a lower return on investment in higher education as the main culprits halting wealth creation for minority families.
NewsOne Now panelist A’Shanti Gholar added equal pay to the list of barriers that prevent African-American and Latino families from building wealth. She said, “If you are a young Black woman coming out of college and you are immediately paid less” and existing public policies revolving around equal pay add on to the conundrum of wealth disparities.
Christopher Prudhome, President of Vote America Now, added the lack of investments in the financial markets as another barrier to wealth building in minority communities and the inability of many minority families to afford occupational licensing for certain professions as a stumbling block.
Prudehome said, “In certain states it costs $10,000, $12,000 to get certain occupational licenses.”
“We know that most Black communities and Black families cannot afford that type of school or education” to obtain the licenses for many high paying occupations. Prudehome added, “That is a major difference in entrepreneurship.”
Watch the NewsOne Now discussion of the ever-increasing wealth gap in the video above for full analysis of the Corporation for Enterprise Development and Institute for Policy Studies report.
PHOTO CREDIT: Getty