Abstract
This paper examines the issue of the Black-White wealth gap in the United States. The paper presents pertinent data illustrating that a large gap exists in wealth accumulation between Black and Whites in the United States. The paper presents a number of implications for the Black American population as a result of this large wealth gap. Finally, the paper presents the factors or causes of the large Black-White wealth gap in the United States.
Highlights
“Wealth, what you own minus what you owe, allows people to start a business buy a home, send children to college and ensure an economically secure retirement.”1 Writing about the importance of wealth, Altonji et al (2000) point out that:
The four centuries long stay of people of Black African descent in the United States and the New World has led to relative poverty of Black people worldwide, while the four centuries long stay of European Americans has led to incredible wealth accumulation and concentration for people of European descent all over the world
We focus much of our attention on the most obvious possibility, which is that the wealth gap may arise because whites have higher incomes than blacks and have marriage and fertility patterns that are more favorable to wealth accumulation....Both savings levels and savings rates are positively related to income
Summary
This paper examines the issue of the Black-White wealth gap in the United States. The paper presents pertinent data illustrating that a large gap exists in wealth accumulation between Black and Whites in the United States. The paper presents a number of implications for the Black American population as a result of this large wealth gap.
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