In a report on a longitudinal study of approximately 1,700 families, Tatjana Meschede, Sam Osoro, and Thomas Shapiro reported four primary spheres of life that account for the majority of the wealth gap between white and black U.S. citizens, as well as offered policy changes that may help to close this gap. I found their report to be interesting and I agree with their findings and solutions.
First, the authors reported that homeownership was the largest predictor of the wealth gap since owning a home is the largest investment families make and the biggest piece of a wealth portfolio (Meschede, Osoro, & Shapiro, p.3). White people have a much higher rate of homeownership than do black people, as black people must deal with a history of systemic racism that caused them to have less access to credit, lower incomes, residential segregation, foreclosures, high risk loans and mortgages, and being demanded to pay extremely high prices for homes (Meschede et al., pps.3-4). To remedy this, Meschede et al. insist upon enforcing fair policies in lending, mortgage, and housing to ensure black people have equal opportunities to own homes (Meschede et al., p.6).
Next, Meschede et al. link together the effects of unequal income opportunities for black people with higher rates of unemployment. Again, due to a history of systemic racism, black people deal with being discriminated against in the hiring process, being trained and promoted at work, as well as being offered benefits through their employers (Mescheded et al., p.4). Due to these same factors, being unemployed affects members of black communities even more (Meschede et al., p.5). Finding a good-paying job is challenging enough and when one loses it and must rely on emergency savings, those savings are no longer able to go towards a wealth portfolio, increasing the gap between black and white people. Meschede et al. suggest policies enforced at local, state, and federal levels that increase minimum wage, equal pay, and benefits offered by employers (Meschede et al., p.6).
Meschede et al. then point to the wealth gap in terms of inheritance. White folks are much more likely to receive inheritances from their families so most start out with a larger wealth portfolio than their black counterparts (Meschede et al., p.5). To offset this, Meschede suggest taxing the very wealthy more and those that have lower incomes, less (Meschede et al., p.6).
Finally, Meschede et al. highlight systemic racism once again as the catalyst for unequal college education opportunities. Many black people are segregated into lower-income areas that are given less tax money for schools, resulting in lower-quality education and preparation for college (Meschede et al., p.5). This factor, along with increasing tuition, are causing many black students to drop out of school or graduate with extremely high debt, if they go to college at all (Meschede et al., p.5). Meschede et al. posit that investing in higher-quality education for all and enforcing policies that assist low-income students attend school as well as not leave them debt ridden upon graduation (Meschede et al., p.6).
I agree with the authors that a long history of systemic racism is to blame for the income disparities and wealth gap for black citizens, not personal choices or character flaws. It will take a lot more time to convince policy makers to adjust the current agenda but it can be done, if not by one topic at a time. The attitudes and ideologies of racism instilled within many American citizens have recently been shown throughout the recent presidential campaign. But I would like to think that there are more citizens who recognize systemic racism for what it is and does, and who are willing to fight even harder to eliminate it.