Assignment 11- Shapiro
The racial wealth gap between Whites and African-Americans in the United States is extremely large. In addition, the gap continues to widen due to some of the factors found in this report. The factors show that Whites in the United States have and continue to have an advantage that keeps them in a beneficial position financially verses African-Americans. These factors are Homeownership, Household Income, Unemployment, Education and Inheritance. These factors are some of the main causes of the gaps, which have been only increasing the gap over time.
Owning a home is the American dream and one of the largest investments for American families. Many factors within the process of homeownership that African-Americans do not benefit from are keeping them at the lower end of the gap. Discrimination keeps African-American’s in certain neighborhoods where the equity might not increase as much as it would in a White neighborhood. This segregation has been set in place to make sure the wealth gap continues to benefit white Americans. White Americans are able to build equity and have access to credit, home loans and lower interest rates, which puts them ahead in being able to increase their financial portfolios.
Household income and unemployment go hand in hand since the discriminatory disadvantages that African-American’s experience in the workplace puts them in positions where they are making far less than White Americans. African-Americans are more likely to be on unemployment for a longer period of time and are more likely to have to use their emergency savings and therefore are not able to have extra money for investments.
Educational inequalities give White Americans a head start on future financial success because education in predominately African-American neighborhoods is poor, which then can hinder them from being prepared for higher education. African-Americans are also more likely to continue higher education due to finance obligations at a younger age. White Americans are more likely to graduate from college with less or zero debt and African-American’s graduate from college which a larger amount of debt and are not able to save or invest their money.
Since White Americans are able to save more money and have more investments, they are able to save money for the younger generations. They are able to give their children money to put a down payment on a home, help them in case of an emergency, pay for elite education. All of the factors that give their children an a head start with their financial portfolios.
I agree with these factors hindering non-white Americans from achieving fianancial success. I do think that systems have been set in place especially with segregation and school zoning to keep certain races in a particular area. Tax breaks will continue to be a major contribute to the gap as well.
