“As much as I thought I knew about the wealth gap, I think I actually knew about the wage gap,” McKesson said, starting the segment. So much of the discussion around inequality focuses on income, not wealth.
“Income is important,” Collins said, “but we often overlook wealth. Wealth is what you own minus what you owe.”
As the report points out, Black and Latino families in the middle-income quintile would need to earn 2-3 times as much as White families in order to enter the middle class.
“Wealth is where the past meets the present,” Chuck said. The implications of the slavery, red-lining, and mass incarceration all show up in the massive disparity in wealth we see today.
By 2020, median White households are on track to own 86 and 68 times more wealth, respectively, than Black and Latino households.
“The racial wealth divide is a systemic problem,” Hoxie said “and to close it will require systemic solutions. As Sandy Darity and Darrick Hamilton point out in their research, this isn’t about individual behavior. This is about public policy.”
Listen to the full interview here