What does that look like? In the 12 weeks since people in the U.S. began sheltering in place, U.S. billionaire wealth increased by more than $637 billion – the equivalent of 13 percent of all the wealth held by the nation’s 41 million Black people.
U.S. billionaires altogether have $3.581 trillion in wealth. That amount is 76 percent of the $4.68 trillion of cumulative Black wealth, and exceeds the $3.49 trillion of total Latino wealth in the U.S.
The effects of the racial wealth divide are particularly pernicious in home ownership, one of the driving forces of wealth accumulation in the United States. The combined $921 billion in wealth of the top 12 U.S. billionaires is the equivalent to the home equity wealth of the entire Black population of 17 million households. And the top 70 U.S. billionaires together hold $1.9 trillion, which is the equivalent to the home equity wealth of all Black and Latino households combined.
The corrective to the racial wealth divide must come through structural change, not the actions of individuals. The policies aimed at recovery from the 2009 recession only worsened the racial wealth divide. Congress shuffled money to the large corporations and firms represented by white executives and shareholders, all while leaving the distressed homeowners, predominately Black and Latino, with little support. In fact, the bailout privileged some of the same firms that targeted subprime lending towards Black people.
We cannot repeat these same mistakes. In our report, we highlight eight potential solutions that can make real progress in bridging the divide.
First, there are the emergency measures that can be enacted now, in the midst of the pandemic: