Fact Sheet: The Racial Wealth Gap in America

  • The probabality of a loan denial is 36.9% higher for back-owned firm in comparison to their white, male owned business counterparts. - American  Economic Association.  

 

 

  • All minority groups faced racial discrimination based upon data from the 1998 and 2003 Survey of Small Business Finances.  American  Economic Association

 

  • In 2013 the median net worth of African American households was $11,000 and for Latino households it was $13,700—representing one-thirteenth and one-tenth, respectively, of the median net worth of white households, which was $141,900.   - Center for American Progress, How Predatory Debt Traps Threaten Vulnerable Families, October 2016)

 

 

  •  In the wake of the housing crash and Great Recession of 2008, the median white family lost 16% of their wealth, while the median black family lost 53% and median Latino family lost 66% of their wealth.   - Rakesh Kochlar, Richard Fry, Paul Taylor, Wealth Gaps Rise to Record Highs Between Whites, Blacks, Hispanics, Pew Research Center, July 2011

 

 

  • For every $100 in white family wealth, black families hold just $5.04  - Emily Badger, NY Times, Sept. 2017

 

 

  • Nearly one in five black households has zero or negative net worth. The share of white households without any wealth is considerably smaller, at 9 percent.- Federal Reserve, Recent Trends, Sept. 2017

 

  • Most white households (71 percent) report being able to get $3,000 from family or friends in a financial emergency, compared with less than half of Hispanic and black households (49 percent and 43 percent, respectively). - Federal Reserve, Recent Trends, Sept. 2017

 

  • Between 1983 and 2013, the median net worth of lower-income families declined 18 percent—from $11,544 to $9,465 after adjusting for inflation—while higher-income families’ median net worth doubled–from $323,402 to $650,074. - Center for American Progress, Oct. 2016

 

  •  Graduating from college, working full time, raising children in a two-parent household, spending less - none of these factors are sufficient to close the racial wealth gap, as explained in a February 2017 publication from Demos.  - Amy Traub, Laura Sullivan, Tatjana Meschede, & Tom Shapiro, The Asset Value of Whiteness: Understanding the Racial Wealth Gap, Demos, February 2017