Real solutions for closing the very real racial wealth gap

October 17, 2019 | Convenings, Research and Data

The racial wealth gap is well-documented and undisputedly real. The median white family has 41 times more wealth than the median African-American family and 22 times more wealth than the median Latino family. And things are getting worse, not better: The proportion of black families with zero or negative wealth rose by 8.5 percent to 37 percent between 1983 and 2016.

But, as our esteemed experts relayed this morning in our opening plenary, there are so many misunderstandings about the nature of it. First and foremost, Jennifer Richeson of the Social Perception & Communications Lab of Yale University reminds us, many Americans, particularly white, economically privileged Americans, vastly underestimate its effects (if they acknowledge that it exists at all). Richeson explains, “We are operating under a state of willful blindness about racial economic inequality in America.”

And then, as Kilolo Kijakazi of the Urban Institute, points out, many are confused about how it was created; structural racism, not bad financial choices on the part of individual people, is responsible for our contemporary gap.

She also adds: “It can be closed, but it requires policy change, not changing people’s behavior.”

So what are a couple of policy ideas that give us hope about reversing this immoral and persistent gap?

Baby bonds: a fixed income security issued in small-dollar denominations, typically conceived of as being paid at less than $1,000. Baby bonds have been gaining traction in a wide range of circles lately, including as part of Democratic presidential hopeful Cory Booker’s official platform. For some research background, check out the work of Sandy Darity and Darrick Hamilton.

Guaranteed minimum income: a system of social welfare that guarantees that all citizens or families have an income sufficient to live on. For the latest on the growing movement, check out Economic Security Project, and don’t miss reading about Ascend’s own Aisha Nyandoro’s Magnolia Mother’s Trust, which created the very first-ever guaranteed income pilot with single, black mothers in Jackson, Mississippi.

Lola Adedokun of the Doris Duke Charitable Foundation reminded us that the solutions are not going to come from the sources that created this gap in the first place. They’re more likely to come from those who have persisted in the face of them: “Redefining wealth requires that we recognize and build on the abundance that exists.”

That abundance, she points out, is the wealth that black people (and other people of color) have always had in ingenuity, relationships, and rich culture that sustains them despite the structural barriers.

Header image (left to right): Anne Mosle, Ascend at the Aspen Institute; Lola Adedokun, Doris Duke Charitable Foundation; Jennifer Richeson, Yale University; and Kilolo Kijakazi, Urban Institute discuss the racial wealth gap at the 2019 Aspen ThinkXChange in Aspen, Colorado.

Related Posts

We know that there is a better way to approach child support policy to build strong families and communities -- and that's why we're proud to share w...
BlogAugust 22, 2023
Cover of the digital chartbook, "We Are Here Too: Who Are the 1 Million Fathers in College?". A student father in a graduation cap and gown is seated with his son and daughter, smiling.
Among the one in five postsecondary students who are parents, there are close to 1.1 million student fathers. This chartbook synthesizes the available...
Aspen Postsecondary Success for ParentsJune 16, 2023
We are delighted to share a new research report in partnership with Child Trends: Data on Families with Low Incomes Across America Can Inform Two-Gene...
PublicationMarch 1, 2023
I started off the 2022 Aspen Ideas Festival at Aspen Words Book Ball, a passion project of Isa Catto and Daniel Shaw.
Ascend FellowshipJune 25, 2022
This year, the Aspen Idea Festival returns to in-person programming at our campus in the Rocky Mountains June 25 - July 1, 2022.
Ascend FellowshipJune 15, 2022
On Tuesday, June 1st, 2021, Ascend at the Aspen Institute’s Family Prosperity Innovation Community hosted a panel discussion about the recently prop...
June 3, 2021
Ascend at the Aspen Institute and The Jed Foundation Release a New Mental Health Framework with Recommendations for Supporting the Mental Health of St...
BlogMay 26, 2021
This blog is part of Ascend at the Aspen Institute’s 2Gen Level Up series. Ascend challenged organizations that work with and/or on behalf of c...
BlogApril 6, 2021
Infant and parent brains and bodies undergo rapid growth and transformation during the transition to parenting, presenting a unique opportunity to pos...
BlogSeptember 29, 2020
Back to School Event
Governors, mayors, and families are on the front lines of communities coping with changes in the pandemic world. As the school year begins, the Aspen ...
BlogAugust 21, 2020
Physical and mental health and well-being are core components of the two-generation approach that builds family well-being by intentionally and simult...
BlogJuly 22, 2020
Aspen
States and communities are where policy translates into real life outcomes. For nearly a decade, state and local entities have leveraged various ...
BlogJuly 9, 2020
The Aspen Postsecondary Success for Parents (PSP) Initiative at Ascend at the Aspen Institute hosted a two-day convening to mark entering its second p...
BlogFebruary 12, 2020
Mother and Daughter
This blog is part of Ascend’s Impact Series: stories and stats that illustrate the powerful, tangible impact a two-generation (2Gen) appro...
BlogNovember 20, 2019
This blog is part of Ascend’s Impact Series: stories and stats that illustrate the powerful, tangible impact a two-generation (2Gen) appro...
BlogNovember 20, 2019