A new report published by the Institute for Policy Studies and the Corporation for Enterprise Development documents the large and growing wealth gap between White and Black families.
The report finds that over the past 30 years, the average wealth of White families in the United State has increased by 84 percent. This is three times the increase for Black families. If the same trend exists for the next 30 years the average wealth of White families would increase by $18,000 a year while the average wealth of Black families would increase by $750 per year.
The most striking figure in the report is that if present trends continue, it would take 228 years for the average Black family wealth to equal the average White family wealth today.
Why is the racial wealth gap important to men and women who are concerned about African American opportunities in higher education? Components of family wealth, such as stocks, bonds, money in the bank, and real estate, produce interest, dividends, or rental income are commonly used to offset or pay college costs. Wealth also includes the value of a family’s home. This important asset can be sold or borrowed against to provide funds for college expenses.
The full report, Ever-Growing Gap, can be downloaded by clicking here.