White America is getting richer, unlike Black America

The wealth gap between white and black Americans increased sharply between 1992 and 2016. In 2016, this difference was $154,000 (137,000 euros), while in 1992 the difference was still $100,000.

That’s what two authors from management agency McKinsey wrote in a study on wealth differences between white and black Americans. The wealth of the “median” white American family that year was $171,000, while the wealth of the “median” black American family was $17,600. The median is the middle value: half of white or black families have more wealth than the average, the other half less. By wealth, researchers mean the value of Americans’ assets minus their debts. The “average” Latino had a net worth of $20,700 in 2016.

While the wealth of the median white household increased by $54,000 in those 25 years — mainly because rich white households became richer, by the way — the wealth of black households remained roughly the same over that period, the two McKinsey researchers wrote. This is partly because black families already started out at a disadvantage.

They often live in relatively poor states, especially in the southeastern United States. They are poorer, they live in poor neighborhoods, they have less access to education and quality care – which is often worse than in rich neighborhoods, they receive inheritances less often than whites, and if they do receive an inheritance, it is much less than the average. The inheritance that white people get. Americans get: 65 percent less. Forty percent of black families own a home, compared to 73 percent of white families. Nearly half of black children go to a poor school — a school where the majority of students have access to free or cheap lunches. As for white children, this percentage is less than ten. Two-thirds of black children live in single-parent households: of single-parent families, nearly half live at or below the poverty line.

Whites with a criminal record are more likely to attend a job interview than blacks without a criminal record

Black Americans have far more problems with the law and police than white Americans: 33% of prisoners are black, while they make up about 10% of the American population. This fact affects the way employers view blacks. The researchers say whites with a criminal record are more likely to get a job interview than blacks without a criminal record, and they based their findings primarily on previously published studies. Fines are generally higher in cities where many blacks live than in cities with predominantly white residents.

Blacks rarely hold senior positions in companies. They often have low-skilled work, with a good chance that their jobs will disappear as automation advances. The “average” black man earns 74% of what the “average” white man earns. Black women earn 89% of what the average black man earns.

Acute emergencies

The researchers also state that black Americans have less access to banks and other financial institutions than whites. In “white” areas there are 41 banks and banking institutions per 100,000 people, and in areas where many blacks live there are 27 banks and banking institutions. On the other hand, relatively expensive services, such as short-term loans, are offered more often to blacks. The average white person has six times more money in their savings account than the average black person. Many black families cannot rely on friends or acquaintances in times of extreme financial need. Most don’t know anyone they can quickly borrow $3,000 from, McKinsey researchers say. Their study is part of a series of studies conducted by the regulatory research and consulting firm on the income and wealth status of black and white Americans.

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