By Keyanna Harper
- The median annual wage for Black workers is approximately 30% lower than for white workers
- For every $1 of wealth held by a white family, a Black family had just $0.25
The creation of wealth within Black families is a struggle confronted with racial disparities in homeownership, business ownership, and wage gaps. Black workers’ median annual wage is about 30% lower than that of white workers, according to a report from McKinsey, further widening the wealth gap. This issue, sitting at the intersection of business and culture, warrants urgent attention and action.
Why This Matters: The endeavor to build generational wealth among Black families has become a critical focus in the U.S., where numerous barriers to creating it persist. Moreover, the disparities are glaring in the case of business ownership, a potent source of generational wealth. Considering that in 2022, for every $1 of wealth held by a white family, a Black family had just $0.25, it’s evident that systemic change is needed.
Black-owned businesses often face difficulties accessing funding, as confirmed by a report from Brookings. This limits their potential growth and, consequently, their contribution to the community’s wealth. Additionally, 3.5 million Black households reportedly have a negative net worth due to debt.
What’s Next: Future explorations should focus on solutions to bridge this wealth gap. Initiatives, like those outlined by CultureBanx, targeting Black millennials can play a vital role in righting these historical wrongs, setting Black families on the path to generational wealth. Things like financial literacy programs and accessible business funding are viable solutions that empower Black families to overcome barriers and achieve financial success.
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