And the earnings gap between the races makes it harder for blacks and Hispanics to save.Blacks and Hispanics have also socked away a lot less for retirement in 401(k)s and IRAs.So why is it that blacks have the lowest net worth of all racial classes?During the Civil War, small banks were established throughout the country to be financially responsible for freed and runaway slaves’ deposits.Their efforts are more to make sure they look presentable to potential employers.They really don’t care about being made fun off on a day off.As we look at the year in review, this article has been The gaps in wealth and income between white and black Americans are stark – and haven’t narrowed significantly in 50 years.Credit Suisse and Brandeis University’s Institute on Assets and Social Policy took a closer look at disparities between whites and blacks.
The NOIRG theorizes that when most Blacks emerged from slavery, it frightened the hell out of white people.
“Families of color, who will be the future majority population of this country, are not on a firm wealth-building path.” There are three main reasons for the widening gap, according to Mc Kernan.
Blacks and Hispanics are less likely to be homeowners or participate in retirement accounts, which build wealth.
Federal government programs aimed at helping Americans buy homes and save for retirement rely on tax breaks and aren’t as available to blacks and Hispanics, who typically have lower incomes.
The bottom 20% of taxpayers, in terms of income, received less than 1% of federal subsidies for home ownership or retirement.