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Racial Wealth Inequality: Myths, Realities, and What Can be Done About It Workshop

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2018 SLI's Racial Wealth Inequality: Myths, Realities, and What Can be Done About It Workshop

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Racial Wealth Inequality: Myths, Realities, and What Can be Done About It Workshop

  1. 1. Racial Wealth Inequality: Myths, Realities and What Can be Done About it FUNKE ADERONMU BILL EMERSON NATIONAL HUNGER FELLOW RESULTS/CONGRESSIONAL HUNGER CENTER JUNE 6, 2018
  2. 2. Intro Hosted by Congressional Hunger Center Hunger Fellows: • Tackle U.S. hunger and poverty at local and national levels • Bridge field experiences with policy work • Develop racial justice lens in anti-hunger and anti-poverty work • Build leadership capacity Field Placement - DC Greens Policy Placement - RESULTS Educational Fund 24th Class Emerson National Hunger Fellow “a social justice program that trains, inspires, and sustains leaders. Fellows gain field experience fighting hunger and poverty through placements in community based organizations across the country, and policy experience through placements in Washington, D.C. ”
  3. 3. Understanding Wealth Wealth is... Assets Assets Liabilities/Debt MINUS = NET WORTH
  4. 4. Understanding Wealth Wealth is... THE FOUNDATION OF ECONOMIC WELLBEING "Parental wealth, in addition to parent income, plays an important role in college attendance and graduation...Parental wealth is also a critical determinant of where children live and the quality of schools they attend. It can affect the kind of job they have, if and when they marry, and whether they own their homes." - Christina Gibson-Davis, professor of public policy at Duke; Christine Percheski, professor of sociology at Northwestern
  5. 5. Wealth and Race in America In 2016, white families on average had 7 times more wealth than black families and 5 times more wealth than Hispanic families - Urban Institute, "Nine Charts About Wealth Inequality in America."
  6. 6. Wealth and Race in America
  7. 7. What’s Behind the Racial Wealth Gap?
  8. 8. What’s Behind the Racial Wealth Gap?
  9. 9. Unemployment by Race
  10. 10. Education Access by Race
  11. 11. Income Inequality by Race
  12. 12. About the AAPI Community •While AAPI incomes may be high overall, there's a lot of variation in wealth and economic wellbeing once you dig deeper (disaggregate the data) •Thus, wealth inequality also negatively impacts AAPI households
  13. 13. Home Ownership by Race
  14. 14. How Did We Get Here? The History Behind the Racial Wealth Gap "the racial wealth divide is the natural byproduct of an endless series of policy choices that have boosted the ability of white Americans to build long- term wealth, while blocking communities of color from doing the same." - Prosperity Now, "Running in Place: Why the Racial Wealth Divide Keeps Black and Latino Families From Achieving Economic Security"
  15. 15. Policies that Created Racial Wealth Inequality 1865 Land Reversals (1865) and Land Seizures (1865-Present Day) 1934 National Housing Act 1935 Social Security Act 1938 Fair Labor Standards Act 1944 G.I. Bill 1970s- Present Subprime Loans (1970s- Present Day 1971-Present "War on Drugs" (1971- Present Day) - Bread For the World Racial Wealth Gap Simulation Policy Packet
  16. 16. Housing and Racial Wealth Inequality Housing is a major source of wealth for many middle class Americans and remains a common path to wealth building Where you live has implications for health, education, job access and security outcomes that all affect overall economic well being The history of housing policy in the U.S. has been one where federal policies provided white Americans opportunities to build wealth while excluding Americans of color, particularly blacks from doing the same.
  17. 17. Housing and Racial Wealth Inequality Video: https://youtu.be/O5FBJyqfoLM?t=9s
  18. 18. Taxes and Racial Wealth Inequality Prosperitynow.org
  19. 19. Racial Wealth Inequality and the 2017 Tax Cuts and Jobs Act Benefits mainly go to high-income households. Given our nation's history of racial economic discrimination, white families will largely benefit more than families of color The law primarily benefits holders of existing wealth rather than creators of new wealth. This will likely exacerbate racial wealth inequality Due to limits on state and local deductions, state gov'ts will increase fines and fees to gain revenue. This is regressive and disproportionately impacts low- income individuals and people of color Cuts to public sector and public employment due to tax law will impose burden on black workers and black communities
  20. 20. Racial Wealth Inequality and the 2017 Tax Cuts and Jobs Act
  21. 21. What Will it Take to Close the Racial Wealth Gap? Myths About Closing Racial Wealth Gap More educational attainment by blacks will close the gap Homeownership disparities drives racial wealth gap Buying and banking black will close the gap Black families saving more will close the gap Greater financial literacy in the black community will close the gap Entrepreneurship will close the gap Emulating “model minorities” will close the gap Improved “soft skills” and “personal responsibility” will close racial wealth gap The rise of black celebrities proves the racial wealth gap is closing Black family disorganization is a cause of the racial wealth gap
  22. 22. What Will it Take to Close the Racial Wealth Gap? "Addressing racial wealth inequality will require a major redistributive effort or another major public policy intervention to build black [and brown] American wealth."
  23. 23. What Will it Take to Close the Racial Wealth Gap? •Asses ways in which current federal policies continue to perpetuate racial wealth inequality •Fix upside-down tax incentives that primarily benefit the wealthy, to ensure low-income and households of color receive support to build wealth •Use progressive taxation to address the distorting influence of concentrated wealth at the top
  24. 24. What Will it Take to Close the Racial Wealth Gap? •There is no single policy that can fully address the racial wealth divide •We need a multifaceted approach Policy​ IASP Audit: Reduction of Black-White Wealth Gap​ Student Loan Forgiveness for Low-Income Families​ 7 percent​ Student Loan Forgiveness for Low-Wealth Families​ 37 percent​ Student Loan Forgiveness for Everyone​ WORSE​ Equalize Homeownership Rates​ 31 percent​ Equalize College Graduation Rates​ 1-3 percent​ End Income Inequality​ 9-11 percent​ Universal Savings Accounts at birth, with additional deposits​ 20-80 percent​
  25. 25. What’s Your Role in Tackling Racial Wealth Inequality? • Racial Wealth Divide Simulation • Available at bread.org/simulation Educate yourself! • Join advocacy organizations like…RESULTS! Get Involved!
  26. 26. What is RESULTS? RESULTS is movement of passionate, committed everyday people. Together they use their voices to influence political decisions that will bring an end to poverty. Grassroots Advocacy Model: Influencing policy through Relationship Building and Storytelling
  27. 27. Relationship Building Community organizing through RESULTS volunteer chapters and REAL Change Fellowship Working with members of Congress on both sides of aisle to advance anti-poverty policy
  28. 28. Storytelling Experts on Poverty program Media trainings “Without SNAP, I’d be on the cusp of homelessness. With SNAP, I’m on the cusp of law school.” - Asia Bijan Thompson, RESULTS Expert on Poverty
  29. 29. RESULTS International Conference! July 14-17th | Washington, DC Speakers include: World Bank President, Members of Congress, City Officials, Activists, Writers and more! 15+ workshops and plenaries including a session on Running for Office Connect with peers and anti-poverty advocates from across the country Lobby Day on Capitol Hill Register at: resultsconference.org SCHOLARSHIPS AVAILABLE!
  30. 30. Thanks! Any Questions? Email: faderonmu@hungercenter.org

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