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

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. 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. Understanding Wealth
Wealth is...
Assets
Assets Liabilities/Debt
MINUS
= NET WORTH

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. 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. Wealth and
Race in
America

7. What’s Behind
the Racial
Wealth Gap?

8. What’s Behind
the Racial
Wealth Gap?

9. Unemployment
by Race

10. Education
Access by
Race

11. Income
Inequality
by Race

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. Home
Ownership
by Race

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. 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. 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. Housing and
Racial Wealth
Inequality
Video: https://youtu.be/O5FBJyqfoLM?t=9s

18. Taxes and
Racial
Wealth
Inequality
Prosperitynow.org

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. Racial Wealth
Inequality
and the 2017
Tax Cuts and
Jobs Act

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. 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. 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. 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. 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. 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. 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. 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. 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. Thanks!
Any Questions?
Email:
faderonmu@hungercenter.org