America has a racial wealth gap and it’s getting worse.
Some of this started during The Great Recession, fueled by the crises in the housing and financial markets, making it hard on American families to survive. That leads to the wealth and income divide along racial and ethnic lines.
In the past six years, the racial wealth gap has continued to increase.
From 2010 to 2013, the median wealth of non-Hispanic white households increased from $138,600 to $141,900. In 2010, the median primary residence for all nonwhite families, not just homeowners, had about half the value of the homes white families owned.
According to “Racial Wealth Gap: Why Policy Matters,” the median white household had $111,146 in wealth holdings in 2011, compared to $7,113 for the median black household and $8,348 for Latino households.
In 2013, the average wealth of African-American families was $95,000, and $112,000 for Hispanics. The average wealth of white families was $500,000, greater than African-American or Hispanic families combined.
In 2015, Pew Charitable Trusts said that the typical black household earning between $25,000 and $50,000 has trouble paying all of their bills.
This financial insecurity extends up the income scale. Even with other black households making more money, this gap takes a financial toll. Thirty percent of black households with an income between $50,000 and $85,000 said they were unable to pay at least one bill. This means that even though you make a lot of money as a minority, you are still behind. These households are still struggling to keep up with everyone else.