Despite recent years showing remarkable strides in narrowing the wealth gap among Black and Hispanic Americans, a glaring wealth disparity still looms large when compared to their White counterparts.
Mind the Gap
The Federal Reserve’s latest Survey on Consumer Finances revealed insights into the net worth of different racial groups in the U.S.
Net Worth Disparities in 2022
In 2022, the median net worth for a typical Black household reached $44,900, while Hispanic households saw their median net worth rise to approximately $61,600.
Gains in Black and Hispanic Wealth
These figures represent impressive growth rates of over 61% for Black households and 47% for Hispanic households since the last survey in 2019.
White Households Maintain a Significant Lead
It’s crucial to note that these advances remain a fraction of the median wealth held by White households, which reached a substantial $285,000 in 2022.
Asian Americans Enter the Picture
Asian Americans have emerged with the highest median net worth, reaching an astonishing $536,000.
Enhanced Financial Stability
The growth in wealth among typical Black and Hispanic households provides them with greater financial stability, and these strides are undoubtedly a positive development, but there’s still a long way to go before we’re equal.
Positive Impact Amidst Wealth Inequality
It’s essential to recognize that the overall changes in wealth from 2019 to 2022 don’t tell the entire story due to the vast wealth gap between races in the U.S.
Record-Breaking Wealth Levels
The median wealth levels for White and Black Americans have now exceeded their previous peaks, surpassing those recorded before the Great Recession.
The Only Way Is Up
In contrast, Hispanic households had already reached a record high in 2019 and have continued their ascent.
Boosted by Housing Wealth
The surge in housing wealth has played a pivotal role in elevating the net worth of Black and Hispanic Americans.
Asset Ownership as a Wealth Equalizer
Higher percentages of Black and Hispanic households owned stocks and businesses in 2022. This puts them in a more favorable position to keep pace with White households when the values of these assets rise, as indicated by the survey.
Modest Narrowing of the Wealth Gap
These increases in asset ownership have only slightly contributed to narrowing the wealth gap ratio between White Americans and Black and Hispanic Americans from 2019 to 2022.
Progress Tempered by Dollar Comparisons
While the statistics show improvement, it’s essential to consider that the wealth gap has only slightly narrowed.
A Long Way to Go
There was still a huge difference of about $50,000 when comparing the net worth of White Americans in 2022 with that of Black and Hispanic Americans.
Stagnant Income Amid Wealth Growth
While wealth growth among Americans is apparent, their income levels have essentially stayed the same over the same period.
A Gloomy Income Picture
The median income for White households increased by 1.3%. However, the income for Black and Hispanic households decreased by 1.6% and 1.1%, respectively, from 2019 to 2022.
Future Uncertainty Across Racial Groups
As we look to the future, a sense of uncertainty prevails among Americans regarding their income.
A Worry for the Future
The share of Black and Hispanic Americans who express uncertainty about their income in the coming year has grown significantly.
The post Wealth Growth in Black and Hispanic u.s. Households Trails Behind White Counterparts – Unpacking the Persistent Wage Gap first appeared on Pulse of Pride.
Featured Image Credit: Shutterstock / XArtProduction. The people shown in the images are for illustrative purposes only, not the actual people featured in the story.
