The wealth of a typical Black family in the United States is about 13 percent of a white family. For a Hispanic family, it’s about 21 percent. And the average median household income for Black families is about 60 percent of the average income for a white family.
Those stark numbers tell us much about the wealth gap, a phrase that has become the shorthand term for the enormous disparity in the fortunes of white and minority families that has been underscored in the past year following the police killing of George Floyd and focus on systemic racism.
Black families had a median wealth (assets minus debt) of $23,000 as of 2019, compared to $184,000 for white families, according to the Federal Reserve Bank of St. Louis. “That’s not a gap, it’s a black hole,” says Ralph Moore, a veteran consultant in supplier diversity and minority business development.