Causes and Consequences of the Black Wealth Gap

A Black family that appears to be a mother, father, daughter, and son. The father appears to be taking selfie outside. Vanessa Loring/Pexels

The Black wealth gap in the U.S. is rooted in histories of slavery and discrimination; the COVID-19 pandemic has made the gap even worse. This fact sheet from the National Partnership for Women & Families highlights the intersectional causes of the Black wealth gap. It also underlines policy solutions that would promote racial equity overall while closing the racial wealth gap. As our retirement resources demonstrate, addressing gender and racial wealth gaps sets women in a better place for retirement.

The Black wealth gap is a systemic, intersectional problem that must be addressed through a holistic set of policies that work across the many facets of economic life, from employment and education to housing and tax policy. Furthermore, narrowing overall wealth inequality is necessary but not sufficient to close the racial wealth gap. Policies must also be designed with race equity in mind to target the communities that have historically been most affected by wealth inequities.”