In 1995, the wealthiest 1 percent of Americans owned 39 percent of household wealth in the United States. In Keister's simulation, if blacks had invested in high-risk assets at the same rate as whites, the top 1 percent would own 31 percent of the country's total wealth, a decline of 8 percent. Of course, changes such as these take time, and because wealth ownership tends to persist across generations, dramatic changes would be rare. But, she said, the study showed that changes in savings strategy among blacks could have a measurable impact on wealth accumulation by African Americans, as well as on total wealth inequality. However, wealth disparity will continue until black and white families become more equal in a variety of areas, asset ownership included.
Education is an example of the other factors that affect wealth.
The results do not suggest that the wealth gap between black and white Americans could be eliminated simply by having blacks invest in the stock market, Keister emphasized. The Office of University Relations produces articles about faculty research to distribute to the national media. Consumers who switch natural gas suppliers as the result of deregulation save an average of 5 percent to 12 percent on their gas bills, the study found. While any savings are welcome this winter, many experts had hoped consumers would be saving even more, said Kenneth Costello, a senior economist at NRRI and co-author of the report. However, he said small profit margins in the gas industry today mean companies can't offer big savings to residential customers.