Racial inequality in the United States

Racial inequality in the U.S. means that people from different races often face unequal treatment and opportunities. This is largely due to a history of slavery, racism, and unfair systems that still affect people today—especially minority groups.In a 2021 survey, most economists (78%) agreed that economic differences between Black and white Americans are mostly caused by ongoing discrimination. There is a big wealth gap between races. For example, the gap between white and Black families grew from $85,000 in 1984 to $236,500 in 2009. Factors like home ownership, income, unemployment, education, and inheritance contribute to this.Race and Social Equity Definitions Retrieved 9 April 2025

In 1863, Black Americans owned just 0.5% of U.S. wealth. By 2019, that had only risen to about 1.5%. Slavery treated Black people as property. After slavery ended, many were trapped in poverty as sharecroppers. Black Americans were also excluded from programs like homesteading and Social Security. Many lost savings when the Freedman’s Bank collapsed. Because of these setbacks, Black families are less likely to inherit wealth and more likely to support relatives financially.Land and the roots of African-American poverty Retrieved 9 April 2025Why a 19th-century bank failure still matters Retrieved 9 April 2025

Income effects
The racial wealth gap is clear when comparing the earnings and wealth of different racial groups. For instance, middle-class Black Americans make about 70 cents for every dollar a white person in the same class earns. Race is one of the biggest factors in determining wealth.

Researchers Krivo and Kaufman found that when income goes up, it helps white Americans build wealth more than it does for minorities. For example, a $10,000 raise increases home value for white Americans by about $17,770, but only by $15,900 for Black Americans, $15,150 for Hispanics, and $9,500 for Asians.

References

Category:Social classes