Policies enacted in the United States after World War II, particularly those affecting housing and lending, significantly hindered the ability of Black Americans, including Black veterans, to build wealth at the same pace as their white counterparts. This disparity has been a major contributor to the persistent racial wealth gap.
Research indicates that wealth is built over time and passed down through generations, influencing financial well-being and economic opportunities. However, historical practices such as slavery, overt racism, segregation, and redlining actively separated Black people from resources essential for wealth accumulation.
A new working paper by researchers from Princeton University and the University of Bonn offers a national-scale historical comparison of Black and White wealth. The study found that while the racial wealth gap narrowed considerably in the decades following the Civil War, this progress stagnated for much of the 20th century and began to widen again in the 1980s.
Despite experiencing gains in education, employment, and income, Black Americans often lag behind White Americans. Indicators like Black homeownership rates show little progress, underscoring the deep-seated nature of the economic disparities. The lack of financial security, exacerbated by disproportionate exposure to crises like the COVID-19 pandemic, has had particularly severe consequences for the Black community.
