If current economic trends continue, the average African-American household will need 228 years to accumulate as much wealth as their white counterparts hold today.
The findings comes from a new study that analyzed the racial wealth gap. The study, released by the Institute for Policy Studies (IPS) and the Corporation For Economic Development (CFED), looked at trends in household wealth from 1983 to 2013 — a 30-year period that captured the rise on Reaganomics, two major financial crashes and expanded international trade.
Researchers found that the average wealth for white households increased by 84 percent during that time period, a rate that is three times the gains African-American families saw and 1.2 times the rate of growth for Latino families.
According to the report, the wealthiest Americans saw their net worths increase by an average of 736 percent during that period. If those trends persist for another three decades, the average white family's net worth will grow by $18,000 per year, but Black and Hispanic households would only see their net worth grow by $750 and $2,250 per year, respectively.
Below are some key findings from the report, The Ever-Growing Gap released this month:
- Over the past 30 years, the average wealth of white families has grown by 84%
- Today, the wealthiest 100 members of the Forbes list alone own about as much wealth as the entire African-American population combined, while the wealthiest 186 members of the Forbes 400 own as much wealth as the entire Latino population combined
- By 2043, the year which people of color are projected to make up the majority of the U.S. population, the wealth divide between white families and Latino and Black families will have doubled, on average, from about $500,000 in 2013 to over $1 million
Click here for the full report.