New Report Details Implications of Accelerating Racial Wealth Gap

“If current trends continue, the racial wealth divide will greatly hollow out the American middle class,” write authors from the Institute for Policy Studies and Prosperity Now (formerly CFED) in this new report on the racial wealth divide. They find that median wealth for Black and Latinx households is declining at an accelerating rate, such that if conditions do not change, their average net wealth will be close to $0 by 2043, the year the U.S. is projected to become a majority-minority nation. The report puts forward a policy framework to intervene in this trend, calling for tax reform, the expansion of wealth building opportunities, and policies to better protect household wealth.