Juneteenth is a day that celebrates the end of slavery in the United States. It marks the day when news of the Emancipation Proclamation finally reached the slaves in Texas. Though it was two and a half years after it was signed into law by President Abraham Lincoln. While Juneteenth is an important day for celebrating freedom, it is also a time to reflect. Economic inequality still exists in the Black community. In order to build generational wealth for future generations of African Americans, we need to address these disparities head-on.
Statistical obstacles to generational wealth
According to the Census data, the median household income for Black households in 2019 was $45,438. This is compared to $56,113 for Hispanic households, $76,057 for non-Hispanic White households, and $98,174 for Asian households. This is actually an improvement from 2008. Between then and 2019, median household income increased by 14.1%. However, this was not enough to even the playing field with other races in America.
These economic disparities have been fueled by a number of factors over the years. Discrimination in hiring and lending, inequality in education, and access to resources are everywhere. The legacy of slavery and segregation is the foundation of many of these issues even today.
However, there are steps we can take to start closing this gap and building generational wealth for African Americans.
Solutions for building generational wealth
One of the most important steps is to invest in education. According to a report by Urban Institute, the average Black college graduate earns just $68,000 a year. This is compared to about $93,000 for White college graduates.
- Investing in education can help to break the cycle of poverty. Providing the tools necessary for African Americans to land better jobs and earn higher wages can create generational change. It also provides an opportunity to learn about personal finance and building wealth. These are lessons that can be passed down to future generations.
- Another important step is to encourage entrepreneurship in the Black community. Though the rate of Black-owned businesses being started has increased, they are also the least likely to receive business funding. Encouraging entrepreneurship and providing access to funding and guidance can help to create more opportunities for wealth creation in the black community. It also helps to provide more role models and chances for young people to see what is possible.
- Finally, it is important to address discrimination in hiring and lending. A study by the National Bureau of Economic Research found that job applicants with stereotypically black names are less likely to be called back for an interview than applicants with stereotypically white names. This occurs even when their qualifications are identical. African Americans are also more likely to be denied loans or charged higher interest rates than White borrowers, even when their credit scores are the same.
Addressing these disparities will require a change in attitudes and policies in the business and banking worlds. However, it is a necessary step if we want to create a more level playing field.
Moving forward
In conclusion, Juneteenth is a time to celebrate freedom, but it is also a time to reflect. Economic inequality still exists in the Black community but we can change that. To build generational wealth for future generations of African Americans, we must invest in education, encourage entrepreneurship, and address discrimination in hiring and lending.
These steps will not be easy, but they are necessary to create a more just and equitable society for all. By working together and taking action, we can build a brighter future for the Black community and for the country as a whole. A rising tide raises all ships. Let’s rise together.
Writer, rhymer, gamer: the easiest way to define the man known as Kenneth Medford. I’m a simple man who loves to learn and loves to help and I wander the digital world trying to find ways to sate my hunger for both. Basically, I’m Galactus but helpful.
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