Juneteenth is a time to celebrate the end of slavery in the United States, but it is also a time to reflect on the ongoing legacy of racial inequality.
Juneteenth is a time to celebrate the end of slavery in the United States, but it is also a time to reflect on the ongoing legacy of racial inequality. One of the most significant ways in which this inequality manifests itself is in wealth and financial wellness, which is highlighted in a recent study by the NBER titled “Wealth of Two Nations: The US Racial Wealth Gap, 1860-2020. According to a recent study by the Federal Reserve, the median wealth of white households is currently 10 times greater than the median wealth of Black households. This gap has widened in recent years, due in part to factors such as the COVID-19 pandemic and the Great Recession.
The racial wealth gap has several negative consequences as highlighted in the latest “Workplace Financial Wellness in America Report” by Financial Finesse. It makes it more difficult for Black families to build wealth, save for retirement, and purchase homes. Beyond those effects, it also contributes to racial disparities in physical and mental health, education, and employment. The compounding impact of these persistent inequalities leads to generational hardships that are becoming increasingly difficult to overcome.
There are, however, several paths that can be simultaneously taken, where collective efforts by employers, governments and individuals can put an end to this legacy.
