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Increased Black Home Ownership Would Slice Wealth Gap

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In this Oct. 27, 2014 photo, a realty sign is posted in front of a home for sale in Carlsbad, Calif. Real estate date provider CoreLogic releases its September report on U.S. home prices on Tuesday, Nov. 4, 2014. (AP Photo/Lenny Ignelzi)

In this Oct. 27, 2014 photo, a realty sign is posted in front of a home for sale in Carlsbad, Calif. (AP Photo/Lenny Ignelzi)

 

by Freddie Allen
NNPA Senior Washington Correspondent

WASHINGTON (NNPA) – Researchers studying the affects of public policy on the racial wealth gap estimated that the median wealth of Black households would rise 451 percent if Blacks owned homes at the same rates as Whites.

“With policies that advance the rate of Black and Latino homeownership to the same rate as White households, Black median wealth would more than quadruple and Latino media wealth would more than triple,” said Catherine Ruetschlin, a senior policy analyst at Demos, a public policy group that advocates for political and economic equality.

A joint effort by Demos and the Institute on Assets and Social Policy (IASP), a research group that advocates for economic opportunity, security and equity for individuals and families, detailed the key factors in housing, education, and the labor market that have contributed to the racial wealth gap for generations.

The report by said that the median Black household had $7,113 in wealth holdings compared to the median White household, which had $111,146 in wealth holdings in 2011.

“Black households hold only 6 percent of the wealth owned by White households, which amounts to a total wealth gap of $104,033, and Latino households hold only 8 percent of the wealth owned by White households, a wealth gap of $102,798,” stated the report. “In other words, a typical White family owns $15.63 for every $1 owned by a typical Black family and $13.33 for every $1 owned by a typical Latino family.”

According to the report if public policy eliminated racial disparities in income, the median Black wealth would grow $11,488 and if disparities in college graduation rates were eradicated, median Black wealth would grow $1,313.

Thomas Shapiro, the director at IASP, said that the racial wealth gap is one of the most critical issues as the United States moves into the 21st century. Shapiro said that researchers designed a new tool called the “Racial Wealth Audit,” to get a real, objective handle on the impact of policy on wealth accumulation in the United States and what the racial wealth gap really looks like.

Tamara Draut, the vice president of policy and research at Demos, said that while researchers and policy analysts have been heartened by the burgeoning debate surrounding rising inequality in the United States and the implications that it has for all of our standards of living, the underlying racial divide that underpins so much of the inequality in this country is less understood and less talked about.

“In addition, Black and Latino college graduates saw a lower return on their degrees than White graduates: for every $1 in wealth that accrues to median Black households associated with a college degree, median White households accrue $11.49,” stated the report.

Black families also experienced lower returns on the income that they earned, when compared to White families.

“If households of color had the same wealth returns estimated for White families with similar incomes, the racial wealth gap would decrease by 43 percent,” said Tatjana Meschede, the research director at IASP. “To make progress in closing the racial wealth gap, policies need to address both income inequality and differential wealth returns to income.”

Meschede said policy recommendations to address income inequality included raising the minimum wage, the creation of a federal jobs program and increasing unionization.

“Homeownership is the largest reservoir of wealth and financial stability that American families have,” said Thomas Shapiro, the director at IASP. “It’s just that it is so inequitably distributed at this point in time in the value of wealth that it creates.”

With the creation of the Federal Housing Administration in 1934, the United States government sanctioned lenders to use “redlining” to systematically deny Blacks access to that reservoir of wealth for decades.

“While redlining was officially outlawed by the Fair Housing Act of 1968, its impact in the form of residential segregation patterns persists with households of color more likely to live in neighborhoods characterized by higher poverty rates, lower home values, and a declining infrastructure compared to neighborhoods inhabited predominantly by White residents,” stated the report. “Discriminatory lending practices persist to this day. When households of color access mortgages, they are more often underwritten by higher interest rates.”

Draut said that some economists and lawmakers have drawn the wrong conclusions about what happened during the financial collapse and that misunderstanding is preventing faster progress towards the policies that we need.

“We know that lower-income homeowners can afford homes, stay in their homes and not be subject to foreclosure, if they have safe, traditional mortgages,” explained Draut. “The defamation of wealth and the resulting foreclosures were really due to the aggressive marketing and selling of toxic mortgages to communities of color that directly put their homeownership status in danger.”

Shapiro expressed concerns about some of the current conversations taking place on Capitol Hill and at the Treasury Department around financial reforms in the housing industry, adding that some policymakers have floated the idea that prospective buyers should take on more risk, possibly in the form of larger down payments.

“Those are precisely the kinds of reforms that will continue to block families of color from homeownership,” said Shapiro.

In order to close the wealth gap, Ruetschlin said that policies that perpetuate differences in homeownership rates and returns should be changed.

The report recommended stricter enforcement of housing anti-discrimination laws, authorizing Fannie Mae and Freddie Mac to make it easier for struggling homeowners to modify loans and lowering the cap on the mortgage interest tax deduction.

Ruetschlin said that, the investor class and international governments increasingly point to widening inequality as a real threat to economic stability and that the amount of wealth a family holds affects their ability to survive that shock when volatility occurs.

She explained, “Growing inequality can really undermine stability overall and make it even harder for an increasingly large portion of the population to weather those shocks when they come.”

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Oakland Post: Week of April 23 – 29, 2025

The printed Weekly Edition of the Oakland Post: Week of April 23 – 29, 2025

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#NNPA BlackPress

Chavis and Bryant Lead Charge as Target Boycott Grows

BLACKPRESSUSA NEWSWIRE — Surrounded by civil rights leaders, economists, educators, and activists, Bryant declared the Black community’s power to hold corporations accountable for broken promises.

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By Stacy M. Brown
BlackPressUSA.com Senior National Correspondent

Calling for continued economic action and community solidarity, Dr. Jamal H. Bryant launched the second phase of the national boycott against retail giant Target this week at New Birth Missionary Baptist Church in Atlanta. Surrounded by civil rights leaders, economists, educators, and activists, Bryant declared the Black community’s power to hold corporations accountable for broken promises. “They said they were going to invest in Black communities. They said it — not us,” Bryant told the packed sanctuary. “Now they want to break those promises quietly. That ends tonight.” The town hall marked the conclusion of Bryant’s 40-day “Target fast,” initiated on March 3 after Target pulled back its Diversity, Equity, and Inclusion (DEI) commitments. Among those was a public pledge to spend $2 billion with Black-owned businesses by 2025—a pledge Bryant said was made voluntarily in the wake of George Floyd’s murder in 2020.“No company would dare do to the Jewish or Asian communities what they’ve done to us,” Bryant said. “They think they can get away with it. But not this time.”

The evening featured voices from national movements, including civil rights icon and National Newspaper Publishers Association (NNPA) President & CEO Dr. Benjamin F. Chavis Jr., who reinforced the need for sustained consciousness and collective media engagement. The NNPA is the trade association of the 250 African American newspapers and media companies known as The Black Press of America. “On the front page of all of our papers this week will be the announcement that the boycott continues all over the United States,” said Chavis. “I would hope that everyone would subscribe to a Black newspaper, a Black-owned newspaper, subscribe to an economic development program — because the consciousness that we need has to be constantly fed.” Chavis warned against the bombardment of negativity and urged the community to stay engaged beyond single events. “You can come to an event and get that consciousness and then lose it tomorrow,” he said. “We’re bombarded with all of the disgust and hopelessness. But I believe that starting tonight, going forward, we should be more conscious about how we help one another.”

He added, “We can attain and gain a lot more ground even during this period if we turn to each other rather than turning on each other.” Other speakers included Tamika Mallory, Dr. David Johns, Dr. Rashad Richey, educator Dr. Karri Bryant, and U.S. Black Chambers President Ron Busby. Each speaker echoed Bryant’s demand that economic protests be paired with reinvestment in Black businesses and communities. “We are the moral consciousness of this country,” Bryant said. “When we move, the whole nation moves.” Sixteen-year-old William Moore Jr., the youngest attendee, captured the crowd with a challenge to reach younger generations through social media and direct engagement. “If we want to grow this movement, we have to push this narrative in a way that connects,” he said.

Dr. Johns stressed reclaiming cultural identity and resisting systems designed to keep communities uninformed and divided. “We don’t need validation from corporations. We need to teach our children who they are and support each other with love,” he said. Busby directed attendees to platforms like ByBlack.us, a digital directory of over 150,000 Black-owned businesses, encouraging them to shift their dollars from corporations like Target to Black enterprises. Bryant closed by urging the audience to register at targetfast.org, which will soon be renamed to reflect the expanding boycott movement. “They played on our sympathies in 2020. But now we know better,” Bryant said. “And now, we move.”

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The Department of Education is Collecting Delinquent Student Loan Debt

BLACKPRESSUSA NEWSWIRE — the Department of Education will withhold money from tax refunds and Social Security benefits, garnish federal employee wages, and withhold federal pensions from people who have defaulted on their student loan debt.

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By April Ryan

Trump Targets Wages for Forgiven Student Debt

The Department of Education, which the Trump administration is working to abolish, will now serve as the collection agency for delinquent student loan debt for 5.3 million people who the administration says are delinquent and owe at least a year’s worth of student loan payments. “It is a liability to taxpayers,” says White House Press Secretary Karoline Leavitt at Tuesday’s White House Press briefing. She also emphasized the student loan federal government portfolio is “worth nearly $1.6 trillion.” The Trump administration says borrowers must repay their loans, and those in “default will face involuntary collections.” Next month, the Department of Education will withhold money from tax refunds and Social Security benefits, garnish federal employee wages, and withhold federal pensions from people who have defaulted on their student loan debt. Leavitt says “we can not “kick the can down the road” any longer.”

Much of this delinquent debt is said to have resulted from the grace period the Biden administration gave for student loan repayment. The grace period initially was set for 12 months but extended into three years, ending September 30, 2024. The Trump administration will begin collecting the delinquent payments starting May 5. Dr. Walter M. Kimbrough, president of Talladega College, told Black Press USA, “We can have that conversation about people paying their loans as long as we talk about the broader income inequality. Put everything on the table, put it on the table, and we can have a conversation.” Kimbrough asserts, “The big picture is that Black people have a fraction of wealth of white so you’re… already starting with a gap and then when you look at higher education, for example, no one talks about Black G.I.’s that didn’t get the G.I. Bill. A lot of people go to school and build wealth for their family…Black people have a fraction of wealth, so you already start with a wide gap.”

According to the Education Data Initiative, https://educationdata.org/average-time-to-repay-student-loans It takes the average borrower 20 years to pay their student loan debt. It also highlights how some professional graduates take over 45 years to repay student loans. A high-profile example of the timeline of student loan repayment is the former president and former First Lady Barack and Michelle Obama, who paid off their student loans by 2005 while in their 40s. On a related note, then-president Joe Biden spent much time haggling with progressives and Democratic leaders like Senators Elizabeth Warren and Chuck Schumer on Capitol Hill about whether and how student loan forgiveness would even happen.

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