By Kevin Palmer
The 2016 Federal Reserve Survey of Consumer Finances, indicated the median net worth of Whites with a HS diploma is $100,600, compared to $68,300 for Blacks with a bachelor’s degree. This gross inequality in wealth is the result of America’s failure to pay monetary reparations for 246 years of slavery and decades of systemic racism.
According to a Thebalance.com article by Kimberly Amadeo, Home Equity and the Racial Wealth Gap, “From 1619 to 1865, Blacks were slaves which meant they could not own property because they were considered property. In 1862, President Abraham Lincoln signed the Homestead Act which gave White settlers and speculators 80 million acres of land.” Whites received a free source of wealth.
Moreover, “In 1934 the Federal Housing Administration (FHA) was established to insure mortgages. Black neighborhoods were excluded through a process known as redlining. Therefore, between 1934 and 1962, 98 percent of home loans went to White families. Then, “In 1944, the G.I. Bill guaranteed loads for veterans. Veteran mortgages made up more than 40 percent of all home loans. But the VA used racist FHA standards which meant it excluded many Black veterans. From 1944 to 1971, the VA spent $95 billion on benefits.” A source to build wealth was denied to Black veterans.
Because of generous government assistance, Whites are supreme over Blacks.