2017’s States with the Most Racial Progress

What are the major causes of the racial wealth gap between black and white households?

There is a racial wealth gap in the U.S. between blacks and whites because blacks have systematically impeded from earning income, and thus accumulating wealth in traditional ways. Most black people (as slaves) were legally prevented from owning property or earning income for the first 250 years of this country’s existence, the likelihood of general wealth accumulation necessary for one’s own upward mobility, but also in part responsible for the potential upward social mobility of future generations was simply not available to any blacks in the U.S. until the early 1900s. Even then, pockets of black wealth and success were often violently attacked and destroyed by whites - unhappy seeing blacks in positive social positions.

The violent riots and destruction of Black Wall Street in Tulsa, OK, and the Rosewood, FL Massacre are examples of what happens when black wealth and self-sufficiency are created in this country. In 2016, Black people only earn 65% of what white income earners make, thus limiting their ability to translate income into wealth (via the purchase of property, stocks, real estate etc.). This is important because income has a definitive end, wealth can be passed on in perpetuity, improving the lives of generations of people. If whites have access to more income which can be translated to wealth than blacks, the racial wealth gap will persist.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

State authorities can reduce racialized educational inequality by standardizing district funding of schools per student across districts rather than continuing to base school funding on the success of the town where the school is located. Property taxes divide states into rich and poor areas, and much of this division has a racial component. As a result, black students disproportionately end up in schools where the quality of education is low, making it even more likely that they earn less than their white counterparts. Better quality education is correlated with less street crime, which also disproportionately affects blacks. Increased surveillance in black communities is often the result of an expectation of crime rather than the initial presence of crime. Less assumption of criminal deviance then could hypothetical decrease the targeted incarceration rates of blacks (many school age) in these districts.

Devah Pager’s research on race and employment found black men less likely than white men to get a job interview regardless of criminal history, however lowering assumptions of deviance by improving educational resources in poor areas may improve employment and income rates for black students across the U.S.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

It should be the federal government, not state or local authorities, who work to improve racial housing and educational segregation for two reasons: 1) the federal government created racial segregation, and 2) racial segregation is national issue, not just a local one. Federal redlining, a policy which began with the 1934 National Housing Act, was governmental practice for maintaining a clear racial gap between blacks and whites. Homes in communities in or in-close proximity to people of color (blacks specifically) were devalued, and deemed too risky for investment. Simultaneously, the first suburbs were erected at the outskirts of major cities, where most of the American population resided until then.

White soldiers returning home from WW1 used GI Bills to buy into these new homes, with their manicured lawns, convenient appliances, and extra space. Black soldiers were kept out of the suburbs by banks unwilling to approve their mortgage loans and forced into the very urban metropolitan areas whites were fleeing because of this federal redlining policy. This unwillingness to invest or develop “redlined” – usually black – neighborhoods transformed metropolitan cities from the social, business, and economic centers they had once been, to abandoned wastelands. Redlining literally corralled black people into cities and then made those cities financial black holes to develop. There were fewer jobs available, fewer resources to upward social mobility (education, jobs, mentorship), and public spaces were in constant disrepair.

Improving racial segregation given the current racial wealth gap is a chicken or egg kind of question. How can blacks afford to integrate into majority white areas, when those areas are also more affluent and thus more expensive, if, as mentioned previously, blacks earn substantially less even when holding all else constant?

Why have some states been more successful than others in addressing racial inequalities?

I’m probably the wrong person to answer this question, as I am from Minnesota, a state currently doing a very poor job of reducing racial segregation. However, I suspect this has to do with whether state and local governments are actively pushing for some change. As we’ve seen over this election cycle and now with the appoint of a new Presidential Cabinet, there are still many politicians in powerful roles who believe racial segregation isn’t a problem, or is the result of racial deficiency. It’s impossible to improve the structure of a culture if its members deny the structural limitations without cause.

What are the major causes of the racial wealth gap between black and white households?

Conventional wisdom is that the racial wealth gap can be accounted for because of differences in education, jobs and income. Recent U.S. Education Department data show that there is a Black-White college enrollment rate gap of 8 percentage points (Whites are at 42% and Blacks are at 34%). According to the Pew Research Center, the Black unemployment rate is consistently twice as high as the White unemployment rate. Recent U.S. Census Bureau data indicate that the Black median household income was $35,398 compared to a White median household income of $74,297.

However, differences in education, jobs and income only tell part of the story and, frankly, are much easier to discuss. The more difficult truth to talk about is the legacy of racial inequality that is passed down from generation to generation. This legacy of racial inequality is well-documented in the book “Black Wealth/White Wealth,” where the authors show the differences between the Black middle class and White middle class. Black middle class status is based largely on income, while White middle class status is based largely on assets. Compared to White households, Black households typically do not have large wealth reserves or liquid assets, and thus have to rely on income and housing equity to a much greater degree than White households. The income gap between a young two-earner Black couple and a young two-earner White couple may be small, as documented in the book “The New Black Middle Class,” but there still remain a large gap in terms of net worth.

When income is controlled for, there still remains a racial wealth gap. There are also differences between Blacks and Whites in asset composition and investment decisions, with Blacks being more likely to invest their modest wealth in homes and cars while Whites are more likely to invest their wealth in financial assets (e.g., stocks and bonds) and income-producing assets (e.g., rental units, real estate). These differences in investment decisions are arguably the result of racial differences in cultural capital, where Whites are more likely to benefit from shared knowledge passed down from family members and other Whites about behaviors and financial decisions that promote social mobility.

Even when Blacks try to promote their social mobility through the pursuit of higher education, there is a price to pay. There is a large racial gap in debt for college graduates that increases over time. According to a report by Brookings Institution, Black college graduates have about $23,400 in debt student loans compared to about $16,000 for White student. However, after 4 years this $7,400 racial gap in debt increases to the point that Black college graduates average a debt load that is approximately $25,000 more than White students. The report attributes the racial debt gap to a difference in graduate school borrowing and interest accrual.

While need and racial differences in income and wealth undoubtedly impact the racial gap in debt, I also believe that there are likely racial differences in cultural capital regarding borrowing money and really understanding the implications that a few percentage points can make in debt (this applies to all loan debt, not just student loan debt).

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

This is a tough question to answer that requires a multipronged approach. State and local authorities can start by acknowledging and combatting the negative consequences of gentrification in urban areas with large numbers of Black households. When wealthier (and typically White) people move to an urban area, Black people are often displaced from their homes because they can no longer afford to pay their property taxes. Given that Blacks’ wealth relies more on home ownership than Whites’ wealth, gentrification and the displacement from homes (and the resulting loss of home equity) can exacerbate racial gaps in wealth.

In some places like Austin, Texas, the population of Blacks is declining because of structural inequalities related to educational disparities and a lack of economic opportunity (among other factors). It is well-documented that public schools with large numbers of Black and Brown students tend to have lower ratings, are more poorly resourced and suffer from lower academic achievement compared to predominantly White schools. State and local authorities need to invest more money in public education, and find ways to reduce the negative impact of gentrification and prevent Black families from being displaced.

What are the major causes of the racial wealth gap between black and white households?

The wealth gap between races is a product of history. The history of the Western World is one of exploration and racial exploitation. African Americans were brought to the America as chattel slaves - they were thought of as sub-human animals. That thought - racism - justified the horrific treatment meted out to African people for more than three hundred years.

After emancipation, African Americans - in the main - were remanded to segregated neighborhoods and schools that were separate and unequal. Poor expectations and the maldistribution of resources produce students who fail, academically, and who struggle to survive in informal economies. This places African American youth at risk of petty crime and involvement in the criminal injustice system - 1/3 of African American men between the ages of 18 and 30 are in jail, on parole or probation.

These factors add up to unemployability, menial wages and the inability to accumulate wealth.

Banks and realtors have exercised discriminatory practices that contribute to the wealth gap. Blacks suffer inequality in access to higher education and jobs. Wage discrimination is the norm.

On the other side of things, the wealth of the planet is being sucked up by voracious multi-billionaires and multi-national corporation - those economic vultures happen to be predominantly White. When wealth is hoarded by the few, it leaves less for the masses.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

State and local authorities must recognize that the racial gaps in wealth, education and employment are the product of public policy. Public policy, therefore, is needed to redress these inequities. First, ensure that schools are adequately funded and producing students who can read and write. Second, invest in infrastructure re-vitalization - and hire local. Clean and rebuild inner city communities. Re-define policing and community safety (hire local!). Gun control is a must.

Everyone can invest time in anti-racism programming.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

This is a very tough problem - housing segregation is the product of generations of racial profiling, redlining and individual choices. Specific things that state and local authorities can do are: (1) monitor realtor practices that re-produced segregated neighborhoods; (2) invest in quality housing in inner cities; (3) promote anti-racism in attitudes and behaviors.

Why have some states been more successful than others in addressing racial inequalities?

Racial divisions are race-based. The "red states" are also the "slave states." Attitudes and values are deeply ingrained in the former Confederacy. The issue of racial interactions differ by state - some states don't have much diversity.

What are the major causes of the racial wealth gap between black and white households?

The major causes of the racial wealth gap is 224 years of legal slavery, 100 years of legalized and defacto segregation, and 52 years of economic policies that are not designed to address the racial wealth gap.

The wealth generated from slavery provided the capital to develop industries, build universities, and create wealth for the richest whites. There were some individual wealthy blacks but overall the wealth gap started from the beginning of this country. During the Civil War, General Sherman created the Field Order 15 better known as "Forty Acres and a Mule." The federal government had confiscated southern lands and freedpersons worked the lands and believed they were entitled to it. President Andrew Johnson passed Circular 18 and returned the land to the southern whites. The 13th Amendment ended slavery but black were not free from poverty.

During the industrial periods, 90% of blacks live in the south and are trapped in the pernicious system of sharecropping. While many poor white ethnic came to America they had low pay unskilled jobs in the factory but that provided a leg up on black citizens. During the late 19th century, as American capital spread to foreign nations, African Americans did not have the capital to become "captains of industry." Therefore, they could not control the means of production, such as owning railroads, banks or oil companies. There are some wealthy individual African Americans but the wealth gap continues.

During the New Deal, the federal government created red lining policies that prohibited blacks from getting home loans. By the 1930s, African Americans live in the worst and oldest housing in the cities. Racial segregation in housing keeps most blacks from homeownership until the 1970s. The New Deal was a golden opportunity to make a dent in the racial wealth gap but racist realtors and white communities were committed to keeping blacks in public housing. Most Americans use homeownership to acquire wealth. Seventy three percent of whites and only 43% of black own homes.

After the civil rights era, African Americans took advantage of the opportunity to get white collar and high wage jobs. Since the 1960s, black income have increased but the 2008 recession had increased the wealth gap. Most economic policies are focused on jobs or increasing savings among African Americans. These policies will not close the wealth gap. African American economist William A. Darity, Jr. suggests that federal government should provide baby bonds of $50,000 to families in the lowest quantile. When the child is 18 they can use the funds to pay for college or start a business.

Even though there are more poor whites than blacks (20 million to 10 million), most whites refuse to believe that improving the race wealth gap will improve their lives. Unfortunately, most white Americans believe the wealth gap is due to bad choices by African Americans. The reality is the wealth gap was created by a racist capitalist state and the only way to eliminate it is to develop radical policies that are designed to decrease the wealth gap.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

Local and state governments have not created policies to address the wealth gap. Local and state government create policies that ensure African Americans have equal access to higher paying jobs and government contracts. Local and state government most enforce the law when there is racial discrimination in hiring and promotion. All of these solutions do not have any impact on the wealth gap. They increase African American income, which may increase the number of black homeowners, the foundation of wealth creation. Higher incomes allow African Americans to increase their savings and their individual wealth but it will not close the wealth gap.

Cities must stop funding charter schools and place the funds in public schools. The property tax funding system maintains the racial wealth gap and replicates the inequality. SAT scores are linked to income and wealth. Local and state government should demand more funds from the federal government for education. Improving education will not eliminate the wealth gap. It will increase the number of black college graduates but black college graduates still have a higher unemployment rate than white college graduates.

In San Antonio Independent School District v Rodriquez, The United State Supreme Court ruled that education is not a fundamental right so the federal government is not obligated to address unequal school funding. Local and state governments do not address public education funding inequity, the best they do is create policies that improve African American student outcomes, more funds to Head Start, New Haven Promise, New Haven public school students receive academic scholarships to attend a public university in Connecticut. These programs are necessary but they are not designed to decrease the wealth gap.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

States and local government should develop policies to reduce residential segregation because they allowed housing segregation to exist. State and local governments must make realtors create affordable housing in new units in urban areas. Residential segregation leads to segregated schools and black students attend schools that have a high percentage of concentrated poverty. Local and state officials should increase teacher salaries and create more after school programs.

Why have some states been more successful than others in addressing racial inequalities?

Trying to measure racial progress is complicated. For example, Mississippi has the most black elected officials but is the poorest state. One can say Georgia has made major progress in addressing racial inequality, but look where it started from in 1965. States that have more racial equality have a vibrant economy and a high percentage of educated African Americans. Racial inequalities on the federal level are similar on the state level.

What are the major causes of the racial wealth gap between black and white households?

There are multiple factors that contribute to the black-white wealth gap. Homeownership is the primary way that most Americans amass wealth, but blacks are less likely than whites to own a home, blacks are more likely to been affected by discriminatory housing policies, and blacks are less likely to have received inheritances or assistance from prior generations that built home equity. Thus, the wealth gap that we see today is a direct result of a starting wealth gap between blacks and whites that has been systematically passed down from generation to generation.

Also, a recent 2016 Congressional Budget Office report suggests that there are contemporary financial differences between black and white households that contribute to the racial wealth gap. Blacks are more likely than whites to be unemployed, and for those blacks who are employed, they earn less than their white counterparts, even for the same job. This income inequality translates to financial strain, which can make it challenging for black families to save money for a down payment for a home. Similarly, this financial insecurity also has the potential to drive black families in debt, which would contribute to a lowering of net wealth.

There are a host of other factors that have been argued to contribute to the racial wealth disparity such as credit score, financial literacy, business ownership, and retirement savings. However, homeownership disparities and gaps in income (and education, which relates directly to income) have been shown as powerful predictors of wealth.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

Racial gaps in wealth, employment, and education can be narrowed by (1) focusing on increasing financial stability in low-income households, (2) providing ways to increase savings, and (3) repealing and replacing policies that create concentrated wealth for the top echelon. By elevating individuals out of poverty and providing resources to increase financial literacy in low-income households, state and local authorities can insure that families could stop worrying about daily financial insecurities and start planning for homeownership and home equity building. Saving for homeownership can be challenging for lower and middle class families. Thus, using already-existing resources (such as the Earned Income Tax Credit) to provide additional incentives to save would contribute to the lowering of the racial gaps in wealth. Although the EITC is a federal program, state and local governments offer similar credits.

Lastly, it is not feasible to create only “wealth opportunity” policies and expect racial wealth gaps to disappear. Taxing the very wealthy and then reinvesting in low-income persons has the power to rebalance the scales and narrow the racial gaps in wealth. Reinstating estate taxes across all states and local municipalities and creating a net worth tax on very wealthy individuals are just two ways that local policy can help to reduce the racial gaps in wealth.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

State and local authorities drive much of the current racial residential segregation that we see in metropolitan areas. Revitalization and gentrification efforts is well known to create uneven development in cities, furthering the spatial distance between races. Some of these efforts are subsidized by local governments. In order for state and local authorities to rectify uneven development and racial segregation, they must provide resources to build up all areas, including areas that are abandoned and forgotten by local and state government. Deconcentrating poverty by providing means for individuals to move to other neighborhoods – a “geography of opportunity” – would help in reducing racial segregation.

State and local authorities also need to use policy tools at their disposal (such as eminent domain) to promote the development of undeveloped or blighted land into affordable housing. Communities can become more integrated by investing more funds in building and maintaining transportation infrastructures. When communities are interconnected, racial segregation is minimized. Creating platforms to minimize housing discrimination in local housing markets would be another way state and local governments can help in combating racial segregation.

Why have some states been more successful than others in addressing racial inequalities?

Some states have been more successful in addressing racial inequalities than others because they have intentionally created ways to address these inequalities in their legislative bodies. For instance, Oregon’s Land Conservation and Development Act created a seven-member body appointed by the governor that is empowered to make any statewide land use policies that it considers necessary. This act is attributed to providing more even development in the state and thus further reducing the level of racial residential segregation.

Each state has different policies that impede or help the closing of the racial wealth gap. Researchers from the Institute on Assets and Social Policy (IASP) have developed a tool called the Racial Wealth Audit, which allows users to understand how a policy or program contributes to the racial wealth gap. So, while it is important to acknowledge that some states have been better at reducing racial inequalities, it is equally imperative for states to do self-assessments to see how their policies shape those inequalities, and to provide targeted, place-based solutions to correcting any damaging policies that perpetuate racial inequalities.

What are the major causes of the racial gap between black and white households?

Historical government policies that have restricted access to homeownership (or property ownership) for Blacks relative to Whites have played a major role in contributing to the persistent racial wealth gap that we see today. Consider, for instance, that from 1619-1865 (almost 250 years) African-Americans were enslaved and literally considered property. In a contemporary sense, unpaid wages and property loss due to these enslaved blacks and their descendants fall somewhere in the multi-trillion dollar range.

White Americans on the other hand, benefited from government policies like the 1830 Indian Removal Act and 1862 Homestead Act, which transferred more than two hundred million acres of Native American lands to the hands of White settlers. After slavery, there is strong evidence that demonstrates that Black business owners and members of growing Black middle class communities in the south were targeted, terrorized and/or destroyed under the guise of white social control and racial terrorism  resulting in thousands of African-Americans lynched in the South and millions fleeing to the North (examples: Atlanta Race Riot, 1906; Red Summer Race Riots, 1919; Black Wall Street Massacre, 1921; Rosewood Massacre, 1923). In many of these examples black business owners and community leaders were murdered and black businesses and communities were burned to the ground. By 1910, the average homeowner was middle/upper class, married and white, with about 50% of White households owning a home, compared to 23% of Black households.

These Black-White inequalities in homeownership and wealth were exacerbated by the discriminatory practices of the Federal Housing Administration (particularly redlining) where the U.S. government set up a national appraisal system where predominately white neighborhoods were considered preferable for mortgage eligibility and predominately black neighborhoods or potential black homeowners were considered a financial risk.

Although, America was suburbanized and we experienced a housing boom in the 1930s and 1960s, access to the suburbs and the suburbanization of America occurred along racial lines. For example, between 1934 and 1962 the federal government gave out 120 billion dollars in home loans to mostly low and middle income households. Less than 2% of those loans went to non-White families. During the same period, the affordable housing opportunities largely available to African-Americans were public housing slums vis-a-vis U.S. government sanctioned urban renewal (Housing Act of 1949). These practices were in place and government sanctioned until 1968 (Fair Housing Act). The reality is that although structural legal barriers to wealth building for Blacks relative to Whites are no longer the law of the land, we are still working to overcome the legacy of nearly 350 years of past government sanctioned discrimination (1619-1968) and present day new forms of de facto discrimination (subprime predatory lending, racial steering, added hidden fees and white flight) that still impede racial wealth building.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

For the average American, the majority of our assets derive from the value of our homes. Consequently, government policies like first-time home buyer / good neighbor / fair housing programs that increase access to homeownership for Blacks will play a major role in decreasing the persistent racial wealth gap that we see today. Other policies that focus on improving the quality of public education (primary, secondary) and labor market opportunities in disenfranchised African-American communities also have the potential to reduce Black-White wealth inequalities.

Educational and occupational opportunities are known to increase wages, reduce crime (improve neighborhood safety), and attract potential homebuyers and residential/commercial development. Some research also suggests that programs that increase financial literacy through mortgage counseling and favorable mortgage terms promote sustained homeownership and wealth building.

If we are to get real about reducing the racial gap in wealth (or any inequalities for that matter) we need to get real about our history as a country and the degree to which the history of slavery, reconstruction, Jim crow and other government sanctioned discriminatory practices in housing including subprime predatory lending, have led to the wealth inequalities we see today.

We need to move away from the false narrative especially in the Trump era that Whites (and White men in particular) have been left behind in the economy at the expense of people of color. The data just doesn’t support that narrative. The rich have gotten richer, and the poor have gotten poorer when we consider wealth inequality since the 1970s, but this idea that there is a racial divide where poor White men are losing ground to Blacks and Latinos (who are taking their jobs) is a figment of our imagination, perhaps largely manufactured by elites. With that being said, Affirmative Action or some other redistributive justice program (e.g., reparations) focused on urban development or increasing access to low interest home/business loans should be seriously considered to redress past and continuing harms. This includes as a first step, passing U.S. House Bill H.R.40, which creates a commission to examine the lasting impact of African enslavement, and establishes a plan to address those impacts.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

Yes, in theory, but in practice, it is very difficult to legislate individual behavior (e.g., white flight, racial steering, personal choice). One of the most significant barriers to reducing racial residential segregation is ideological or attitudinal. Studies have consistently shown that the likelihood of Whites feeling uncomfortable and wanting to move out of a neighborhood increases as that neighborhood becomes proportionally more non-white (even if their minority peers have similar levels of education and incomes). Racial preference is a serious impediment to racial wealth building for Blacks. In part due to the racial residential preference of Whites vis-a-vis White Flight and racial residential segregation, Black owned homes are valued significantly less and experience lower levels of appreciation than comparable White homes.

Why have some states been more successful than others in addressing racial inequalities?

I don’t think states are the appropriate unit of analysis for this question. At least eighteen U.S. states for example, have a very small Black population (5% or less). Racial (in)equality in a state like Wyoming (1% Black) may mean something qualitatively different from racial (in)equality in a place like Mississippi or Louisiana where about a third of the population is Black. A more useful metric is racial inequality at the city or metropolitan level. Empirical research assessing the source of racial inequalities at the city or metropolitan level in the United States is much needed.

What are the major causes of the racial wealth gap between black and white households?

Research by sociologists Melvin Oliver and Thomas Shapiro, Black Wealth, White Wealth, was published in 1995 originally and reissued again in 2006. Their work summarizes a lot of data, and is an excellent source for understanding how the racial wealth gap evolved.

1. I'd begin with an emphasis on racial slavery in which Blacks, who were enslaved, a. were not paid; b. were never given reparations, c. were never fully granted citizenship, which incorporates both civil/political and economic dimensions of citizenship. Since slavery existed from prior to the creation of the nation, until 1865 and the passage of the 13th Amendment, it involved centuries of unpaid labor, followed by absence of recognitions of that injustice, and of the expropriation of labor without pay. This affected the emancipated population which, while freed from enslavement, were forced to confront ‘freedom’ without any economic resources, or recognition of that past failure to pay. While the 14th amendment created citizenship for the former slaves, and the 15th the right to vote, there was no effort to address in law, the economic standing of the newly freed former slaves.

2. Oliver and Shapiro call slavery and other factors the Racialization of the State - in which the federal, state and local governments privileged whites’ access to government policy and restricted blacks from them. Some examples included:

• Homesteading - which in the 19th century was largely the preserve of white settlers, and provided free land for settlers.

• In the 20th century, Roosevelt era policies were passed for which whites were eligible and based on geography and other criteria, blacks were not. Examples included Social Security, Old Age Insurance, retirement, etc. weren't designed to be available for Blacks.

3. Housing: Widespread discrimination in housing and in the acquisition of mortgage loans has kept Black housing ownership significantly lower than white ownership: in ~1995 it was e.g., 63.8% white to 41% for Blacks. (Oliver and Shapiro: 111)
   
   Most wealth is owned in housing (among both blacks and whites), but blacks have found it difficult if not impossible to penetrate the housing market and acquire and/or sustain property because of racial discrimination. This was carried out in a variety of ways including banking discrimination, discrimination in insurance, restrictive covenants (property documents which included discriminatory prohibitions forbidding sale or rental of property to blacks), refusal of real estate agents to show property to blacks. The 20th century therefore began in the nation’s cities with the construction of geographic boundaries in the nation’s rapidly expanding cities along racial lines.

4. Sedimentation of Racial Inequality

• Cumulative effects of past patterns of discrimination have cemented blacks to the bottom of the economic hierarchy.

• Low wages, poor schooling, school and housing segregation have affected “practically all blacks.”

• There has been generational reaffirmation of the historical legacy of discrimination, time after time.
  
  One example of this is discussed in Linda Faye Williams’ “The Constraint of Race: Legacies of White Skin Privilege in America,” in which she compares the creation of resources for white veterans who served in the Civil War, whether the Union or the Confederacy vs. Blacks (and their widows) who were required to provide evidence of service, or documentation of marriage (when slavery prohibited marriage and denied access to literacy). This effectively made it difficult and in many cases, impossible for Black veterans or their widows to receive pensions. A second case she discusses (which could have addressed the economic standing of the formerly enslaved) is the Freedmen’s Bureau which was never funded by the Congress, and which operated for only 4 – 5 years.

• There has been a significant increase in economic inequality since the 1980s. One measure is income, but real progress would be based on narrowing of differences in wealth. In 1988, Oliver and Shapiro showed that “Whites possess nearly twelve times as much median net worth as whites, or $43,800 versus $3,700. In an even starker contrast, perhaps, the average white household controls $6,999 in net financial assets while the average black household retains no NFA nest egg whatsoever.” (Oliver and Shapiro, p. 88 Chap 4) Ed Wolff reported the ratio of median net worth for Blacks in comparison to Whites for 2004 was 10% (or $118.3 for NonHispanic Whites vs. $11.8 for NonHispanic Blacks (in thousands)). (Wolff, p. 26 - “Recent Trends in Household Wealth in the United States: Rising Debt and the Middle Class Squeeze.”)
  
  Even more recent data on wealth and race from the Federal Reserve Bank of St. Louis published online in 2015 shows: “In inflation-adjusted dollars, the median wealth of a white family in 1989 was $130,102. In 2013, it was $134,008. For an Asian family, the two medians were $64,165 and $91,440. For a Hispanic family, they were $9,229 and $13,900. For a black family, they were $7,736 and $11,184.” (The Demographics of Wealth: How Age, Education and Race Separate Thrivers from Strugglers in Today’s Economy. Essay No. 1: Race, Ethnicity and Wealth).

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

There are Civil Rights/Human Rights Commissions in most states and in many cities, which have the responsibility for enforcing each individual state’s civil rights laws. These entities may or may not focus on economic status issues, but they are at least a source of information, evidence about discrimination and serve as monitors of policy within the state, as well as in terms of national law. New York State was e.g. the first to create a state agency, in 1945 (according to New York); Pennsylvania in 1955, Michigan in 1963, Indiana 1961-63, Illinois in 1979, Maryland 1969. (Source: “A Historical Perspective on U.S. Human Rights Commissions” Prepared by Kenneth L. Saunders ad Hyo Eun (April) Bang June 2007

Why have some states been more successful than others in addressing racial inequalities?

Well I’ve not looked at this data on a state by state basis, but I’d expect that income and wealth for Blacks to be higher in states which have higher per pupil expenditures, stronger prohibitions on racial and gender discrimination. And, the histories of slavery, and racial discrimination vary significantly by state/region. I would predict that California, New York, and Illinois e.g. might be states with smaller racial income and wealth gaps than states which have been the center of slavery and intense discrimination, e.g. Mississippi, and Louisiana.

None of this is simple, of course, since some states banned the immigration of Blacks, even though slavery wasn’t present in the state. And income and wealth among blacks would be higher in California than in Mississippi, but the income and wealth among whites would also be significantly higher, so there might not be a smaller gap. My difficulty in answering this question is whether there is good state by state data on these questions. The most recent data I cite from the Federal Reserve of St. Louis, also is national rather than state by state.

What are the major causes of the racial wealth gap between black and white households?

There are multiple causes of the racial wealth gap including inheritance, home ownership and mortgage lending, as well as the persistent income gap by race. Inheritance laws allow wealth to be transferred from one generation to the next, accumulating wealth accrued in part by racial privilege. For example, African Americans have faced extreme discrimination in housing and mortgage lending for decades. The equity in one's home is the most common path to building wealth. For previous generations of whites and blacks, whose ability to buy a house was greatly affected by their race, they pass along that privilege (through home wealth) or that disadvantage (through a lack of home wealth) to the next generation.

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?

Federal, state and local authorities must be vigilant about identifying housing discrimination and mortgage lending discrimination. These are central culprits in the racial wealth gap. Shifting the forms of evidence of good credit and extending the lending capabilities of local banks can help broaden access to home ownership for many marginalized communities.

Most urban school districts have elaborate student assignment plans that are designed to create racially diverse schools that are equitable across a district. The courts have limited school districts' ability to consider the race and class of students in their desegregation efforts. However, continuing to create racially diverse schools with children from a variety of economic classes is also crucial to student success and equity.

Should state and local authorities work to reduce racial segregation in housing? If so, how?

Yes. Many sociologists view racial segregation in housing as the foundation of racial inequality in other areas such as schooling and employment. Protections for affordable housing are key issues in 2017. Many cities have seen resurgent racial segregation in housing and in schools over the past few decades. Reserving housing across the city for teachers, police officers and other civil servants is one strategy. Working with local community organization to build affordable housing in existing working class communities is another key issue. Gentrification in many US cities has exacerbated segregation and further limited the ability of many people of color to access wealth through home ownership.