Testimony Closing the Wealth Gap: Empowering Minority-Owned Businesses to Reach Their Full Potential for Growth and Job Creation
Signe-Mary McKernan, Caroline Ratcliffe
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The racial wealth gap grows sharply with age. When people are in their 30s and 40s, whites have about 3.5 times more wealth than people of color. By the time people reach their 60s whites have about 7 times more wealth. Skewed federal subsidies exacerbate wealth disparities and the racial wealth gap. Five suggestions to close the racial wealth gap are: make homeownership tax subsidies more progressive; promote retirement savings through IRAs and expand the Saver's Credit; reauthorize the Assets for Independence program; increase access to high-quality education; and improve access to micro and small business capital for low-wealth groups.
Research Areas Economic mobility and inequality Wealth and financial well-being
Tags Asset and debts Income and wealth distribution Inequality and mobility Opportunity and ownership Financial stability
Policy Centers Center on Labor, Human Services, and Population