The interventions described in this brief are about expanding opportunity, not redistributing scarce resources, and therefore illustrate ways to move beyond zero-sum thinking. If designed and implemented effectively and scaled, they can narrow the racial wealth gap and spur economic growth.

Why This Matters

Over the past three decades, families across the US have become wealthier, yet racial wealth gaps have widened. Upward economic mobility is difficult to achieve, particularly for those starting life in poverty. And over half of Americans struggle to afford basic needs, including those in the middle class. It is unsurprising, then, that belief in the American Dream is at a record low.

It is clear the country is at an inflection point. If cross-sector leaders and decisionmakers work together to disrupt a status quo that is stymieing prosperity, they could improve the economic trajectory for many people. The broad nature of economic changes invites policy thinkers to explore evidence-based solutions that expand access, funding, and opportunity.

What We Found

Homeownership, education, wages, and access to financial markets are four policy areas that affect and reach the majority of Americans. They intersect with each other and are critical to economic mobility and wealth building. Housing represents the largest portion of household wealth for all but the highest-income households; access to financial markets can enable homeownership and other asset ownership; and education plays a foundational role in driving wages and financial well-being, which are critical first steps for people to accumulate wealth.

One of the country’s most effective economic development achievements of the last 60 years is the implementation of policies at the national, state, and local levels—a multipronged approach necessary to align and respond to new labor markets and economic opportunities. Described in this brief—and in greater detail in the accompanying fact sheets—are examples of interventions and policies that together

• raised the floor for some communities and, in so doing, improved overall economic prospects;
• when implemented for Black communities, also worked for all groups or were expanded to other groups; and
• did not resort to zero-sum trade-offs between groups, and instead chose options that benefited all communities.