I was pretty disappointed with the proposals of Josh Hoxie in his piece at MarketWath, “10 practical steps to bridge the racial wealth divide”:
The median black family today owns $3,600 — just 2% of the $147,000 of wealth the median white family owns. The median Latinx family has assets worth $6,600 — just 4% as much as the median white family. (These figures exclude cars, which are a poor store of wealth because they depreciate.)
Put another way, the median white family is 22 times wealthier than their Latinx counterparts — and 41 times wealthier than the typical black family.
Here’s what he proposes:
1 Baby Bonds
2 Guaranteed Employment and a Significantly Higher Minimum Wage
3 Affordable Housing
4 Medicare for All
5 Postal Banking
6 Higher Taxes for the Ultra-Wealthy
7 Fixes to Upside-Down Tax Expenditures
8 A Congressional Committee on Reparations
9 Data Collection on Race and Wealth
10 A Racial Wealth Analysis
The reason I was disappointed should be obvious. Even if all ten were implemented, they would have very little effect for a simple reason. The savings rates of blacks and Hispanics are lower at every income level than those of whites. See this report for more. Try as they might, torturing the data all the way to avoid it, it’s the inescapable conclusion from the data the authors present.
And that doesn’t even take into account another reality: the differences among whites are enormous, too. The Mr. Hoxie tells us nothing about the standard deviation.