Research Prospectus and Conceptual Model

Research Question 

This project seeks to evaluate the relationship between America's structural racism and the black-white wealth gap. Does an individual’s or family’s financial net worth offer equal opportunities for both African American families and white families? 

Previous Literature 

Wealth refers to the measure of a family’s or individual’s net income. It enables people to effortlessly shift to new neighborhoods, the transition between jobs and efficiently respond to situations. In other words, it is the full measure of a family’s prospective economic security. It is meant to enable parents to pay for or take care of their children’s basic needs as well as education and allow workers to create economic stability in retirement ( Andersen & Collins, 2015) . However, wealth in the United States is unevenly distributed by race, particularly amongst black and white families. According to Bailey et al. (2017), the wealth of African American households is incomparable to white households. This inequality denies them financial flexibility exposing them to risks of financial instability. Bailey et al. (2017) further assert that African Americans have reduced opportunities for wealth creation which is linked to low-income levels for their households and future generations. 

Structural Racism 

Wealth inequality is enabled by vicious significant factors that intensify its progression. For instance, tax-advantaged systems of investments are less accessible to black families, owing to a lengthy history of workplace discrimination and other racial exercises. Another factor is that it is hard for blacks to be homeowners as compared to whites. Mortgage market discrimination is responsible for this disparity which means that blacks have limited access to the funds and tax welfares that are enjoyed by homeowners. Also, continued labor market inequality and seclusion push blacks into limited and fewer beneficial employment opportunities compared to their white counterparts. As a result, African American individuals tend to have reduced access to good wages, steady employment, and retirement benefits at their places of work. All these being significant ways by which American households find access to investments. Furthermore, under the existing taxation program, families with higher pay get greater tax incentives related to both retirement savings and housing. Since African Americans families tend to get fewer incomes, they indeed receive limited tax benefits despite having retirement savings accounts or being homeowners ( Bell & Adams, 2016) . Thus, it is worth noting that the continued labor market and housing inequality and seclusion increase the destructive cycle of the wealth gap. 

Throughout American history, African Americans have not been able to access generational wealth. Generational wealth means that an individual’s or family’s net worth can be passed on to future generations which can then profit from it and grow across time. Enslaved black people were denied this generational wealth by whites who yielded off of their bodies and blood. African Americans were incapable of living freely by the constitution, not to mention develop wealth to pass on to prospect generations ( Hanks, Solomon, & Weller, 2018) . Black Americans have constantly found themselves several strides behind their white counterparts decade after decade, despite making several attempts to maintain pace with them. Hanks et al. (2018) further assert that African Americans cannot match their white counterparts in terms of affluence even when they pursue higher education, purchase a home or secure a good job. Additionally, the differences between white and black Americans can closely always be tracked back to strategies that either directly or indirectly segregate against black Americans. 

While considering strategy sanctions to reduce the racial wealth gap, it is worth noting that poor whites and poor blacks are not equally positioned as whites have been and remain to be handled more favorably compared to their black counterparts by government associations. Targeted universalism delivers a basis for finishing the racial wealth gap since it generalizes the requirements of both the leading and the minor population but pays particular attention to the state of the marginal group ( Bailey et al., 2017) . Consequently, a lot of has been recently raised about growing income inequality and the awareness of income amongst America’s wealthiest families. Although income inequality indeed remains a crucial policy issue, wealth disparity is critical and worthy of closer interest. Income and wealth, however, are not the same and need exclusive considerations. Income includes social security benefits, earnings from work, and dividends and interests that households utilize to cater to their existing expenditure needs. 

Wealth is more concentrated compared to income, and its concentration has developed for both blacks and whites. The black-white wealth gap is due to the standardized discrimination blacks experience in creating wealth. For instance, The United State tax code highlights investments in specific assets over other savings. Retirement savings financial records such as individual retirement accounts (IRAs) and 401(k) plans, as well as mortgage borrowing to fund a primary residence, obtain better action under the tax code ( Andersen & Collins, 2015) . And still, blacks are less likely to get employment in jobs that offer benefits such as retirement savings because of historical working discrimination. Similarly, blacks are much unlikely to homeowners due to regular housing and mortgage discrimination. These problems render into limited chances to gain from existing supply and housing market profits, leading to significantly less wealth for black than for white Americans. 

Do You Feel in any way Discriminated Against on your Job Because of your Race or Ethnic Origin? 

Please Estimate your Total Wealth 

References 

Andersen, M., & Collins, P. H. (2015). Ethnicity, Rank, & Sex: An Anthology . Nelson Education. 

Bailey, Z. D., Krieger, N., Agénor, M., Graves, J., Linos, N., & Bassett, M. T. (2017). Structural discrimination and well-being insights in the USA: evidence and involvements. The Lancet , 389 (10077), 1453-1463. 

Bell, L. A., & Adams, M. (2016). Hypothetical basics for communal fairness learning. In Training for Diversity and Social Justice (pp. 21-44). Routledge. 

Hanks, A., Solomon, D., & Weller, C. E. (2018). Methodical inequality: How America’s structural racism assisted generate the black-white wealth gap. Washington: Center for American Growth .