Racial inequality in the United States

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In the United States, racial inequality refers to the social inequality and advantages and disparities that affect different races. These can also be seen as a result of historic oppression, inequality of inheritance, or racism and prejudice, especially against minority groups.

There are vast differences in wealth across racial groups in the United States. The wealth gap between Caucasian and African American families substantially increased from $85,000 in 1984 to $236,500 in 2009. Many causes relate to racial inequality such as: Years of home ownership, household income, unemployment, education, lack of upward mobility, and inheritance.^[1] In 1863, two years prior to emancipation, Black people owned 0.5 percent of the national wealth, while in 2019 it is just over 1.5 percent.^[2]

Under slavery, African Americans were treated as property. After the American Civil War, Black sharecroppers became trapped in debt. African Americans were rarely able to homestead. The Freedman's Savings Bank failed, losing many Black assets.

Exclusions from Social Security disproportionately affected African Americans. Savings were spent for retirement instead of handed down as inheritance. African Americans are less likely to receive inheritance and more likely to aid poor family members.

The Federal Housing Administration and Veteran's Administration shut out African Americans by giving loans to suburbs instead of central cities. Housing segregation caused unequal living standards and poverty. Public education greatly relies on local property taxes, with racial inequality between White affluent suburbs and poor minorities in inner-cities.

Criminal records lead to employment and income struggles. Inability to make bail and quality counsel are factors. Racial segregation and racial profiling lead to differences between races.