Racial inequality in the United States

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, de jure and de facto segregation, specifically against racial minority groups.

A 2021 survey of 1,422 members of the American Economic Association found that 78 percent of professional economists generally agreed with the statement: "Differences in economic outcomes between whites and blacks in the US are in large part due to the persistence of discriminatory norms and institutions."

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. According to survey data presented by the ACLU, the wealth gap as of 2018 stands at $33,000. While the average income for a white family of three is roughly $84,600, a Black family of the same size would only earn $51,600. Many causes relate to racial inequality such as: Years of home ownership, household income, unemployment, education, lack of upward social mobility, and inheritance/generational wealth. 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. Though some Black journalists, such as Jesse Lee Peterson, disagree, pointing to systemic failings within the Black community as being the real causes for the wealth gap.

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 an 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. After World War I, white families found themselves displaced in an economy which made housing a luxury good. After the Great Depression, this disparity was exacerbated even more. Because of this, New Deal programs were created and managed by the Public Works Administration (PWA) in 1933 to aid in neighborhood composition. The way of doing this would be seen in segregated housing, even in already integrated communities. In 1937, the PWA was replaced with the U.S. Housing Authority (USHA). While they adopted many of the PWA's policies, they focused particularly not on the location of public housing but on the racialization components. At this time, public housing was only made available to white individuals. Therefore, African Americans and all BIPOC individuals were forced into racial silos. The housing that was available to all minority groups was scarce and, therefore, significantly more expensive. "Rent to buy" sellers would allow African Americans the opportunity to build wealth through homeownership, but the home's equity would not be attainable until the home was fully paid off. High-density areas of BIPOC folks became the standard since most housing was used for multi-family homes. Oftentimes, these homes would simply be built-in extensions of single-family homes because a lack of housing did not allow for African Americans to fit in anywhere else in the economic sector. One low interest rate programs and subsidized housing for the white suburbanization of America became standardized, BIPOC folks would be allowed to utilize public housing. However, this led to a new stigma in which public housing became "The projects." Those who lived in public housing were now seen as criminals, dirty, lazy, and the opposite of disciplined hard working individuals. Even today, this stigma stands in all branches of welfare an individual belonging to a minority community may utilize.