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THE PARADOX OF PROGRESS FOR BLACK AMERICANS  
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Algernon Austin and Dedrick Asante-Muhammad
August 29, 2024
Other Words
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_ This is the best economy for Black Americans in generations, but
that’s not enough to close the racial wealth divide on its own. _

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As the country moves rapidly toward the 2024 elections, Black
Americans are experiencing the best economic conditions they’ve had
in generations. Record low unemployment rates, record low poverty
rates, and record high levels of income and wealth paint a picture of
Black prosperity.

Yet African Americans remain mired in great economic insecurity,
reflected in their low opinion of the economy, widespread asset
poverty, and ongoing economic inequality between Black and white
households.

The best Black economy in generations, in short, isn’t enough. To
overcome centuries of inequality, we’ll need dedicated public
policy.

Let’s look at some numbers from a new report
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put out for the Joint Center and the Center for Economic and Policy
Research.

From 1972 to 2022, the annual Black unemployment rate averaged 11.6
percent. Last year, it averaged 5.5 percent, a historic low. That’s
good news, but it’s barely put a dent in the gap between Black and
white employment.

We calculate that Black America would need an additional 1.4 million
jobs for Black people to be employed at the same rate as white people.
This employment gap  cost Black Americans roughly $60 billion last
year compared to what they’d have made if those jobless individuals
were working.

So for African Americans, the racial employment divide remains quite
costly. Other indicators tell a similar story.

For example, Black median household income is also at its highest
point in a generation, growing from about $41,000 in 2011 to nearly
$53,000 in 2022 — a nearly 30 percent increase. That same year,
median Black wealth also reached a new high of nearly $45,000, more
than double the post-Great Recession low of about $17,000.

Still, Black median income today is still nearly $30,000 lower than
the white median — it’s not even caught up with the white median
income of 1972. And the average Black median wealth of about $45,000
means the vast majority of African Americans fall well short of the
$190,000 to $570,000 estimated as necessary to reach middle-class
status.

Will these disparities correct themselves on their own? Not likely.

As the Institute for Policy Studies and the National Community
Reinvestment Coalition found in their 2023 “Still A Dream
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report, the nation is still moving at a glacial pace when it comes to
bridging Black/white economic inequality. If the country continues at
the rate it’s been moving since the 1960s, it will take _over 500
years_ to bridge the racial income gap — and _nearly 800
years_ to bridge the racial wealth gap.

So while Black Americans are experiencing significant economic gains,
these advances are insufficient to overcome entrenched inequalities.
The economic progress we see today is a _foundation_, not a finish
line. It speaks to the need for comprehensive policies that address
ongoing barriers to economic security and wealth-building.

Investment in quality education, access to affordable health care,
affordable housing, job creation targeted to high-unemployment
communities, and new publicly financed asset building opportunities
like Baby Bonds are essential. These measures can help ensure that the
economic gains of today translate into sustained prosperity and
security for future generations.

As we approach the presidential election, let’s not make this
election a contest between individuals but of _policies _that can
heal our deep wounds of racial and economic inequality.

Addressing these issues with urgency and commitment will not only
improve the economic outlook for Black Americans — it will create
the basis for a more united country.

_Algernon Austin is the Director of Race and Economic Justice at the
Center for Economic and Policy Research. _

_Dedrick Asante-Muhammad is President of the Joint Center for
Political and Economic Studies._

_OtherWords is a free editorial service published by the Institute for
Policy Studies. Each week, we publish a package of op-eds and
columns, plus an original cartoon, and distribute them to readers,
editors, and publishers through our website and newsletter. Each year,
hundreds of newspapers and websites reaching millions of readers use
this work._

_AT NO COST, WE OFFER POLISHED, FACT CHECKED, AND ACCESSIBLY WRITTEN
OP-EDS ON A RANGE OF TIMELY SUBJECTS FROM A DIVERSE CAST OF
CONTRIBUTORS. IN 2022, NEARLY 60 PERCENT OF OUR OP-EDS WERE AUTHORED
BY WOMEN, 40 PERCENT BY PEOPLE OF COLOR, AND 20 PERCENT BY YOUNGER
WRITERS._

* Inequality
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* Racism
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* Economic Growth
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