Increasingly, “wealth extraction” is becoming more widely used in the national dialogue around wealth inequity. When wealth extraction is codified as policy or practice, it has devastating ramifications that impact communities for generations. We must not forget the history of wealth extraction and recognize the current ways extraction harms Black and Brown communities.

For example, the pervasive undervaluing of Black homes compared to White homes in the same or similar neighborhoods has been extractive for decades, even though housing prices amid the COVID-19 pandemic placed a spotlight on this critical issue. Wealth extraction also shows up as “redlining,” a discriminatory practice of disinvesting in Black communities and excluding groups from a wide range of services based on where they reside. 

This is why Bloomberg Philanthropies’ Greenwood Initiative believes disrupting wealth extraction on the path to accelerating wealth accumulation for Black communities is critical to our work. In the months to come, we'll be sharing how we’ll continue to partner with organizations and efforts across the county to create change. 

We hope you are inspired by the emergent efforts to accelerate wealth equity below. 

We also invite city and county governments with significant Black populations to apply for the CityStart engagement grant, offered by the Cities for Financial Empowerment (CFE) Fund. This opportunity includes $75,000 and a significant focus on technical assistance support to develop and publicly launch an actionable blueprint outlining local financial empowerment strategies (e.g., financial education and counseling, asset building, access to banking, and consumer financial protection). It also includes opportunities for broader systems investments to further equitable financial stability and address racial wealth equity.

The engagement is ideal for cities and counties seeking to prioritize resident financial stability needs with a focus on racial wealth equity, informed by stakeholder and resident input, and committed to creating an actionable strategic plan. Feel free to share this opportunity with your network. Please note, applications are due on November 18, 2022.

Until next time,
Garnesha Ezediaro

Go Deeper

• Yes, we can end racial wealth disparity. Here’s how.
• At a local level, mayors across the country are working together to end wealth extraction.
• Policy experts share their ideas on addressing racial wealth disparity.
• Rethinking homeownership incentives could help racial wealth disparity.
• Shrinking racial gaps in student debt and default to increase wealth accumulation.