UN issues rare warning over alarming racism in US

This massive gap stems from historical discrimination like redlining which denied loans and mortgages to Black homeowners, as well as ongoing disparities in areas like equal pay, access to higher education and job opportunities. The effects of redlining are still felt to this day, as the neighborhoods that were redlined in the early 20th century continue to have lower homeownership rates and property values compared to other areas. Studies have shown that homes located in formerly redlined districts appreciate at roughly half the rate of homes outside these boundaries.

Closing the racial wealth gap will require targeted policies and reforms to address both the historical and ongoing causes of the disparity. Legislation could help promote fair lending practices, combat housing discrimination, and provide reparations to communities that suffered from redlining. Increasing minority homeownership through down payment assistance programs and cracking down on predatory lending tactics that disproportionately impact people of color would help to build wealth through home equity.

Reforms are also needed in the areas of education and employment. Closing opportunity gaps in accessing higher education degrees and vocational training programs is essential for improving career prospects and earning potential. Paid family leave, a higher minimum wage, and bans on salary history inquiries could help shrink ongoing disparities in wages and career advancement. Public-private partnerships focused on training and apprenticeships in growing industries would expand job opportunities. With a comprehensive approach that tackles both legacy discrimination and modern-day barriers, progress can be made toward achieving equal economic outcomes regardless of race.