“The racial wealth gap is the smallest it’s been in 20 years.”
A simple calculation puts the persistent and policy-driven black-white wealth gap into perspective. Consider that the racial wealth gap—measured as the ratio of median black wealth to median white wealth—slightly narrowed from 2013 to 2016. (see Table 1) If this pattern continued over time and with no major policy changes, it would take more than 20 years just to return to the racial wealth gap that existed in 1998. Moreover, it would take more than 200 years for median black wealth to equal median white wealth. Leaving wealth inequality to market forces would likely create a massive gulf in economic opportunity and security by race. That said, shrinking the black-white wealth gap in a meaningful way will undoubtedly require large, targeted policy interventions.