Annual Rev. Dr. Martin Luther King Jr. Day Report Released

As we celebrate the life and legacy of Rev. Dr. Martin Luther King Jr. we see there are still large gaps that exist between the incomes and employment rates of white and Black Americans, according to the personal-finance website WalletHub which released its report on the States That Have Made the Most Racial Progress, along with expert commentary, to highlight where we’ve made the biggest strides toward equality over the past several decades.

“It’s encouraging to look at the data and see that some states have made significant strides toward racial equality over the past few decades. For example, Wyoming has closed the racial income gap by 42 percentage points since 1979, and Mississippi has decreased disparity in poverty levels by 27 percentage points since 1970. Plus, several of the states that have made the most racial progress overall have improved so much that they are now among the top 10 most integrated states. This change demonstrates that state-level policies and residents’ attitudes regarding equality have grown considerably better.

“The state that has made the most racial progress over the past few decades is Texas, in large part because it has done a lot to close the gap in health outcomes between white and Black residents. For example, Texas has reduced the gap in health insurance coverage by 12.4 percentage points since 1995, the most of any state. Texas has also made a lot of racial progress in the business sector. Between 2002 and 2021, the gap in business ownership between white and Black residents decreased by 6.4 percentage points, the sixth-largest decrease in the nation. The disparity in the share of business executives who are white vs. Black also decreased by close to 8 percentage points, the seventh-largest decrease,” stated Chip Lupo, WalletHub Analyst.

What are the major causes of the racial wealth gap between Black and white households?
“The major causes of racial wealth gap are undoubtedly tied to the legacies of slavery and white supremacy. That is, Black peoples concerted and systematic exclusion from: politics, business, education, and land ownership in the United States. We are talking about an entire segment of the population that was relegated to ‘property’ from 1619 to 1865, followed by formal and informal sanctions including Black Codes. Finally, government programs like The Homestead Act, GI benefits, and the New Deal overwhelmingly helped whites continue to accrue wealth at the expense/exclusion of Black families. This, in part, explains some of the wealth disparities we see today; with whites having approximately ten times more net worth than Black families according to the US census.”
Edlin Veras, Ph.D. – Assistant Professor, Swarthmore College

“Historical systems of discrimination – to include slavery and lack of reparations, white backlash and race riots targeting black communities. These would include over 50 towns, cities and counties across the United States where African Americans were violently expelled by white mobs…Housing and Lending practices that limited or denied mortgages, investment and other resources to Black communities which limited homeownership, perpetuated segregation, and increased the racial wealth gap. This was particularly true of the Federal, State and local policies associated with redlining. This practice starting in the late 1930s lasted until the Fair Housing Act of 1968 legally banned it. These practices led to segregated communities and resulting differential and inequitable funding of schools.

Currently, there is an estimated $23 billion funding gap between majority-white and black schools. This translates to about $733 less per pupil for those schools with 90% or more of students of color. Collectively, these have and continue to impact upon the education and training opportunities available. Consequently, there are fewer jobs, fewer individuals prepared to work, or attend college within these communities. All of which further aggravates the decades-long racial wealth gap between Black and white households.”
Rodney D. Coates – Professor, Miami University

What can state and local authorities do to help reduce racial gaps in wealth, employment, and education?
“States and local authorities can immediately begin to equitably fund education and job training within poor communities. This would include all communities, white, black, Native American, and etc. Equitable funding would consider the facilities (buildings, infrastructures) and personnel (teachers, counselors, and administration). Secondly, states and local authorities can use tax rebates and incentives to encourage industry, business, and corporations to locate in these communities to provide jobs. Third, investing in regional mass transportations systems, linking poor communities to existing industrial, business, and corporate hubs would facilitate job acquisition. Finally, relocation incentives could be utilized to promote relocation of poor residents to areas with job opportunities.”
Rodney D. Coates – Professor, Miami University

“The education, employment, and wealth gaps are somewhat distinct, and reducing one may not actually result in a reduction in the others. The share of Black people earning doctorates, for example, has increased significantly over the past 40 or so years, though it still remains well below parity. But, the point here is that this specific educational gap (doctoral degree earnings) is closing, albeit slowly. But across this same period, the wealth gap increased, too. So positive movement in one doesn’t predict positive movement in the other. When you ask what states and local authorities can do to reduce each of these gaps, it likely takes more than one initiative. And, state and local authorities ought to consider the driving forces behind each of these gaps.”
James M. Thomas (JT) – Associate Professor; Graduate Program Coordinator; Co-Lead, Coalition for the Study of Race and Racism, The University of Mississippi

Should state and local authorities work to reduce racial segregation in housing? If so, how?
“State and federal efforts are needed here. This is not only an issue of race, but also class. Gentrification is rapidly pricing working class Black families out of neighborhoods. In some cities, investors and other business ventures make it impossible for long-standing and historically diverse communities to remain in place – they simply cannot afford to live in or to keep up with the swiftly changing markets. It might be beneficial for cities to track the neighborhood prices and place some restrictions or upper limits on how quickly prices can rise in a given neighborhood. Beyond affordability, research has also consistently shown racial biases by realtors and banks including but not limited to: showing, appraising, and financing homes such that Black families receive unfavorable outcomes across all three. And so, state and federal efforts to address stark homeownership rates between Black and white families, a strong predictor of wealth, can begin addressing some of these concerns.”
Edlin Veras, Ph.D. – Assistant Professor, Swarthmore College

“Yes, state and local authorities should work to decrease racial segregation in housing. This can happen in any number of ways. Research shows, for example, that real estate agents steer Black potential homebuyers and renters away from White neighborhoods. This practice is illegal, but it still happens. State and local authorities can start by better enforcing existing laws and better punish real estate agents guilty of this practice. State and local authorities can also work to develop communities in more equitable ways. We have decades (literally, decades) of research in urban planning that the uneven development of cities and their surrounding suburbs has come at the expense of racial and ethnic minorities. The result is that low-income and minority communities, on average, have less access to parks, grocery stores, hospitals, good schools, major employers, and other public infrastructure that are key to maintaining strong and healthy communities.”
James M. Thomas (JT) – Associate Professor; Graduate Program Coordinator; Co-Lead, Coalition for the Study of Race and Racism, The University of Mississippi

To view the full report go to: https://wallethub.com/edu/states-with-the-most-and-least-racial-progress/18428