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The State of the Dream 2004: Enduring Disparities in Black and White

Wealth

"They tell me that one tenth of one percent of the population controls more than forty percent of the wealth. Oh America, how often have you taken necessities from the masses to give luxuries to the classes ... You can work within the framework of democracy to bring about a better distribution of wealth."

--Dr. Martin Luther King, Jr.
Sermon at Dexter Avenue Baptist Church, Montgomery, Alabama
November 4, 1956

Median Household Net Worth

• In 2001, the typical Black household had a net worth of just $19,000 (including home equity), compared with $121,000 for whites. Blacks had 16% of the median wealth of whites, up from 5% in 1989. At this rate it will take until 2099 to reach parity in median wealth.

• African-Americans were 13% of the population in 2001, but owned 3% of the assets.³

[image:] Graph with the following text:
Median Household Net Worth, 1989 and 2001
(Adjusted for Inflation in 2001 dollars)
1989 White $97,800
1989 Black $5,300
2001 White $121,000
2001 Black $19,000
Years to Parity: 98
Parity Year: 2099

Source: Arthur B. Kennickell, "A Rolling Tide: Changes in the Distribution of Wealth in the U.S., 1989-2001," Levy Economics Institute, Nov. 2003. See Appendix for Years to Parity calculation. Note: 1989 is the first year for available methodologically consistent data.

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8 United for a Fair Economy • Racial Wealth Divide Project