Home
/
RELIGION & LIBERTY ONLINE
/
Does the Generosity of Black Americans Explain the Racial Wealth Gap?
Does the Generosity of Black Americans Explain the Racial Wealth Gap?
Aug 28, 2025 6:43 AM

One of the most astounding economic statistics is the wealth gap between black and white Americans. According to a Pew Research Center analysis of government data from 2009, the total wealth (assets minus debts) of the typical black household was $5,677 while the typical white household had $113,149. Why is the median wealth of white households 20 times that of black households?

Plummeting house values were the principal cause, says Pew Research. Among white homeowners, the decline was from $115,364 in 2005 to $95,000 in 2009 and among black homeowners, it was from $76,910 in 2005 to $59,000 in 2009. The fact that only 46% of black Americans own a pared to a homeownership rate of 76% for whites likely affect the gap too.

But in a paper published last month, Princeton graduate student Rourke O’Brien suggests another reason: the generosity of black families.

O’Brien argues that middle and e black families don’t accumulate wealth as quickly because rather than investing their money, they give more of it to poor friends and relatives. Another study, cited in O’Brien’s paper, suggests that as much as 27 percent of the black-white wealth gap can be explained by the greater financial claims made on e blacks.

According to the Boston Globe, e blacks are more than twice as likely as e whites to have a poor sibling and more than four times as likely to have parents below the poverty line. O’Brien’s research finds that black families earning more than $100,000 a year are about twice as likely to have given money to friends and pared to white families.

While I certainly have no idea how to close the racial wealth gap, I think it does highlight how most economic debates miss the financial reality in America. Since the Occupy Wall Street crowd started focusing on the fact that investment bankers earn more e than bongo-playing hippies who spend their days protesting investment bankers, the economic buzz has been about e inequality.” But that misses the true e inequality gap in America. It doesn’t matter at all that the Gordon Gekkos in New York makes millions more than the gas station attendants in Portland. But it does matter when there is a significant disparity in e within families and neighborhoods.

It’s difficult to accumulate wealth when you’re helping to pay your sister’s rent and your father’s utility bill. It’s also difficult to implement a policy solution to alleviate the problem since the money is likely going to shore up people who are already supported by the government’s safety net. Aside from applauding the generosity, what can be done?

Perhaps one solution would be to offer tax deductions for verifiable support giving to poor family members. If a millionaire philanthropist can get a tax break for donating to her alma mater, why shouldn’t middle-class workers be able to deduct what they give to their real mothers?

As Proverbs says, “Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.” The Lord will certainly reward the generosity of black Americans who help their friends, family, and neighbors. But since all Americans benefit from their sacrifice, we should find a way to repay them too.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Too Good To Pass Up
Sometimes e across a story that’s so powerful that it DEMANDS to be posted. This is one such story: “Usually, if a turd gets into the Senate, it’s because he or she was elected,” Emily Heil reports for Roll Call. “But on Wednesday, several large piles of actual, nonmetaphorical ‘No. 2’ found their way into the Capitol, and the source isn’t yet clear.” It was the first sentence that got me. ...
No Place Like Home
At last year’s Acton University, a few Austrian attendees made an interesting youtube video celebrating their rediscovery of the huge and obvious contributions Austria has made to free-market economics. But what about the countries that don’t have an entire school of economic thought named after them? My conversations with international participants at this year’s conference underscored two themes over and over again. First, that even the unlikeliest countries have some philosophical heritage undergirding capitalist thought. Second, that AU attracts the...
Acton University – Day 2 Audio Roundup
Today’s lectures from Acton University 2007 (updated as more audio es available): Protestantism and Natural Law: Dr. Stephen GrabillTheology and History of Globalization: Dr. Samuel GreggThe Catholic Social Encyclical Tradition: Kishore JayalabanKnowing Good Works: Guidelines for Effective Compassion: Dr. Fred DeJongThe Political Economy of Globalization: Michael MillerSubsidiarity and Effective Private Charity: Ismael HernandezEconomics and Human Action: Jeff TuckerCatholic Social Teaching: Basic Principles: Stephen Haessler ...
Green Consulting, Dogbert-style
Today’s Dilbert is a good one: “green” consulting, Dogbert-style. ...
Faith and Business
That religion can be big business is not news to anyone. But this Zenit analysis by Fr. John Flynn is an especially good synopsis of the current state and size of the “Christianity market” in the United States. On a roughly related note, I’ve been meaning to mention the creation of a new blog on faith and business: the Business as Mission Network blog run by Justin Forman. It tracks news in the “business as mission” movement, which envisions businesses,...
Acton University – Day 3 Audio Roundup
Today’s lectures from Acton University 2007 (updated as more audio es available): Natural Law and Protestant Public Theology: Dr. Stephen GrabillEnemies of the Inner City: John NunesMoral Objections to the Free Market: John SchneiderPrivate Property: Moral and Economic Foundations: Michael MillerThe Bad News about the Prosperity Gospel: Rev. John Nunes Random AU Pic of the Day I just made Kara Eagle’s Supergirl socks famous. ...
Father Sirico Closes Acton University 2007
Acton University 2007 came to a close this evening with another stirring address by Rev. Robert Sirico which capped a great week in Grand Rapids for all involved. It’s getting late and I can’t hope to top what Father Robert had to say this evening, so I’ll refer all of you to the audio link below. It’s always a relief when e to the end of what is without a doubt the busiest week of the year for Acton’s Grand...
Lessig to Fight ‘Corruption’
Lawrence Lessig, a legal scholar and high-profile advocate of copyright reform, has decided to “shift my academic work, and soon, my activism, away from the issues that have consumed me for the last 10 years, towards a new set of issues.” His new task? “‘Corruption’ as I’ve defined it elsewhere will be the focus of my work. For at least the next 10 years, it is the problem I will try to help solve.” Just how does Lessig define “corruption”?...
Integrity, Virtue and Vision in the World of Business
Acton PowerBlogger John H. Armstrong is with us this week in Grand Rapids for Acton University. He is founder and director of ACT 3, a ministry aimed at “encouraging the church, through its leadership, to pursue doctrinal and ethical reformation and to foster spiritual awakening.” Here’s his post on Wednesday’s conference activities: The relationship between integrity, virtue and vision is not often developed in the business world. Yesterday the Acton University experience afforded me a unique opportunity to understand better...
Armstrong’s Acton U Post Index
Here is an index of posts from last week’s Acton University: “What is Man?” Why the Answer Profoundly Matters (June 13)Integrity, Virtue and Vision in the World of Business (June 14)More Sights and Sounds at Acton University (June 15)Protestantism and Natural Law Theory (June 15)Economic Myths and Emergent Christian Thought (June 16) ...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved