The typical black household now has just 6% of the wealth of the typical white household; the typical Latino household has just 8%, according to a recent study called The Racial Wealth Gap: Why Policy Matters, by Demos, a public policy organization promoting democracy and equality, and the Institute on Assets and Social Policy.
In absolute terms, the median white household had $111,146 in wealth holdings in 2011, compared to $7,113 for the median black household and $8,348 for the median Latino household. (All figures come from the U.S. Census Bureau Survey of Income and Program Participation.)
This is what is called the racial wealth gap.
While the disparity might seem only to be a problem for the economically disadvantaged families of color, it actually worsens political and economic outcomes for the entire country.
While not every family can be expected to become wealthy in the jet-setting, Wolf-of-Wall-Street manner, every family needs some amount of wealth for economic security. The racial wealth gap means families of color may not be able to give young members of their households gifts to invest in their future, similar to what their white friends are likely to receive.
Federal policies also reinforce the wealth gap, as many of them largely result in increasing the wealth of those who already have it.
Here are the three main factors driving the income gap between white households and black and Hispanic ones