Research Objectives. . The Racial Wealth Gap Is A Phenomenon

1860 WordsMar 7, 20178 Pages
Research Objectives. The racial wealth gap is a phenomenon that has affected millions of Americans over multiple generations. A house is one of the biggest contributors to an individual’s assets, however there have been discriminatory practices that have been used to prevent minorities from homeownership, therefore reducing their ability to attain as many assets as their white counterpart. This study in particular will compare the amount of subprime lending taking part in Prince George’s County and Fairfax County , two counties in Maryland that have the same affluence but different racial demographics. Through this study I hope to inform an audience of the correlation between subprime lending and race , as well as the effect…show more content…
Assets such as inheritance can , in essence, be used to build up more assets such as real estate. Therefore this racial wealth gap will continue to broaden until the assets of minorities begins to equalize with that of Whites. This racial wealth gap has been prevalent for decades and it is deeply affected by federal policies that have given Whites the privilege to gain assets for a longer period than any other race. Practices such as White flight , the G.I bill , and redlining , have all discouraged African Americans from owning homes , while allowing Whites to be able to increase the value of their home. As a result of years of affirmative actionWhites tend to have more inheritance , which they can then use as down payments on property to build their assets. One of the main things that could help to reduce the racial wealth gap, is to equalize the amount of minorities and Whites that own homes. This would not only increase Black wealth , but it would provide inheritance for the next generations. Therefore the gap would begin to decrease overtime, as more generations would have a better foundation to start on. However there have been governmental policies to make it harder for Blacks to buy and keep a house, and if they did buy one it reduces the value of their house. The most recent practice that has been used to discriminate against black homeownership is subprime lending , in which the bank has given black families inflated interest rates on loans
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