Wealth of Forbes 400 Billionaires = Wealth of All 41 Million African-Americans

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Common Dreams

Wealth of Forbes 400 Billionaires = Wealth of All 41 Million African-Americans

Racial wealth divide reaches new heights

The billionaires that make up the “Forbes 400” list have as much wealth as the entire African-American population of the U.S., over 41 million people, according to a new analysis by Bob Lord of the Institute for Policy Studies. Lord calls it “Dr. King’s Nightmare.”

In the aftermath of the 2008 economic meltdown, wealth owned by households of color declined dramatically, as home values collapsed. The wealth of the richest 1 percent also declined in 2009, but rebounded quickly in subsequent years.

As Bob Lord writes in Other Words, “The net worth of just 400 billionaires, a group that could fit into a high school gym, is on par with the collective wealth of more than 14 million African- American households. Both groups possess some $2 trillion, about three percent of our national net worth of $77 trillion.”

The only U.S. African-American on the Forbes 400 list is Oprah Winfrey, who has a net worth of $2.9 billion, placing her 184th on the list. She is one of 7 Black billionaires in the whole world.

The U.S. has a persistent racial wealth divide, rooted in the legacy of discrimination in asset building, starting with slavery up to present day discrimination in mortgage lending.  The homeownership rate for whites is 73.3 percent, 43.1 percent for African-Americans, and 47.6 percent for Latinos.

But present-day inequality is the poisonous result of eroding net worth among African-American and Latino households and an exploding concentration of wealth in the top 1 percent, and within that, among the richest 400 billionaires.  The average net worth of the Forbes 400 richest rose $800 million to a record $5 billion in the last year.

African-Americans make up 13 percent of the U.S. population, but have only 2.7 percent of total wealth.  The median wealth for an African American household, according to a 2010 survey, is $4,900; for whites, it is $97,000.

If current trends continue, the Forbes 400 will soon have as much wealth as the entire Latino population of over 53 million people, 17 percent of the U.S. population.

Chuck Collins

Chuck Collins is a senior scholar at the Institute for Policy Studies where he co-edits Inequality.org, and is author of the new book, Born on Third Base: A One Percenter Makes the Case for Tackling Inequality, Bringing Wealth Home, and Committing to the Common Good.  He is cofounder of Wealth for the Common Good, recently merged with the Patriotic Millionaires. He is co-author of 99 to 1: The Moral Measure of the Economy and, with Bill Gates Sr., of Wealth and Our Commonwealth: Why America Should Tax Accumulated Fortunes.

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