HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » A Cheap, Race-Neutral Way...

Tue Jun 30, 2020, 09:21 PM

A Cheap, Race-Neutral Way to Close the Racial Wealth Gap

(The Atlantic) What if a single, cheap, easy-to-administer, and race-neutral policy could help close the country’s chasmic racial wealth gap in less than a generation?

Reader, it exists. It is called a baby-bond program. For something like $80 billion a year—roughly 2 percent of the annual federal budget, less than a tenth of the annual cost of Social Security—the United States could not only end its most pernicious forms of poverty, reduce wealth inequality, improve social mobility, foster self-sufficiency among poor families, and increase family net worth en masse, but also put black and white families on more equal footing.

There is a strong moral case for doing that, and a strong economic case, too. The average white family is 10 times wealthier than the average black family. Black families with kids have a single penny in wealth for every dollar that white families with kids have. And white high-school dropouts have a higher net worth, on average, than black college graduates. Black individuals cannot close this gap on their own. Washington created the wealth gap. Washington needs to fix it.

snip

A little-known but elegant solution is waiting for implementation, a policy suggested by Thomas Paine in Agrarian Justice and rewritten for the modern era by Darrick Hamilton, who leads the Kirwan Institute for the Study of Race and Ethnicity at Ohio State University, and Sandy Darity, the director of the Samuel DuBois Cook Center on Social Equity at Duke University. Baby bonds are simple. The government would create investment accounts for infants, giving babies born to poor families large seed grants and babies born to rich families small ones. The money would grow, and kids would gain access to it when they reached adulthood, to use for school, a down payment, or a start-up. (Read More)

https://www.theatlantic.com/ideas/archive/2020/06/close-racial-wealth-gap-baby-bonds/613525/



6 replies, 681 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 6 replies Author Time Post
Reply A Cheap, Race-Neutral Way to Close the Racial Wealth Gap (Original post)
FM123 Jun 30 OP
WhiskeyGrinder Jun 30 #1
FM123 Jun 30 #2
PoindexterOglethorpe Jul 1 #3
FM123 Jul 1 #4
pecosbob Jul 1 #5
FM123 Jul 1 #6

Response to FM123 (Original post)

Tue Jun 30, 2020, 09:26 PM

1. It's a good idea. Here are some others:

https://inequality.org/great-divide/white-supremacy-pre-existing-condition/

The racial wealth divide is where the past shows up in the present. The glaring gap in wealth reflects the multigenerational history of white supremacy in the United States and the systematic denial of wealth-building opportunities to Black people. Chattel slavery, Jim Crow, segregation, and predatory loans are reflected in the wide disparities in bank accounts, homeownership, financial wealth, and overall well-being between white people and Black and Latino people in the United States.

In our new report, White Supremacy is the Pre-existing Condition, we found that the concentration of wealth has surged during the pandemic, further exacerbating an already extreme racial wealth divide.

(snip)

First, there are the emergency measures that can be enacted now, in the midst of the pandemic:

Improved racial data collection as part of emergency audits
Racial equity audits of crisis relief and recovery policies
Income support that expands to guaranteed income
Postal banking
Medicare for all
Expanding inclusive housing and ownership
Federal jobs guarantee with living wage
Baby bonds [as mentioned]

Reply to this post

Back to top Alert abuse Link here Permalink


Response to WhiskeyGrinder (Reply #1)

Tue Jun 30, 2020, 10:35 PM

2. Wow - thanks for that link, good article.

Maybe you could start a thread with it, it's still pretty recent article.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to FM123 (Original post)

Wed Jul 1, 2020, 12:58 AM

3. Sounds like an excellent idea. I'd be for it, and I'm a white person

with a certain degree of wealth.

The real resistance will come from the white middle class. They will feel like they are losing big time.

What we also need is free or very low cost public college. And of course some version of universal health care.

My hope is that this entire CoronaVirus thing will move us to all of those.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to PoindexterOglethorpe (Reply #3)

Wed Jul 1, 2020, 01:10 AM

4. Yes, I agree - must include education and healthcare too....

from the rest of the article:

Eliminating student debt, ending mass incarceration, rationalizing the country’s system of health insurance, stopping covert redlining, ending poverty as measured by income—all of those are necessary elements of racial justice, and would be complementary policies to help make the country’s wealth distribution more equitable.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to FM123 (Original post)

Wed Jul 1, 2020, 01:16 AM

5. It's dificult to make progress toward land and safety when the GOP keeps overturning the life-boat

This would require child-proofing our government I believe.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to pecosbob (Reply #5)

Wed Jul 1, 2020, 09:04 AM

6. Yep!

Re-reading your words, I am thinking that what you just said should be an election slogan:
It's difficult to make progress toward land and safety when the GOP keeps overturning the life-boat

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread