2024 Economic State of Black Struggle and the Long-Term Effects

Are Blacks in America doing better; guess we have to look at the Black statistics to see the results.

Over the last 50 years, Black Americans have had substantial social and economic growth. The last four years (post-pandemic) showcased an increase in asset attainment through investing with a general concern its the long-term viable impacts on Black households.

While gaining political rights has long been the predominant goal, Black Millennials and Gen-Zers are redefining these long-held beliefs and values. From the pulpit to the global media representation, Blacks in America are entering professions from which they had been blocked. And yet, income lags and net wealth remains low.

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The Post-Black Excellence Euphoria and the Impact on Blacks in America

Currently, there are 56 Black Congressional members representing nearly 46 million Blacks living in America. While the NAACP still holds the largest membership, other black organizations are growing in number to include Black Lives Matter, The Advancement Project, the National Urban League, Black Girls Code, etc.

In a sense, it wasn’t policy but technology that began to reform society in a way that created pathways to income and wealth parity. The revolution has been televised and it’s handheld. Technology has democratized news and media into a perpetual 360-day cycle. Black activists and scholars drop books, OpEds, think pieces, and tweets; and, yet the black community remains low on the socioeconomic food chain.

The 21st century is by all accounts the era of Black Excellence. From the Obamas to Jay Z and Beyonce, hope and energy was flying high. Well until Will Smith slapped Chris Rock. Since then, the veneer of Black excellence started to fracture to the point that no one not even Puff Daddy is safe.

Millions of Blacks in America have benefited from systems and regulations that are seemingly being dismantled in real-time.

The Black Excellence Era seems short-lived. With nearly 2 trillion dollars in spending power, median black wealth is still headed to zero by 2050. Instead, we replaced it with higher debt, lower savings, and quiet quitting right before a soft layoff.

On the Other Side of the Economic Track

There are very visible signs of improvement masked by deep inequities that relegate Blacks to the lowest level in society. Black statistics across the board show fewer opportunities to achieve good health, education, income, wealth, and political influence.

For example, in a surprising turn of events, median Black household wealth increased by 60 percent from 2019 through 2022. This represents a significant boost of $17,000. Ultimately, this is a great offset to the seismic decrease of 61 percent from 2007 through 2010. While the media and the headline tout victory, the real data reveal a much different story. A $17,000 increase is nothing to an increase of $19,700 (Hispanics) or $66,900 (Whites).

Based on leading indicators of social and economic well-being showing that, on average, Black Americans are struggling:

Unemployment

Despite significant economic progress over the past four decades, Blacks in America experience far worse economic conditions than other racial groups.
Historically, the Black unemployment rate has been approximately twice the rate for Whites. According to the US Bureau of Labor Statistics, as of January 2024, unemployment was 5.3% for Black workers and 3.4% for White workers. Unemployment of Black teens hoovers over 11.6%, above the national average for 16-19 at 10%.
- For context, Asian workers face an unemployment rate of sub 3%.
- Black workers have been disproportionally hurt by the overall decline in union membership, the decreasing power of unions, and the increase in immigrants to America.

Black Income Lags Behind

While the US boasts a high degree of social mobility globally; in terms of income equality, America ranks the highest of the G7 nations.
The average American family saw large gains in income and wealth from 2019 to 2022. Overall, households became less fragile due to COVID-19-related government spending as well as key housing and student loan repayment moratoriums. However, income gains were largest among the highest-earning families, and fastest among white families. There were small declines for both Hispanic and Black families for the period of 2021 to 2022, the Fed found in its latest Survey of Consumer Finances.
According to the Pew Research Center‘s 2022 research, 49% of Black households earned less than $50,000. Two-thirds of Black households earned less than $75,000 while 22% made $100,000 or more.
The typical Black household earns a fraction of White households—just 65 cents for every dollar. The income gap between Black and White annual household incomes in 2022 was about $28,200 per year. For context, Asian median income was $108,700 while Hispanic household income closed at $62,800 for 2022.

Home Ownership and Assets by Race

Regionally, the highest concentration of Black people in the U.S. in 2022 is in the South; more than half (56%) live there. Another 17% each live in the Midwest and Northeast, and 10% live in the West.
- When it comes to states of residence, Texas is home to the largest Black population, at about 4.2 million. Florida comes in a close second with 3.9 million, and Georgia comes in third, with 3.7 million.
- Among metropolitan areas, the New York City metro area – which includes parts of New Jersey and Pennsylvania – has the greatest number of Black residents (3.6 million). In a distant second is the Atlanta metro area, with 2.2 million, and the Chicago metro area is third with 1.7 million Black residents.
Based on the McKinsey Report of the State of Black residents and the relevance of place to racial equity and outcomes, Blacks in America are over twice as likely to live in poverty as White Americans. While Black children are three times as likely to live in poverty as White children.
- According to the Bureau of Labor and Statistics, white homeownership was over 72.7% while Black homeownership rates hit a mid-40% plateau for the last 5 years. Hispanic homeownership rose to 47.5%.
In addition to the economic benefits, according to the 2023 State of Housing in Black America (SHIBA) report, Black homeownership has significant social implications.
- Homeownership provides stability and a sense of belonging for families, which can positively impact mental health and overall well-being.
- It also allows individuals to have a stake in their community and foster a stronger sense of civic engagement.
- Furthermore, studies have shown that neighborhoods with higher homeownership rates tend to have lower crime rates, creating safer and more prosperous communities.

The Black Education and Certification Crisis

The wealth gap between Black and White households increases with education due to student loan debt. Although High school graduation rates for most Americans converge, the quality of post-K-12 educational attainment struggles to keep pace.
- The share of Blacks who are college graduates has more than doubled since 1990 but still lags far behind Whites and Asians.
- Data from the U.S. Department of Education indicates that around 86% of Black students take out student loan debt compared with around only 68% percent of white students. Black students also typically owe more than white students.
- Black borrowers take out an average of $39,500 in student loans, while white students borrow an average of $29,900.
According to a report from EdBuild, which promotes equity in public schools, found that the average white school district got $13,908 for every student in 2016, compared to $11,682 per student in districts that mostly serve people of color.
- Predominantly white school districts in the US get $23 billion a year more than districts that educate mostly non-white children.
- The money gap – a difference of roughly $2,226 per student – originates in the way Americans pay for education, with locally run schools being tied to local control of taxes.
As of 2022, a third of Blacks in the US have completed some college without obtaining a bachelor’s, and roughly 42% have, at most, graduated from high school (or earned an equivalent such as a GED certificate).
- About a quarter of all Black adults (ages 25 and older) have a bachelor’s degree or more education.

Black Healthcare and Longevity

The Black population of the United States is growing. In 2022, there were an estimated 47.9 million people who self-identified as Black, making up 14.4% of the country’s population. This marks a 32% increase since 2000 when 36.2 million Black people were living in the U.S.
- The median age of Black people in 2022 was 32.1 years, nearly six years younger than the U.S. population’s median age of 38.0. Just under half of the U.S. Black population (45%) was younger than 30 in 2022.
Blacks in America also have a lower life expectancy of 3.6 years compared to White Americans. Asian people have the longest average life expectancy in the United States at 83.5 years.
According to the CDC, racial and ethnic minority groups in the United States have higher rates of illness and death from a variety of health conditions than White people. These conditions include Diabetes, Hypertension, Obesity, Asthma, and Heart disease.

Is Black Median Wealth On Track to Reach Zero by 2050

The median wealth of Asian Households in the US is up to $536,000 – nearly 12 times the wealth of the median Black family ($44,900).
- White families came in at a modest $285,000 while Hispanic households increased to $61,600.
- In fact, according to the Fed. Reserves Survey of Consumer Finances (2022), the median U.S. household was nearly $51,000 wealthier in 2022 than in 2019. A 37% increase.
“Much of the divergence in net worth by race and ethnicity since 2019 can be attributed to divergence in the real values of financial asset holdings,” wrote the report’s authors — including the fact that Black households have more wealth concentrated in pensions than in stocks, mutual funds, and exchange-traded funds, or ETFs.
- Unfortunately, more than 50% of Black financial wealth is invested in pensions, the New York Fed found. While less than 20% of Black wealth is stored in private businesses, corporate equities, and mutual funds.
- In contrast, less than 30% of white financial wealth is invested in pensions, with about 50% invested in businesses, equities, and mutual funds.

Synopsis of these Black Statistics for 2024

I take statistics with a grain of salt. When the stats are favorable, most people cheer and have no pushback. In contrast, when the data is unfavorable, most lash out and ask for sources and methodology. One thing that I know for sure, no matter how much data is sourced and where it comes from, most people don’t read the reports. If they did, they would be alarmed and would likely start making changes in their daily routine.

Simple as that. The answers are in the report themselves. Wealth parity is only attainable through time and sacrifice. A combination of Education, High earning/In-Demand Career pathways, Cash Flow management, Financial planning, Marriage, and Ownership; should help you and your family close your wealth gap. Even if you don’t reach full parity in the outcome, you will set up the next generation to radically pivot. While the future may be uncertain, it helps to draft a positive chapter in your book every day.

Buy the Hood recently published an incredible episode on these Black Statistics and the impacts of long-term inequality. See YouTube link below. The most relevant question is how are you going to affect your outcome, or are you waiting for someone else to live your life for you?