Moving money into Black banks won’t fix economic inequality, says professor

On average, the net worth of white families in the U.S. is nearly 10 times that of Black families. According to a recent Brookings report, a typical white family in 2016 was worth about $171,000 — compared to $17,150 for a Black family.

How can we reduce the massive wealth difference between Black and white Americans?

In a small step to remedy that, Netflix recently announced it will move a small percentage of its billions to Black-owned banks. That money would theoretically trickle down to Black families through loans. 

Ohio State University economics professor Trevon Logan says it’s a nice gesture, but it won’t fix anything. He says there aren’t enough Black banks around to make any significant change in the financial system. 

Credits

Guest:

  • Trevon Logan - Hazel C. Youngberg Distinguished Professor of Economics, Ohio State University