Federal Reserve Report: Black People Are Not Likely To Become Millionaires
By Robert Stitt
Writer Victoria Stilwell asked the question: Would it be possible to calculate the odds of being a millionaire for anyone in the U.S., based on age, education and race?
While the statistics did not go through the entire scientific verification process, Bloomberg did gather information from the Federal Reserve Bank of St. Louis and found some interesting results. For instance, they found that race may play a significant factor in determining a person’s chance of accumulating wealth.
William Emmons, a senior economic adviser at the St. Louis Federal Reserve, noted, “It’s a false narrative to say race doesn’t matter in the United States. It demonstrably does in the results we keep coming upon.”
The Atlanta Black Star posted some shocking results of the survey. Among them, “a middle-aged, college-educated Asian had a 22.3 percent chance of being a millionaire. Whites had a 21.5 percent chance, Hispanics a 6.8 percent chance and Blacks had a 6.4 percent chance of being a millionaire.”
Finance expert Dr. Boyce Watkins believes the answer is for black Americans to create their own businesses. “We have to get rid of the lie which says that going to school will guarantee a black man a good job. The right kind of education is valuable, but you’re still going to be Black.”
This was supported by the Feds data which showed “a college education only increased a Black person’s chances of becoming a millionaire by 1 percent.” This basically gives black Americans the same statistical chances of making seven figures as a white high school graduate.
Data of this sort is not new. Many studies have shown that education does not impact all races the same and salary figures are not equal based on gender or race. Emmons said that while the information may not be entirely new, it is still useful since “the research shattered the myth of everyone starting out equal.”