Financial Expert On The Reason Black Wealth is On The Decline
Source: The Root · Oct 23, 2026
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The Money Angle
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- 01The article reports that median Black household net worth fell 25%, from $49,100 in 2022 to $36,800 in 2025, while White, Hispanic and Asian households gained wealth.
- 02Black households’ shortfall relative to the national median widened from $162,000 to $179,000, leaving families further behind financially.
- 03Loren R. Douglass attributes the decline to falling values of homes, cars and retirement accounts—not increased borrowing—reducing emergency cushions and collateral for business loans.
- 04Stock ownership stood around 39% for Black families versus about 66% for white families in the 2022 survey. Douglass points to stocks and business ownership as important wealth-building assets; the article says the precise causes of the racial divergence remain unresolved.
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Who's involved
The RootFederal ReserveLoren R. DouglassGeneral ElectricCenter for Economic and Policy Research (CEPR)Harvey C. Russell Jr. Institute for International Business & Strategic Coalitions
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$GEThis Money Angle is an AI-assisted summary of reporting by The Root. Figures come only from the source article. Not financial advice.