According to responses given by Black residents in Chicago and Baltimore, a staggering 1 out of every 3 citizens has no liquid assets on hand in the event of a job loss or medical emergency. These residents are defined as having ZERO net worth because they’re unable to sustain themselves for three months or more if an unexpected life event occurred.
When the financial resources of white residents in these two cities were analyzed, only 15% of them would fall into the zero net worth category. What’s even more daunting is that Black residents are three times as likely to be unemployed or living in poverty.
These sobering stats on the racial wealth gap that exist in two major American cities come from the Corporation for Enterprise Development (CFED). The studies were titled “The Racial Wealth Divide in Chicago” and “The Racial Wealth Divide in Baltimore.”
According to Dedrick Asante-Muhammad of CFED, the organization will be diligently working in both of these cities to “build the capacity of local nonprofits led by people of color serving people of color, as these organizations are on the front lines of addressing the most pressing needs.”
The cost of doing the research and generating the reports done by the CFED was financed by JP Morgan Chase, in an effort to help communities of color generate and build wealth. The non-profit also received help with the studies from the Center for Public and Nonprofit Leadership at Georgetown University’s McCourt School of Public Policy.
In a press release, the head of JPMorgan Chase’s Office of Nonprofit Engagement, Naomi Camper said “progress requires a strong infrastructure of local, trusted nonprofit leaders of color who have the resources to take on this difficult issue.”