During a 2016 campaign rally in Michigan, Donald Trump made his pitch to Black voters by asking, “What the hell do you have to lose?” A decade later, during his second presidential term, it’s clear that while Black Americans had a low level of wealth relative to other groups, they indeed had something to lose. According to a Federal Reserve report, Black American household wealth dropped by a quarter since 2022, from $49,100 to $36,800. Given that White, Asian, and Latino household wealth increased during that same period, many are wondering how this happened.
“When America catches a cold, Black America catches pneumonia” is a popular aphorism that helps explain the racially disparate impact of economic downturns. Systemic racism functions much like a pre-existing condition. Just as some illnesses weaken the immune system, racially discriminatory laws and policies place Black people at greater risk of financial hardship. According to the Center for Economic Policy and Research, this latest drop in Black wealth can be explained by “declines in the value of Black homes, vehicles, and retirement accounts” and by policies promoted, supported, and in some cases directly implemented by the Trump administration.
Homeownership is the largest share of personal wealth for Americans, but homes in black communities subjected to racial redlining are typically valued lower. When the Federal Reserve raised interest rates and shrank the market, many Black homeowners responded by lowering asking prices and accepting lower offers. Car owners also saw their assets’ value decline, particularly those purchased during the pandemic. When faced with this economic downturn, Black people were more likely to liquidate retirement savings and contribute less to these accounts, leaving them with less wealth. Not only are Black people less likely to own homes, but those who do have been short-changed relative to others.
In addition to Black people being more likely to face economic hardship due to discriminatory policies adopted in the past, the Trump administration has rolled back policies and programs designed to alleviate the effects of racism and instead emphasized “discrimination against White men.” We’ve seen attacks on diversity, equity, and inclusion programs, with the acronym DEI used as a slur against Black people, suggesting they’re less qualified and thus less worthy of serving in leadership positions. In this case, the denial of racism only served to perpetuate racial disparities in wealth. And the irony shouldn’t be lost on you, dear reader, that White people have the most social, economic, and political power in America.
Trump has embraced policies that limit diversity programs in schools and businesses. As a result, efforts to increase representation and account for the effects of racism were discontinued. For instance, Target canceled its Racial Equity Action and Change Initiatives, which were designed to support Black shoppers, employees, and business owners hoping to put their products on national retail shelves. Meta, a tech company that owns Facebook, Instagram, and Threads, axed its entire DEI department, and so did Boeing, a manufacturing company best known for making commercial airplanes. The University of Wyoming closed its Office of Diversity, Equity, and Inclusion, and Louisiana State University eliminated DEI from its core objectives, closed departments associated with those values, and aligned with federal guidance.Most recently, the administration launched an investigation into Wells Fargo for initiating a program designed to increase homeownership among Black Americans.Those who oppose the use of DEI claim they want to create a fair society, one where we are not aided or harmed due to our racial identity. But in practice, conservative policies have been anything but neutral.
Black people losing 25% of their wealth is not a coincidence. And contrary to racist stereotypes that frame Black people as lazy, incompetent, and unreliable, the racial wealth gap in this country can be traced directly back to chattel slavery and the prejudicial systems that followed. Absent any genuine effort to close the racial wealth gap, Black people remain at a perpetual disadvantage in American society. Under the Trump administration, the effects are more dramatic because there is an intentional effort to eliminate programs designed to address the effects of racism. These issues didn’t start during the Trump administration, but this quick drop in wealth illustrates the harmful impact of those policies.
Ten years ago, Trump asked Black Americans, “What do you have to lose?” sarcastically suggesting that since Black people don’t have much wealth, they could afford to gamble, quite literally, to place their bets on him. The vast majority of Black people didn’t cast their ballot for the Republican candidate. And now we have enough data to show that collectively they made the right decision. Conservative policies failed to increase Black wealth. Just as Ronald Reagan claimed that corporate tax cuts and reduced regulations would trickle down to the poor, Donald Trump claimed tax cuts for some of the wealthiest Americans would benefit everyone. But, as we can see, not only is the cost of living high under his leadership, but unchecked racism has left Black Americans especially vulnerable.
The uncomfortable truth is that Black people will remain at the bottom of the racial hierarchy without intervention. Racism, like any serious illness, requires deliberate treatment. While many groups endured economic hardships during the pandemic, the findings from a Federal Reserve report suggest Black people lack the financial resilience other groups have. What it doesn’t say, and perhaps what needs to be said, is thatBlack Americans losing 25% of wealth during the Trump regime is not a coincidence. These disparities are side effects of systemic racism. We now know how Black wealth plummeted. Rather than blaming those enduring hardships, we should ask why the country has failed to create a level playing field, and what each of us can do to advance racial equity.