Since I am (I think) one of the only two actual African Americans on this thread, I feel like I have a responsibility to address some of the issues discussed here. (This will be a long one.)
In politics, there is a lot of bickering about whether the racial wealth gap is due to historical (and continuing) injustice or social factors. There is a tendency to pile all of these ill effects into one column or the other and either lionize or demonize based on the cause assigned.
The real answer is that historical/continuing injustice and cultural issues both contribute to the wealth gap and reinforce each other.
Although slavery and its associated physical, economic and cultural inheritance is important, I'm only going to speak about injustice done to people who are still living.
1) Segregation
Government-sponsored residential segregation ended at different times in different places, but I'm going to treat it as ending in 1968. The final group of individuals who were born in a time when they were formally disallowed the rights afforded to everyone else are now 46 years old. For most people who do not seek early retirement, these are their prime earning years -- old enough to have completed their education and built a career but not so old that physical factors prevent them from working.
Segregation and Jim Crow/lack of voting rights created communities of no opportunity. Think about the things that you vote for on local ballots: schools, libraries, emergency services. If you don't have the ability to put politicians into (and out of) office, your community ends up with garbage dumps and power plants instead of parks and schools. The first 5 years of development are the most important; anyone who starts off in a poor or segregated neighborhood starts off with a massive disadvantage.
African-Americans have not yet had a generation that was not subject to government-sponsored disenfranchisement reach its prime earning years.
2) Racial discrimination, past and present in jobs and education
In the recent past, racial discrimination in jobs and pay was rampant. Now, only subtle discrimination is tolerated.
(Using current-day dollars and ignoring taxes here for the sake of simplicity.) Imagine that you and a white counterpart each do work that is worth $50k/year, but you are paid only $40k/year because your race does not give you access to all employers. Both you and your counterpart live on $30k/yr and invest the remainder at 7% (you: $10k/yr, counterpart: $20k/yr). Where do you end up? Do your kids get to go to Montesorri school? When they are a little older, can you send them to a private school to escape the bad schools in your underresourced neighborhood?
3) Networking and connections
Most jobs are not filled by placing ads in the paper or online. They are filled through networking and personal connections. This is especially true for two categories of jobs: entry-level, pre-education positions (how many of you had your first job at a restaurant owned by someone who your family knew?) and low-differentiation office jobs (clerks, admins, etc: jobs that anyone can do and where -- beyond the extremely bad and the extremely good -- differences in skill levels make little difference to the employer). There are a lot of these low-differentiation jobs and they tend to go to friends of the existing employees. If you don't live in the same place or go to the same schools as the people who already have these jobs, you're out of luck.
4) Maladaptive responses to racial violence
Being African American has always subjected one to the risk of violence. This is especially true in the South and Midwest where official violence was used as a method of social and political control.
If you grew up in an area where you and the people around you were subject to subject to racial violence, you probably adopted behaviors that would allow you to protect yourself:
- Distrust of white people - due to fear of violence and a peference for the safety in numbers associated with black-only environments
- Underuse of formal banking systems - due to a lack of recourse if cheated
- Less interest in accumulating wealth - you have little recourse if it is taken from you
- Hostility to white people and authority figures - due to their association with the violence that you have experienced
- Lack of interest in formal education - you are not eligible for the jobs that it would normally make available to you
- Intense interest in conforming with your group - when the formal system fails to protect people, they develop alternative systems. Just as the formal system requires you to pay taxes, these alternative systems require that you conform to their norms in order to gain protection.
Remember that you experience violence both directly and through the people around you. If people around you or people who you/society associate you with, experience severe violence (
http://en.wikipedia.org/wiki/Rosewood_Massacre), you internalize it for self protection.
Unfortunately, the behaviors developed are maladaptive in an integrated society and counterproductive in an environment where networking is important.
When a soldier comes back from a war and can't convince himself to sleep without a gun or to stop scanning rooftops for snipers, we say that he has PTSD. There are a lot of people around with segregation-induced PTSD. They never got on a plane and left the warzone, so they don't know exactly when to stop fighting. Even if they did, they would need help becoming normal again.
To make matters worse, individuals who experience violence and develop these maladaptive responses teach them to their children. The rejection of the larger society that comes with these responses to violence sharpens the effects of residential segregation and makes it more difficult to generate the social networks necessary for a good economic life.
5) Poorly designed social payment programs
Poorly designed social payment programs provide a disproportionately African-American cohort with perverse incentives to stay in poverty.
The classic example is welfare. Imagine that you have little education and a choice between receiving $13k per year without working or $16k per year for working 2000 hours per year (while you have considered the possibility of working your way up to a higher wage, you don't know anyone who has a better job, so you don't consider the possibility in your calculations). Even without considering the cost of social security and medicare taxes, you are working for $1.50 per hour.
To make matters worse, your rent will increase if you live in subsidized housing. You may have a 40% incremental tax rate (30% of income paid for rent in subsidized housing + 10% payroll tax).
Would you take the near-minimum wage job? Not if you're good at math. You're much better off taking the government's money and confining your labor to the informal sector.
Unfortunately, our country's social programs are designed to keep people from starving in the streets rather than to build them up:
http://time.com/27708/my-neighborhood-makes-it-easier-to-get-pregnant-than-to-go-to-college/Now that welfare has mostly been replaced with disability, the situation is even worse. Instead of choosing between $13k for staying home and $16k for working, you have to consider that you won't be able to get your benefits back if you ever work. This is because your disability payments are based on the fiction that you "can't" work. Once you prove that not to be true, you lose those payments permanently.
Option A) 1.50 per hour minus taxes, and you can't go back to disability if you lose the job
Option B) Take the government's check and work in the informal sector
Again, while you have considered the possibility of working your way up to a higher wage, you don't know anyone who has a better job, so you don't consider the possibility in your decisionmaking.
Of course, if you are stuck in a poverty trap, you can only live in a segregated area and will need to present some of the maladaptive behaviors described above in order to get along with your neighbors.
To keep this post from becoming too long, I'll stop here.