The Importance Of Leveling The Playing Field: Why Wealth Redistribution Is Key For Uplifting Marginalized Americans

Wealth distribution in the United States is a longstanding issue, particularly for people of color. According to 2023 research, almost 70% of all wealth in America was owned by the top 10% of earners. The lowest 50% of earners held a meager 2.6% of total wealth, highlighting a massive issue of classism and exclusion. 

Since people of color are disproportionately prevented from building wealth through systemic oppression and racism, they face greater financial hardship. Both before and after the pandemic, Black and Hispanic households held less wealth than their white and Asian counterparts. The wealth gap has been steadily increasing over the past few decades because societal structures like banks and universities still discriminate against Black and Brown people. Additionally, there are pervasive biases that prevent these groups from accessing academic and economic opportunities that are more abundant for their white counterparts.

Statistics from December 2021 highlight the stark wealth gap between Black and Brown communities. White households had an average wealth of about $250,000. Black and Hispanic households had $27,000 and $48,700 respectively.

When referencing figures that highlight the wealth gap, it's critical to understand why these issues persist. The financial security of the Black community has been severely prevented due to slavery and post-slavery barriers. Segregation greatly reduced the chances of accumulating wealth and the after-effects of this have caused low-income areas to have fewer resources compared to affluent communities. For Hispanic demographics, immigration was a major hurdle to building wealth, but racism has also been an almost insurmountable barrier.

While America is fostering more safe, inclusive, and supportive spaces for people of color to network, find job opportunities, or improve their financial security, wealth equality is far from being accomplished. The Harriet Tubman Effect (HTE), a human resource center and institute for justice advocacy research, is actively working to support marginalized communities with a reparation program. Nicole Javanna Johnson, the founder of HTE, notes that Black and Brown people will never be able to ‘catch up' with the wealth of white folks without a high-level effort to ensure they receive more resources for wealth generation. 

However, The Harriet Tubman Effect is utilizing reparations for more than just economic health. Through the Lantern Fund and the Reparations Season Initiative, The Harriet Tubman Effect also provides marginalized people a variety of different services that help them create balance financially, socially, and in many other areas. 

In addition to wealth reallocation initiatives, HTE offers DEI programs imbued with stories of Black and Brown historical figures. 

"We use historical strategy, everything from the Combahee River raid to the Underground Railroad, and other Black historical figures to create programs and action plans," says founder Nicole Javanna Johnson. "Stories of suffering and oppression are useful for unlearning unconscious bias, and can be used as tools for training people of color to dismantle systemic oppression."

The Harriet Tubman Effect serves several industries including higher education, K-12, entertainment, corporate America, and public health. The organization targets these sectors because they can provide the largest impacts if systemic oppression is dismantled. According to Nicole, the workplace is one of the most important places for DEIA to occur because of the convergence of cultural and socioeconomic factors. With the right tools and a focus on preventing bias from ‘filling in the gaps' of our colleagues, workplace professionals can train themselves to use intersectionality as a guiding paradigm for their language, policies, and actions.

Although The Harriet Tubman Effect is still at the beginning of its journey, the organization has made significant strides to date. HTE has served over 13,000 people through educational programs, conferences, and workshops. The organization has also helped 10,000 people visit Broadway with the Lantern Tix Initiative.

A testimonial from an HTE founder touches on the organization’s unique approach to reparations. "When reparations are discussed, it's always about the perpetrator giving something to the one who was perpetrated on. And although in a few instances, reparations have been given by perpetrators to certain groups of people based on the acts committed against them and their ancestors, it seems Black people in America are still waiting for theirs (ours) over 159 years later. Instead of waiting in hopes for things to change and for reparations to be given by the perpetrators of slavery in America, The Harriet Tubman Effect (HTE) has led the charge toward radical reparations for Black people in America […] Although Reparations Season officially began at HTE in 2024, reparations were already happening by the organization in 2022. Ultimately, this is what “reparations” are about — the sharing of resources and beneficial fulfillment for all those involved."

Harriet Tubman Effect anticipates its community of founders, fellows, justice advocates, and investors to widen rapidly. The global landscape is changing as Gen Z are deeply passionate activists with technology as their number one tool for fighting injustice. In this environment, HTE will emerge as a changemaker committed to dismantling systemic oppression and empowering communities of color. 

Image sourced from Shutterstock

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.