What is the main reason for a persistent wealth gap between white and non-white families in the U.S.? Hint: It's not inheritances.
"Pursuing a career that is going to give you a good chance of having high earnings for a long and stable career, that's that's where you want to go," said Jeffrey Thompson, an economist at the Federal Reserve Bank of Boston who co-authored the study.
The 'ability to repay the loan' rule disqualify many low wage earners. On the other hand, approval for loans for business owners have no standardized rules to qualify to purchase investment property or turnkey businesses. Truth: business ownership creates generational wealth.
Loan approvals are based on continuous, reliable, and stable HIGH INCOME. The disparity starts with the occupation and pay scale. $100k per year for 10 continuous years can qualify for investments that can turn into millions. A sporadic $36k annual salary will preserve poverty.
What about real estate equity? BlackWealth