A recent report from Axios has brought to light the profound disparities in stock market wealth between Black and white Americans.
As of the third quarter of 2024, Black Americans collectively held $313 billion in stocks and mutual funds, reflecting only a modest 3.4% increase over seven years. In stark contrast, white Americans’ holdings soared to $41 trillion during the same period. This means that Black Americans own less than 1% of total stock market wealth, while white Americans control approximately 88%.
This significant wealth gap underscores systemic barriers that have historically limited Black participation in the stock market. Factors contributing to this disparity include lower median incomes, reduced access to financial education, and a pervasive distrust in financial institutions among Black communities. A 2022 survey revealed that only 39% of Black families owned stocks directly or indirectly, compared to 66% of white families (Pew Research).
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Trump’s DEI Crackdown Raises Concerns
Against this backdrop of economic inequality, the Trump administration’s recent crackdown on Diversity, Equity, and Inclusion (DEI) programs raises significant concerns. On January 20, 2025, President Donald Trump signed Executive Order 14151, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing.” This order directs the Office of Management and Budget (OMB) to eliminate all federal DEI initiatives, ending programs that promote racial and gender diversity in government institutions. Additionally, it mandates that agencies report all employees involved in DEI and environmental justice roles within 60 days.
Critics argue that dismantling DEI programs could further widen the racial wealth gap. These initiatives have been instrumental in promoting financial literacy, expanding investment opportunities, and removing systemic obstacles that hinder Black wealth accumulation. Without them, marginalized communities may face even greater economic disadvantages.
Department of Education’s Crackdown on DEI in Schools
The Department of Education (DOE) has taken this anti-DEI stance even further. In February 2025, the DOE issued a directive warning schools and universities to dismantle their DEI programs within two weeks or risk losing federal funding. The order targets initiatives using racial preferences in admissions, financial aid, and hiring, effectively banning scholarships and programs aimed at supporting Black students and other underrepresented groups.
The crackdown extends to state-funded institutions, threatening billions in funding for universities that refuse to comply (Politico). Education experts warn that eliminating these programs could reduce opportunities for students of color, exacerbating long-standing disparities in wealth and social mobility.
A Step Backward for Economic Equity
The intersection of America’s racial wealth gap and the dismantling of DEI initiatives highlights a critical policy debate. Addressing economic disparities requires comprehensive strategies that include financial education, equal access to capital, and corporate diversity initiatives.
By eliminating DEI programs without implementing alternative solutions, the Trump administration risks entrenching economic inequality and rolling back decades of progress in racial equity. Experts caution that unless proactive steps are taken, these policies could perpetuate cycles of economic exclusion for generations to come.
