Cover: The Color of Money: Black Banks and the Racial Wealth Gap, from Harvard University PressCover: The Color of Money in PAPERBACK

The Color of Money

Black Banks and the Racial Wealth Gap

On PBS’s Amanpour & Co., watch Mehrsa Baradaran explain how Black communities have been systemically shut out of the American banking system:

When the Emancipation Proclamation was signed in 1863, the black community owned less than one percent of the United States’ total wealth. More than 150 years later, that number has barely budged. The Color of Money pursues the persistence of this racial wealth gap by focusing on the generators of wealth in the black community: black banks. Studying these institutions over time, Mehrsa Baradaran challenges the myth that black communities could ever accumulate wealth in a segregated economy. Instead, housing segregation, racism, and Jim Crow credit policies created an inescapable, but hard to detect, economic trap for black communities and their banks.

The catch-22 of black banking is that the very institutions needed to help communities escape the deep poverty caused by discrimination and segregation inevitably became victims of that same poverty. Not only could black banks not “control the black dollar” due to the dynamics of bank depositing and lending but they drained black capital into white banks, leaving the black economy with the scraps.

Baradaran challenges the long-standing notion that black banking and community self-help is the solution to the racial wealth gap. These initiatives have functioned as a potent political decoy to avoid more fundamental reforms and racial redress. Examining the fruits of past policies and the operation of banking in a segregated economy, she makes clear that only bolder, more realistic views of banking’s relation to black communities will end the cycle of poverty and promote black wealth.

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Jacket: The Privileged Poor: How Elite Colleges Are Failing Disadvantaged Students, by Anthony Abraham Jack, from Harvard University Press

Book Club Spotlight: The Privileged Poor

As students around the world deliberate their options for further education, only made more challenging in a pandemic, we’re reminded that getting in is only half the battle. In The Privileged Poor: How Elite Colleges Are Failing Disadvantaged Students, Anthony Abraham Jack asks how—and why—do disadvantaged students struggle at elite colleges? What can schools can do differently if these students are to thrive? As back to school season begins, we spoke to two university book clubs that read and discussed The Privileged Poor this summer.