Data from the 2013 wave of the Panel Study of Income Dynamics indicates that the median income of black parents who provided some financial support for their children’s higher education was $44,640, while it was $63,346 for white parents who did not. The discrepancy was even more pronounced for wealth. The median net worth of black parents who provided some financial support for their children’s higher education was $24,887, while it was $73,878 for white parents, again, who did not (Nam et al. 2015). Furthermore, the typical U.S. white household with a head who held a college degree had $268,000 in wealth, compared with $70,000 for a black household with a comparably educated head – slightly less than a staggering $200,000 difference (see Figure 1 in Myth 1). White households with heads who reported having completed some college but did not finish their degrees, still possessed substantially more wealth (net worth) than the typical black household with a head who finished a college degree. Most astonishing is the fact that black households with a head with a college degree were substantially more “wealthpoor” than whites who never finished their high school diplomas (Hamilton et al. 2015).
Additional evidence that contradicts the model minority myth is drawn from regional variation in the wealth position of so-called “model” minority groups themselves. For instance, the National Asset Scorecard for Communities of Color (NASCC) project reveals that the Korean family median wealth of $496,000 ranks amongst the highest in the Washington, DC metropolitan area, while their median wealth of $23,400 in the Los Angeles metropolitan area where they make up a much larger share of the population, ranks amongst the lowest of all ethnic groups in the study (De La Cruz-Viesca, et al. 2016; Kijakazi, et al. 2016). Such large regional intra-ethnic variation in wealth is not indicative of a consistent ethnically based cultural predisposition toward economic success.
In short, the argument that intergroup disparities in wealth are borne out of group based cultural/behavioral deficiencies is misleading and misdirected. Instead, we should focus on the long exposure of low wealth racial/ethnic groups to theft of wealth and blockades on wealth accumulation. To suggest that blacks, racialized Latinos and Native Americans should emulate other supposedly successful “minority” groups perpetuates, the false narrative that their asset poverty is due to a lack of hard work, effort, or ambition.