The Long Afterlife of Slavery in Asset Stripping, Historical Memory, and Family Burden: Toward a Third Reconstruction

Abstract

For African Americans in particular, the question of financial capability and asset building is as old as Black freedom. Through conceptual frames such as racial capitalism, historical memory, and the family stress model, this article examines the many false starts since Reconstruction in which expectations were raised, but then hopes subsequently dashed when reality produced outcomes that kept tangible economic progress just out of reach of Black families.

Financial Behavioral Health and Investment Risk Willingness: Implications for the Racial Wealth Gap

“…Gutter and Fontes [101] found initial support that differences between Black households and White households in assets owned in 2004 were more due to differential access to investment markets (a feature of bias and structural racism) and less a matter of risk tolerance. Although Black Americans' ability to invest has historically been hampered by a lack of means, discrimination and distrust, it is not due to a lack of willingness [102]. In many cases, such as the 1921 destruction of "Black Wall Street" in Tulsa, Oklahoma [103], whole neighborhoods were razed by White vigilantes; Black Americans then lost their invested business and real estate wealth when insurance and city entities refused to compensate for losses.…”

“…In many cases, such as the 1921 destruction of "Black Wall Street" in Tulsa, Oklahoma [103], whole neighborhoods were razed by White vigilantes; Black Americans then lost their invested business and real estate wealth when insurance and city entities refused to compensate for losses. Such institutional racism thus inhibited future investment and for some families, may have perpetuated financial traumas that could manifest as decreased risk willingness [102]. However, others rebuilt, employing the spirit of collective resilience [103].…”