There’s a widespread perception that Blacks are financially poor and don’t have a lot of spending power. However, there’s a reason advertisers are targeting Blacks in the ads.
Consider the financial landscape of Black U.S. households in 2022: a significant 51% earned $50,000 or more, showcasing a positive economic trajectory. Notably, one-third of these households brought in $75,000 or more, with an impressive 22% reaching the $100,000 mark or beyond. Hence, more than 1 in 5 Black families earn six figures annually. These figures highlight a growing economic strength and potential within the community that cannot be overlooked.
Per Pew Research, from 1971 to 2021, Black adults, along with Americans in the 65+ demographic, showed the most progress in climbing the income ladder. This buries the right-wing, propagandist notion that Blacks were somehow more prosperous during the Jim Crow days of the 1940s and 50s.
A recent Stateline analysis of census data reveals a compelling trend: In an increasing number of states across the South and West, the proportion of middle-class households within the Black population is nearly matching that of the White population. This significant finding underscores a positive shift towards economic parity.
In five states—California, Georgia, Kentucky, Maryland, and Texas—the proportion of Black families reaching middle-class status is nearly equal to that of White families. According to a Stateline analysis of American Community Survey microdata from the University of Minnesota, only a narrow 3 percentage points separate these groups.
Furthermore, despite the challenges posed by the COVID-19 pandemic, this analysis highlights that the Black middle class continued to expand in most states from 2018 to 2021. These insights strongly suggest progress toward greater economic equality and resilience among diverse communities. Despite the persistent Black-White middle-class gap in numerous states, there’s promising progress worth noting.
Maryland
In 2021, Maryland led the nation with half of its Black families thriving in the middle class. This is a significant achievement, as it reflects economic stability and opportunity within the state. Defined here as earning between approximately $69,000 and $207,000 annually—two-thirds to twice Maryland’s median household income—this middle-class status offers a promising outlook for financial growth and security. The definition aligns with Pew Research Center’s national standards but is tailored to reflect Maryland’s unique economic landscape. This data underscores Maryland’s commitment to fostering an inclusive economy where prosperity is accessible to all communities.
“The share of adults who are in the middle class varies modestly across racial and ethnic groups, ranging from 47% of both Black and Asian adults to 49% of Hispanic adults and 52% of White adults in 2021.” – Pew Research
What about Black men?
It’s important to recognize the significant progress Black men in the United States have made toward achieving the American Dream, particularly in financial terms. According to an analysis of Census data, over half of black men (57%) have reached middle-class status or higher as adults today, a notable increase from just 38% in 1960. Furthermore, the percentage of black men living in poverty has dramatically decreased from 41% in 1960 to only 18% by 2016. These figures clearly demonstrate a positive trend and underscore the potential for continued advancement and success within this community.
As of the third quarter of 2023, the wealth distribution in America still reveals a significant imbalance: Black Americans held $4.9 trillion, while White Americans possess an overwhelming $120.4 trillion. This translates to white Americans controlling 85% of the nation’s wealth compared to just 4% for Black Americans. These figures are even more striking when considering population representation—60% for white Americans and 14% for Black Americans. However, a chunk of that White wealth is controlled by a few – the Bill Gateses, Warren Buffetts, and Elon Musks. Nevertheless, such disparities underscore an urgent call for systemic change to tackle economic inequality and create equitable opportunities across all communities.
While Blacks, on average, are not as wealthy as Americans in other racial demographics, the Black middle class is nothing to sneeze at.