In 2014, Bob Lord of Institute for Policy Studies pointed out that the billionaires on the “Forbes 400” list (a list of the richest people in America) held as much wealth as the entire African American population in the United States—about 41 million people at the time. W Inequality, of course, isn’t solely an African American issue or a minority issue, but the preceding statistic illustrates that it is an issue disproportionately impacting people of color in this country.
Wealth Inequality—and the racial wealth gap—serves as a linchpin for the other core issues at the heart of The MOGUL Initiative’s Mission. Regarding access to capital, economic inequality limits minorities’ ability to leverage the (non-existent) wealth of friends and family members and makes qualifying for loans more difficult due to poor credit and lack of collateral; regarding education disparities, economic inequality necessitates minority students take on larger student loan debt, then makes repayment of those loans more difficult by offering lower wages to people of color; regarding community safety, economic inequality leads to poverty, which in turn leads to more crime in communities struggling with poverty.
While there is no magic bullet to cure wealth inequality, The MOGUL Initiative is committed to combating this pernicious issue in a number of ways. First, by providing access to capital for minority business owners, we can help create jobs in communities of color, increase the circulation of dollars in these communities, and put minority business leaders on a path to building generational wealth. Next, by offering scholarships and/or grants to minority students from low-income homes, we can help students remain free from the burden of debt and increase their earning potential—and thus their ability to build wealth—by as much as 84% over the course of their lives. Finally, by bridging the racial wealth gap, we can improve the safety in minority communities by eliminating crime-producing poverty.