This simple way to fix the wealth gap between Blacks and Whites is far better than reparations
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Here is Bob Johnson’s better idea.
The man who became America’s first Black billionaire after creating Black Entertainment Television (BET) is unveiling a plan to close the Black-White wealth gap.
Johnson’s idea is to boost the number of Black people with 401(k) retirement accounts.
It is a sharp contrast with decades of fruitless appeals for racial reparations to compensate for Black slavery and racial bias. That approach has failed while the racial wealth gap continues to grow.
BET founder Robert Johnson says he has a better way to close the wealth gap than reparations.
Johnson calls his plan to increase Black wealth a “business solution to a social problem.”
His strategy is to get low-wage workers, about 5.3 million workers with less than $5,000 in their retirement accounts, mostly minorities and women, to keep their money invested when they leave a job.
Currently, close to 80% of those low-income workers cash out their savings plans when switching jobs.
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If they keep their 401(k) plans, they can avoid taxes on cashed out accounts, while benefiting from compounding interest and investment returns.
Based on data from the Employee