WASHINGTON, D.C. — Significant economic disparities still exist between black and white North Carolinians, according to a report by Prosperity Now, a Washington, D.C. nonprofit organization specializing in advancing economic equality.

Prosperity Now

North Carolina was ranked 41st in overall prosperity of residents among the 50 states and Washington, D.C., with No. 1 being the most prosperous and No. 50 being the least.

It had the 29th highest rate of racial disparity, according to the report.

Overall prosperity was measured by assessing a variety of factors, including financial assets, home ownership, education and access to health care. These factors were then analyzed by race to show imbalances between whites and minority groups.

Prosperity Now’s report also outlines suggestions for steps the government could take to reduce racial inequality in areas of homeownership, consumer protections, and tax policy.

“To begin the process of enacting these key reforms, we need to hold our elected officials accountable for eradicating inequitable and racist policies and systems, and then replacing them with truly equitable and opportunity-enhancing proposals and structures that give all households a fair shot at prosperity,” the report stated.

One of the biggest disparities between black and white North Carolinians is in education. Only 14.4 percent of black eighth grade students were proficient in mathematics compared to 47.3 percent of white students.

This wide gap between students may also help explain other statistics in the report such as lower rates of high school graduation, college education and business ownership of blacks relative to whites.

The liquid asset poverty rate is a measure of households without sufficient liquid savings to cover basic expenses for three months if they were to experience a financial emergency. The report stated that 57.6 percent of black households reported liquid asset poverty while only 35 percent of white families did.

A lack of accessible funds may contribute to the rate at which North Carolinians access health care. One out of every six adults of all races in North Carolina reported not seeing a doctor last year due to cost. 24 percent of black residents reported poor or failing health compared to 16.8 percent of whites.

The report also gave a perspective on the effects consumer financial well-being has on the retail sector of the economy.

In 2017, the top three dollar-store chains — Dollar General, Dollar Tree, and Family Dollar — operated more than 1,800 stores in the U.S.

“The recent growth in the dollar store industry in America is an illustration of how wage growth is distributed unevenly in our economy,” the report stated. “Revenue for dollar stores is increasing because the buying power of low-income consumers—their core customers—has improved as unemployment and poverty decrease and wages go up. However, their customers’ financial health is not improving enough to start shopping at more expensive stores…”

In addition, the Prosperity Now report describes 28 policies some states have already implemented that have helped improve financial security outcomes.

These policies include eliminating asset tests for public assistance programs, protections against predatory lending and Medicaid expansion.

So far, North Carolina has adopted 10 of the 28 of the policies measured by the report.

The full report can be read online.

This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism