America Now: Economic Inequality

This research is part of a series that expands on our 2021 Roundtable Presentation, America Now. Read on to learn how Americans feel about income inequality in the United States today.

Income inequality is a significant issue in the United States today, especially for many non-White Americans. Data from the Federal Reserve shows that the top 10 percent of earners in the country hold almost 70 percent of the nation’s wealth. And findings from the 2019 Survey of Consumer Finances reveal that White families’ median wealth ($188,200) is almost eight times that of Black families ($24,100) and five times that of Hispanic ($36,100) families. Brands and companies have an opportunity to connect with diverse America by understanding their perceptions on income inequality and taking steps to address the gap.

In a recent survey, we asked Americans how serious of a problem they feel economic inequality to be in the country today. While almost half of all Americans believe it’s a “serious problem”, Black and Hispanic Americans were much more likely to hold this belief. Non-Hispanic White respondents are clearly divided on this issue based on party affiliation – with 60% of White Democrats viewing it as a serious problem compared to only 26% of Republicans.

Multicultural Americans Are More Likely To See Economic Inequality

Further, when asked what political and societal issues were most important to them in today’s climate, 27% of Black Americans named reducing economic inequality followed closely by Asian Americans (24%) and Hispanic Americans (22%). For White Americans, the percentage who listed reducing economic inequality as a top three priority issue, was far lower. However, far more White Democratic Americans listed it as a top issue.

And it is not just that multicultural Americans are more sensitive to income inequality—they’re also more willing to reward brands that take active steps to reduce it. In fact, 40% of Asian Americans, 39% of Black Americans, and 34% of Hispanic Americans share this sentiment, compared to just 27% of White Americans. Again, White Democrats are more closely aligned to the multicultural segment – 43% of White Democrats are more likely to buy from brands who support reducing income inequality, compared to only 15% of White Republicans.

Now you may be thinking, what can my brand do to address a systemic issue as challenging as income inequality? The answer: quite a lot! Below are some examples of what brands and companies are doing.
    • Costco, among other retailers, recently raised their minimum wage way above state and federal mandates. The move resulted in significant media attention.
    • Mastercard has launched the Center for Inclusive Growth ; their twitter page (@CNTR4growth), provides daily updates and insights for the public.
    • Noodles & Co teamed up with the app Even to offer instant pay options to their employees as well as a suite of financial wellness tools that include budgeting and organizational guidance.
Sources:
    • Federal Reserve Data. “Distribution of Household Wealth in the U.S. Since 1989.” October 2021.
    • Federal Reserve Data. “Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances.” Sept 28, 2020.
    • ABC News. “Costco raises minimum wage to $17 an hour as businesses hike pay to retain workers.” October 28, 2021.
    • Mastercard Center for Inclusive Growth. Mastercardcenter.org
    • Payments Dive. “Noodles & Co. teams with Even.com on financial wellness benefits.” September 16, 2019.

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