Higher black incomes mean more kin-support giving that drains rather than builds wealth.

Evidence

It’s a question of whether the financial transfer goes toward a wealth-building activity, like college tuition or a down payment on a home, or toward a basic need or an emergency. And black families are far more likely than white families to be making financial transfers that are used to help family members cover daily expenses—like Racheal’s mother paying for her to go to the dentist as a Christmas gift. Earning a higher income does not protect black families from such wealth depletion; in fact, it makes them more vulnerable. “As income increases, blacks are increasingly more likely than whites to report having provided financial assistance to friends and family,” one study found. “Middle-income blacks are significantly more likely than middle-income whites to report having provided informal financial assistance in the past year.” — Dorothy A. Brown, The Whiteness of Wealth, 469

Categorization

• QUESTION: Solidarity-based kin support converts tax-exempt transfers into consumption rather than investment — a perverse loop worth exploring.