“Dear Young Black Males… Always remember to hold your head up high, and NEVER doubt who you are. Believe in yourself SO much that other people’s negative words, opinions, and energy won’t discourage or hinder you.” – Stephanie Lahart
African Americans continue to be the only group where the women outnumber the men in terms of employment. The systemic reasons for this abound and not particularly the focus in this piece, but one of those areas is certainly educational obtainment. Whereas African American girls are in large part taught to focus on mental and academic achievement as a means of success, African American boys are taught to focus on physical and athletic achievement as a means of success. The two most notable gaps are at the Associate’s degree and Doctor’s degree levels where there is a difference of 350 basis points and 390 basis points, respectively. While it would be nice to see more African American young men getting Bachelor’s degrees, from an economic reality, simply getting more of them with an Associate’s is cheaper and faster in terms of return on investment for the community.
Enter the 10 HBCUs that are community or technical colleges along with UDC who has community college division while still being a 4-year institution. This collection of HBCUs represents a network of community and technical colleges dedicated to providing accessible, affordable education and workforce development opportunities. Focused on serving African American communities, these institutions offer associate degrees, certificates, and vocational training programs. There is also the opportunity to create a pipeline to four-year HBCUs or direct entry into the workforce. They emphasize community enrichment, economic mobility, and leadership development, often incorporating faith-based or mission-driven values. Collectively, they play a vital role in empowering individuals and strengthening the communities they serve.
As of 2021-2022 according to NCES, there is an approximately 50,000 Associate’s degree gap between African American Women and Men (Table Below) with women obtaining almost 85,000 Associate degrees annually and men obtaining just over 37,000 Associate degrees annually. The major obstacle to these 10 HBCUs closing the gap is what ails most systemic issues facing African America – finances. These 10 HBCUs have an average tuition cost of $6,500 and median tuition cost of $5,300. But in order cost of attendance is a far more accurate because it includes the ability to pay for residence be it on-campus or off-campus, meal plans, books, and other necessities of educational obtainment. The average and median for that related to these 10 HBCUs is approximately $20,000 which is inclusive of the tuition and fee cost. This cost of attendance is due to both the low cost of tuition at two-year institutions in general and these HBCUs being located in affordable towns as a whole. However, it maybe a lot to ask if the goal is to truly incentivize enough African American Men to take two years if they were not intending to and by the numbers many clearly are not intending to go to college even for an Associate’s degree without a cherry on top. Simply ensuring they have full tuition and room/board is enticing, but it is likely not enough. If we look at this as a salary, then paying African American Men $20,000 a year to be students is probably not going to cut it. However, pushing that number to say $30,000 a year with a disposable income of $10,000 per year could be enough to bring many into the fray.
Here is the math of getting to $30 billion. Assuming our endowment for this program can generate 5% annually, then it would take $600,000 in principal to generate the $30,000 necessary per student. That is $600,000 times the 50,000 gap we need to close annually or $30 billion. Enough to generate $1.5 billion in interest. At current, there are no African American institutions that are either non-profit or for-profit valued at $30 billion. Howard University has the largest African American non-profit endowment and it is just under $1 billion. World Wide Technology is the most valuable for-profit firm at $20 billion and its African American ownership in the firm at 59 percent makes his stake worth approximately $12 billion.
There is even an argument that should this miraculous endowment appear if it should be spent on African American men ages 18-40 or if it should be focused on African American boys where you could provide supplemental education and academic investment at a far earlier age where you would need to spend a fraction of the $30,000 to get impactful long-term results. While there is a firm argument for this, my answer is resoundingly no. It should and would need to be spent on the 18-40 year old age group. The reason why is simple. African American Women need help now. The gap that has existed for sometime now has caused a crisis in the community with African American women being unable to find African American men that are suitable partners, the overweight responsibility of economic burden they carry, and much more. The closing of the gap is worth $7,700 in increased earnings per African American man who upgrades from a high school diploma to an Associate’s degree or $385 million annually if simply brought in balance with the number of Associate’s that African American Women earn.
The burning question of course is where we get $30 billion in assets from that can produce $1.5 billion annually (a 5 percent return). Unless someone is secretly hiding 300,000 bitcoins, they bought for $0.01 many years ago that are now worth $30 billion there may be no real solid answers. Time is of the essence so the notion that we are going to slow roll our way there as we do with most everything else financially is a nonstarter and just more of the same issues. Government funding is also almost certainly not an option given that regardless of political party very little has been done to rectify systemic issues that face African America. One party would like to give us nothing despite the fact that we pay into the tax system and the other party gives us symbolic and lip service. For context, there are only 5 university endowments that are greater than $30 billion.
In the end, the truth of the matter is this will not be solved by a single endowment or a single organization. However, $30 billion in a collective effort across multiple organizations coordinating with this goal may in fact be possible and pragmatic. With almost $2 trillion in buying power in theory the resources are there – sort of. Buying power can be very misleading because it does not actually speak to disposable income of the African American community. The money that is leftover after the bills are paid. Much of African America’s $2 trillion has very little leftover once you account for needs and necessities of African American households. This actually speaks quite a bit to African America’s buying power only account for almost 11 percent of America’s $18.5 trillion in buying power, but accounting for almost 14.5 percent of the American population. The $2 trillion should be closer to $2.7 trillion. That is $700 billion essentially “missing” from the African American households. Needless to say, it would a lot easier to find that $30 billion there.
A collective and strategic effort is necessary to bridge the Associate’s degree gap between African American men and women. While a $30 billion endowment seems daunting, the solution lies not in a single source of funding but rather in a coordinated approach involving multiple organizations, institutions, and innovative financial strategies. Leveraging partnerships with HBCUs, African American financial institutions, and philanthropic networks can help mobilize the resources needed to generate meaningful change. Furthermore, targeted outreach to influential individuals, businesses, and community leaders can catalyze fundraising efforts.
The focus must remain on providing African American men with the financial support necessary to pursue educational opportunities. By directly investing in their economic advancement, the ripple effect will extend beyond individuals to families and communities. The $385 million annual increase in earnings resulting from closing the Associate’s degree gap underscores the profound economic impact of this initiative. Equally important, this investment addresses the broader social and relational imbalances that have burdened African American women for decades.
Achieving this ambitious goal will require innovative thinking, sustained advocacy, and bold financial commitment. However, with collaboration and purpose, empowering African American men through education can yield lasting benefits for the entire community, fostering stability, opportunity, and generational wealth.
Tracking Black Economic Stakes in America’s Economic Indicators and Central Bank Signals
Monday, May 26 – Memorial Day
No scheduled economic events While markets rest, Black workers—especially in essential sectors—continue to labor under wage suppression. National holidays often illuminate persistent labor disparities where African Americans overrepresent in underpaid, underprotected service roles.
Tuesday, May 27
Minneapolis Fed President Neel Kashkari Speech (Tokyo, 4:00 AM & 8:00 PM ET)
Known for his dovish leanings, Kashkari may highlight global risks to U.S. growth. For African Americans, particularly those vulnerable to job cuts in an economic slowdown, his tone on future rate cuts is critical.
Durable-Goods Orders (Apr): -7.8% (Prev: +9.2%)
A sharp plunge signals weakening investment and manufacturing demand. This contraction could hit Black industrial workers and logistics employees, especially those in Southern and Midwestern states.
Durable-Goods Minus Transportation (Apr): Data Pending
A flat reading here would confirm broad weakness beyond aerospace and autos, hurting smaller suppliers and minority-owned industrial businesses.
Case-Shiller Home Price Index (Mar): Data Pending (Prev: +4.5%)
Rising home prices continue to push African Americans out of first-time homeownership, especially in major urban markets like Atlanta, D.C., and Charlotte, where HBCU alumni are concentrated.
Consumer Confidence (May): 86.0 (No Change)
Flat confidence underscores persistent economic anxiety. For Black households carrying higher debt loads and experiencing lower wealth levels, stagnation in sentiment suggests limited consumption growth and continued vulnerability.
Wednesday, May 28
Minneapolis Fed President Neel Kashkari Speech (Tokyo, 4:00 AM ET)
Expect continued remarks on global financial coordination. The impact of any global tightening or deflation trends could ripple into U.S. credit markets, disproportionately hurting communities already locked out of affordable loans.
FOMC Meeting Minutes (2:00 PM ET)
This will reveal how serious the Fed is about easing policy. Delay in rate cuts prolongs high borrowing costs, keeping homeownership and business investment out of reach for many African Americans and HBCUs.
Minimal movement masks deeper problems; Black unemployment remains higher than national averages, and layoffs still skew toward underrepresented groups in precarious industries.
GDP (Q1 First Revision): -0.3%
A contracting economy, even marginally, means slower hiring and investment. For African American workers and business owners already operating with less margin for error, the pressure will rise.
Richmond Fed President Tom Barkin Speech (8:30 AM ET)
Representing a region with many HBCUs and Black rural towns, Barkin’s remarks could preview whether the Fed sees these communities as economic priorities or statistical footnotes.
Pending Home Sales (Apr): -0.4% (Prev: +6.1%)
Slumping pending sales point to ongoing housing market stress. This especially harms African American families trying to transition from renters to owners amid high mortgage rates.
Chicago Fed President Austan Goolsbee Speech (10:40 AM ET)
Goolsbee’s economic pragmatism could bring a dose of realism on inequality. If he signals concern over underperformance in low-income markets, that could hint at future support for inclusive growth.
Fed Governor Adriana Kugler Speech (2:00 PM ET)
Kugler may touch on labor market disparities and wage equity. Her background in labor economics makes her one of the more likely Fed voices to mention economic stratification directly.
San Francisco Fed President Mary Daly Speech (4:00 PM ET)
Daly often discusses inclusion and systemic barriers—her speech could reinforce the need for policy tools that close gaps in employment, housing, and education for Black communities.
Dallas Fed President Lorie Logan Speech (8:25 PM ET)
Logan oversees a region with growing Black populations in cities like Dallas and Houston. Her take on regional growth and monetary policy could influence credit access and labor demand in these hubs.
Friday, May 30
Personal Income (Apr): +0.3% (Prev: +0.5%)
Income growth slowing means wage pressures are easing—a problem for African American households already earning less and struggling with rising living costs.
Consumer Spending (Apr): +0.2% (Prev: +0.7%)
Weaker spending growth reflects household caution. Black consumers, often with fewer financial safety nets, are pulling back out of necessity—not choice.
Inflation is slowing but still above target. High price persistence in areas like housing and food continues to affect African American families, who spend a larger share of income on essentials.
Advanced U.S. Trade Balance (Apr): Data Pending (Prev: -$163.2B)
A massive trade deficit signals continued reliance on imports. U.S.-based Black manufacturers and exporters remain sidelined by structural inequalities in scale, capital, and global market access.
Advanced Retail Inventories (Apr): Data Pending (Prev: -0.1%)
Inventory declines suggest caution among retailers, which could mean reduced orders for minority-owned suppliers and less hiring in warehouse/logistics sectors with strong Black labor representation.
Advanced Wholesale Inventories (Apr): Data Pending (Prev: +0.4%)
If inventories keep rising, distributors may slow purchasing cycles, tightening cash flow for small suppliers—particularly those without banking relationships or supplier diversity contracts.
Chicago Business Barometer (PMI, May): 45.5 (Prev: 44.6)
A sub-50 reading indicates contraction. For African American professionals and businesses in Midwest metro markets, sluggish growth can stall economic progress and widen existing gaps.
Consumer Sentiment (Final, May): 50.8
Still hovering at recessionary levels, sentiment continues to reflect fear. Among Black households facing persistent inflation and limited safety nets, pessimism may trigger more cautious economic behavior.
San Francisco Fed President Mary Daly Speech (4:45 PM ET)
Her final remarks of the week may reinforce the theme of inclusive recovery—or warn of economic divergence. Either way, Daly remains a Fed leader worth watching for HBCU communities and Black policymakers.
HBCU Money Insight: This week’s economic data confirms what many in Black America already feel—stagnant wages, expensive goods, and unaffordable homes. Despite easing inflation, the lack of meaningful policy response to racial economic disparities remains glaring. As Fed voices speak from Tokyo to Texas, the African American economy remains in the shadows of the headlines.
“I built a conglomerate and emerged the richest black man in the world in 2008 but it didn’t happen overnight. It took me 30 years to get to where I am today. Youths of today aspire to be like me but they want to achieve it overnight. It’s not going to work. To build a successful business, you must start small and dream big. In the journey of entrepreneurship, tenacity of purpose is supreme.” — Aliko Dangote
It could be argued that many HBCUs do not see themselves as African American institutions. They just happen to be a college where African American students are the predominant student population – for now. A place where you may happen to find more African American professors than you would elsewhere. But in terms of intentionally being a place looking to serve the social, economic, and political interests of African America and the African Diaspora as a whole not so much. Schools like Harvard and the Ivy League in general seek to serve WASP interests, BYU and Utah universities serve Mormon interests, there is a litany of Catholic universities led by the flagship the University of Notre Dame serving Catholic interests, and around 30-40 women’s colleges serving women’s interests. Arguably, none are more intentional though than Jewish universities who seek to serve Jewish Diasporic interests. They do so intentionally and unapologetically. It is highlighted in two prominent dual programs.
Brandeis University, “founded in the year of Israel’s independence, Brandeis is a secular, research-intensive university that is built on the foundation of Jewish history and experience and dedicated to Jewish values such as a respect for scholarship, critical thinking and making a positive difference in the world.”
Master of Arts in Jewish Professional Leadership and Social Impact MBA In partnership with the Heller School for Social Policy and Management: “If you want to become a Jewish community executive, this program will give you the skills and expertise you need: a strong foundation in both management and nonprofit practices, as well as a deep knowledge of Judaica and contemporary Jewish life. You’ll take courses taught by scholars across the university, including management courses focused on nonprofit organizations and courses specific to the Jewish community.”
Master of Arts in Jewish Professional Leadership and Master in Public Policy: “If you want to become a professional leader who can effect positive change for the Jewish community at the policy level, you’ll need policy analysis and development skills as well as knowledge of Judaic studies and contemporary Jewish life — all of which our MA-MPP track is designed to impart. This track will teach you how to both assess policy and practice and design and implement strategic solutions.”
In the United States, the racial wealth gap remains stubbornly wide. For every dollar of wealth held by the average white household, the average Black household holds just 14 cents, according to the Federal Reserve. While policy debates rage on, a quieter revolution could be ignited in the lecture halls and boardrooms of Historically Black Colleges and Universities (HBCUs). It is time for these institutions to take the lead in launching a new kind of MBA—one rooted in African American entrepreneurship.
This would not be a symbolic gesture of representation. Rather, it would be a radical recalibration of business education in service of economic sovereignty. The proposed African American MBA, anchored at HBCUs, would fuse conventional business acumen with a deep focus on building and scaling Black-owned enterprises—injecting capital, credibility, and cultural context into the fight for economic justice.
A Different Kind of MBA
Traditional MBA programs—whether in Boston, Palo Alto, or London—have long celebrated entrepreneurship, but they rarely address the distinct structural barriers faced by African American founders: racialized lending, limited intergenerational capital, and investor bias, among others. An African American MBA would tackle these head-on.
Students would learn to navigate venture capital ecosystems that have historically excluded them, build business models designed for resource-scarce environments, and craft growth strategies anchored in community reinvestment. The curriculum would include case studies of Black-owned business successes and failures, from the Johnson Publishing Company to the modern fintech startup Greenwood Bank.
Such a program would not just train entrepreneurs; it would cultivate what economist Jessica Gordon Nembhard refers to as “economic democracy”—an ownership-driven economy where Black communities produce and own the value they generate.
From Theory to Practice
For this model to work, HBCUs must go beyond coursework. They must build ecosystems.
At the core of the program would be university-based business incubators providing capital, mentorship, and workspace. Students could launch ventures with real funding—from alumni-backed angel networks or Black-owned community development financial institutions (CDFIs). Annual pitch competitions would create visibility and momentum, offering grants, equity investment, or convertible notes to top-performing student ventures.
A tight integration with Black-owned businesses, supply chains, and financial institutions would form the scaffolding. Students might spend time embedded in legacy enterprises like McKissack & McKissack, or cutting-edge startups in healthtech, agritech, and media.
These ecosystems would provide fertile ground for venture creation while catalyzing local job growth. In doing so, they would re-anchor HBCUs as engines of regional economic development, not just academic training grounds.
The HBCU Edge
HBCUs are uniquely positioned to own this space. They already produce 80% of the nation’s Black judges, half of its Black doctors, and a third of its Black STEM graduates. Yet despite this outsized impact, their business schools have yet to consolidate around a unifying purpose.
By championing entrepreneurship explicitly tailored to African American realities, HBCUs could claim a domain left underserved by Ivy League and flagship public institutions.
Moreover, HBCUs benefit from strong community credibility, a network of engaged alumni, and access to philanthropic capital increasingly earmarked for racial equity. With ESG mandates guiding corporate philanthropy and DEI budgets under scrutiny, there is untapped potential for long-term partnerships with companies seeking measurable social impact through supplier diversity, mentorship, or procurement commitments.
Risks and Realities
Skeptics will ask: Will such a degree be taken seriously in the broader market? Will it pigeonhole students into “Black businesses” instead of the Fortune 500? The answer lies in the performance of the ventures it produces. Success, not symbolism, will be the ultimate validator.
Indeed, many of the world’s most transformative businesses have emerged from institutions that bet on community-specific models. Consider how Stanford’s proximity to Silicon Valley allowed it to incubate global tech companies—or how Israel’s Technion helped power a startup nation.
An African American MBA need not limit its graduates to one demographic. Rather, it provides a launchpad from which Black entrepreneurs can build scalable, inclusive ventures rooted in lived experience. And in doing so, change the face of entrepreneurship itself.
The Road Ahead
If a handful of HBCUs lead the way—Howard, Spelman, North Carolina A&T, and Texas Southern come to mind—they could collectively establish a national center of excellence for African American entrepreneurship. Over time, this could grow into a consortium offering joint degrees, online programming, and cross-campus business accelerators.
The long-term vision? A Black entrepreneurial ecosystem rivaling that of Cambridge or Palo Alto, but infused with the resilience, cultural currency, and social mission uniquely forged by African American history.
This would not merely be an academic experiment. It would be a new chapter in a centuries-old story—one where the descendants of slaves become the architects of capital.
Focusing an African American MBA program offered by HBCUs on entrepreneurship could be transformative for fostering economic growth and self-sufficiency within the Black community. Here’s how such a program might look:
Program Vision and Goals
Empower Black Entrepreneurs: Equip students with the tools and networks to build successful businesses that create wealth and opportunities within African American communities.
Address Systemic Barriers: Focus on overcoming challenges like access to capital, discriminatory practices, and underrepresentation in high-growth industries.
Build Community Wealth: Promote entrepreneurship as a pathway to closing the racial wealth gap and revitalizing underserved areas.
Curriculum Highlights
Core MBA Foundations:
Finance for Entrepreneurs: Teach how to secure funding, manage cash flow, and create financial models tailored to African American small and medium enterprises (SMEs).
Marketing and Branding: Strategies for building culturally relevant brands that resonate with diverse audiences.
Operations and Scaling: Guidance on running efficient operations and scaling businesses sustainably.
Specialized Courses:
Tomorrow’s Entrepreneurship: Building ventures with dual goals of profit, community impact, and focus on industries of the future.
Navigating VC and Angel Investments: Training on pitching to investors, negotiating terms, and understanding equity structures.
Black-Owned Business Case Studies: Analyze successes and failures of prominent African American entrepreneurs. Much like the Harvard Business Review that sells case studies there would be an opportunity for HBCU business schools to create a joint venture for the HBCU Business Review and sell case studies relating to African American entrepreneurship.
Hands-On Experiences
Business Incubator:
A dedicated incubator at the HBCU to provide seed funding, mentorship, and workspace for students to develop their ventures.
Real-World Projects:
Partner students with local Black-owned businesses to solve real business challenges.
Annual Pitch Competitions:
A platform for students to showcase business ideas to potential investors, with prizes and funding opportunities.
Partnerships and Networks
Corporate and Community Collaborations:
Partnerships with companies that prioritize supplier diversity programs to provide procurement opportunities for graduates.
Collaborations with established Black entrepreneurs for mentorship and guest lectures.
Access to Capital:
Establish a dedicated fund or partnership with Black-owned financial institutions to provide startup capital.
Measurable Outcomes
Startups Launched: Track the number of new businesses started by graduates.
Jobs Created: Measure the economic impact of those businesses in local communities.
Community Investment: Monitor how much revenue is reinvested into underserved neighborhoods.
In contrast to institutions that intentionally serve specific cultural, religious, or ideological communities, many HBCUs appear to operate as predominantly African American in demographic composition rather than as institutions deeply invested and intentional in advancing the collective social, economic, and political interests of African Americans and the African Diaspora. While other universities—whether Ivy League institutions catering to elite WASP traditions, religious universities fostering faith-based leadership, or Jewish universities purposefully cultivating Jewish communal leadership—explicitly align their missions with the advancement of their respective communities, HBCUs often lack this same level of strategic intent. If HBCUs wish to remain vital and relevant in the future, they may need to more deliberately embrace their role as institutions committed to the upliftment of African American communities, not just as spaces where Black students and faculty are well-represented, but as powerful engines of social transformation.
Centering the Black Economic Lens on Federal Reserve Movements and Economic Indicators
Monday, May 19
New York Fed President John Williams Speech (8:45 AM ET)
Williams’ comments on inflation and growth will be closely watched. As a key voice in rate-setting, any hawkish signals could delay relief for African American borrowers already paying higher credit premiums.
Fed Vice Chair Philip Jefferson Speech (8:45 AM ET)
Jefferson, the Fed’s first African American Vice Chair, may emphasize equitable employment and inclusive policy. His framing will matter for HBCUs and Black communities relying on federal support and labor stability.
U.S. Leading Economic Indicators (Apr): -0.9% (Prev: -0.7%)
A steeper decline signals weakening momentum. This typically translates into fewer job openings, reduced wage growth, and tighter lending—especially damaging for African American workers and businesses still lagging in recovery.
Tuesday, May 20
Richmond Fed President Tom Barkin Speech (9:00 AM ET)
Barkin’s region includes southern states with high African American populations. His insights could indicate whether regional policy and economic support are filtering down to underserved communities.
Boston Fed President Susan Collins at Fed Listens (9:30 AM ET)
One of the few women of color leading a Fed bank, Collins’ presence at Fed Listens may bring attention to community feedback. Expect mentions of wealth inequality, which remains sharpest for Black Americans.
St. Louis Fed President Alberto Musalem Speech (1:00 PM ET)
As a new voice in the Fed, Musalem’s outlook could influence policy leanings that shape access to capital—particularly relevant in Missouri and the Mississippi Delta region, home to several HBCUs and Black rural communities.
Fed Governor Adriana Kugler Speech (5:00 PM ET)
Kugler’s focus on inclusive employment metrics may touch on disparities in Black unemployment and wage stagnation, helping guide equitable macroeconomic planning.
Wednesday, May 21
Fed Listens Event: Barkin & Bowman (12:15 PM ET)
These sessions are critical opportunities to elevate Black institutional voices—including HBCUs, Black banks, and civil society groups. The listening format also reflects whether the Fed is serious about closing racial wealth gaps through policy.
Little movement here masks a troubling truth: Black unemployment remains higher than national averages, and layoffs in service sectors often disproportionately affect African American workers.
S&P Flash U.S. Services PMI (May): 50.8 (Same as Forecast)
Marginal growth in services is a mixed bag. Black-owned service businesses may benefit from stable demand, but credit costs and supply chain inflation continue to eat into profits.
S&P Flash U.S. Manufacturing PMI (May): 49.8 (Below Forecast)
Contracting manufacturing output threatens industrial jobs—especially for African Americans in urban centers with historic manufacturing legacies and ongoing economic vulnerability.
Existing Home Sales (Apr): 4.12M (Prev: 4.02M)
An uptick in sales signals improved market activity, but high interest rates still lock out many African Americans from homeownership, exacerbating wealth inequality.
New York Fed President John Williams Speech (2:00 PM ET)
Williams’ second appearance may reinforce key monetary themes. If inflation remains the top concern, interest rates are unlikely to fall—delaying housing and business growth in communities that need it most.
Friday, May 23
Kansas City Fed President Jeff Schmid Speech (9:35 AM ET)
The Kansas City district includes Black communities in the Midwest. A pro-growth message from Schmid could be welcomed news for those hit hardest by disinvestment and population loss.
New Home Sales (Apr): 700,000 (Forecast: 724,000)
Falling slightly short of expectations, new home sales remain sensitive to mortgage rates. Limited access to credit and developer capital continues to stall Black homeownership and real estate entrepreneurship.
Fed Governor Lisa Cook Speech (12:00 PM ET)
The only African American woman on the Fed Board, Cook consistently advocates for equitable economics. Her remarks will likely address systemic financial exclusion and how monetary tools can close racial wealth gaps.
Though ceremonial, Powell’s remarks will be widely covered. If he speaks to opportunity and equity, HBCUs and Black institutions can press for tangible follow-through in monetary policy and research funding.
HBCU Money Insight: This week offers a mix of sobering and symbolic moments. With inflation slowing but economic indicators weakening, the question remains whether the Fed can pivot without sidelining Black workers, entrepreneurs, and institutions. For HBCUs and Black policymakers, these events are an opportunity to press for policy that doesn’t just stabilize the economy—but transforms who it works for.
“If you don’t find a way to make money while you sleep, you will work until you die.” — T. Harv Eker
In the American imagination, wealth is often synonymous with work—grit, grind, and the relentless pursuit of the paycheck. Yet the country’s richest families rarely labour for their living. Their fortunes compound quietly, buoyed by investments, dividend-paying stocks, real estate, and business interests. For Black households, whose median net worth remains a fraction of their white counterparts, accessing such passive income streams remains a frontier of both opportunity and historical consequence.
According to recent data from the U.S. Census and the Federal Reserve, only 7% of Black households report receiving passive income—whether from rental properties, interest, dividends, or business ownership—compared to 24% of white households. And when such income does exist, the median amount for Black families barely touches $2,000 annually, compared to nearly $5,000 for white households. This income disparity is not incidental. It reflects generations of exclusion, underinvestment, and systemic barriers to asset ownership.
But it is changing.
Across the U.S., a growing cohort of Black investors, entrepreneurs, and financial organizers are working to reverse this trend. From stock investing circles to community real estate funds and digital asset education, there is an awakening to the principle that “money must work when we do not.”
A Quiet Crisis in the Wealth Equation
Wealth in America has never been evenly distributed, but the passive income gap underscores a more insidious asymmetry: not just what people earn, but how money is multiplied. For much of the 20th century, Black Americans were systematically denied access to the very tools that compound wealth. Home loans were redlined. Stock brokers ignored Black neighborhoods. Black-owned businesses were underfinanced and over-regulated.
“We talk a lot about income inequality, but asset inequality is far more dangerous,” says Dr. Lenora Matthews, professor of finance at Howard University. “Passive income is how wealth survives across generations. Without it, every dollar must be earned, every month restarted from zero.”
The result has been a fragile wealth ecosystem. Black households are more likely to rely solely on wages, less likely to inherit financial assets, and more burdened by student debt. This combination severely limits participation in the capital markets that fuel passive income.
Enter the Index Fund
Among the most accessible starting points for passive income is the stock market—particularly index funds and ETFs (exchange-traded funds). These instruments offer low-cost, diversified exposure to the market and require little financial sophistication.
Platforms like M1 Finance, Public, and Fidelity now allow investors to buy fractional shares, meaning a person can invest $10 into the S&P 500 rather than $500 for a single share. Many Black investors are leveraging this entry point to build long-term portfolios with monthly contributions.
Tasha McDaniel, a teacher in Atlanta, began investing during the pandemic with just $50 per paycheck. “I never thought I’d be an investor,” she says. “But I realized my savings account was losing to inflation. Now my dividends buy more shares automatically.”
Her strategy follows a principle now gaining traction in Black financial circles: automatic reinvestment. Known as DRIP (Dividend Reinvestment Plan), it ensures that dividend payments purchase additional shares—compounding returns without additional cash input.
Real Estate: The Tangible Asset
Beyond equities, real estate remains the second pillar of passive income strategy. But here too, Black households have been historically marginalized. In 2022, the Black homeownership rate stood at 44%, compared to 74% among whites, a gap wider than it was in 1968 when the Fair Housing Act was passed.
And yet, platforms like Roofstock, Fundrise, and Arrived Homes are lowering the barriers. These services allow users to invest in rental properties, either fractionally or outright, while property management is handled externally—turning what was once an intensive business into a hands-off income stream.
“There’s a myth that you need $100,000 to buy a rental,” says Marcus Green, a Detroit-based real estate investor. “But with the right markets and leveraging community capital, Black investors can and are buying back the block.”
Indeed, co-investment models are growing. In cities like Birmingham, Baltimore, and Chicago, Black investment clubs are pooling resources to purchase duplexes and small multi-family homes. Each investor receives a percentage of rental income, and over time, equity appreciation.
The model is not new. It mirrors how Jewish, Chinese, and Caribbean diasporas historically approached real estate. What is new is the technological infrastructure allowing even small investors to participate.
Business Ownership: The Third Rail
Owning a business is arguably the most lucrative form of passive income—especially if it can be structured to run without the founder’s daily involvement. But again, Black entrepreneurs face outsized barriers. A 2021 Brookings report found that Black-owned businesses are half as likely to receive funding and receive only a third as much capital, even when creditworthiness is equal.
Still, entrepreneurship remains a favored strategy. Digital businesses—especially those selling information products, such as eBooks, online courses, or print-on-demand merchandise—offer high margins with low startup costs.
“I created a personal finance course for new parents,” says Jamal Pierce, a Houston-based father of two. “It took me three weekends. Now it makes $500 a month, and I haven’t touched it in a year.”
Similarly, Black creators on platforms like YouTube, Etsy, and Substack are finding ways to turn knowledge, creativity, and community into automated income. While these streams begin modestly, they represent a critical shift: from hourly labor to scalable value.
Trust, Trauma, and Financial Literacy
While access to capital is critical, trust and cultural engagement are equally important. Surveys consistently show that Black Americans are less likely to trust financial institutions. This distrust is not irrational. From the exploitation of Freedman’s Bank to discriminatory banking practices in the 2000s housing crash, history abounds with financial betrayal.
To bridge this gap, a new generation of Black financial educators is emerging. TikTok influencers, YouTube educators, and community workshops are now teaching passive income strategies with a culturally relevant lens.
“Financial literacy must come from trusted voices,” says Ayana Holland, founder of Black Wealth Book Club. “We aren’t just teaching stocks; we’re healing financial trauma.”
Her organization hosts monthly readings and investment challenges, helping members open brokerage accounts, buy dividend-paying stocks, and learn the language of capital.
Group Economics Reimagined
One of the most powerful but underutilized tools in the Black community remains cooperative economics. The tradition of “sou-sous” and rotating savings clubs dates back centuries but is now being modernized into investment syndicates and real estate cooperatives.
In New York, the Umoja Investment Circle—formed by five Black women—collectively saved $60,000 in a year and used it to buy a cash-flowing rental property in upstate New York. Each member now receives quarterly dividends.
“We realized we didn’t need to wait for the bank,” says founding member Tiffany Rhodes. “We were the capital.”
Such models not only build wealth but restore a sense of agency and interdependence. They allow families and communities to reclaim the capital flight that has plagued Black neighborhoods for decades.
Digital Assets and the Cautionary Horizon
The emergence of digital assets, particularly cryptocurrencies and decentralized finance (DeFi), has sparked curiosity and concern among Black investors. On one hand, Black Americans have adopted crypto at faster rates than their white peers, drawn by its decentralization and promise of wealth democratization.
On the other, the market’s volatility and regulatory uncertainty pose significant risks. The collapse of platforms like FTX and Celsius has reignited warnings about speculation without education.
“Crypto is not the enemy,” says Kaylin James, a blockchain consultant. “But we must separate hype from fundamentals. Bitcoin can be a long-term store of value, but not every coin is your ticket to freedom.”
The lesson is clear: passive income must be built on understanding, not urgency.
Policy Interventions and Structural Change
While individual strategies matter, structural change is essential to closing the passive income gap. Federal and state policies must expand access to retirement accounts, support first-time homebuyers, and fund Black-owned startups.
Programs like baby bonds, universal 401(k) participation, and public banking could democratize the tools of wealth. So too could the strengthening of historically Black financial institutions—credit unions, community development financial institutions (CDFIs), and HBCU endowments.
Indeed, institutions like OneUnited Bank and the HOPE Credit Union are already deploying capital into underserved areas, while crowdfunding models like Black Wall Street Cooperative are testing new modes of community finance.
Toward Financial Sovereignty
The quest for passive income is not merely a financial ambition—it is a reclaiming of time, dignity, and possibility. For Black households, it represents both survival and sovereignty. It is the freedom to plan, to rest, and to invest in future generations.
In a world where work grows ever more precarious and inequality more entrenched, the ability to earn without labour is no longer a luxury. It is an imperative.
As Jamal Pierce puts it: “I don’t want my kids to inherit hustle. I want them to inherit options.”
The shift is underway. The movement is growing. Passive income is not a dream. It is a strategy—and a declaration—that Black wealth will not be denied, only delayed.
Chart: Chamber of Commerce using U.S. Census Bureau’s 2019 American Community Survey
Analysis with Focus on African Americans
The chart presents data on median passive income and the percentage of households with passive income across different racial/ethnic groups. Here’s a focused analysis on African Americans (Black households) in comparison to others:
Passive Income Levels
Black households have the lowest median passive income compared to other groups.
Their median passive income is around $2,500, significantly lower than White, Hispanic, and Asian households, which are all above $4,000.
This suggests that Black households have less access to wealth-generating assets such as investments, rental properties, and other income-generating financial vehicles.
Percentage of Households with Passive Income
Black households also have the lowest percentage of households receiving passive income (approx. 6%).
This is significantly lower than Non-Hispanic White and Asian households, indicating that fewer Black families are benefiting from income streams outside of wages and salaries.
The disparity may be linked to historical and systemic barriers to wealth accumulation, including lower rates of homeownership, limited access to capital for investments, and disparities in inheritance.
Comparative Insights
Hispanic households, despite having near the same percentage of households receiving passive income as Black households, have a relatively equal median passive income to White and Asian households with White, Asian, and Hispanic households median passive income being over 50 percent greater than African American households.
In contrast, Non-Hispanic White and Asian households have both a higher proportion of households with passive income and significantly higher median passive income, suggesting a stronger institutional wealth advantage.
The data reinforces broader economic research that points to racial wealth gaps in the U.S., where Black families historically have had fewer opportunities to build wealth post World War II due to the G.I. Bill and desegregation leading to the demolishing of African American institutional wealth.
Potential Implications & Solutions
Financial literacy & investment education: Increasing awareness and access to investment opportunities can help improve passive income for Black households.
Wealth-building programs: Policies aimed at reducing barriers to property ownership and business investment can support long-term financial stability.
Access to capital: Expanding access to business loans, stock market investments, and other wealth-building tools can improve financial mobility.
Additional Insights on Passive Income Disparities for Black Households
Building on the previous analysis, let’s explore some deeper economic, historical, and structural factors that contribute to the lower levels of passive income among Black households.
Historical Barriers to Wealth Accumulation
Redlining & Housing Discrimination:
Homeownership is a key driver of wealth in the U.S. Black Americans were historically excluded from homeownership through redlining, restrictive covenants, and discriminatory lending practices.
Even today, Black homeownership rates remain significantly lower, limiting the ability to build home equity that could generate rental income or be passed down to future generations.
Limited Access to Financial Markets:
Generational wealth disparities mean Black families are less likely to inherit assets such as stocks, bonds, or investment properties.
The racial wealth gap reduces the ability to invest in income-generating assets like rental properties, mutual funds, or businesses.
Income vs. Wealth: Why This Matters for Passive Income
Higher Reliance on Earned Income:
The data suggests that Black households rely more on wages and salaries rather than passive income streams.
Without accumulated wealth or financial investments, it becomes harder to transition from relying solely on wages to generating income passively.
Debt Burden & Financial Constraints:
Black households tend to carry higher levels of student loan debt relative to income.
This reduces disposable income that could otherwise be invested in wealth-generating assets like stocks, businesses, or real estate.
Entrepreneurship & Business Ownership
Lower Rates of Business Ownership:
Business ownership is a major source of passive income, yet Black entrepreneurs face systemic barriers to access funding.
According to studies, Black business owners are more likely to be denied loans or receive less funding than White business owners with similar qualifications.
The lack of capital prevents many Black entrepreneurs from scaling their businesses into passive income-generating enterprises.
Investment Disparities
Lower Stock Market Participation:
Stock investments are a major source of passive income (dividends, capital appreciation).
Research shows that Black Americans are less likely to invest in the stock market, often due to financial constraints, lack of investment knowledge, or distrust in financial institutions.
This contributes to the income gap, as wealthier groups benefit disproportionately from stock market growth.
Retirement Savings Gap:
Black workers are less likely to have employer-sponsored retirement accounts such as 401(k) plans, which can serve as passive income sources later in life.
Lower contributions to retirement accounts also mean reduced wealth accumulation over time.
Policy & Structural Solutions
To address these disparities, several targeted interventions could help increase passive income opportunities for Black households:
✅ Financial Education & Investment Access:
Expanding financial literacy programs to educate communities about investing, real estate, and wealth-building strategies.
Encouraging early participation in retirement and investment accounts.
✅ Homeownership Support:
Strengthening first-time homebuyer assistance programs for Black families to increase homeownership rates.
Expanding access to fair lending and mortgage assistance programs.
✅ Entrepreneurship & Capital Access:
Increasing access to venture capital and business loans for Black entrepreneurs.
Expanding mentorship programs that connect Black business owners with experienced investors.
✅ Workplace & Policy Interventions:
Strengthening retirement benefits and employer-matching programs.
Enforcing anti-discrimination laws in financial institutions to ensure fair lending practices.
The chart illustrates a clear racial disparity in passive income, which is a key driver of long-term financial stability. Addressing this gap requires both individual financial strategies and systemic policy changes to create more equitable opportunities for Black households to build and sustain wealth.
Investment Strategies for Building Passive Income in Black Households
Building passive income requires a strategic approach to investing, asset accumulation, and financial planning. Here are some tailored investment strategies that can help Black households increase wealth and long-term financial stability.
Stock Market Investing (Long-Term Wealth Growth)
Investing in the stock market is one of the best ways to generate passive income through dividends and capital appreciation.
How to Get Started:
✅ Invest in Index Funds & ETFs:
Index funds (e.g., S&P 500) and exchange-traded funds (ETFs) offer diversification and long-term growth with minimal risk.
Example: Vanguard Total Stock Market ETF (VTI), SPDR S&P 500 ETF (SPY), or Fidelity Zero Large Cap Index Fund (FNILX).
✅ Dividend Stocks for Passive Income:
Some stocks pay dividends, providing consistent cash flow.
Examples: Johnson & Johnson (JNJ), Coca-Cola (KO), Procter & Gamble (PG).
Consider Dividend ETFs like Vanguard Dividend Appreciation ETF (VIG).
✅ Start Small & Use Fractional Shares:
Apps like Robinhood, M1 Finance, and Fidelity allow investing with as little as $5.
Investing in fractional shares lets you own expensive stocks (e.g., Amazon, Apple) without needing full stock prices.
✅ Retirement Accounts for Tax Advantages:
401(k) or 403(b) Plans (if employer-sponsored) – Max out contributions, especially if there’s an employer match.
Roth IRA or Traditional IRA – Tax-free or tax-deferred investment growth.
Real Estate Investing (Building Generational Wealth)
Real estate is a powerful way to create passive income and build long-term wealth.
Ways to Invest in Real Estate:
🏡 Rental Properties (Buy & Hold Strategy):
Purchase properties in high-growth areas and rent them out.
House-hacking: Buy a duplex, live in one unit, and rent the other to cover your mortgage.
🏘 Real Estate Investment Trusts (REITs) (For Hands-Off Investing):
REITs allow you to invest in real estate without owning property.
They pay out dividends and grow in value over time.
Examples: Vanguard Real Estate ETF (VNQ), Realty Income Corp (O).
🏗 Short-Term Rentals (Airbnb, VRBO):
Renting out a portion of your home or a property on Airbnb can generate passive income.
🏠 Crowdfunded Real Estate:
Platforms like Fundrise, Roofstock, and RealtyMogul let you invest in real estate with as little as $500.
Entrepreneurship & Online Business (Creating Scalable Income)
Starting a business can provide long-term passive income if structured correctly.
Low-Cost Online Business Ideas:
💻 Create Digital Products (eBooks, Courses, Templates):
Platforms like Gumroad, Teachable, and Udemy allow you to sell digital products with no inventory costs.
Ad revenue, affiliate marketing, and sponsorships can generate passive income over time.
Example: Start a finance blog, career coaching YouTube channel, or real estate investing podcast.
📈 Affiliate Marketing & Dropshipping:
Promote other brands’ products and earn commissions without handling inventory.
Use platforms like Amazon Associates, Shopify, and ClickBank.
Passive Income from Bonds & Fixed-Income Investments
Bonds provide steady income with lower risk than stocks.
Best Bond Investments:
📜 U.S. Treasury Bonds & I Bonds:
Safe and backed by the government.
I Bonds protect against inflation and currently offer high-interest rates.
🏦 Corporate Bonds & Municipal Bonds:
Corporate bonds pay higher interest but carry slightly more risk.
Municipal bonds offer tax-free income and are great for long-term wealth preservation.
📊 Bond ETFs for Diversification:
Example: Vanguard Total Bond Market ETF (BND).
Community & Group Investing (Building Wealth Collectively)
Pooling resources can help overcome capital barriers in investing.
How to Invest as a Group:
👥 Investment Clubs & Stock Groups:
Join or create an investment group to collectively buy stocks or real estate.
Apps like Public and M1 Finance allow social investing.
🏡 Real Estate Syndication & Co-ops:
Partner with others to invest in properties together.
Example: Several families invest in an apartment complex and split the rental income.
🌍 Peer-to-Peer Lending (P2P):
Platforms like LendingClub allow investing in loans for passive interest income.
Leveraging Technology & Automation for Passive Income
📲 Set Up Automated Investing:
Use Robo-Advisors (Wealthfront, Betterment) for hands-off investing.
Set up automatic dividend reinvestments (DRIP) to grow wealth faster.
📱 Passive Income Apps:
Honeygain & Nielsen Rewards: Earn passive income by sharing internet bandwidth.
📈 Side Hustles with Passive Potential:
Print-on-Demand (Etsy, Redbubble)
Amazon Kindle Direct Publishing (KDP)
Final Takeaways: Actionable Steps
🔹 Step 1: Open a brokerage account (Fidelity, Vanguard, or Charles Schwab) and start investing in stocks, ETFs, or REITs. 🔹 Step 2: If possible, buy a rental property or start with REITs for real estate exposure. 🔹 Step 3: Automate savings & investments through 401(k), Roth IRA, or Robo-advisors. 🔹 Step 4: Explore low-risk passive businesses. 🔹 Step 5: Consider group investing with family or community investment clubs.
HBCU Money 
This Week in the Economy: May 19–23, 2025
Centering the Black Economic Lens on Federal Reserve Movements and Economic Indicators
Monday, May 19
Tuesday, May 20
Wednesday, May 21
Thursday, May 22
Friday, May 23
Sunday, May 25
HBCU Money Insight:
This week offers a mix of sobering and symbolic moments. With inflation slowing but economic indicators weakening, the question remains whether the Fed can pivot without sidelining Black workers, entrepreneurs, and institutions. For HBCUs and Black policymakers, these events are an opportunity to press for policy that doesn’t just stabilize the economy—but transforms who it works for.
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Tagged African American Homeownership Trends, Black Economic Policy 2025, Black Small Business Economic Outlook, Black Unemployment Statistics, economy, Fed Interest Rates Impact on Black Communities, federal reserve, Federal Reserve and Black Wealth, finance, HBCU Financial Commentary, Inclusive Economic Growth Fed Listens, inflation, interest rates, Lisa Cook Federal Reserve Speech, Philip Jefferson Economic Equity