As social inequality and economic disparities continue to rise across the United States, there is a pressing need to reverse the trends, transform the economic landscape, and build a foundation for sustainable intergenerational prosperity. Data shows areas of greater inequity experience weaker economic growth — so it benefits all of us to overcome those inequities.

On February 26, NationSwell convened leaders from across sectors for a virtual roundtable on the strategies and opportunities they’re seeing to address systemic inequities, including affordable housing, access to quality education, healthcare disparities, and the racial wealth gap.

Some takeaways from the conversation appear below:

Insights

We need to invest in widening “wealth literacy” not just financial literacy.. There are still knowledge gaps in how individuals tend to conceptualize income as wealth vs. understanding asset-based accumulation.

Lowering the barriers to entry can give millions more people access to powerful tools. . Tools that have been widely vetted and applied — including grants, “patient” loans, and market rate loans — are still some of the best in our collective arsenal, but access is still an issue for communities who have been historically regarded as unbankable. In order to mitigate those roadblocks, organizations like the Groundbreak Coalition focus on stacking resources to make it easier for people to find them and benefit from their collective impact — using tried-and-true puzzle pieces, but reconfigured in a more accessible way.

Employee ownership is a powerful way to empower people to build wealth. Organizations such as Ownership Works offer businesses of all sizes the opportunity to offer their staff stock – a vital pathway to wealth building, and addressing the imbalance that currently the top 1% wealth owners own 99% of the stock and mutual funds. 

Safety net reforms show promise when they mirror the values of trust-based giving. The principles of trust-based giving — like not having to prove your worthiness over and over again — a should be reflected in our social safety net and direct cash transfer programs. 

Targeted policy reforms like “baby bonds” help to reimagine the role the government has to play in closing the wealth gap. Baby bonds are government-funded trusts created at a child’s birth. California has started the largest baby bond program in the country aimed at children who have lost a primary caregiver through COVID or have long term stays in the state’s foster care system.

For underserved individuals, entrepreneurship can be a significant pathway for wealth generation. Undocumented and formerly incarcerated individuals are not always able to legally work as employees; and incarceration is shown to be a huge factor in the wealth gap. Entrepreneurship creates avenues to work as your own boss and can help to make inroads for wealth-building. Focusing on business development and supporting co-ops and CDFIs — as well as working with partners focused on seeding community-based organizations (CBOs) —  can help to strengthen such opportunities.

Narrative change is a necessary component of the wealth-building conversation. As a society, our tendency to attribute poverty to a moral failure or theorize that poverty is solvable through hard work and the “bootstraps mythology” help dictate the ways that policies are prioritized and shaped, creating tremendous barriers to entry that exacerbate the wealth gap. Using sociopolitical context and narrative storytelling can help to catalyze our communities into feeling like they’re part of a larger picture in wealth-building — helping to create buy-in, engender pride, and form a sense that this work is larger than ourselves.