The Wealth Gap: The Racial Wealth Divide in Massachusetts

This is the third is a series, Closing the Wealth Gap, of several blog posts regarding the state of wealth inequality in Massachusetts, and how the MIDAS Collaborative has been working to advance the financial security of low- and moderate-income individuals for over two decades. Previously, we covered the challenges of those experiencing homelessness, and how MIDAS works to empower those with low to moderate income who lack an address. Here, we will cover the extent of income inequality within Massachusetts and the current distribution of wealth.

Massachusetts is noted for its pervasive inequity; in 2015, the top 1% made 31 times as much as the bottom 99%. A simultaneous study found that the median net worth of black families in Massachusetts (one of MIDAS’s main client segments) was $8. Their white counterparts had a median net worth of $247,500. The sizable gap in median net worth reflects the inability for certain demographics in Boston to truly invest in their future. MIDAS fosters multiple paths for Massachusetts residents to invest in their future, one of them being a partnership with Lawrence Community Works. LCW works to build community in Lawrence by developing assets for residents and giving them a foothold in their community. Once people gain this foothold they provide value to others by voting and paying taxes which raises up the whole community.

MIDAS has been an essential partner in these programs that help low income households to generate wealth. Through MIDAS’s high quality matched- savings program (up to 4 to 1 match), investors are able to build wealth by gaining education, buying houses, or starting businesses. MIDAS’s services work seamlessly with those of LCW as MIDAS provides the fiscal administration for the matched-savings accounts that go with LCW’s “on-the-ground” financial empowerment programs.