Palmer provides a sharp, data-driven reality check that exposes how different historical systems shape racial inequality across the Atlantic. It is a vital reminder that identity politics cannot replace a rigorous understanding of local economic structures.
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Deep Dive
Black poverty in the UK vs USA...(it isn't what you think...)Added:
I always assumed black Americans had it harder economically than black Brits.
The slavery, the incarceration, the sheer scale of it. Um, then I pulled the poverty data and I genuinely had to sit down, especially at a time where we are seeing black Americans argue that they are not even African. That's a whole another video and topic. We'll get into that another day. And as someone who's lived in America for 5 years, this was a topic I knew I had to tackle one day considering my time there and the people that I interacted with. So according to the Joseph Roundtree Foundation, one of the UK's leading poverty research bodies, 39% of black British people live in poverty. In America, it's around 18.4%. So more than double in this country. But I want to be precise here because that's obviously important. The UK figure is measuring households below 60% of median income after housing costs, whereas the US figure comes from the Census Bureau using a fixed federal poverty threshold. The methods are different, but they're both uh somewhat revealing, I guess. Um, and this video is not about who's got it worse. It's about something more important than that. It's about understanding that the same skin in two different systems produce slightly different outcomes. And once you see the data, maybe there is something we can actually learn from each other. Cuz if you look on TikTok, it's kind of silly that we argue over dumb stuff like whose music's better and whose food is better and whatever. And since my last video, I spent a few weeks trying to compile as much data as I can so I can actually come up with a nice video with a different idea, different twist to it. So, I'm going to walk you through every major dimension of black economic life side by side, UK and US, with real numbers. Some of these numbers will be obvious to you and me and others will be a little bit surprising, especially the educational section, which surprise me the most. And even more importantly than the numbers, I want to explore why the gap even exists.
because the history, the policies, and the systems that created these outcomes in America are fundamentally different from the ones in the UK. And that matters because if we don't understand the machinery, we can't fix it, nor can we learn from it. And this is the most data heavy video I've ever made. And I think it might be the most important.
So, let's get started. So, in the UK, a white British household holds median total wealth of around £314,000.
A black Caribbean household holds about £65,000. and a black African household holds about £34,000. So that means for every£1 a white British household has, a black African holds about 11 p and a black Caribbean holds about 22 p. Yeah, 11 p on the pound, right? And in America, the picture is this. The white median household holds about $285,000.
The black median household wealth is around $44,000.
And that's roughly 16 cents on the dollar. So on the surface the ratios are somewhat similar about 11 to 22 p on the pound in the UK, 16 cents on the dollar in the US, but the absolute numbers tell a a bit of more of a complicated story because black Americans, right, despite holding around 16 cents on the dollar, they have a median household wealth of around 44,000 or 44 to 45, which at the current exchange rate is roughly around £35,000.
And that's actually comparable or slightly higher than black African wealth in the UK, but it's significantly lower than black Caribbean wealth in the UK. And this is why arguments get a bit confusing when we try to group black Africans and black Caribbeans together because our time in the UK has been so different. And here's some more interesting information. Between 2019 and 2022, black American wealth grew by 61% which is a significant number and not something we can actually say here in the UK. If you watched my last video, you may understand why. But there's always nuance and caveats to these things. Because that 60% growth sounds great, except the absolute dollar gap with white households actually widened by about $50,000 over the same period.
The truth is, black people in the states were starting from so far behind that even with progress, you're still far behind. It's like trying to catch Usain Bolt after he's already had a 20 second head start. It's not happening. You can't do it. I can't do it. So even with the big percentage in growth, it doesn't equate to equality, which is what we all want. I think to some degree, I don't know, depends what you believe in. Some prominent economists out of Duke University in the States, they documented that the mean wealth gap, not median, but mean or average if you prefer to use that language, exploded from around $841,000 to $1.1 million between 2019 and 2022.
And in the UK, the LSC's latest research found that the typical black African and black Caribbean household have accumulated, and I'm quoting here, almost no household wealth. And the gap has widened over the past 10 years. So, I just want you to take all of that in as I kind of lay the foundation here.
So, neither country is really closing the gap. And that is basically what I want you to understand. The gap between us and everyone else is not getting that much closer. The biggest driver of household wealth in both countries is the same thing. And it's the area where the numbers are probably the most devastating, the most worrying, the most concerning. And you guessed it, I speak about it all the time. It is home ownership. If you want to understand the wealth gap in one chart, look at home ownership because for most families, and this is most not everybody, their home is their wealth. It's where the equity starts and it's it's what gets passed down and it's where black communities in both countries are being locked out. And I've always said that owning a home isn't for everybody. It's a great foundation for wealth if you move things in the right direction. But I ain't saying that you have to own a home to be rich. Of course not. That's a silly argument. Now, in the UK, 68 to 70% of white British households own their home.
For black Caribbeans, it's about 40%.
For black African households, it's about 23%. In the US, 75% of white Americans own their home. For black Americans, it's around 44%. If you watched my last video, you would have seen that over half of Black African and Black Caribbean households in the UK have medium net property wealth of zilch. But I'm not going to go into all of that in this video cuz you can just watch my last video to talk about that. Now, Black Caribbean home ownership actually fell by nearly 4% between 2011 and 2021.
And it went backwards. While we're sitting here complaining about our youth and what's happening from a property standpoint and maybe from a gener from a generational wealth standpoint, we are going backwards. Property is how generational wealth is built in both countries.
You buy a home, it appreciates, you reortgage it or you pass it on. Your children start from a higher base and that's the engine. If you can't access the engine, you can't build the wealth.
And the data shows that communities in both countries are struggling to access it, but for slightly different reasons.
In America, black mortgage applications face a 21% denial versus 11% for white applicants. In the UK, 44% of black African households live in social housing, nearly three times the white rate of 16%. The challenges are inherently different in themselves, but they still exist. And I want to make it clear because I know some of you are going to complain. You're going to say, "Oh, you can't lump all Africans in one port." But the data is not broken down by Nigerians, Ghanaians, or Kenyans. I can't do anything there. And obviously, black Caribbean and black Africans have a different historical relationship with the UK, but I'm going to do my best to try and differentiate the data as I can.
And in the UK, black employees earn a medium hourly rate of around £1353 compared to £14.35 for white employees. a gap, but it's not like massive. You could argue that it's negligible. You know, you could argue that. But in the US, the black median household income is around $56,000 versus $88,000 for white households.
That's a ratio of around 60%. And according to the data, which I will link in the description, as I always do, that has not changed for the last 50 years, which is it's a madness, bro. 50 years and it ain't changed. So imagine that's half a century of people fighting for their civil rights, affirmative action, diversity programs, and the income ratio hasn't moved. But when we turn the lens back to the UK, it gets even more fascinating. UK born black British employees actually earn £1518 per hour.
And that's actually 6.5% more than UK born white employees. And the question you're going to ask me is, black Brits earn more H. But let's let's let's let's let's add some more context to this because when researchers adjust for occupation qualifications and geography, that advantage actually disappears. It's actually a 5.6% penalty. And I'll explain kind of how that works in a second because black British people are more qualified for their roles. They work in more demanding positions relative to their credentials. And they will still earn less once you account for where they are and what they do.
That is a structural disadvantage.
hiding behind a positive headline to some degree. And if you only look at the surface, you're going to miss what's truly taking place behind the scenes because the raw gap is a small one, but the structural gap is real. And that distinction is enormous for understanding what's actually taking place. I want to say this carefully because I know how it sounds, but the data is the data. Black poverty rates in the UK are more than double the black poverty rates in the United States. And obviously, they track it differently, but you have to bear that in mind. In the UK, after housing costs, 39% of black British people live in poverty versus 18% for white households. And some studies even put it higher at 42% depending on what research you want to read. Now, in America, the black poverty rate was 18.4% in 2024, and the white rate was 7.7%. As I mentioned before, the numbers do represent slightly different measurement approaches. The UK measures poverty after housing cost, which is brutal in a country where rent and mortgage continue to consume a large part of our incomes, especially in places like London, um, where most of the black population live. In the US, they don't measure for housing costs in the same way. So, a lot of the gap that we see in the data is more based on the methods used to basically get the data.
But even accounting for that, the UK figure is still kind of scary. and black African households have been stuck at approximately 40% poverty for 20 years with no improvement. And I guess in some ways that is comparable to the lack of um wage changes for black Americans over the last 50 years. So when you look at children, it gets even worse. In the UK, roughly 50% of children in black households live in poverty. That's nearly half of all black children in this country. In the US, it's 25%.
Still obviously crazy. still nearly three times the white rate but half of the UK figure. But again, I want to caveat that there are slightly different research methods and this challenges certain narratives because some people in the UK think that we have it better off here compared to America. But depending on what information you look at, you could argue the other way. As someone who's lived in both countries, it's difficult to say. I think we have very unique struggles as black people across the world. Um, and the UK and the US is different. Now, there is one area where the UK genuinely outperforms the US, and it's the one that you'd probably not expect. In the UK, um, roughly 50% of black 18year-olds were accepted into higher education in 2024. And that is a big increase compared to 20 years ago.
The largest increase of any ethnic group, actually. So, we are doing something right, kind of depending how depending on how effective you think education is. By comparison, only 30% of white 18year-olds actually entered university. That's the lowest rate it's ever been. Before I prepared for this video, I would not have thought that to be honest. Like, if I'm being real with you, black young people in this country are significantly more likely to go to university than white people. And that's not a stat that I think most people know. And it completely contradicts a narrative that black British people aren't interested in education. Now, I'm going to assume that it's probably more black Africans than black Caribbeans.
Hate to say it as a Caribbean man, but that's what I think. In America, the pattern is actually slightly different.
Only 26% of black adults hold a bachelor's degree versus 35% nationally.
The six-year graduation rate for black students at 4-year colleges and universities is about 46% versus 64% for white students. This is one of the most significant divergences between the two countries and it's driven partly by the structure of high education. The UK has a unified university system with governmentbacked student loans accessible to pretty much everyone whereas the US system is heavily fragmented. burden of paying for it actually falls on families who literally have less wealth to begin with. So I personally remember when I was in uni in the states, I used to look at the bills and it was crazy. Luckily I had a football scholarship or soccer but I remember looking at the slip and it said $50,000 for one term and I was like bro like people actually have to come up with the money to pay for this.
[laughter] But if we return back to the UK for one second, there is again more nuance to the data because there's also data that shows only 17% of black graduates achieve a first class degree versus 36% of white graduates. 62% of black students get a first or a 21 compared to 83% of white students. So, black students are getting through the door at higher rates, but they're not achieving at the same level of success once they get inside. And that tells you the barrier to success isn't the access.
It's something happening within these institutions themselves. And of course, I'm going to split this between Africans and Caribbeans because the data is available. But I I'll wait for you guys to start crying in the comments about, "Oh, not not Nigerians, not Ghanaians, not Jamaicans." Anyway, black African pupils, yeah, they outperform black Caribbean pupils at the GCSE level with at least 70% reaching a four or more standard pass grade, which actually outperforms the 65% national average, whereas Caribbean kids sit at around 50%, which is 15% below the average 15.
All right, so I just want to make that clear and that's sad. And we really got to look at schooling and we got to talk about like what what we doing to help black Caribbean kids. That's another story, but we'll get into it. There's a book unfortunately I didn't get a chance to read this book in total but I I read the excerpts to kind of support what I had here by author named Tamiwa Oad and his argument basically in his book called this is not America he writes that the black British experience cannot be understood through an American lens partly because the population is fundamentally different in its composition. Black Africans often and majority of them recent immigrants or children of immigrants with strong educational drive show very different outcomes from black Caribbeans. A lot of us Caribbeans were descendants from the Windr Rush and we've have we've had exposure to UK for a lot longer. In the US a similar pattern exists, but it's less visible. Nigerian immigrants hold bachelor degrees at a rate of 60%. Black immigrants overall earn 30% more than the US-born black Americans. The immigration selection effect is real in both countries. And as someone who lived in America, I definitely saw the differences between African-Americans and second or first generation West Africans who moved to the States. Their attitude was different. Their mentality was different. And that's a big part as to why there is a bit of a cultural divide between the two groups. We see online today with the argument between the two. But I don't want to get sidetracked cuz this is not a video about African African-American culture wars. I think we're all black and I don't understand why we can't just get along, support each other, but hey, hey, we can't all be Marcus Garvey and all that. In the UK, there was a study and it found that ethnic minority applicants needed to send 60% more applications to get the same number of call backs as white applicants. That level of discrimination has been unchanged since the 1960s. And in the US, there was a study that found that white applicants receive 36% more call backs than equivalent black applicants. And that level has not changed for like the last 30 years according to the data. So the picture of both sides of the pond is not any better when it comes to opportunities. The headline ratio is almost identical in both countries.
Black unemployment runs at roughly twice the white rate. In the UK, 7% versus 3 to 4%. In the US, 6.8% versus 3.4%. It's pretty much identical. Same thing. 2:1 in both countries consistently for as long as we've been measuring it, which is it's kind of effed up, but it is what it is. The consistency across two different systems, two different labor markets, two different legal frameworks tells you something. It tells you the problem isn't unique to one country's policy. It's embedded deeper than that.
And one thing I've noticed on all of my travels is the unfortunate reality of what it's like to be black. and to see black people generally generally at the bottom of every social economic ladder in any country I go to. Whether it's a random country in Europe or even Colombia where I just spent 2 months, black people seem to occupy the same space. The data here is similar. What did strike me was the difference in health outcomes. And health is important especially to the black community or all communities. And usually health outcomes track economic outcomes and that is true globally. But in this comparison, there's one factor that makes the American experience very, very different from anything in the UK, and it has to do with who actually gets to stay alive.
In the US, black Americans live around 4 years, fewer than white Americans, 74 years compared to 78. During COVID, it went up by another two. So, it was like 6 years, right? But it has recovered. In the UK, the picture is very, very different. ONS data suggests that black ethnic groups actually had lower precoid mortality rates than the general population. Researchers attribute this to the healthy migrant effect. The fact that people who migrate tend to be healthier than average. Obviously over here in the UK we've got the NHS which has its own problems which I cannot get into in this video. But we also have access to health care at a more affordable rate compared to our American brothers and sisters. One area where both countries fail equally is maternity health. Black women die in the US 3.5 times more than white women when giving birth. In the UK, black women are 2.5 to four times more likely to lose their lives during childirth compared to white women as well. So the data doesn't look good on both sides on that. And then there's crime. In 2023, homicide was the leading cause of death for black men aged 15 all the way up to 44 in America, particularly with the usage of the firearms that they love over there.
There is there is no equivalent to this in the UK, of course, cuz the country's gun control means this particular form of community destruction simply doesn't exist at the same rate. You know, we do have guns here, but it's just not the same, right? the economic effect of violence in America. It represents a form of wealth destruction that is very unique, but it's unique to America because of the rate at which it happens when it comes to gun crimes. So, it's different. It can't even be compared to knife crime in London or Manchester or Liverpool. Like, it's just not the same, especially in the black community. So, I can't really compare the crime rates how I would like to. So, this brings everything full circle back to the main question of this video. If I'm being completely honest, how did we get here in the first place? as the black diaspora. The obvious answer is we've had such different historical contexts.
So the gaps that I've shown you didn't happen by accident. I would say that they were built deliberately by the powers that be and the architecture is different on each side of the Atlantic.
The black American wealth gap starts with 246 years of cattle slavery. That's 246 years of labor generating enormous wealth for white Americans while stripping all capital, all property, all autonomy from black people. When slavery ended, the promise of land redistribution, the famous 40 acres on a mule was never delivered. Formerly enslaved people entered freedom with nothing. Former slaveholders kept everything. Then came 100 years of Jim Crow. And within that century, two policies did more damage to black wealth than anything else. Number one was redlinining. I'm not going to go into what redlinining is. You can Google it.
Black areas were marked as hazardous in red. Basically, the FHA refused to ensure mortgages in these areas. Black families were systematically locked out of home ownership, the primary wealth buildinging tool in America by their own government. And we spoke about that before. And the GI Bill in 1944, they should be teaching you this in school, which they don't, but it's the single biggest wealth creation program in American history. It was supposed to reward all the returning veterans, but it was administrated locally, which meant that southern states could and did exclude black veterans, as you would expect. Nearly 1.5 black veterans, only 0.7% of those obtained home loans. In 13 Mississippi states, black veterans received just two out of 3,200 governmentbacked loans. So, I need to understand the scale of the way that they were held down and and basically told, "Hey, you can't even enter this space." And the thing is, white American veterans were buying homes in the suburbs with government money, building equity, building generational wealth, while black vets were pretty much locked out. And then came the war on drugs.
Nixon's own domestic policy adviser admitted the quiet part out loud. He literally said the policy was designed to disrupt black communities by associating them with heroin then criminalizing them heavily at the same time. And it was compounded even further by the anti-drug abuse act which came around in 1986 and it created a 100 to1 crack to powder cocaine sentencing disparity. So the same drug, different form, but a very very very different punishment. And the US prison population pretty much exploded from around 250,000 to 1.4 million. And if we look at the last 40 years, the US prison population has literally exploded. Today in America, black Americans are 3.5 times more likely to be arrested for cannabis despite having a similar usage rate to their white counterparts. Each incarceration event costs approximately $350,000 in lifetime earnings and it strips 64% of household assets. Mass incarceration alone cost American families around $350 billion annually. And here's a stat that captures the American story in one line.
Even white Americans who have been incarcerated have higher average wealth than black Americans who have never been incarcerated. And I want you to think about that and what that actually means.
As I shift this to the black British experience, it operates on a fundamentally different timeline. Most black Britons descend from post 1948 immigrants who arrived as British subjects with full legal rights. The Windr Rush generation, nearly half a million Caribbeans, were recruited directly by the NHS, by London Transport, by the British Rail to rebuild postwar Britain. Discrimination was real. The color bar saw landlords posting things like no Irish, no blacks, and no dogs, the famous sign we've all seen. Building societies offered black buyers 70% loan to value mortgages when white buyers got 80%. Pubs operated in segregated rooms. But the big big difference here, and it really lays the foundation for how racism is received differently is the discrimination was informal. It was ad hoc. It was never codified into government maps or federal lending policy the way that redlinining was in America. Right? There was no British equivalents of racially restrictive covenants enforced by courts. I guess there was no government agency systematically grading black neighborhoods as hazardous. That wasn't happening. The practical effects kind of had parallels. Like black communities concentrated in poor inner city areas, but the institutional racism ceiling was different, right? And the duration was much shorter. And this is exemplified in the way in which racism is deployed. I I've said this so many times because I've lived in America. If you are black, you know what I mean? White people are not blatantly in-your-face racist in the UK. They can be, but it's very covert racism that you will detect as you interact with people in the workplace, in different buildings, in offices. It's different. You you know what I mean?
Whereas in America, it it's a bit more loud. And another thing here is the incarceration gap is is quite large.
England and Wales incarcerate at 136 per 100,000 people. If we're looking at ratios, in the US, that's 531 per 100,000 people. So, it's nearly four times higher. Ever black Brits are still over represented in the UK system. 3% of the population but 13% of the prison.
But the total prison population of 88,000 is dwarfed by America's 1.9 uh million if you compare the two. So the scale of economic destruction through incarceration again can't be compared.
And there's a lot of things that we can't compare when we look at the UK and the US. So now you've seen all the data and the history. I want to pull it together into five structural reasons why black outcomes differ across the Atlanta because this is the framework that makes everything else make sense.
Number one is slavery. Unfortunately, 346 years of slavery and Jim Crow in America versus approximately 75 years of postimmigration discrimination in the UK. It's different. There was a study done by Princeton University which tracks the racial wealth gap from 1860 to 2020 and it found that the initial conditions under slavery play an outsized role at current rates convergence would take 100 years. The American gap started deeper and has just been compounded for longer. So 100 years to even close that gap. Think about that again. A significant portion of black Britons are were voluntarily immigrants, right? or at least their descendants self- selected for ambition and education. And it's visible in the data.
Black African pupils outperform the national average. Over half progress to higher education. I said it earlier, but black immigrants actually earn 30% more than US-born black Americans. Nigerian immigrants in America hold bachelor degrees at 60%. The key insight here is that much of the black British population has a demographic profile more comparable to the black immigrants in America than to the descendants of slavery. And that's just what we have to kind of think about. Number three is the UK welfare state provides more of a flaw for people. The NHS delivers pretty much universal health care for free. Losing your job in the UK doesn't mean losing your healthare. Um, council housing, housing benefits. It prevents the worst forms of homelessness. The UK benefit system, though many people will say it's inadequate, creates a buffer against complete complete destitution that mass incarceration and lack of health care produces in the US. Medical debt is a major driver of poverty in the US, which doesn't really exist here. Number four is, well, the US incarcerates people at four times the rate of the UK. The war on drugs that pretty much targeted black communities, and according to some data, each incarceration strips about 64% of average household assets. There's an estimated 1.5 million black men who are missing from the American economy through early death, incarceration, or exclusions. Nothing in black history can even be compared to that. Lastly, number five, community. As Olad argues in his book, This Is Not America, the black British population is 4% of the total versus 14% in the US. The black African and black Caribbean split within the UK produces outcomes that are as different from each other as they are from black American outcomes. Treating black British and black American as equivalent categories misses almost everything important about both of us. I don't want to end this video on the problem because on both sides of the Atlantic, communities are building solutions without waiting for permission. In the US, you got different type of policies.
One of the most promising policies is actually called baby bonds. It was proposed by an economist named Derek Hamilton and William Dary. These are publicly funded trust accounts seeded at birth. The Urban Institute modeled what would happen if they were implemented nationally. The black white wealth gap would shrink from 16 to1 to 1.4 to1, right? And that would be amazing.
Connecticut became the first state to implement them in 2021 with a $3,000 deposit for every baby born in a Medicaiden enrolled family. Several other states are following suit. HB.CU, which if you don't know what they are, is called a historically historical black college and university. I spent 5 years in America, so I should know that they also remain very important. They're about 3% of US colleges, but produce 20% of all black American graduates, 40% of black engineers, 50% of black lawyers, and 70% of black doctors. They generate 16.5 billion in annual economic output.
The ROI on these institutions is extraordinary. In the UK, the Preston model has demonstrated what community wealth building looks like in practice.
By redirecting anchor institution spending locally, Preston increased local procurement from 39% to 79.2%, an increase of 200 million, and raised living wage jobs from 76% to 88%. Black Pound Day, which some of us know about, has become the largest blackled economic movement in the UK, elevating over 1,500 blackowned businesses, and operating physical retail spaces outside of Westfield centers. So, we're trying to do things, and that's that's really where this is important. There is cross-atlantic learning happening. The Presto model drew directly from Cleveland's Evergreen cooperatives which employ over 400 people, the vast majority black, many formerly incarcerated through employeeowned green enterprises. If you want to know more about the Preston model, I've actually linked all of the information in the description because that is something I didn't even know about until I did research for this video. Here's what I want to take away from this. The racial wealth gap is real on both sides of the Atlantic, but it was built by different systems. And this means the solutions are different as well. You can't import American frameworks into a British context and expect them to work. The populations are different. The history is different. The systems are different.
And when I see the diaspora arguing on platforms like Tik Tok or YouTube lives, it really does confuse me. Whether you are in the UK or the US, we have a battle on our hands. And we actually need to be coming up with ways to improve our social and economic footing on both sides of the pond. Neither country is on track to close the gap within any meaningful time frame. The data has either flatlined or gotten worse across multiple dimensions over the past decade. But I refuse to sit here and tell you it's hopeless because the data also shows that where communities organized, where policy is specific, and where investment is targeted, things move. Baby bonds is a great idea, local procurement works, community ownership works, and education access in the UK does work. The question isn't whether change is possible. The question is whether we're willing to be specific about what's broken and disciplined about ways to fix it. And that starts with obviously knowing the data, knowing numbers, which you do now.
If this video made you think, at least share it because most people, black and white, on both sides of the Atlantic, have never seen this data laid out side by side. And you can't fix what you can't see. And if you want to go deeper on the UK side specifically, I'm making a follow-up video that breaks down the Black African versus Black Caribbean split in more detail. The educational outcomes, the wealth differences, the family structures, because this difference is probably one of the biggest things that people don't understand in the UK. Make [snorts] sure you subscribe so you don't miss that video. And if there's a specific angle from this video you want me to explore even further, drop it in the comments because I do read all the comments. and I'll see you on the next one, my
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