Economy

Florida Is the State With the Lowest Financial Gap by Race

On the heels of one study saying that Florida ranks at the bottom when it comes to taxation equality comes another study that shows the Sunshine State ranks number one when it comes to financial gaps between the races.

The study, conducted by personal financial website Wallet Hub, measured the wealth gap between white and black Americans to raise awareness that the gap is reaching its highest level since 1989. And while Florida isn't anywhere near perfect when it comes to this, it certainly does better than all the other states, according to the report.

"Out of all of the states, Florida has the most consistent lowest gaps," Wallet Hub's Jill Gonzalez tells New Times. "When looking at the averages, Florida pretty much shows up on bottom ten every time, which is a good thing in this case."

See also: Florida Has the Second Least Fair Taxes in the U.S.

Using data culled from the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, Wallet Hub measured the financial inequality among racial groups in all 50 states and D.C., analyzing 21 key metrics, ranging from the median household income gap to the unemployment rate gap.

From there, it figured out the rankings by looking at the highest gap between racial groups for each metric. And since whites make up the majority of the population in the U.S., it used this racial group as the benchmark to measure the gap with African-Americans, Hispanics, and Asians.

Though Florida didn't rank number one in every metric, when everything was averaged out, our state came out on top.

"Florida is obviously doing something right," Gonzalez says, "while some Midwestern and Northern states need to take a closer look at why their gaps are wider."

According to the U.S. Census, the wage gap between the races has been growing wider since 2013. And according to the Pew Research Center, the wealth gap between white and black households is at its highest level since 1989.

For now, Florida remains one of the states that has a smaller gap between white and black households. The chart below shows how the gaps have changed between 2005 and 2013, with Florida staying steady.

Homeownership-rate-gap-1sec6

Source: WalletHub

That consistency, Gonzalez says, is why Florida came out on top.

Now if we can fix the unfairness in the taxes, we'll be all good.

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Chris Joseph
Contact: Chris Joseph