Former NFL running back now aims at the racial wealth gap Jason Wright, a McKinsey partner, co-authors new study detailing why black families are financially so far behind whites

Jason Wright always saw himself as more than a football player.

While playing at Northwestern University, the former running back led the local chapter of his fraternity, Alpha Phi Alpha. During his seven-year NFL career, he was a union leader who went on to launch a charter school network in Cleveland.

His football career ended in 2011, and Wright, 37, is now a partner with McKinsey & Co. And, no surprise, he sees himself as more than your ordinary management consultant.

Former NFL running back Jason Wright co-authored a report released Tuesday that lays out the broad scope and troubling implications of the racial gap.

McKinsey & Company

Wright, who has an MBA from the University of Chicago, is leveraging his company’s reach and expertise to tackle one of the nation’s most critical problems: the vast wealth gap separating African Americans and whites.

Wright co-authored a report released Tuesday that lays out the broad scope and troubling implications of the racial gap. The typical black family has a net worth of just $17,600, one-tenth of the wealth of the typical white family, which in 2016 had a median net worth of $171,000, according to the Federal Reserve’s Survey of Consumer Finances.

The gap widened significantly in recent decades, and it is showing no signs of closing. The biggest reason is that the typical African American family faces an array of obstacles that often work together to thwart wealth creation.

 

“There is a galvanizing case for change. When we look specifically at helping black folks across the country, the result is it helps everyone because the entire economy benefits.” — Jason Wright

For one, the report says, two-thirds of black families are concentrated in 16 states where, taken together, the overall economy is weak and educational options lag behind those elsewhere in the country. Most of those states are in the South, where economic opportunity, health care and even access to fast internet service is not always a given.

Meanwhile, black families in relatively prosperous urban areas or states tend to live in low-income neighborhoods where home values typically grow slowly, crippling one of the main sources of wealth creation. In addition, black families are far less likely than whites to own homes. More than 10 years after the Great Recession, the home ownership rate for black families continues to decline; it is down to just over 40%, while more than 73% of white families own homes. As recently as 2004, more than 48% of African American families were homeowners.

Another factor contributing to the gap is that African Americans tend to come from families with scant wealth to begin with, leaving them with little to build on. Just 8% of black families receive an inheritance, for instance, compared with 26% of white families. And when black families do inherit money, they get less: The typical black inheritance is just 35% of the average white inheritance of $236,000, the report said.

The lack of wealth hits hard at black college students. Blacks are much more likely than whites to incur student debt, and when they do, the debt is higher. Too often, it proves to be unpayable. Overall, nearly half of black undergraduate borrowers default on their student loans, some 2.3 times the white default rate, the report said.

Many other African Americans are living outside the nation’s financial mainstream, a troubling fact that impacts their ability to get mortgages, consumer loans or even credit cards. More than 1 in 4 African Americans do not have a credit score, and 17% do not have traditional bank accounts.

On top of all that, black workers typically have unemployment rates that are double the rates of similarly educated whites. Among those that are employed, blacks tend to earn far less than whites, in part because of lower educational levels.

If economic trends continue as they are now, the outlook is bleak for African American workers, who tend to be overrepresented in professions like truck driving, for instance, that face increasing competition from automation, the report said. Meanwhile, fast-growing fields like software programming and artificial intelligence have relatively few African Americans.

It is a gruesome picture but one that Wright believes can be improved. He noted that there were periods in the past when the gap had closed somewhat. He said improving educational opportunities, making consumer credit more widely available, ramping up consumer education and devising economic strategies to uplift lagging regions can all make a substantial difference in closing the wealth gap.

“There is a galvanizing case for change,” Wright said. “When we look specifically at helping black folks across the country, the result is it helps everyone because the entire economy benefits.”

Later this week, a group of more than 200 black executives and leaders will meet in Martha’s Vineyard for McKinsey’s annual Black Economic Forum to discuss the report’s findings. Afterward, Wright plans to lead an effort to turn out a series of follow-up documents going into more detail about approaches for closing the wealth gap.

Wright called the work every bit as exciting as his days playing in the NFL.

“When I played football, one thing I saw was an opportunity to influence on scale,” he said. “What I found at McKinsey is something that I thought I lost when I retired from football, and that’s another platform” to make change on a large scale.

Bucks’ Malcolm Brogdon: ‘My life passion is not basketball. It’s helping people.’ The third-year guard discusses his efforts to bring clean water to East Africa

Milwaukee Bucks guard Malcolm Brogdon played a big role in the team’s Game 2 win on Friday night with 14 points, 5 assists and 4 rebounds off the bench.

But after the game he was more excited about a larger contribution.

On the set with TNT’s Inside the NBA crew, Hall of Famer Charles Barkley made a surprise $45,000 donation to Brogdon’s Hoops2O initiative, which raises funds to build water wells in East Africa. With Barkley’s contribution, Hoops2O has now raised $274,200 in less than a year.

“It’s extremely generous of [Barkley],” Brogdon told The Undefeated. “Not only does his donation significantly help my cause and thousands of people get access to clean water, but his interest creates a buzz that will magnify the addition that this initiative will get.”

Brogdon spearheaded the launch of Hoops2O on Oct. 29, 2018. Atlanta Hawks guard Justin Anderson, Brooklyn Nets guard Joe Harris, Los Angeles Clippers guard Garrett Temple and Minnesota Timberwolves forward Anthony Tolliver were named as part of Brogdon’s “Starting Five” in the Hoops2O Ballin’ for Buckets campaign. Hoops2O was born under the umbrella of the Waterboys initiative started by Philadelphia Eagles defensive end Chris Long, who got 29 players to commit funding after his foundation debuted in 2015. All the money raised through Hoops2O goes toward the building of solar-powered deep borehole wells in East African communities.

“What Malcolm and the Starting Five have accomplished since October is impressive,” said Long. “They set a lofty goal to bring Waterboys to the NBA and raise over a quarter of a million dollars in the first season. … Their involvement means that we will reach our shared goal of providing water to 1 million people that much faster.”

This offseason, Brogdon, Anderson and Harris are slated to go to Tanzania for a Hoops2O project.

“Hoops2O is an amazing initiative that Malcolm brought me into,” said Temple, who plans to make a Hoops2O trip to Africa next year. “When he asked me to be a part of the Starting Five, I jumped at the chance. Water is easily one of the most vital components of life. It feels good to be able to provide that to an area that really needs it.”

Malcolm Brogdon during a trip to Tanzania in July 2018.

Clay Cook Photography and Chris Long Foundation

Brogdon’s initial goal of raising $225,000 for Hoops2O this season has already been surpassed. Three wells are under construction, two more will begin construction next month and another pair will begin construction in the coming months. Each well provides fresh water for more than 13,000 people in each East African community. Waterboys and Hoops2O have combined to fund 61 wells in Tanzania and Kenya.

“I feel like it’s my calling and my passion in life,” said Brogdon. During a trip to Malawi at the age of 14 with his grandparents, he learned that many Africans do not have clean water. “I’ve always viewed it as my dream and something that I love to do. I view it as a tool, something I can gain resources, gain access, money and all these things that can influence and empower other peoples’ lives. Clean water is the way I wanted to go, and Africa is the place I am starting.

“I am very happy with where I am now and the work that is getting done.”

Brogdon, 26, went to Tanzania last offseason in his first efforts to learn about the need for water wells in East Africa. In July, the Atlanta native will fly into Kilimanjaro before he goes to visit wells that have been built as well as sites under consideration. The former University of Virginia star also plans on visiting several elementary schools that are in need of water.

Brogdon said he was heartbroken and further inspired to create Hoops2O after visiting elementary schools in Arusha, Tanzania, last year.

“They brought buckets from home to get water for themselves and their classmates. And there was a little river behind the school,” Brogdon said. “And behind the river there were shantytowns where people lived very poorly. They were littering into the river, and you could see all the drainage, all the trash, dirt and all types of stuff. Everything was running through the river. Ten or 12 feet up the river you could see a line of sewage going across it. All the water was filtering through it, so you knew all the water was bad.

“You could see the kids getting water with their buckets, drinking it and then handing it to their classmates. And after a while after they get to their teens, you can see their teeth rotting and decaying because … the water was so contaminated. It was so unbearable to see. There is so much we take for granted here in the States.”

Brogdon and the Bucks will play Game 3 of the Eastern Conference finals in Toronto on Sunday. They are now two wins away from Milwaukee’s first NBA Finals appearance since 1974. No matter the outcome, Brogdon is already viewed as a champion in East Africa.

“They see me as a humanitarian. I’m so big that people wonder and ask if I play basketball. But it is not like people over there are following the NBA really hard,” Brogdon said. “Their worries are bigger than basketball. It’s clean water. It’s living. It’s necessities that they’re looking for. Not celebrities. …

“Basketball is my job, I love it. It’s the dream. But honestly, my life passion is not basketball. It’s helping people and using my resources that I have gotten from basketball.”