Despite many gains in equality, there are still large disparities in wealth among different minority groups in America. There are many reasons why wealth inequality is so large and persistent. One reason is differences in risk taking. White and Asian Americans are much more likely to own riskier assets. Risk taking is critical to growing wealth. This suggests reducing inequality will take more than redistributing wealth.
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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