Wealth gap articles are misleading


I was listening to Ashley Fox, a financial guru that has a class that teaches kids about financial literacy and on that IG live the host brought up the article about how black folks will never close the wealth gap (http://fortune.com/2017/09/19/racial-inequality-wealth-gap-america/).  The premise of the article basically said that if we keep doing what we have been doing, while white people keep doing what they are doing, then we will never close the gap.

A while back Jay Morrison posted a video where he is at his Corner Class and asks the predominately black group what we do when we get a windfall. The entire crowd screams out “spend it”.  He then poses the same question about other cultures and says what do they do when they get a wind fall? The same crowd says “invest it”.  So, if we continue spending and they continue investing, of course we cant close the gap when the gap is predicated on investing.  Net worth is the sum of your assets (investments) less your liabilities (debt), if you never own assets you can’t compete in the wealth game.

Part of the reason why I do what I do is to change the culture.  The culture is the premise of all behavior.  The culture dictates what we do, what we don’t do and what we definitely wont do.  It is amazing to me how black people on the internet can have memes about our childhood and it resonates with us all (get ready for the thanksgiving memes).  That is culture guys.

Step one is changing the culture.  

My problem with that article is that it is defeatist thinking that acts as if we don’t have the ability to change what we are doing. The article makes it seem as if our issues are out of our control. It makes it seem as if its a black white thing and not a behavior thing.  Spoiler alert, every issue the affects black America TODAY is a behavior thing.  An example is the mortgage interest deduction.  In the article the author says that to get that deduction you have to itemize and wealthy white people are the only ones that itemize.  OK, so you took a policy that is available to all and found a way to be oppressed?  My parents, both black, have been itemizing my entire life.

Back to the culture rant, our culture dictates our behavior.  Thus, to impart change in the right direction, our culture needs to learn how to adopt the right goals.  That is what I am here for.  It has been discussed multiple times on my show, and in a Nipsey Hustle song, that we need to shift bragging rights. We need to be bragging about how long we have been married, not how many women we smash.  We need to brag about net worth, not how many jays we have.  Brag about how many franchises you own or how many buildings you own. Those are true, progressive, bragging rights. Those goals destroy wealth gaps.

You can tell where a culture is thinking by their insults.  Often times you hear a young man say “well that’s why you don’t have any b*tches” (the b word is another rant for another day). Meanwhile in other cultures insults are about the quality of private school you send your kids to or the lack of influence or wealth you have.  Shift the culture by shifting our priorities and changing our insults.


Change please change

The last point here is that article assumed that we would continue doing what we have always done at the pace we have done it.  What frustrates me is that we won’t even TRY to close the gap, we just sit around and point at it.  We close the gap by changing the habits that we have always had.  We have to be willing to pile families into homes that we own, we have to be willing to punt our passion to get a degree that pays, we have to have kids wisely, we have to stop trying to look good at the expense of being good, we have to be willing to work like Mexicans, study like Asians, invest like Jews and pick the right major like Nigerians.  None of those is predicated on race, if anything, they were motivated by the chip that race creates, its time that we use our “hindrance” as motivation to excel not a excuse to dwell.  Every other culture is doing and has done it.

White people aren’t the white people of white people

White wealth gap stats are misleading because white folks aren’t even the leaders in America.  I have been saying this for years.  In America it is immigrants that win (read Triple Package by Amy Chua). See chart:


What that chart doesn’t show you is that the “white” category is filled with Jews, Italians, Irish etc. All of them first and second gen wealth builders.  Wealth doesn’t go back 400 years.  The true wealth in America occurred in the 1900s not in the years of slavery.

We are out here chasing folks who aren’t even winning and I think its a vedetta rooted in slavery. The problem is you can never get ahead by trying to get even.  Its time to get over what happened to your great great great granddad.  This means that you have to run twice as fast, you have to dominate.  Not to get what they have but to get more than what they have.  Its called competition not oppression.  Be great!

One thing I admire about Asians is they go all in on the things that matter. No compromise, no exceptions, no grey areas.  I saw a stat that said 44% of Koreans in Los Angeles own their own business.  That same stat for black folks is probably like 1-5%.  But when I tell people to start their own business they complain about long hours and failure rates.

Well folks, you can have your excuses or you can have generational wealth.  Asians aren’t here for your excuses and the results show.  Asians are the white people of white people and they didn’t get there protesting, complaining and asking for help.  They got there by doing the work.  We too can do the work, we too can demolish a wealth gap.  We have the power if we are willing to change.

We are changing the culture through the Todd Capital Investment Club and I want you to be a part of it. Email info@capitaltodd.com to join!

Be great, invest well,

Todd Millionaire


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