Intersection: A gift that's not on the list

DELIVERING ON DIVERSITY, GENDER EQUALITY, AND INCLUSION

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In this issue, we look at gifts that only some Americans can expect to receive, and at what journalists and media executives say is missing from the news.

THE FACTS

Family money

Two people looking at a pot in a kitchen

Hispanic and Latinx Americans’ wealth is on an upward trajectory. Still, the typical Latinx family in the US has only one-fifth the wealth of the typical non-Latinx White family—and annual wealth flows are perpetuating this gap. McKinsey analysis shows that the annual flow of net wealth into Latinx households is about $380 billion lower than it would be in a scenario of parity with White Americans.

What’s driving such a marked disparity between the wealth flowing into Latinx and White families each year? Family money, in large part. Two-thirds of the gap—some $255 billion—is attributable to intergenerational transfers, such as inheritances and gifts.

Every year brings a massive transfer of family wealth. But Latinx Americans are far less likely to receive inheritances, and when they do, the amounts are far lower. Only 7 percent of Latinx families have received an inheritance, compared with 30 percent of White families. Then there are the gifts—help with a down payment on a house, for example. Such intergenerational transfers are also feeding the wealth gap between Black and White Americans.

Here’s more on the economic state of Latinx Americans—and on how addressing the barriers to full economic participation could make the US economy more robust for everyone.

THE VIEW

“The Hispanic (or Latino or Latinx) population in the US grew 23 percent from 2010 to 2020, according to the US Census. The impact of that enormous growth on US society, culture, business, and more has been underreported. There also seems to be a lack of curiosity in mainstream media about the diverse Hispanic/Latino population in the US, which is often covered as a monolithic group. This failure by legacy news media to fully cover the large, growing, and diverse Latino population creates an inaccurate picture of the United States.”
— Dawn Garcia

What’s in the news—and what should be? What major themes will we see covered in global media next year? And what issues should get more attention? Dozens of journalists and media leaders from around the world have shared their perspectives and predictions with McKinsey. Stanford’s Dawn Garcia, a veteran journalist, wants to see more nuanced stories on Hispanic and Latinx Americans—who now make up nearly one-fifth of the total US population.

Here’s a look at what else might be missing from global headlines.

— Edited by Julia Arnous, an editor in McKinsey’s Boston office

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