The key to black wealth: ownership; black poverty is more a matter of net worth than income.

African-Americans will not be surprised to find out that the latest Census Bureau data--from 1992--shows that racial economic inequality is still widening. In 1992, family income inequality was at its highest level since 1967: The median black family income of $21,761 was only 55.3% of the median white family income of $39,320. And a great disparity persisted in employment, poverty and housing ownership rates and in quality housing.

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Since the 1960s, economists tracking black economic status have concluded that there has been little progress made toward achieving economic parity. Instead, the aggregate black income deficit in constant 1992 dollars grew from $102 billion in 1967 to $214 billion in 1992.

The reason: There has never been a significant effort to equalize racial disparities in ownership. In a free enterprise economy, economic forces flow from ownership of human and other resources. Lack of ownership means lack of incomeearning resources and organized enterprises to create jobs. And any group not owning business and financial capital becomes dependent on others.

In 1987, the last year for full data, there were significant black-white ownership gaps (see chart). Blacks owned fewer than 15 businesses per 1,000 persons compared with more than 72 businesses per 1,000 persons for whites. Moreover, black-owned businesses generated only $775 in revenues per employee, compared with $56,120 for white businesses. Consequently, black per capita net worth was only $10,651, and 80% of these holdings were in home and motor vehicle equity. Whites had a net worth of $51,191 per capita, and less than half of that was in the same types of equity.

The aggregate of ownership gaps is also tremendous. In 1987, blacks owned 424,000 businesses. But to achieve parity, they would have had to own another 1.7 million enterprises. These businesses had revenues of $22.8 billion (of which $6.2 billion was generated by the 200 largest black businesses as represented by the BLACK ENTERPRISE 100s) but another $1.624 trillion would be needed for parity. And the total household wealth gap exceeded $1.2 trillion in 1988. In addition, the human capital wealth gap was over $650 billion.

How did the gaps appear? They are a legacy of slavery, segregation and discrimination. And this legacy is self-perpetuating without the reparations needed to equalize the opportunities for ownership.

Society can close these ownership gaps within a 25-year time period, without straining the economy. But if we do not, the current chasms of racial economic inequality will be with us forever.