"It has not been easy for me," he said at a New Hampshire town-hall event hosted by NBC's "Today" show. "You know, I started off in Brooklyn. My father gave me a small loan of a million dollars. I came into Manhattan, and I had to pay him back, and I had to pay him back with interest."
His "small loan of a million dollars" — with interest! — hasn't garnered the presidential candidate a lot of sympathy on the Internet today, for all the obvious reasons. But here's one less obvious misunderstanding baked into Trump's statement: He thinks borrowing money from family is a sign of hard times when an awful lot of Americans can't scrounge money from family at all.
This isn't just nitpicking at would-be presidents for their verbal gaffes. Disparities in intergenerational wealth transfer in America are a significant part of the gap between the haves and have-nots. They're also an important piece of lingering racial inequality in America.
Inheritances are part of how historic forms of discrimination are passed on to young generations today. A black family, for instance, that was denied a chance to buy a home in the 1950s is a lot less likely to pass on wealth to a grandchild who needs a down payment to buy a home today. Not surprisingly, home-ownership rates for blacks remain about 30 percentage points below whites.
The ways that wealth and poverty are inherited in America broadly affect education, housing and economic mobility. It's a lot harder to buy a starter home in an expensive city like Washington if no one will help with your down payment. It's harder to bear the cost of high student debt when no one can help you pay it off, and low-income students have to contribute a lot more to cover education than their middle-class and upper-income peers. Meanwhile, opportunities of all kinds — unpaid internships, low-wage jobs in high-cost cities, full-time school without part-time work — are closed to Americans whose lives aren't subsidized by family. Even with interest.
And here we're talking about the consequences of needing a lot less than a million dollars. For many, the alternative to lacking money isn't getting it from dad. It's not having it at all.