Mehrsa Baradaran’s The Color of Money studies the role of financial structures in the American racial wealth gap. [...] Baradaran’s book is thus a historical commentary on wealth inequality in the context of racial discrimination, but it also contains rich material on other themes. These include the political economy of financial institutions, the role of property ownership in replicating inequalities and the concept of self-help as an alternative to structural change. All of these are interrelated and — particularly in an Anglo-American setting — extremely current, given austerity policies amidst the accelerating decline of the post-war welfare state and the state-led emphasis (especially in Britain) on ‘workfare’ and asset-based welfare such as ‘Help to Buy’. Additionally, the discussion may be extended to poor countries: many observations about the inability of black banks to be a mechanism of wealth accumulation speak directly to critical assessments about the limitations of microfinance and financial inclusion strategies in the Global South."

"Baradaran demonstrates that capitalism is not some invisible force that works best for those who know the hidden rules for using its power. Instead, she shows that real people make real decisions that shape capitalism’s pragmatism. The Color of Money attempts to make clear the historical realities that shaped white gains and black losses. Using a tapestry of sources, including black banking literature, Bureau of Labor statistics, speeches, congressional reports, and periodicals, Baradaran demonstrates the insurmountable odds that black people faced in building wealth. [...] One of Baradaran’s most important contributions is in reexamining common narratives about the civil rights movement, housing discrimination during the New Deal era, the changing of Dr. King’s rhetoric from civil rights to human rights, and the move from the War on Poverty to the War on Crime through the lens of the racial wealth gap. [...] The Color of Money is outstanding. It accomplishes its purpose of making clear how the racial wealth gap developed in the twentieth century. Baradaran makes difficult financial concepts relatable, thus helping readers to not feel intimidated when trying to understand how these concepts helped shape inequality in America. Her narrative also raises questions that beg further research. When did the racial wealth gap begin? Did working-class black people see banking as a viable option for building wealth or achieving first-class citizenship? Or is this a middle-class approach to understanding wealth accumulation? Are specific government programs needed to fix the wealth gap? What sort of models actually build wealth?"

"Mehrsa Baradaran has produced an important, sobering assessment of historic and contemporary African American banks. Although The Color of Money focuses on black financial institutions, the book’s scope is much larger than an examination of a particular industry. In fact, Baradaran provides an overview of American and African American economic history from the era of slavery to the present. Consequently, the book’s title actually understates its scope. [...] This ambitious book is not without its flaws. There area few important factual errors [...] Yet, to reiterate, The Color of Money provides much more than a history of African American banks. It tells their story in the broader context of American and African American economic history. While specialists will find much of Baradaran’s contextual discussion familiar, The Color of Money, nevertheless, makes an important contribution to the historiography of African American businesses."