Great Recession Doubled Wealth Gap Between Whites And African-Americans
Source: Think Progress
Great Recession Doubled Wealth Gap Between Whites And African-Americans
By Travis Waldron on Jun 21, 2012 at 10:45 am
The wealth gap between the rich and poor in the United States grew significantly during and after the Great Recession, so much so that America may have a greater disparity in wealth than even Ancient Rome once had.
New data from the Census Bureau, though, shows that the recession didnt just grow the wealth gap between rich and poor, it also had a tremendous affect on the gap between different races. The wealth gap between whites and blacks nearly doubled during the recession, and whites now have 22 times as much household wealth as blacks. The gap also widened to 15-to-1 between whites and Latinos, CNN Money reports:
The median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks, according to recently released Census Bureau figures.
The difference is similarly notable when it comes to Hispanics, who had a median household net worth of $7,424. The ratio between white and Hispanic wealth expanded to 15 to 1.
The Great Recession took its toll on millions of Americans, but its effects hit minorities hardest. The housing crisis was especially brutal for minorities, many of whom were pushed into bad mortgages by the nations biggest banks. The loss of 600,000 public sector jobs also hit hard, since black and Latino workers are more likely to hold government jobs than their white counterparts. Those layoffs have continued since the end of the recession as state and local budgets remain crunched.
Read more: http://thinkprogress.org/economy/2012/06/21/503502/wealth-gap-doubles-whites-blacks/
Beacool
(30,250 posts)"The median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks, according to recently released Census Bureau figures.
The difference is similarly notable when it comes to Hispanics, who had a median household net worth of $7,424."
The gap between whites and AA & Hispanics is astronomical. Although, I think that the stated median income for whites seems a tad high considering the bad economy.
cstanleytech
(26,297 posts)if I have enough money to pay the bills.
Beacool
(30,250 posts)"Household income is not to be confused with family or personal income. Household income is often the combination of two income earners pooling the resources and should therefore not be confused with an individual's earnings. Even though the term family income may sometimes be used as a synonym for household income, the U.S. Census Bureau defines the two differently. While household income takes all households into account, family income only takes households with two or more persons related through blood, marriage or adoption into account."
Even so, there are many couples whose combined income does not reach $110K.
Amonester
(11,541 posts)Don't forget that the 1%-10% higher incomes are so big, they drag the median up all by themselves.
Bacchus4.0
(6,837 posts)the mean (average) income is what is affected by the outliers, not the median. and like others said, net worth is not income but total assets on hand versus debt.
RainDog
(28,784 posts)to see the percentages - because I'm sure that skewers the data. it's like me and Bill Gates in a room - the median might be a lot of money - but that's not coming from my income.
however, no doubt African-Americans have suffered tremendously in this re-depression. 15.8% in 2011 - now down to 13.6%
http://money.cnn.com/2012/02/03/news/economy/unemployment_blacks/index.htm
Psephos
(8,032 posts)Still, whether it's income or NW, the disparity is alarming.
One_Life_To_Give
(6,036 posts)$110,000 net worth is a $360,000 house and a $250,000 mortgage. Which is how most people acquire a 6 figure net worth, thru years of paying down a mortgage.
cstanleytech
(26,297 posts)Neoma
(10,039 posts)Response to Neoma (Reply #8)
cstanleytech This message was self-deleted by its author.