Friday, March 15, 2013

Wealth Inequality Gap Widens

Wealth inequality between white families and African American families continues to worsen. According to a new study out of Brandeis University “[t]he wealth gap between blacks and whites has nearly tripled over the past 25 years, due largely to inequality in home ownership, income, education and inheritances . . . .” The largest driving factor in this inequality is in homeownership, more specifically, where homes are purchased as home appreciation is severely limited in non-white neighborhoods making it much more difficult for black families to gain value based on home equity and appreciation. On average, white families are able to purchase a home eight years sooner than a black family and often with larger down payments such that white-owned mortgages have lower interest rates. Further, predatory lending, particularly in the run-up to the mortgage meltdown of 2008, often targets minority communities. 

Additionally, white families benefit at substantially higher percentages than do black families when it comes to inheriting family wealth. “Among the families studied, whites were five times more likely to inherit money than blacks, and their typical inheritances were 10 times as large.” 

While the wealth gap has widened in the past two decades, the financial market crisis exacerbated the problem as African American and Latino wealth dropped by more than 50%, while white wealth dropped by only 16%. According to Pew: "The Pew Research analysis finds that, in percentage terms, the bursting of the housing market bubble in 2006 and the recession that followed from late 2007 to mid-2009 took a far greater toll on the wealth of minorities than whites. From 2005 to 2009, inflation-adjusted median wealth fell by 66% among Hispanic households and 53% among black households, compared with just 16% among white households."

6 comments:

  1. " ... white families benefit at substantially higher percentages than do black families when it comes to inheriting family wealth."

    One reason for that is the government entitlement system as perpetuated by the Democrats. Social Security is basically a wealth transfer system, transferring wealth from black men to white women. Blacks, who pay into the system their entire working lives - at a rate that makes additional savings extremely burdensome - tend to have shorter life spans and thus receive less in benefits. White women, who live longer, receive more than they pay in. And since the government confiscates contributions in excess of benefits, blacks are unable to pass unclaimed contributions onto their heirs.

    Of course, George W Bush tried to change this by giving everyone a personal claim to their savings through an individual account. This would have allowed individuals to pass unused Social Security savings onto their heirs. But, as we all know, George W Bush was a white man and a Republican, and that could only mean that such a scheme had to be a racist plot.

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  2. "[t]he wealth gap between blacks and whites has nearly tripled over the past 25 years, due largely to inequality in home ownership, income, education and inheritances ... white families are able to purchase a home eight years sooner ... often with larger down payments such that white-owned mortgages have lower interest rates ... whites were five times more likely to inherit money than blacks ... predatory lending ... targets minority communities ... African American and Latino wealth dropped by more than 50%, while white wealth dropped by only 16% ..."

    Why have you left out Asian families? Why has the cosmic injustice of the Amerikkkan system skipped over them. Asians enjoy higher incomes, on average, than whites. Higher education levels. Higher home ownership rates. And on, and on, and on. Why has the white man - who apparently never lets a chance to discriminate go to waste - let the Asian escape his evil grasp?

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  3. Asians also have lower household wealth than whites.

    http://money.cnn.com/2012/06/21/news/economy/wealth-gap-race/index.htm

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  4. Asian Americans also hold only 2% of the Fortune 500 board seats, despite constituting 5% of the population.

    http://www.insightintodiversity.com/asian-americans-in-leadership-the-invisible-minority-by-dr-edna-chun

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  5. Asian Americans overwhelmingly supported Obama (73 to 26).

    http://www.bostonglobe.com/news/politics/2012/11/09/asian-americans-voted-more-heavily-for-barack-obama-than/gdcKynV3Hq3OgSeOlNEhHM/story.html

    It seems they think the GOP does not respect women and minorities. (See link).

    If the GOP continues to ignore the challenges facing minorities and women they will continue to lose at the polls. So, the denial approach to the continued reality of race in America actually helps solidify the electoral prospects of progressives.

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  6. BTW, this blog stands firmly against any kind of racial hostility.

    Please refrain from terming white men evil.

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