1 in 7 white families are now millionaires. For black families, it’s 1 in 50.

Jimi Swagger

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Fifteen percent of white households are worth more than $1 million, double the percentage in 1992. (iStock)

The share of white millionaires in the United States has doubled in the past quarter-century, with 1 in 7 white families now worth more than $1 million, according to new Federal Reserve data.

Fifteen percent of white families reported being millionaires, compared with 7 percent in the Fed's 1992 Survey of Consumer Finances.

The dramatic growth in white millionaires reflects a widening economic gulf, with the top 1 percent of households holding 24 percent of income in 2016, a record high.


It also highlights a deepening racial disparity. The percentage of black and Hispanic households worth more than $1 million has remained around or below 2 percent since 1992.

“We have growing wealth disparities among whites as well, but the white group is so much further ahead that the class of elite blacks is nowhere near the class of elite whites,” said Darrick Hamilton, an economist at the New School in New York.

The accumulation of white wealth looks set to continue. The average white household, worth about $930,000 in 2016, will accumulate a net worth of more than $1 million by the time the next triennial survey comes out in 2020, Hamilton said. (The reported average is skewed by wealthy outliers. The median white household was worth $171,000 in 2016.)

White families vastly outperform African Americans and Hispanics in several key indicators of wealth: homeownership and equity, investments, and inheritance.

[White families have nearly 10 times the net worth of black families. And the gap is growing.]

Much of the growth in white wealth during the past two decades comes from the doubling of financial assets, including stocks and bonds, as well as pensions and retirement accounts, according to a Washington Post analysis of Fed data. Equity in their primary residences as well as equity in nonfinancial assets such as second homes and other real estate, boats, cars and jewels grew as well, but not as significantly.

White families are twice as likely as black and Hispanic families to own stocks or mutual funds. Sixty percent of white families invest in the stock market, while less than one-third of black and Hispanic families have any exposure to the stock market, according to Fed data.

Among American households invested in the market, the median value of white-owned investments rose to $50,000 in 2016, indicating a recovery from the Great Recession. The median value of black-owned and Hispanic-owned investments also rose but remained below 2007 values, at about $12,000. All numbers have been adjusted for inflation.

When it comes to homeownership, often the largest component of wealth for American families, nearly three-quarters of white families own their homes, compared with less than half of black and Hispanic families.

Even among homeowners, minority-owned homes had lower values, in part because of racist practices such as redlining that prohibited them from buying residences in many white neighborhoods.

“If you are a black homeowner, you are more likely to have a lower value on your home because of neighborhood segregation,” said Valerie Wilson, director of the Economic Policy Institute’s program on race, ethnicity, and the economy. “Blacks couldn’t purchase in white communities where values were rising faster.”

The average housing wealth for white families was more than twice that of black and Hispanic families in 2016.

White families are more likely to trade up to pricier homes over time, whereas black families are more likely to lose their homes or stay in the same house for a lifetime, said Brendan O’Flaherty, a Columbia University economist who studies the economics of race.

Analysis | 1 in 7 white families are now millionaires. For black families, it’s 1 in 50.
 

Serious

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Wait, they're having an drug crisis with declining birth rates yet seem to be getting more money?
Their position of increasingly becoming a minority seems to skew this up
you forget their largest source of wealth is property / housing.

The biggest form of social welfare, was distributed post WWII, with GI Bill that gave away homes........

We'd be benefiting too, if discrimination never existed....
 

theworldismine13

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1 out of 7? in a country of 350 million? yea bullshyt.

It’s net worth not cash, they are counting the value of the houses, it’s easy as hell for a person to be worth a million dollars if you count real estate

Anybody in Cali for example that owned stock and real estate in the 90’s and kept it is mos def a millionaire in assets now or close to it

Also it’s probably not even net worth but just assets, cuz you can easily have a million dollars in assets and have a million dollars in debt
 

Jimi Swagger

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Wait, they're having an drug crisis with declining birth rates yet seem to be getting more money?
Their position of increasingly becoming a minority seems to skew this up

Inheritance plays a huge part as some noted on the article comments page. When you are middle-aged, cumulative wealth from stocks, high income, home equity etc adds to net worth. At age 55 to 60 the parents/grandparents die off which adds another tens to hundreds of thousands liquid; especially those with smaller families as upper middle class to wealthier families are smaller while poor to middle class families are larger. We are in the age of robber baron-esque gross capitalism and America has shifted from Progressive(1940s - 1960s) to Conservative(1970s - present) hence all the deregulation from mid 90s to now (Six(6) Republic presidents and Three(3) Democrats - even Clinton deregulated media/telecommunications in 1996). Like the office holiday party, people see new brown faces, exotic surnames and food and think the system has changed when it's only gotten more refined, wealth has calcified, and the chain of command of the organization remains the same with a token face or two for good measure.

White addicts' assets are placed in a trust. They have housing and food but they can't piss away money on meth.

From observation and experience, multigenerational Black American families have a more egalitarian Big Mama style of parenting as the crackhead brother or ratchet with b*stard kids by unstable partners are treated equally (actually better) to the kids who "do the right thing". The wayward progeny receive more time, attention and money which negatively impacts family worth (and emotional health) especially when Black Americans are downwardly mobile. Also, the "normal" kids are custodians to the fukk-ups which takes resources away from their own immediate family. They have more debt because they invested in education, financed a mortgage, and overextended themselves to relatives. I have observed no other culture that promotes this fukkery. Never seen a culture that allows the few who are barely getting by to take on many degenerates. The elders need to be checked for this because it's a generational loss.

The world is moving away from the dollar as reserve trade currency with the rise of BRICS which is backed by gold. That has been mentioned in the media and HL threads. America is 22 trillion in debt and won't be able to flood the market with dollars like past times. So when debt is due, who will fare better? The poorest and most vulnerable are devastated during catastrophe as witnessed by the recent hurricanes in the American South and Caribbean. Similar to poor rural Vietnamese hit with record super typhoons (Aside: They lost thousands the same time as the hurricanes and Mexican earthquake hit; not a blip on the news. Asia is experiencing 1000 year storms).

When new economic restructuring occurs, guess who will not have a seat at the table? If you are not worth 500K by 2020 you will not be positioned well, unfortunately, and that's on the lower end.
 
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ChatGPT-5

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It’s net worth not cash, they are counting the value of the houses, it’s easy as hell for a person to be worth a million dollars if you count real estate

Anybody in Cali for example that owned stock and real estate in the 90’s and kept it is mos def a millionaire in assets now or close to it

Also it’s probably not even net worth but just assets, cuz you can easily have a million dollars in assets and have a million dollars in debt
thats credit. LOL. that's like saying china is number 1 because they are on the biggest credit in the world. stop. :mjlol:
 

ogc163

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Large gaps in inheritance, institutional racism, government incompetence/negligence, and bad cultural habits lead to this result.

I don't think there is a realistic macro solution, cats like Sandy Darity and Darrick Hamilton who are the experts on this suggest reparations or a universal basic income. Neither one are realistic imo both would require a cultural shift amongst white folks i don't foresee happening.

The major things that come to represent stability often require taking on debt. Education and Homes being the two major ones. There may be initially on a macro scale no issues for Black people to service those debts, but the issue becomes ability to handle downside risks. Questions like... Can you pay the mortgage if you are not working for more than a year? Do you have a older family member that can help you out financially if you are not working for an extended period of time? Can you and your family take a hit in lifestyle if things go south? Are more important for Black people because there is less wealth.
 
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