Income inequality in America: Whites have 22 times more wealth than Blacks

[Muzion]

Recession widens the wealth gap by race - Jun. 21, 2012

NEW YORK (CNNMoney) -- White Americans have 22 times more wealth than blacks -- a gap that nearly doubled during the Great Recession.
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 gap between the races widened considerably during the recent economic downturn, which whites weathered better than blacks, Hispanics and Asians.
The latter three groups saw their median household net worth fall by roughly 60% between 2005 and 2010, while the median net worth for white households slipped only 23%.

This allowed whites to leap ahead of Asians as the race with the highest median household net worth.

The racial wealth divide is nothing new. Black and Hispanic Americans have historically had lower incomes, higher unemployment and less education.

That makes it more difficult for these groups to save money and put their capital to work building wealth, said Tatjana Meschede, research director of the Institute on Assets and Social Policy at Brandeis University.

The Great Recession exacerbated the problem. In 2005, the net worth difference wasn't quite as stark. Whites had 12 times more wealth than blacks and 8 times more than Hispanics.

The main reason blacks and Hispanics did not fare as well during the economic downturn is that home equity makes up more of their wealth than it does for whites. The housing bubble that preceded the collapse pushed up homeownership rates among blacks and Hispanics, who relied more heavily on high-cost subprime loans to finance their purchases.

As a result, the implosion of the real estate market had a more devastating impact on black and Hispanic communities.

Asians, meanwhile, are more concentrated on the West Coast, which was hit harder by the mortgage meltdown. And the arrival of new Asian immigrants in the last decade contributed to the decline in overall wealth, according to Rakesh Kochhar, co-author of the Pew Research Center report on wealth.

Pew found that in 2005, home equity made up nearly two-thirds of the net worth of Hispanics and 59% of blacks, but only 44% of whites.
Blacks and Hispanics are also less likely to have assets in the financial system, such as savings accounts or stocks, Kochhar said.

And these groups also suffer from far higher unemployment rates than whites, whose unemployment rate is 7.4%, below the national average. Blacks, on the other hand, have a 13.6% unemployment rate and Hispanics, 11%.The widened wealth chasm could have major ramifications going forward, experts said.

Having less wealth and home equity means it will be more difficult for blacks and Hispanics to send their children to college, which gives them a leg up on landing good jobs, said Roderick Harrison, senior research scientist at Howard University. That will further extend the wealth gap.

"The implications will be with us into the next generation, which will have greater difficulty in getting the kinds of jobs needed to start saving and building wealth," Harrison said.

 

[Schmoove]

When a majority of your men are in jail, in college trying to get into a corporate system that isn't set up for them, or packing meat at a grocery store...you're never going to get ahead.

Black people must own. Not consume or beg for a job.

 

[MeachTheMonster]

Yeah shyts crazy. I saw a story that was talking about how even if we do make it out the hood and find some success we are still at a major disadvantage cause our parents and grandparents were poor. So while the white kids parents are putting money away for their future. Our parents are still tryin to pay off grandmas house, and their student loans. So that makes us take out all types of loans to go to school, and the cycle continues. shyts fukked up. It's like even if we make it out we still got some climbing to do.

 

[Schmoove]

Yeah shyts crazy. I saw a story that was talking about how even if we do make it out the hood and find some success we are still at a major disadvantage cause our parents and grandparents were poor. So while the white kids parents are putting money away for their future. Our parents are still tryin to pay off grandmas house, and their student loans. So that makes us take out all types of loans to go to school, and the cycle continues. shyts fukked up. It's like even if we make it out we still got some climbing to do.

And it all stems from slavery.

When will we demand reparations?

 

[╭∩╮(-_-)╭∩╮]

Deep.

 

[Serious]

Black people must own. Not consume or beg for a job.

Yeah this has always been my philosophy. It's easier said than done.....

 

[blackzeus]

Anybody ever visit towns like St. Louis, Little Rock, Memphis, etc? If so, how can you believe this B.S. How can more whites by percentage be on welfare then blacks, then say that they earn 22 times more than blacks? That's like saying bill gates is worth 100000x more than the average black. I call B.S. on these stats.

 

[RC-P90]

it seems real easy for white people to get pizzaid...zimmerman blasted trayvon and people gave him a bunch of dough,,,i read the 'bullied' bus monitor woman is gettn a bunch of money...

 

[MeachTheMonster]

Anybody ever visit towns like St. Louis, Little Rock, Memphis, etc? If so, how can you believe this B.S. How can more whites by percentagebe on welfare then blacks, then say that they earn 22 times more than blacks? That's like saying bill gates is worth 100000x more than the average black. I call B.S. on these stats.

I don't think it's by percentage. There are more white people on welfare total. White people are the majority so there is more of them doing EVERYTHING.

 

[blackzeus]

I don't think it's by percentage. There are more white people on welfare total. White people are the majority so there is more of them doing EVERYTHING.

What is the race percentage for welfare recipients

The percentages those on welfare by race as of 2011 are listed below in descending order by percentage.
Black-39.8%
White-38.8%
Hispanic-15.7%
Other-3.3%
Asian-2.4%
Note: There are comments associated with this question. See the discussion page to add to the conversation.

Read more: What is the race percentage for welfare recipients

goes to discussion page....

The % of population that receives welfare by race is questionable.

Going with the %'s given, the total population figures for the U.S. would be:

White 30,849,206
Black 40,899,928
Hispanic 443,156

Total 72,192,290

Considering these three racial groups make up a large majority (I'll refrain from posting a percentage) of the population, then how does 72m people come even close to the *est over 300 million Americans?

The most recent US Census Bureau est for 2009 is as follows:

White 65.1% 199,861,264
Black 12.9% 39,603,844
Hispanic 14.5% 44,515,949


Read more: Discussion of 'What is the race percentage for welfare recipients?'

more blacks on welfare then the # of blacks living in the US. It's all statistical manipulation man. Central Illinois, Missouri, Michigan got like 50% of CACs on welfare. I done seen white neighborhoods in Missouri lookin' damn near 3rd world.

 

[MeachTheMonster]

What is the race percentage for welfare recipients



goes to discussion page....




more blacks on welfare then the # of blacks living in the US. It's all statistical manipulation man. Central Illinois, Missouri, Michigan got like 50% of CACs on welfare. I done seen white neighborhoods in Missouri lookin' damn near 3rd world.

I was agreeing with you, depends on how you do the percentages or what you compare them to you can influence the numbers to reflect anything you want. But at the end of the day there are more whites in america so naturally there are more of them on welfare and there are more of them not on welfare. There are more of them doing EVERYTHING