Racial wealth gap is growing wider
White families now have almost $250,000 more in assets than black families, a divide that has almost tripled in 25 years, a study finds.
A "toxic inequality" between the haves and have-nots is hurting the U.S., with one issue in particular affecting American households: a widening racial gap between white and black families, according to a new study from Brandeis University.
The so-called wealth gap between whites and blacks has tripled over a 25-year period, according to the report, which looked at the same set of families from 1984 to 2009. The study found that white families in 2009 had assets worth $236,500 more than the wealth of black families, up from a gap of $85,000 in 1984.
The study found "little evidence to support common perceptions about what underlies the ability to build wealth, including the notion that personal attributes and behavioral choices are key pieces of the equation."
The income gap between white and black families has been noted before, with the U.S. Census Bureau finding in 2010 that the median income of black households was $32,068, compared with $54,620 for non-Hispanic white households.
But the Brandeis study looked at the reasons for the growing wealth gap, and it concluded the inequality is largely due to home ownership, income, family inheritances and education.
Here's how these four factors play out:
Home ownership: Because of the greater likelihood for family assistance and inheritances to help with down payments, white families start acquiring homes eight years earlier on average than black families.
In the recession, borrowers of color were more likely than whites to lose their homes because they were "more likely to receive high-interest risky loan products," the study found.
Income: Income gains for whites had more of an impact on their wealth, with the study finding that every $1 increase in income over the 25-year period added $5.19 in wealth. For blacks, $1 only added 69 cents of wealth.
The reason? Discrimination in hiring, training, promotion and benefits have "made it much harder for African-Americans to save and build assets." As a result of fewer work benefits such as retirement plans, black families tend to use wealth to cover emergencies, while whites are able to save and invest, the study found.
Inheritance: Whites were five times more likely to inherit than black families, with whites also receiving 10 times more wealth than blacks when they did, the study found.
Education: College completion gaps are growing, with fewer blacks finishing college because of financial strain that forces them to leave school. About 80% of black students graduate with debt, compared with 64% of white students.
So what's the solution? Public policy can help close the racial wealth gap, such as ensuring fair housing and lending policies, the study suggests. This divide spells potential problems for the U.S. economy as a whole, the study's authors said.
"Our economy cannot sustain its growth in the face of this type of extreme wealth inequality," Thomas Shapiro, director of Brandeis' Institute on Assets and Social Policy and a principal author of the study, told BrandeisNOW.
I bet that the person who wrote this cry baby article is (1) liberal (2) a democrat (3) is white and has a guilt problem (4) was probably brain washed by college teacher idiots
If you really think about why this is won't take much brain power
(1) most black famlies are raised by one bread winner
(2) most blacks in big cities--chicago--philly--baltimore--detroit--cleveland--pittsburg--wilmington--camden--memphis--wash dc--detroit---etc; etc; etc are on welfare or
are you beginning to see the picture here-----I know quite a few black families that make over $200k a year and both parents work So get off the bullcrap float of blame whitey
....."Any man who thinks he can be happy and prosperous
by letting the Government take care of him; Better take a closer look
at the American Indian..''...
Really speechless at the ignorance that I have read thus far from the comments. moving forward, I am a black female with a BA in Economics and a MBA who grew up in a 2 parent household and went to predominantly white schools and can say that there are some contributing factors to the wealth gap. I was never encouraged to save when growing up and many of my white friends were. Another reason are many blacks move into predominately black neighborhoods which unfortunately statistically the property value increases at a much slower rate than white counterparts. Also yes in many instances hiring discrimination still exists. I am not bitter that I have to work twice as hard to be recognized of my achievements at work but it is my reality. The media also plays an enormous role in the stereotypes of black people in the U.S. but yet we allow it with the degrading behavior we portray in music videos and reality shows but there are many honeyboo boos and Jersey Shores type whites in the US but yet they are glorified. hypocrisy and ignorance is still very alive in America from the comments that I see..Lord help us!
America is inherently racist. Always have been, always will be. To the hispanic woman who posted that her parents pulled her out of a bad environment. Well your people are adding to the problems of this country. Believe me all mexicans are not workaholics either. I live near some. They are on welfare. The house they live in is run down and over populated. If you can pass for white, that maybe why you are doing so well now. White folks don't like your kind either from what I can see. They use your people.
Then the Obama card gets pulled. What is Obama really doing for "blacks"? Nothing from what I can see. Fighting for illegal immigration, putting white and hispanic women on the supreme court, filling his cabinet with white folks, etc.... Let's all remember that it was not only "blacks" that put him in office. A lot of whites and hispanics put him in there twice. African Americans will never see justice in this lifetime. I speak from experience. I have worked all my life. Owned two homes and I have seen the injustice in the military, and in the corporate world. Let's face it this world is lost already. I say enjoy it while you can here on earth, because all of this will pass away. Most of you will never have it this good again. If you can really call it good?
Some decent rhetoric, except maybe your's ABS...You just need to grow up, quit being so hateful.
LiberalCommie....Still trying to figure out what you are talking about in your little Fantasy World..
BTW....THEY WERE NOT CALLED INDIANS, AND THIS WAS NOT CALLED AMERICA..
Maybe you are speaking to the so-called lost tribe of israel..??...Anyway bullshidt.
The rest which relates to the plight and differences, between minorities and whites; As we know and call it in the U.S.(the rest of the World, many places whites are the minorities.)
Overall I find the Story(article) and the Studies somewhat disturbing...And I really, nor many can figure out what can be done about it...There have been many attempts, that have failed or not followed through to fruitation...??
Uncle Sugar....No, I was answering to what some guy said in a REPLY to the Whitney4, person.
He/she was LiberalCommie something ???
If whites stop ripping off people lying taking money from from each other waiting for their parents to die so they can get what they stole from others they would be in the same situation as most blacks. Money do not come easy and when you are looked at as lazy and useless by the whites and not given the equal opportunity to show your worth what the heck do you think is going to make you money because if a white man thinks he can control every dang thing. You know that blacks were set back so many years it will take a lot more to get on slightly ahead we are all not down there a a lot of us who live comfortable lives. Stop judging a few as a whole. If so all you whites posting these negative thoughts of yours are all methyl heads and druggies who beat their wives and seclude them in the house cause they don't work and you want to control them as you think you can control everything else, and you take from whomever you kind to make a dollar over charge people liars and cheats. You fear the black man cause he is strong and you think you can take his pride but has been proven wrong if you had to go through what they have you would not last a year you would just shot yourself and call it quits. Their is nothing that make you better then them or anyone else but that you started from the beginning of time being controlling taking others ideas and making money on it and passing it on to your generation. Although most are ignorant you think your words are and negativity will bring someone to the point of giving up but you are wrong money and power is not something that one gets unless they are taught how to get it the wrong way. Most of you will all be revealed and will know what it is to struggle cause you are definitely not living in a time where you can do wrong and get away with it. Knowledge is a powerful tool and we now have that tool and you hate that you can no longer kill us for opening a book cause we can freely open a book use a computer and learn as you were given that opportunity at birth. Do you honestly think a white man went in the kitchen and fried some chicken and created a secret recipe call KFC chicken heck heck no his slave did he took the recipe, and what about Aunt Jemima Syrup the proof is on the bottle she invented did, and Uncle Ben rice the proof is on the package where is their ancestors inheritance they left behind in the hands of the greedy white mans ancestors. Think about it Blacks had to be creative to make their life comfortable and whatever they created was taken.
The racist far right is going to weigh in and act like thet`re objective,We can see through
their bitter and hate agenda.Name more than 2 black Republicans.The lights arn`t
diming with your thinking.
THIS IS VERY SIMPLE, WHITES HAVE BEEN THIEVES FROM THE TIME THEY STOLE AMERICA FROM THE INDIANS....THEY ACQUIRED THEIR WEALTH BY STEALING FROM OTHER NON WHITE RACES FOR THEIR OWN PROFIT. THIS OLD "MONEY" IS THEN PASSED DOWN FROM GENERATION TO GENERATION WHICH WILL CONTINUE THE 'RACIAL" WEALTH GAP BETWEEN BLACKS AND WHITE. SO, YOU SEE; WHITES HAVE ALWAYS THOUGHT OF THEMSELVES AS SUPERIOR AND BELIEVED THEY ARE THE ONLY ONES WHO SHOULD LIVE THE "CREAM OF THE CROP" LIFESTYLE.....THE END!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.
Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More
More Market News
An interest rate tease in The Wall Street Journal sends the market into an optimistic tizzy -- but one that doesn't end quite at the top.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'