The Downward Spiral Continues: Worsening Wealth Inequality For Blacks

During the recession, blacks have lost wealth that it took decades to gain, and an article from CNN  indicates that the racial income disparity is getting worse, not better:

 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%.

With increasing unemployment and foreclosure in the black community, it is unclear how or when black people will regain their financial footing. With cuts to domestic programs and discretionary spending, what is clear is that whatever wealth blacks regain will come of their own volition.

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16 Responses to The Downward Spiral Continues: Worsening Wealth Inequality For Blacks

  1. Cherokee1934 June 25, 2012 at 11:43 pm

    I live in middle Tennessee and this down turn in our economy is hurting all races, not all the same amount but pretty bad for everyone. I just don’t have any idea as to what Anyone should try to do. Of course the people that have big money is not hurting like the smaller people.

    Reply
  2. Boyce Pearson June 25, 2012 at 11:53 pm

    We must demand that our institutional churches of faith teach about financial literacy in the black communities as a path toward prosperity that God has ordained. We must understand the difference between an asset and liabilities (debt) that is the modern day bondage that we are entrapped.

    Reply
    • Cherokee1934 June 26, 2012 at 12:30 am

      I have, what I think is, a very good Question: Why is President Obama, a man of color, doing this country as he is doing?

      Reply
      • James June 26, 2012 at 1:25 am

        What is he doing, or not doing?

        Reply
  3. Rev Alvin June 26, 2012 at 2:12 am

    Boyce Pearson, good point you have made. Do you have or are you aware of a specific course covering this subject?

    Reply
  4. makheru bradley June 26, 2012 at 3:50 pm

    This is one of the cruel ironies of history. While many Afrikan Americans are celebrating the first American president who happens to be Black, millions of Afrikan Americans are mired in an economic depression. The president has proven that he has no solution to that problem.

    Reply
  5. Boyce Pearson June 26, 2012 at 4:04 pm

    We have students leaving high school and can’t read a financial statement either their own or a company they would like to create an asset. The financial literacy taught in the churches must begin with a basic money vocabulary

    Reply
    • makheru bradley June 27, 2012 at 12:50 am

      If you are suggesting that this massive loss of Afrikan American wealth since the explosion of the subprime crisis is the result of inadequate financial literacy then you need additional politico-economic education yourself.

      The events of 9/15 were beyond the control of average investors who lost billions of dollars in life savings. Even Warren Buffett, considered by many to be the smartest capitalist in the world lost money on derivatives. JP Morgan Chase just took a $2 billion hit, and that’s just the infinitesimal tip of the derivatives iceberg.

      They said: “The portfolio was layered with hedging strategies that became too complicated to work and too big to unwind in the esoteric market.”

      Please forward the syllabus for the class on these “financial weapons of mass-destruction” which their creators (Harvard MBA’s and MIT computer geeks) can’t handle.

      Reply
  6. Ken I June 26, 2012 at 4:20 pm

    I teach financial literacy in Florida for the previous 20 years. Sadly, you can lead a financially starved individual to the buffet, but you can’t make him eat the right things…..people want to fill up on desserts and cristal they can’t afford when they need some vegetables and a basic glass of water!

    Reply
  7. Boyce Pearson June 26, 2012 at 1:25 pm

    When we show our community the reason why God wants us to prosper an that it is to advance the kingdom of God, then it is imperative that we study financial literacy; and all these things will be added unto us if we first give back for our preservation

    Reply
  8. Scoot Dubbs June 26, 2012 at 4:33 pm

    We must band together in our communities, take pride and ownership in everything that we do. Get the elders to bring the younger generations to financial literacy/responsibility. In Indianapolis I have seen the pendulum swing from suburban sprawl to inner city all the way back to gentrification with African Americans the ones that are always assed out. We need to get back to helping our own cause no one else is interested in doing it nor should they do it for us. We had more successful black businesses before and during the Civil Rights Movement then we have now. Educate and prosper my people.

    Reply
  9. Shirley June 26, 2012 at 6:06 pm

    Due to the economy crisis more middle class American’s are hurting just as bad as the poor American’s.
    Todays there are the RICH and the Poor thanks to Money, power, and Wall Street which caused the worst economy crisis since the Depression.
    The Republican’s designed it that way and with Mitt Romney running for President the Republicans plans to keep it that way.

    Mitt Romney is a con man that will say or do any thing the Republican’s tell him to win, and with all the big money pouring in to Romney’s Campaign want to be able to influence Romney to do what ever they want.
    Listen to Mitt Romney words closely and he will tell you what he is going to do, the same as he did at Bain Capital and still is.

    Reply
  10. Boyce Pearson June 27, 2012 at 1:27 pm

    Whos saids Warren Buffet is such a great genius in the financial world. If he was then he should have seen the great recession coming. He is partly responsible for this mess in the first place.

    Reply
  11. I'mNotThatBrainwashed June 27, 2012 at 8:20 pm

    “…regain their financial footing.”

    When did African Americans ever have a financial footing? Most live from paycheck to paycheck. Financial Literacy? Give me a break! Most African Americans know that will take a lifetime to be financially stable in this country.

    Reply
  12. etreman July 2, 2012 at 3:27 pm

    Once again we place blame on the wrong people for the wrong reasons. Obama can only do so much. Why? Many of you ‘finally’ decided to vote him in just to be a part of history etc. without understanding you also have to vote for the senate and house members to support the presidents agenda. You didn’t do that so now you’re trying to blame him for being outvoted at every turn.

    Reply
  13. etreman July 2, 2012 at 3:40 pm

    Republicans do not have middle class americans’ improvement as part of their agenda. Increasing our staus only serves to decrease theirs.The economic downturn in this country is a direct result of that. Once again, as I’ve said repeatedly,they’re able to do this because they have ‘numbers’ in the local and state gov’ts as a result of non voters. That’s what these ‘right to vote’ bills are about….controlling the numbers and the outcomes of elections. If you couldn’t be bothered before, now, or in the future with voting you almost deserve what they give you ’cause it’s your vote that increases your chances of getting stisfaction! We don’t have millions to give a candidate. All we have is our vote!

    Reply

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