The new study, which followed “nearly the same” 1,700 working-age households over a 25-year period reported that the racial wealth gap just about tripled from 1984 to 2009, jumping from $85,000 to $236,500.
The median net worth of white households in the study grew to $265,000 over the 25-year period, compared with just $28,500 for black households, the study, conducted by academics at the Institute on Assets and Social Policy at Brandeis University, found.
“In gross terms, there is no question that the difference in median wealth between America's white and African-American households has grown stunningly large,” wrote the authors of the study, titled "The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide.”
"The gap presents an opportunity denied for many African-American households and assures racial economic inequality for the next generation," wrote co-author Tatjana Meschede.
According to the study, a $1 increase in average income over the 25-year study period generated $0.69 in additional wealth for an African-American household, compared with $5.19 for a white household.
The differences in homeownership were also dramatic. Rates for white families were nearly 30% higher than those for black families, and white families were shown to buy homes, on average, eight years earlier than black families.
White families were also “far more likely” to receive family assistance or inheritance that helped with covering larger down payments, according to the study, which pointed a finger at suspect government policies that enabled these stark differences to occur.
"Public policies play a major role in widening the already massive racial wealth gap and they must play a role in closing it," said Dr. Thomas Shapiro, director of the IASP and a principal author of the report. "We should be investing in prosperity and equity, instead we are advancing toxic inequality. A U-turn is needed."
The increasing gap could have ramifications that hurt more people than just those in the black community.
"Wealth – what we own minus what we owe – allows families to move forward by moving to better and safer neighborhoods, investing in businesses, saving for retirement and supporting their children's college aspirations. Our economy cannot sustain its growth in the face of this type of extreme wealth inequality,” Shapiro said.
Read more: http://www.nydailynews.com/news/national/black-white-wealth-gap-triples-25-years-article-1.1275422#ixzz2MA7Giiqh
I think some of it has to due with black people not making opportunities for themselves. We often sit around & wait for things to happen for us instead of creating our own businesses. We are just as talented and smart as whites, but until we want and demand more than this study will stay the same. Example: A black girl in the hood may be a very talented hairstylist & she will do everyone's hair from $20-50 a pop, but if she took the time to get her cosmetology license she could easily triple her profits by becoming employed @ a salon or opening her own salon. Sorry for the rant. Every black person should read "Think and Grow Rich: A Black Choice" by Napoleon Hill & Dennis Kimbro
ReplyDeleteIt takes money to make money.....it's very hard when you don't have any support. It isn't an excuse, but if you are struggling and everyone around you is struggling, it's going to be a constant struggle. I work at a university for the sole reason of getting a "free" education from a "prestigious institution of higher education". Living life and raising a family, or even being single, most people don't have $50,000 dollars a year to pay for college or even the time to pursue an education when one is trying to survive. It is disgusting that in the U.S. we are forced to pay so much money just to be educated. They know what they are doing...The rich keep getting richer and the poor keep getting poorer (and dumber). You try to get a loan and are told that you don't have enough credit or collateral, how do you get credit if no one is willing to give you any? Where do you get collateral when you don't have anything worth a damn? We as a people really need to have things put in place to where our children can have a chance to at least get their foot in the door, as well as be supportive, and look towards the future. Then you got the majority of household incomes being only made up of one income, because the lazy N.I.G.'s don't want to get out and work and help support their families and the responsibility falls entirely on the female....that's where the $28,000 is coming from!!! White people stick together, they help each other (as a whole). We have gotten conditioned to being content with working with very little, because we are survivors and we do it so well. But enough is enough!!! Why not strive for the best YOU can do? $260,000 vs. $28,000....That's a damn disgrace!!!! :-((((
ReplyDeleteI am not buying into all of this.
ReplyDeleteNot saying that some of these comments aren't right nor that there may not be any truth (somewhat) to this article, but COME ON. I'm soooo tired of hearing everything negative about black people. Every study, in the news, on the blogs, even comedians with their jokes. Then when its out there EVERYBODY chimes in with "because black people this, black people that" Ugh! Yes we as a people NEED a lot of changes within our community, but we don't have to speak and focus on the negativity ALL the time. What we speak becomes power, and what power are we giving ourselfs with always bearing up ourselves. I work with young black youth, and while I agree that soooo many things need change with us, we focus and speak about the positive changes we can make, positive things within our race, and positive future outlooks. We don'tignore the bad things within our community, but how is keep talking and breathing them light making things better. I'm just tired of reading and hearing about the bottom of the bottom...US BLACK FOLK.
ReplyDeleteTotally agree with you sometimes we can be our own down fall, we should help each other out. I used to see it in the work place if a white employee, didnt know how to do something in our workplace. Her white co-workers would show her how. If a black female didnt know how to do a task, or new to learning you hear from us "oh well I'm nothelping her". So I would help in anyway I could didnt cost me anything. Even during slavery they would sell their souls to the devil, instead of sticking together and figuring out a plan like, Harriet Tubman who escaped herself and came back and helped hundreds. Let's not be so quick to throw ourselves under the bus stick together.
Deleteditto
ReplyDeleteand the racial gap has become the widest and most rapidly so under that rabid blackish bankster hobama...
shame!!!!!!!
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