Feeling like you can’t get ahead lately? You might want to read this…
Wealth Gap Continues To Widen By Race
The Rich are getting richer…..
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 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%.
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.
So what say you Bossip readers? Do you agree with this reasoning? Or are these just more shady statistics to show minorities in a negative light? Sound off!
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