The ever-widening wealth gap between African Americans and whites just got wider.
According to a new study by the Urban Institute’s Opportunity and Ownership Project, white families averaged six times the wealth of black and Hispanic households ($632,000 versus $98,000 and $110,000, respectively)
The income gap, by comparison, is much smaller, according to the study. In 2010, the average household income for whites was $89,000, about twice the $46,000 average for black and Hispanic families.
So why are black and Hispanics consistently behind in income and wealth? Here are four key reasons: inequality in home ownership, income, education, and family inheritances.
Inheritances also make it easier for some families to build wealth. Among the families studied, whites were five times more likely to inherit money than blacks, and their typical inheritances were 10 times as large, according to CNN. And when it comes to education, black college graduates are often more saddled with college loans, making it harder for them to start socking away savings than their white peers. Four in five black students graduate with debt, compared to 64% of whites.
Discrimination is also a serious concern. African Americans are generally overworked, underpaid and undervalued. There are numerous racial discrimination suits pending in courts across America where black men and woman are claiming, correctly, that they have been discriminated against in the workplace.
In 2011, according to statistics, the “most popular” form of employment discrimination in the U.S. was racial discrimination. The US Equal Employment Opportunity Commission (EEOC) received a total of 35,395 complaints nationwide in 2011.
“Racial or ethnic discrimination in the workplace can rear its head in a variety of forms, some of which can be subtle, such as an employer’s failure to hire or promote based on race, or downright obvious such as racial slurs,” Black Enterprise reported. “Whichever form it takes, racial discrimination in the workplace is strictly prohibited by a number of federal and state laws.”
There’s no question that racism in the workplace plays a critical role in the lack of wealth generated by black Americans. If black folks make less, it’s hard to afford luxuries like nice homes, vacations, private schools, nannies, and basics like affordable health care.
But there’s also another reason black folks lag behind whites in wealth: Black Americans, generally, don’t save as much as whites so black folks don’t amass generational wealth.
“Wealth isn’t just money in the bank, it’s insurance against tough times, tuition to get a better education and a better job, savings to retire on, and a springboard into the middle class. In short, wealth translates into opportunity,” Signe-Mary McKernan, Caroline Ratcliffe, Eugene Steuerle, and Sisi Zhang wrote in “Less than Equal: Racial Disparities in Wealth Accumulation.”
Because Hispanics and blacks are disproportionately low income earners, the researchers said, their wealth prospects are strongly affected by safety net policies aimed at low-income families.
Are you being paid sufficiently on your job? Have you been a victim of racial discrimination?
And do you save money regularly in a bank savings account?
What do you think?
Also On Black America Web:
This Week’s Celebrity Instagrams (11/26-12/2)
30 photos Launch gallery
1. Little Legend and Puddy 😍😍😍😍
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2. "You on point Phife?" "all the time,Tip". 💥 #bannedfromnormal
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3. Vegan! The Impossible burger at Crossroads
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4. Lawrence #BeforeandAfterEpisodes 1-4: 184lbs 13% body fatEpisode 8: 196lbs 8% body fat S/O @coachdaveboxing with the works outs and @kildareriordan with the nutrition
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5. Jus haaaanngin out
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6. Meanwhile back at home in Atlanta GA someone mad they not on the 🛳. 😳
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7. No limits... Photo cred: Chris Bridges @ludacris
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8. new new
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9. Apparently my 260lbs is too much for the actual vines in the Hawaiian jungles to hold me without breaking and me falling hundreds of feet. So for safety purposes, I'm forced to swing thru #Jumanjj on wires strong enough to hold 12 adult buffaloes and 1 adult Rock. #OnSet #Jumanji #IronicallyIEatBuffaloDailyForLunch #MoreManThanNatureKnowsWhatToDoWith
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10. hey ma! 🎎#wcw 💙
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11. Surprise visit to our factories!!! #GoodAmerican #USA
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13. Peachy Keen 🔥✨⚡️
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14. If this don't look thankful I don't know what does. Happy Thanksgiving to you and yours. #UltraBlessed #24kMagic #SweetPotatoFly
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15. Late nights @nbcmarlon with the writers... we in here!!!
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16. There goes my baaaaaaaaabbbbyyyyy #QueenKingMagic!!! We're up to something! Ira BIG!!! Stay out our buisness -
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17. You want to win every game you play but when you come home to these faces... who cares. #ILoveYouGirls best part of my day, everyday!
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18. Steady,steady..... full size jenga.. "I got this one "???? Or do I ?
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19. Cornrows kind of day 😉@dontaysavoy2 you convinced me and I love. ❤️️
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20. #BrotherlyLove #tbt
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22. #basel #TeamLOVE @kingcombs
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23. Just introduced a special screening of @directher 's groundbreaking (must see) documentary @13thfilm with my brother @themichaelealy | @unitedblackout #blackoutblackfriday
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24. Me & Vanessa Williams giving #DuckLips #Pose on the set of #DaytimeDivas @vh1 - Coming Soon to a tv near you. Lol. - My make up done by @makeupsurgeon
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25. This picture just makes me wanna praise the Lord, you hear me!!!!!! Yes Lord brotha #TEDDYCAMPBELL What a #man !!! You are everything right on this picture husband ......... #gorgeous #stylish #classy #strong #masculine #king #sexy #debonair #gentlemenstyle And that #bible in your hand just seals the deal for me (probably cause i know that, that is what helped you become just as amazing as you look😘). While my heart and mind experiences the goodness of God at #church on Sundays, my eyes experiences the goodness of Teddy😍. Amen somebody🙌🏽. "Bless the Lord oh my soul and all that is within me bless his holy name" #myman #myhusband #goodman #blackman #dapperman #godlyman #goodfather #mybestfriend
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26. Yesterday was my mama's 53rd birthday!!!!! Got to celebrate with her all day. If this is what I have to look forward to I can't wait. Looking like a soft bucket a cocoa butter. Yaaaaaaaaaas! 😍😍😍 love you mommy!
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27. "Shout out to @PureAtlanta for getting the family right"....I'm loving this jogger. 😍😍
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28. This pic warms my heart ❤️ #myLogiebeans and aunt aunt umba @itowandabraxton 😘
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29. You will always be my baby😜. #HappyBirthdayReginae #mybaby18
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30. GC "Gods Child" Red on Red SweatSuit available now at www.MonicaApparel.com ... Take Your Crown wherever you go!! I'm pictured in a Medium... Go to the site now for other options ... cc: @trukernell
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