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:

15 thoughts on “ANALYSIS: Blacks Get Poorer as Whites Average Six Times the Wealth as People of Color

  1. any black person can start their own business. Mow yards. Trim trees. Start an internet business. Start your own line of clothing/shirts. America is still the best place in the world to start a business. There is simply no excuse to sit back and collect food stamps.

  2. Pingback: The Effects of Racism | Racism Is Harming Society

  3. Debbie on said:

    White people run companies, white people are managers, assistant managers, supervisors, and human resources people. That sign don’t mean shit at the end of the day. The article said ” Racial Discrimination is the factor”. Apparently those people don’t read the signs. So yes it is just window dressing. Pew Research says the same things and they are predominately white.

  4. hoodtechie on said:

    As long as we black people keep spending more than we take in the wealth gap will continue. As long as the black man is not present in the home, our kids don’t value education the wealth gap will continue. As long as the vast majority of our young men spend more time incarcerated than educated the wealth gap will continue. As long as we as black people don’t put any money away in savings, not educate ourselves on economics and help our kids understand economics the wealth gap will continue. as long as we continue playing lottery games excessively, use cash checking stores instead of banks and buying $6,000 worth of rims and tires while making the white man rich the wealth gap will continue. And finally until we as black people increase our home ownership rate, learn to decrease our debt ratio and plan for our kids future educationally, financially and emotionally the wealth gap will continue to widen. it is what it is, the truth hurts but black people will have to take a long hard look themselves and make the decision to change their ways or remain in the state that we find ourselves in today for the foreseeable future. It’s time to stop using excuses and blaming others, that’s a coward’s way out.

    • Amber3 on said:

      I think everyone is making a point. I think whites out due blacks because they are born into a society that gives to them. Remember, it is not always what you know, it is about WHO you know. Also, whites have been ahead of the game before blacks and latino. We expect blacks who have been free just over 100 and some years to a group (whites) who had it all from the start. Also, whites will buy up alot of things and then turn around and file bankrup. Now, having said that, we as blacks, even though we face these set backs, have to do better with what we have. We have to save more, spendless, stop living above our means, learn to invest and learn the stock market instead of depending on insurance only, etc. As for gambling, well whites win more and more whites play the lottery so I do not understand that comment about blacks playing the lottery. Anyway, we need to do better.

    • Gaywrites on said:

      You are correct however you are acting as if “we” are on a level playing field and not the goat that is their way of making money. it is true that “blacks” have some serious issues but you have only touched the surface. How come you hadn’t mentioned the 2 or 3 thousand year head start “Euros” had on us? Or how come money has to be more important to everyone “involved” than oxygen is to life. What happens if I don’t make it? How come “blacks” don’t have their own country? What if I just want to be happy? WTF is shenanigans? You ever seen DJango (the D is silent).

  5. Gaywrites on said:

    “Whichever form it takes, racial discrimination in the workplace is strictly prohibited by a number of federal and state laws.”

    Good point but who the hell exacly is going to assist you with the interpretation thereof? Bat freeking man or what? Please, be honest, what to do?

  6. ISRAEL COHEN (1912)

    “We must realize that our party’s most powerful weapon is racial tensions. By propounding into the consciousness of the dark races that for centuries they have been oppressed by whites, we can mold them to the program of the Communist Party. In America we will aim for subtle victory. While inflaming the Negro minority against the whites, we will endeavor to instill in the whites a guilt complex for their exploitation of the Negros. We will aid the Negroes to rise in prominence in every walk of life, in the professions and in the world of sports and entertainment. With this prestige, the Negro will be able to intermarry with the whites and begin a process which will deliver America to our cause.”

    Israel Cohen, A Racial Program for the Twentieth Century, 1912. Also in the Congressional Record, Vol. 103, p. 8559, June 7, 1957

    • If Israel Cohen(no relation) is cited in the Congressional Record chances are that a Southern Congressman placed it there. The Negro did not need the Communists to tell him he was oppressed…he could see that for himself. He was oppressed the moment he came down the gangplank when the ships anchored. Indentured Servants walked down the gangplank. The Negro shuffled along in chains. And he did not put those chains on himself. Instill a guilt complex in white people? You got to be kidding. People who have consciences have guilt complexes, people without..well you know the rest. The achievement of the Negro in: sports, entertainment and marrying white people has been vastly overrated. His descendants who call themselves black…what do they have to show for it?

    • Chances are that source for your conclusion came from a white person. I would question his or her objectivity. As I reflect upon the statements, this is one exception when whites are willing to enslave themselves, working from can’t see morning to can’t see night. They(whites) value education as long as there are some dollar signs at the end of the tunnel. In the 20th century the Horatio Alger story would be applied here. “From rags to riches”. Only thing which is generally left out, rags to riches applies to the characters in Alger’s novel. Rap group Public Enemy said it best, “Don’t Believe the Hype.”

    • Debbie on said:

      Whites do not work harder, they are priviledged..They walk in the door becoming Supervisors and Managers. That doesn’t happen because they/you are smart, that happens because CEO’s are white, COO’s are white, and Human Resources is white. You/They are going to get a chance. You don’t take risks, things are given to you a little bit more easier because of the color of your skin. They do not work together, they back stab each other as well. I watch it happen all the time. I have been in corporate America since I was 18 and I am now 51. I have supervisors whom are white, with no education younger than my kids.

      • What is your take on those workplaces which display signs in plain sight which say ” We are equal opportunity employers” or is that just “window dressing” to keep the EEOC(Equal Employment Opportunity Commission) off of their backs?

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