Wednesday, July 27, 2011

The Wealth Gap Widens Between Whites And Minorities Increases

According to U.S. Census data analyzed by the Pew Research Center, the media net worth of a white family now stands at 20 times that of a Black family and 18 times that of a Hispanic family, roughly twice the gap that existed in 1984.  The average wealth of white U.S. households in 2009 was $113,149, compared with with $6,325 for Hispanics and $5,677 for African Americans.  
Here's why according to the Pew researcher Rakesh Kochhar:


"The bursting of the housing bubble in the great recession has been much harder on minority households than on white households.  White households have been more diversified -- they are more likely to own stocks and bonds."
Between 2005 and 2009, the median net worth of Hispanic households dropped by 66 percent and that of black households fell by 53 percent, according to the report. In contrast, the median net worth of white households dropped by only 16 percent. 


“The lopsided wealth ratios are the largest since the government began publishing such data a quarter century ago,” said the report, “Wealth Gaps Rise to Record Highs Between Whites, Blacks and Hispanics.”


In non-racial financial news, between 2005 and 2009 the wealthiest 10% of households went from owning 49% to 56% of American wealth.

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