Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/30/2013 (1 year ago)

Catholic Online (www.catholic.org)

Prospects for economic advancement for minority groups growing even slimmer

An unfortunate fact of American life is the economic disparity found amongst the races here. Whites always tend to do financially better than African Americans and Hispanics. Adding to this cruel divide is the fact that the economic gap became even wider during the recession. "It was already dismal," Professor Darrick Hamilton at the New School in New York said of the wealth gap between black and white households. "It got even worse."

White families, on average, earned about $2 for every $1 that black and Hispanic families earned in 2010. This ratio has remained roughly constant for the last 30 years.

White families, on average, earned about $2 for every $1 that black and Hispanic families earned in 2010. This ratio has remained roughly constant for the last 30 years.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/30/2013 (1 year ago)

Published in Business & Economics

Keywords: Minority groups, foreclosures, economic disparity, poverty


LOS ANGELES, CA (Catholic Online) - Ironically, seemingly good economic news spells bad economic news for many in current U.S. society. With the housing recovery and the rebound in the stock market, the wealth gap may in fact still be growing. This dims the prospects for economic advancement for current and future generations of Americans from minority groups.

A study conducted by the Urban Institute found that the racial wealth gap widened during the recession, even as the income gap between white Americans and nonwhite Americans remained stable.

White families, on average, earned about $2 for every $1 that black and Hispanic families earned in 2010. This ratio has remained roughly constant for the last 30 years.

When it comes to wealth, however, which is measured by assets, like cash savings, homes and retirement accounts, minus debts, like mortgages and credit card balances - white families still outpace black and Hispanic ones.

Non-Hispanic white families before the recession, on average, were about four times as wealthy as nonwhite families, according to the Urban Institute's analysis of Federal Reserve data. By 2010, whites were about six times as wealthy.

The average white family had about $632,000 in wealth, versus $98,000 for black families and $110,000 for Hispanic families.

"The racial wealth gap is deeply rooted in our society," Caroline Ratcliffe, one of the authors of the Urban Institute study says. "It's here, it's not going away, and we need to care about it."

Experts point out that there are other factors at play behind these statistics. Young black people are much less likely than young white people to receive a large sum from their parents or other relatives to pay for college, start a business or make a down payment on a home. That, in turn, makes their wealth-building prospects shakier as they move into adulthood.

Two major factors helped to widen this wealth gap in recent years. The housing downturn hit black and Hispanic households substantially harder than it hit white households. Many young Hispanic families, for instance, bought homes as the housing bubble was inflating and reaching its peak, leaving them saddled with heavy debt.

Black families also were hit by the housing collapse. Higher unemployment rates and lower incomes among blacks left them less able to keep paying their mortgages and more likely to lose their homes, experts said.

Black families also suffered bigger hits to their retirement savings, the Urban Institute found. The value of black families' retirement accounts shrank 35 percent between 2007 and 2010, while white families' accounts actually gained nine percent over the same period. With lower earnings and higher unemployment rates leaving them with a thinner safety net to begin with, black families were more likely to take funds out of the market when it was depressed, leaving them out in the cold as the market recovered.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

ECONOMIC EARTHQUAKE: IBM rumored to lay off 110,000 employees - biggest cull in business history Watch

Image of First reported on the Forbes Web site, IBM scoffed at the news. Representatives said that the reported scale of the job cuts

By Catholic Online (NEWS CONSORTIUM)

There are alarming indications that the largest corporate layoff in history may be near. There are rumors afoot that computer IBM plans to lay off 110,000 employees shortly. As their entire worldwide workforce is estimated at 430,000, this represents a quarter ... continue reading


Living on less than $2 dollars a day: Only 5 percent of global wealth belongs to the poorest 80 percent of the world Watch

Image of Millions of people around the world are living off of less than two dollars a day.

By Abigail James (NEWS CONSORTIUM)

The staggering increasing inequality among the wealthy and poor around the world continues to be a pressing issue. Eighty rich billionaires have as much money as 3.5 billion of the poorest people. LOS ANGELES, CA (Catholic Online) - The wealthy are occuring their ... continue reading


An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... continue reading


Is pot the future boom business? The founder of Pay Pal thinks so Watch

Image of The co-founder and former CEO of PayPal, Peter Thiel is investing multiple millions of dollars into Privateer Holdings, a Seattle-based marijuana growing, production, distribution and information company.

By Matt Waterson (NEWS CONSORTIUM)

Founders Fund, a $2 billion dollar, San Francisco-based venture capitalist firm ran by the co-founder and former CEO of PayPal is moving in a new investment direction, turning towards pastures a little greener than former tech and Silicon Valley ... continue reading


Here is the top 10 list of the world's most widely used currencies. Numbers 9 and 10 surprised us! (PHOTOS) Watch

Image of The list of most widely used currencies will surprise you. Confederate money was once sold in bundles to kids for use as play money.

By Catholic Online (NEWS CONSORTIUM)

You might not be surprised to learn that the U.S. dollar is one of the world's most widely used currencies, but there are other less-familiar currencies used around the globe. The list of the top 10 might surprise you. We were surprised to see the last two currencies ... continue reading


Crossings Tea releases unique Chinese tea

Image of Crossings Tea, grown in the remote heartland of China.

By John W. Smagula

Crossings Tea announces the release of its Chinese black, green, and jasmine tea. From the remote Three Gorges region of Central China, Crossings Tea has pure and refined flavors that capture the essence of classical Chinese tea. The company supports the local Yichang ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Hebrews 10:1-10
1 So, since the Law contains no more than a ... Read More

Psalm, Psalms 40:2, 4, 7-8, 10, 11
2 He pulled me up from the seething chasm, from the ... Read More

Gospel, Mark 3:31-35
31 Now his mother and his brothers arrived and, ... Read More

Saint of the Day

Saint of the Day for January 27th, 2015 Image

St. Angela Merici
January 27: When she was 56, Angela Merici said "No" to the Pope. She was ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter