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Archive for Thursday, May 20, 2010

Wealth gap between whites and blacks quadruples since 1984

May 20, 2010

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— Years of deregulation that led to an increase in high-cost loans is indirectly responsible for the quadrupling of the wealth gap between white and black Americans between 1984 and 2007, according to a study by Brandeis University’s Institute on Assets and Social Policy released this week.

Measured in 2007 dollars, the disparity in assets increased $75,000 on average, from $20,000 to $95,000 over the 23-year period. At least one in four black households had no assets.

According to the study, such an increase in negative wealth among blacks means they depend more frequently on credit and other forms of high cost debt, but many low-income and minority households are subjected to costly lending products as a result of their burgeoning debt.

“Our study shows a broken chain of achievement,” said Thomas Shapiro, director of the institute and co-author of the study. “Even when African-Americans do everything right — get an education and work hard at well-paying jobs — they cannot achieve the wealth of their white peers in the work force, and that translates into very different life chances.”

The study found that even as white families saw their financial assets grow from a median value of $22,000 in 1984 to $100,000 in 2007, black families experienced only the slightest growth in wealth.

This was true even at higher income levels, with middle-income whites seeing their wealth levels increase from $55,000 to $74,000, while high-income blacks saw their wealth decrease $7,000 in the period, to $18,000 in 2007. The study defined middle income as $40,000 to $70,000, in 2007 dollars. In general, wealth produced during this period “accrues primarily to highest income whites.”

Comments

kubacker 3 years, 11 months ago

This little nugget of information from the Karl Marx Institute of Wealth Redistribution at Brandeis was paid for with your tax dollars. All that is missing is 'I'm Barack Obama and I approved this message.'

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Paul R Getto 3 years, 11 months ago

bp: An interesting point. I think the median world income is still about $2-3/day. We are blessed to be here, despite our problems and the sometimes silly arguments which go on. Americans are spoiled and have seriously confused our wants and needs, in our personal lives and in some of what government does. BTW: FSM bless you as well!

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barrypenders 3 years, 11 months ago

People who make $30,000 a year in this country are the top 10% wage earners on the planet.

The poor are after the rich. African American descendants should enjoy their 'Riches' while they can.

Stimulus, PAD Profiling, and Posercare live unprecedented

Darwin bless us all

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Roland Gunslinger 3 years, 11 months ago

This must be a typo: "high-income blacks saw their wealth decrease $7,000 in the period, to $18,000 in 2007"

So high income black in 1984 made $25,000 and high income blacks now make $18,000?

Since when is $18,000 or $25,000 considered high income?

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barrypenders 3 years, 11 months ago

'Hard work' and 'Ingenuity' should be allowed as much money as 'Pitty' and 'Guilt' for not having 'Hard Work' and 'Ingenuity' by the Big Government Poser.

'Transformation' and 'Spreading the Wealth' should do the trick.

Stimulus, Spread The Wealth, and Posercare live unprecedented

Darwin bless us all

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just_another_bozo_on_this_bus 3 years, 11 months ago

"In general, wealth produced during this period “accrues primarily to highest income whites.”"

The one true legacy of the Reagan Revolution.

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barrypenders 3 years, 11 months ago

This is more 'Profiling' by the people that make 'Profiling' a big deal in Arizona.

The 'Profiling' here is also true for the NBA. The number of African decendents making more money compared to Mexican decendents is astonishing.

If of course you use the shades of flesh tones among people as the standard for measuring money accumulation achievement.

Stimulus, PAD Profiling, and Posercare live unprecedented

Darwin bless us all

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