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Thread: "Change We Can.." Wealth Gap Widens Between Whites And Minorities!

  1. #1

    "Change We Can.." Wealth Gap Widens Between Whites And Minorities!

    [url]http://finance.yahoo.com/news/Wealth-gap-widens-between-apf-526105830.html?x=0&.v=1[/url]


    [SIZE="4"][B]Wealth gap widens between whites, minorities[/B][/SIZE]

    [SIZE="3"]Census data show wealth of whites is 20 times that of blacks, widest US gap in quarter-century[/SIZE]

    Hope Yen, Associated Press, On Tuesday July 26, 2011, 12:10 am EDT

    WASHINGTON (AP) -- The wealth gaps between whites and minorities have grown to their widest levels in a quarter-century. The recession and [B]uneven recovery[/B] have erased decades of minority gains, leaving whites on average with 20 times the net worth of blacks and 18 times that of Hispanics, according to an analysis of new Census data.

    The analysis shows the racial and ethnic impact of the economic meltdown, which[B] ravaged housing values and sent unemployment soaring[/B]. It offers the most direct government evidence yet of the disparity between predominantly younger minorities whose main asset is their home and older whites who are more likely to have 401(k) retirement accounts or other stock holdings.

    "What's pushing the wealth of whites is the rebound in the stock market and corporate savings, while younger Hispanics and African-Americans who bought homes in the last decade -- because that was the American dream -- are seeing big declines," said Timothy Smeeding, a University of Wisconsin-Madison professor who specializes in income inequality.

    The median wealth of white U.S. households in 2009 was $113,149, compared with $6,325 for Hispanics and $5,677 for blacks, according to the analysis released Tuesday by the Pew Research Center. Those ratios, roughly 20 to 1 for blacks and 18 to 1 for Hispanics, far exceed the low mark of 7 to 1 for both groups reached in 1995, when the nation's economic expansion lifted many low-income groups to the middle class.

    [B]The white-black wealth gap is also the widest since the census began tracking such data in 1984, when the ratio was roughly 12 to 1.
    [/B]
    "I am afraid that this pushes us back to what the Kerner Commission characterized as `two societies, separate and unequal,'" said Roderick Harrison, a former chief of racial statistics at the Census Bureau, referring to the 1960s presidential commission that examined U.S. race relations. "The great difference is that the second society has now become both black and Hispanic."

    Stock holdings play an important role in the economic well-being of white households. Stock funds, IRA and Keogh accounts as well as 401(k) and savings accounts were responsible for 28 percent of whites' net worth, compared with 19 percent for blacks and 15 percent for Hispanics.

    According to the Pew study, the housing boom of the early to mid-2000s boosted the wealth of Hispanics in particular, who were disproportionately employed in the thriving construction industry. Hispanics also were more likely to live and buy homes in states such as California, Florida, Nevada and Arizona, which were in the forefront of the real estate bubble, enjoying early gains in home values.

    But those gains quickly shriveled in the housing bust. After reaching a median wealth of $18,359 in 2005, the wealth of Hispanics -- who derived nearly two-thirds of their net worth from home equity -- declined by 66 percent by 2009. [B]Among blacks, who now have the highest unemployment rate at 16.2 percent, their household wealth fell 53 percent from $12,124 to $5,677.
    [/B]
    In contrast, the median household wealth of whites dipped a modest 16 percent from $134,992 to $113,149, cushioned in part by a stock market recovery that began in mid-2009.

    [B]"The findings are a reminder -- if one was needed -- of what a large share of blacks and Hispanics live on the economic margins,"[/B] said Paul Taylor, director of Pew Social & Demographic Trends. "When the economy tanked, they're the groups that took the heaviest blows."

    The latest data come as President Barack Obama and congressional leaders try to reach a deal to avoid a U.S. default on its financial obligations after Aug. 2. Democrats and Republicans have been wrangling over proposals that could cut trillions of dollars from programs such as Medicare and Social Security; they are divided over whether to bring in new tax revenue, such as by closing corporate tax loopholes or increasing taxes for the wealthy.

    [B]The NAACP and other black groups urged Obama to resist deep cuts to housing assistance or safety net programs, saying it would disproportionately hurt urban areas with high poverty and unemployment. The U.S. poverty rate currently stands at 14.3 percent, with the ranks of the working-age poor at the highest level since the 1960s. Some analysts believe the poverty rate will climb higher when new figures are released in September.[/B]

    "Typically in recessions, minorities suffer from being last hired and first fired. They are likely to lose jobs more rapidly at the beginning of the recession, and are far slower to gain jobs as the economy recovers," said Harrison, who is now a sociologist at Howard University. "One suspects that blacks who lost jobs in the recession, or who have tried to help family members or relatives who did, have now spent whatever savings or other cashable assets they had."

    Other findings:

    --About 35 percent of black households and 31 percent of Hispanic households had zero or negative net worth in 2009, compared with 15 percent of white households. In 2005, the comparable shares were 29 percent for blacks, 23 percent for Hispanics and 11 percent for whites.

    --Asians lost their top ranking to whites in median household wealth, dropping from $168,103 in 2005 to $78,066 in 2009. Like Hispanics, many Asians were concentrated in states like California hit hard by the housing downturn. More recent arrivals of new Asian immigrants, who tend to be poor, also pushed down their median wealth.

    --Across all race and ethnic groups, the wealth gap between rich and poor widened. The share of wealth held by the top 10 percent of U.S. households increased from 49 percent in 2005 to 56 percent in 2009. The threshold for entry into the wealthiest top 10 percent, however, dipped lower: from $646,327 in 2005 to $598,435.

    The numbers are based on the Census Bureau's Survey of Income and Program Participation, which sampled more than 36,000 households on wealth from September-December 2009. Census first began publishing wealth data from this survey, broken down by race and ethnicity, in 1984.

    :jets17

  2. #2
    JetsInsider.com Legend
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    Yeah I bet the GOP is real worried about this.

    So much so they will cut taxes for the rich!

  3. #3
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    [QUOTE=FF2;4068481]Yeah I bet the GOP is real worried about this.

    So much so they will cut taxes for the rich![/QUOTE]

    Serious thought.

    It is a problem.... no doubt. We agree. I dont have a solution other than education, personal responsibility and work hard. It worked for me. I grew up on the free lunch program.

    I am ALL FOR raising taxes on the wealthy (humbly, that would include me thank God) but would that really change anything?

  4. #4
    Maybe Blacks and Latinos expect the Government to fix all their ills. Good luck with that. Whites the ball everyone likes to kick around.

  5. #5
    i followed Barack Obama's entire campaign, from way back when he was a long shot, i don't recall him promising to narrow the wealth gap between whites and non-whites.

  6. #6
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    [QUOTE=bitonti;4068553]i followed Barack Obama's entire campaign, from way back when he was a long shot, i don't recall him promising to narrow the wealth gap between whites and non-whites.[/QUOTE]

    What exactly do you think he means when he says he is going to "spread the wealth?"

  7. #7
    So I guess giving tax breaks to the middle class and putting more of an overall burden in the percent of taxes paid by the wealthy hasn't helped the poor?

  8. #8
    The biggest factor keeping the poor down are many the poorly designed anti poverty programs that are there to supposedly help them. Welfare programs today penalize families for getting a job. Instead they should be designed to encourage people to lift their condition. More emphasis should be put on higher education.

    Around the world and at home we see examples of how anti-poverty programs keep the poor dependent and demotivate them from rising up from poverty. If Washington really "worked" we could come up with common sense solutions to some of these problems. At the same time we need to accept that there will always be rich people and poor people. That will never change. The key for me is to have a country in which those of us that work hard and educate ourselves and have the opportunity for upward mobility.

  9. #9
    We have given billions to the poor since the new Deal and where has it done anything. The poor are still poor and they are now enslaved by this help! It is not racist when a black person makes the comment but if Bush said that NAACP and CORE would be screaming bloody murder!

  10. #10
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    [QUOTE=MnJetFan;4068665]We have given billions to the poor since the new Deal and where has it done anything. The poor are still poor and they are now enslaved by this help! It is not racist when a black person makes the comment but if Bush said that NAACP and CORE would be screaming bloody murder![/QUOTE]

    It has done a lot. It has made more people poor and made sure they could be kept there.

  11. #11
    It doesn't help that we have teachers unions that fight all attempts to improve education. They have no interest whatsoever in helping our children. Charter schools are fought against consistantly. Teacher evaluation is fought against. Accountability from educators is non existent. They disproportionately harm the poorest among us that don't have the ability to escape failing school systems.

  12. #12
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    I sure as hell would rather be poor now than before the New Deal. At least you will get help to feed your family rather than nothing.

    And nobody is making the argument that there will never be poor... there is no silver bullet to 'solve' poverty. There is just decency. Do you say 'well there will always be poor, we can't do anything about it, so we shouldn't worry about it' or do you say 'there will always be poor and we should always make sure they don't starve'.

  13. #13
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    [QUOTE=bitonti;4068553]i followed Barack Obama's entire campaign, from way back when he was a long shot, i don't recall him promising to narrow the wealth gap between whites and non-whites.[/QUOTE]

    you may have missed his redistribution of wealth quotes :rolleyes:

  14. #14
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    [QUOTE=SafetyBlitz;4068694]I sure as hell would rather be poor now than before the New Deal. At least you will get help to feed your family rather than nothing.

    And nobody is making the argument that there will never be poor... there is no silver bullet to 'solve' poverty. There is just decency. Do you say 'well there will always be poor, we can't do anything about it, so we shouldn't worry about it' or do you say 'there will always be poor and we should always make sure they don't starve'.[/QUOTE]

    How about time limits on collecting????? If it were me, I would (and DID) take a minimum wage job. I cleaned offices at night when I got out of college. Literally cleaned toilets.

    I suppose those jobs are not available anymore?

  15. #15
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    [QUOTE=SafetyBlitz;4068694][B]I sure as hell would rather be poor now than before the New Deal. [/B]At least you will get help to feed your family rather than nothing.

    And nobody is making the argument that there will never be poor... there is no silver bullet to 'solve' poverty. There is just decency. Do you say 'well there will always be poor, we can't do anything about it, so we shouldn't worry about it' or do you say 'there will always be poor and we should always make sure they don't starve'.[/QUOTE]

    That is exactly the problem. There should be an incentive to work hard to not be poor. Poor should not be a deisrable state. There are so many handouts now that people choose welfare over working because it is easier.

  16. #16
    [QUOTE=Trades;4068715]That is exactly the problem. There should be an incentive to work hard to not be poor. Poor should not be a deisrable state. There are so many handouts now that people choose welfare over working because it is easier.[/QUOTE]

    +1

  17. #17
    [QUOTE=southparkcpa;4068707]How about time limits on collecting????? If it were me, I would (and DID) take a minimum wage job. I cleaned offices at night when I got out of college. Literally cleaned toilets.

    I suppose those jobs are not available anymore?[/QUOTE]

    I think people are really missing the argument going on between the two parties. The Democrats aren't now or ever been about the poor. Their constituency is working middle class americans. SS and Medicare are middle class entitlements not entitlements for the poor. The tax cuts by the Democrats went to middle class working families not the poor.

    The poor and the chronic poor aren't represented in Congress or the White House. Neither party cares about the poor.

    I figured this out when I used to live in NYC when there were people begging for change all over the place. People who were entertaining, fairly clean and engaging made tons of money. People who smelled bad, couldn't talk and were an eyesore with just a cup got practically nothing. They were at the mercy of a society that mostly wanted to ignore their exsistence. They are for the most part being taken care of by charity mostly religious but not all.

    When we talk about the power in Washington the redistribution is not rich to poor it is rich to civil servant middle class.

    The debate is not about taking care of the poor a social safety net it is about Socialism vs. Capitalism and which is going to create a wealthier society.
    Last edited by Winstonbiggs; 07-26-2011 at 11:54 AM.

  18. #18
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    [QUOTE=Winstonbiggs;4068732]When we talk about the power in Washington the redistribution is not rich to poor it is rich to civil servant middle class.[/QUOTE]

    If the look at the statistics for the past several decades, the redistribution has actually taken the opposite path: middle class to rich.

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    [QUOTE=southparkcpa;4068707]I suppose those jobs are not available anymore?[/QUOTE]

    Nope. In the interest of saving money for more company golf outings...they all hired illegal aliens at $2/hr to do it. :P

  20. #20
    [QUOTE=parafly;4068737]If the look at the statistics for the past several decades, the redistribution has actually taken the opposite path: middle class to rich.[/QUOTE]

    And surprisingly it has tracked government spending. Maybe you should stop supporting big government?

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