Wealth gap between whites, minorities widens

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July 26, 2011 4:26 AM Print Text
Wealth gap between whites, minorities widens


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.

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.



http://www.cbsnews.com/stories/2011/07/26/national/main20083321.shtml
 
Hmmm.

113K to the positive, huh?

Also interesting ....

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.
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So, saving and investing is important. You don't say ....

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.
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600K to the good to be in the top ten percent.

Hmmm ....
 

I said it before and I am going to say it again, "blacks have income but no wealth" :shame:
 
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GSU4LIFE said:
someone has to start it, we spend to much. We are consumers that's our issue.
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+1. Consuming the wrong stuff, @ that. I know I'm guilty but have since redeemed my ways. If it can't make me or save me a $$, I don't want it. :tup:

Also, what's also very telling, is the distance that Hispanics are NOW beginning to show when compared w/ blacks. :read: There's a "happening" going on and these little black faces are being left in the dust as the milder-skin tones seek and take advantage of every single opportunity presented to them, educational and work-wise. :read:
 
bernard said:
I said it before and I am going to say it again, "blacks have income but no wealth" :shame:
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We don't read or get in tune with how to save and invest our money. More blacks are making more money now than back in the day. We just waste it or do not understand how to manage it so it can work for us.
 
GSU4LIFE said:
someone has to start it, we spend to much. We are consumers that's our issue.
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We spend a lot but it is a huge help when you don't have to get a student loan, car loan, or save for a down payment for a home. Generational wealth assists hugely in those regards. Most of us have gotten where we have being financially independent of our family.
 
GRAM4LIFE said:
We spend a lot but it is a huge help when you don't have to get a student loan, car loan, or save for a down payment for a home. Generational wealth assists hugely in those regards. Most of us have gotten where we have being financially independent of our family.
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Most white people get student loans, car loans and save for down payment of their homes too. When we talk about the "wealthy", many consider that to be the top 10% and, as the article points out, it only takes around 600K more assets than liabilities to be in that top 10%. 600K is not a lot of money. I can guarantee you that most of those people with 600K or even a million dollars of "wealth" don't feel wealthy. Those people are mostly business owners whose business is worth 600K or more. They are still working hard to make it every day. There are some high wage earners in that group and some good savers and investors in that group, but most of them are small business owners who are on the grind everyday.

The book The Millionaire Next Door does a good job of explain what I just said. However, if you notice, the things that separate people are choices. Choices between putting their money toward things that tend to grow (business, savings and investments, high paying career) rather than things that quickly lose value (cars, clothing, entertainment).

The generational wealth excuse is a crutch. It still comes down to the choices we make.
 
Generational wealth is good but really, how many of us have a saving plan? How many of us here put away at minimum 10%? Realistically, we need around 30% for a decent retirement now. How many of us buy stocks and bonds? How about reinvesting in our schools and taking that tax write off?

Yes, anyone wanting to go to school has loans, y'all KNOW AA's will get a car loan before a student or house loan and what I see is more AAs are calling me to "rent to own" houses for sale. I explain gently, that isn't an option. But because I get at least 10 - 15 calls when I put a sign up, AAs are BEGGING me to take advantage of them instead of saving and getting their credit straight.

Bottom line: We have our financial priorities screwed up. What I see--> CAR 1st; clothes and Nikes shoes 2nd; apartment (not house) 3rd; student loans/house dead last.
 

How do you expect a large saving account when most are struggling to survive day to day. When you have a group of folks that are just now getting the grad rate from high school at 50% in their family, first time generation of college grads, take away that the labor skill jobs in this country are gone that once fueled these families and you have what you have. Living in a glass colored room is good, but you have to step outside of reality and realize everyone didn't get the same opportunity you did. :tup: Ten to Fifteen dollars a hour feeds your family, and puts a roof over their head, every thing else is what it is, a dream. The American dream will only be reached by a few, that is why it is called a dream.
 
chocalate_topaz said:
Generational wealth is good but really, how many of us have a saving plan? How many of us here put away at minimum 10%? Realistically, we need around 30% for a decent retirement now. How many of us buy stocks and bonds? How about reinvesting in our schools and taking that tax write off?

Yes, anyone wanting to go to school has loans, y'all KNOW AA's will get a car loan before a student or house loan and what I see is more AAs are calling me to "rent to own" houses for sale. I explain gently, that isn't an option. But because I get at least 10 - 15 calls when I put a sign up, AAs are BEGGING me to take advantage of them instead of saving and getting their credit straight.

Bottom line: We have our financial priorities screwed up. What I see--> CAR 1st; clothes and Nikes shoes 2nd; apartment (not house) 3rd; student loans/house dead last.
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So true.

I have a house for sale and a house for rent right now. The house for sale is in nearly immaculate condition. Renovated throughout, granite counter tops, wood floors, etc. It's practically a new house. Everyone that has been there says the house is outstanding. The house for rent is an older house. It's been renovated also, but not to the extent of the other house. They are practically the same size. I've probably received 25 - 30 calls on the rent house and 3 - 4 calls on the house for sale. Here's the kicker: The mortgage on the sale house would be about half of what I'm asking for rent. :smh:
 
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SUJagFan said:
Most white people get student loans, car loans and save for down payment of their homes too. When we talk about the "wealthy", many consider that to be the top 10% and, as the article points out, it only takes around 600K more assets than liabilities to be in that top 10%. 600K is not a lot of money. I can guarantee you that most of those people with 600K or even a million dollars of "wealth" don't feel wealthy. Those people are mostly business owners whose business is worth 600K or more. They are still working hard to make it every day. There are some high wage earners in that group and some good savers and investors in that group, but most of them are small business owners who are on the grind everyday.

The book The Millionaire Next Door does a good job of explain what I just said. However, if you notice, the things that separate people are choices. Choices between putting their money toward things that tend to grow (business, savings and investments, high paying career) rather than things that quickly lose value (cars, clothing, entertainment).

The generational wealth excuse is a crutch. It still comes down to the choices we make.
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co-sign.
 
SUJagFan said:
Most white people get student loans, car loans and save for down payment of their homes too. When we talk about the "wealthy", many consider that to be the top 10% and, as the article points out, it only takes around 600K more assets than liabilities to be in that top 10%. 600K is not a lot of money. I can guarantee you that most of those people with 600K or even a million dollars of "wealth" don't feel wealthy. Those people are mostly business owners whose business is worth 600K or more. They are still working hard to make it every day. There are some high wage earners in that group and some good savers and investors in that group, but most of them are small business owners who are on the grind everyday.

The book The Millionaire Next Door does a good job of explain what I just said. However, if you notice, the things that separate people are choices. Choices between putting their money toward things that tend to grow (business, savings and investments, high paying career) rather than things that quickly lose value (cars, clothing, entertainment).

The generational wealth excuse is a crutch. It still comes down to the choices we make.
Click to expand...

That book is what woke me up!
 
SUJagFan said:
Most white people get student loans, car loans and save for down payment of their homes too.
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Yes, they do but not in the volume or percentage in which we have to get them. Financial Aid is the easiest barometer. We as a people have a much higher percentage of need when it comes to financial aid (student loans) than others. Even with buying cars or homes, they put more down and get better percentage rates for various reason that you have alluded.

And, everything in life comes down to choices, generational wealth helps ease those choices. While I do agree, that it is not the only factor or even an overwhelming factor. It does play a role. Most of us are exceptions to the norm in our communities. There is a reason why. Habits are learned.

Also, generational wealth does not mean "wealthy."
 
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CEE DOG said:
How do you expect a large saving account when most are struggling to survive day to day. When you have a group of folks that are just now getting the grad rate from high school at 50% in their family, first time generation of college grads, take away that the labor skill jobs in this country are gone that once fueled these families and you have what you have. Living in a glass colored room is good, but you have to step outside of reality and realize everyone didn't get the same opportunity you did. :tup: Ten to Fifteen dollars a hour feeds your family, and puts a roof over their head, every thing else is what it is, a dream. The American dream will only be reached by a few, that is why it is called a dream.
Click to expand...
"The best way to make a dream come true is to wake up." which anyone can do...

It's not about how much money you make. $10/hr, $20/hr, etc. It's about what you do with that money; financial knowledge.

Give $50K cash to each of these groups today:

1) Young black family
2) Young asian family
3) Young indian family
4) Young mexican family
5) Young white family

And what will happen in 1 year? Some will start a business, some will invest to gain interest, some will purchase real estate, some will pay off all debt and keep the rest, and some will pay cash for an $45k Escalade & $4k rims & last $1k clothes.

You can change the amount from 50k to 500k. Doesn't matter. If you don't know what to do with money you'll never get ahead. Same as the parable in the bible. Other nationalities come over here with 50 cents their pockets and have a successful business within 18 months. Making $10/hr is no excuse.
 
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GRAM4LIFE said:
Yes, they do but not in the volume or percentage in which we have to get them. Financial Aid is the easiest barometer. We as a people have a much higher percentage of need when it comes to financial aid (student loans) than others. Even with buying cars or homes, they put more down and get better percentage rates for various reason that you have alluded.

And, everything in life comes down to choices, generational wealth helps ease those choices. While I do agree, that it is not the only factor or even an overwhelming factor. It does play a role. Most of us are exceptions to the norm in our communities. There is a reason why. Habits are learned.

Also, generational wealth does not mean "wealthy."
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We don't really disagree. Slightly different viewpoints, but we're on the same page.

You're right. Habits are learned.
 
Having said what I said, I know that it is "general" speaking. There are plenty of black people / black families doing great with spending. Regardless of income. And of course there are plenty of other races do wrong with money. Again, I was speaking on what seems to be the "average"
 
You have no reality of everyday life. When you are striving to make it day by day, you give a fuk about the next day. The reality of life is that poor folks can not fathom the next day, because they spend all the have trying to get their kids to the next day for a future. They put their own lives on hold. It is reality, not in a dam text book.
nevaehinvesting said:
"The best way to make a dream come true is to wake up." which anyone can do...

It's not about how much money you make. $10/hr, $20/hr, etc. It's about what you do with that money; financial knowledge.

Give $50K cash to each of these groups today:

1) Young black family
2) Young asian family
3) Young indian family
4) Young mexican family
5) Young white family

And what will happen in 1 year? Some will start a business, some will invest to gain interest, some will purchase real estate, some will pay off all debt and keep the rest, and some will pay cash for an $45k Escalade & $4k rims & last $1k clothes.

You can change the amount from 50k to 500k. Doesn't matter. If you don't know what to do with money you'll never get ahead. Same as the parable in the bible. Other nationalities come over here with 50 cents their pockets and have a successful business within 18 months. Making $10/hr is no excuse.
Click to expand...
 
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