While the nation is fixated on a debt ceiling standstill, the number one issue on the minds of Americans -- jobs -- has largely been ignored. But in addition to experiencing the worst economic downfall since the Great Depression, we are now also officially witnessing the largest ethnic wealth disparity in decades. For those who claim we are in some sort of 'post-racial' society, I have news for you: we are anything but.
The Pew Research Center just released a startling and sobering new study stating that the median wealth of White households is now 20 times that of Black households, and 18 times that of Latino households. The data, gathered from 2005-2009, indicates that a typical Black household had just $5,677 in wealth (assets minus debts), while the average Latino household had $6,325, and the ordinary White household had $113,149. And about one-third of all Black and Latino households had zero or negative net worth in 2009 alone.
These horrific stats must be an immediate wake up call for everyone. When this racial wealth gap is the highest it has ever been since the government began tracking such information, we are not progressing, but rather regressing. If the notion of the proverbial American dream constitutes home ownership, how can people of color be making advancements if they are losing their houses in catastrophic numbers? According to the Pew study, the median level of home equity held by Latinos declined by half from '05-'09. While predatory lenders targeted the most vulnerable in the years prior to the recession, these families are now suffering under the biggest virtual land grab against Blacks and Latinos we have ever witnessed.
Consistently on the forefront of social justice and civil rights issues, we at National Action Network can think of no greater time than the present to convene and address many of these challenges at our annual march in Washington, D.C. on August 27th. Paying homage to the legacy of Dr. Martin Luther King Jr., we will gather, rally and march for jobs, education, non-violence, equality across the board and our collective future. From the emancipator (Abraham Lincoln) to the liberator (Dr. King), we recognize our advancement, but as this Pew study so distinctly highlights, we have much work that remains before us.
Despite what many economists may have us believe, the poor and working-class are still struggling to gain employment, provide food and clothing for their children, maintain a roof over their heads and afford health care. And now there is no question that Blacks and Latinos are lagging generations behind Whites when it comes to wealth. When Whites are more likely to invest in stocks, they are more likely to sustain themselves as the market improves. But when people of color had invested in homes, they were the first ones to lose that equity -- hence unable to pass on wealth to their children as well.
It's a vicious pandemic that is likely far greater than even what we know since the Pew study only included data up until 2009. As the nation still reels under the Great Recession, Blacks and Latinos in general are now worse off than they were decades prior. Yes, we may finally have a Black President and some Black/Latino CEOs, but if the masses are left in the mire of despair, then we cannot and will not remain silent.
Join us on August 27th in Washington as we ring our voices in unison for social and economic justice.
Follow Rev. Al Sharpton on Twitter: www.twitter.com/TheRevAl
Dr. David P. Gushee: The Debt Crisis and Our National Character
Racial and Ethnic Differences in Wealth and Asset Choices
Housing and wealth inequality: racial-ethnic differences in home ...
Study Shows Racial Wealth Gap Grows Wider : NPR
Study: Racial wealth gap biggest ever - Reid J. Epstein - POLITICO.com
The African American & Hispanic communities can break the stronghold of lack & poverty. Financial literacy will empower us. Stop depending on others to help you to become financially independent. God has given us to power to get wealth - entreprenuership.
Obama is the first supposedly, black president... He had to get a lot of white vores to do it. Obama has proved himself to be more of a liar and more for Corporations and Special Interest Groups than Bush... Now we have Black citrizens that don't trust white or black politicians... and a lot of whites that will never vote for another black... tension have been rising, of course the gap is going to get bigger... it's part of Obama's plan... seperate and confuse, get the people to fight amoungst themselves.... while he pulls a fast one, behind their backs.... Just as he has been doing.
US private unions are not the problem. The problem is unbalanced trade. Free trade means the trading partners buy from each other goods and services in return from each other. One party may have more oil or cheap labor and the other party may have better technology. The problem with the US trade is that our trade partners don't buy return US goods and services with the US dollars. They instead buy US Treasurries and extract more US dollars from investment in the US rather than buying US goods or services
In other words, free trade is harmful to the country with unfavorable trade balances like the US workers that their livable wage jobs. .
BTW, why didn't you include Asians? Hint: it wouldn't fit your money making narrative.
I'll offer one.
Non-Whites need to improve their financial and wealth building skills and start looking to build wealth from generation to generation.
For the poor, pool your resources and stop spending everything you earn. Each family has to look at their house and determine the best strategy to consistently break even and avoid the need to borrow. If your income doesn't cut it, merge houses with others in a similar state but are willing to work at improving over time. Pool funds and ensure things are paid on time. Keep expenses in check, budget and plan. Maintain your cars before they break down. Eventually you'll have more and more over time.
When that happens, SAVE IT!!!! Put in an account or CD and leave it alone. Add to it as more comes in. As you get good with that, start looking at entering the stock market.
Sharebuilder...beautiful thing. Don't need alot of money to start but your foot is in the door. purchase companies that you know and learn what make their stocks rise and fall. Start a 401K or Roth IRA and don't cash it out. Let it build.
If people want wealth...do what the wealthy do..they study, save and invest. It will take time, it's not quick but if you are disciplined, your grandkids will kiss your picture.
"These horrific stats must be an immediate wake up call for everyone." - I knew it was bad, but this is ridiculous! It is worse than I even thought.
Racism and bigotry is very much alive in America, even now in the 21st century!
And it is permeated throughout corporate America, in the stodgy corporate boardrooms.
How can mankind progress with so many dinosaurs holding us back?
We should begin a national program to retire all the old dinosaurs and replace them with members of a new generation.
Also, you used the worthless and VERY misleading "household income" stat. Time to educate yourself "reverend": http://www.youtube.com/watch?v=WrtoSx-NbLQ&feature=youtube_gdata_player
First of all, there is definitely a gap in the wealth, income and all economic indicators between ethnicities. But pointing this out does no good without also suggesting a solution....
Failing a solution, concentrating on the ethnic disparity is a dangerous waste of time; because it distracts from the far greater issue - the economic disparity that exists in the country regardless of ethnicity.
One only values what one has earned in their own right -
just ask any rent-a-car business - or anyone that owns rent houses - or any rent to own business -
it is a known fact that freebies only create a demand for more -
My parents worked hard to give me my inheritance - I have worked hard to maintain it -- to give it to my grand daughters - why should I be forced to give it to someone that did not work for it ?