Distribution Of Wealth Worsens For Minorities

A post by the Pew Research Center based on the Federal Reserve's Survey of Consumer Finances stated that minorities were falling further behind whites in net worth:

  • the median net worth of white households in 2013 was $141,900, about 13 times that of black households at $11,000“;
  • the median net worth of white households [in 2007] was $192,500, or 10 times that of black households at $19,200“.
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    There is no dispute that the data is showing a growing wealth gap, but it flies in the face of what should be improving metrics for wealth generation for minorities.

    Levels

    There has been improving metrics for employment of minorities. The graph below indexed the employment levels  to the beginning of the 2007 recession. It is white people who have not recovered employment – whilst African American and Hispanics have. 

    Index of Employment Levels (from the BLS Household Survey) – Hispanic (blue line), African American (red line), and White (green line)

    However, population growth is different for each racial group. Here is a look at net worth to population ratios which shows NO group has recovered from the Great Recession – but each minority group has done as well or better than whites:

    Employment / Population Ratios (from the BLS Household Survey) – Hispanic (blue line), African American (red line), and White (green line)

    To more clearly show this point, here is the same data indexed indexed to the beginning of the 2007 recession:

    Still, as each minority group in relative employment levels is equal to or better than whites, it is not job growth which is causing the growing wealth gap. 

    Mean by Race

    The Pew study states in part:

    According to the Federal Reserve data, the median income of minority households fell 9 percent from 2010 to 2013, compared with 1 percent for whites. 

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