HERE’S HOW HORRIBLE THE LOSS IN BLACK WEALTH HAS BEEN SINCE 2009

By Simi Afroza Mira
When the recession hit, everyone from every race was affected financially, but it seems that white people are making a better recovery than blacks and Hispanics. Due to the outcomes from this recovery, the gap of wealth between whites and other ethnic groups is widening.

Results of Research
According to a report released by Pew Research Center, the median white household income had gone up to $141,900 in 2013; which is 2.4% higher than it was three years prior. Black households net worth had taken a dip to $11,000 which was a one-third decrease. Hispanic households had dropped to a net worth of $13,700 giving them a 14% decrease.
It hasn’t been since 1989 when George W. Bush was in office that whites had such a substantial gap between them and blacks financially. It now stands at 13 times more. The gap between whites and Hispanics hasn’t been this large since 2001. It now stands at 10 times than what it was before.

White/Black Inequality Statistics
In between 2010 and 2013, the median income of minority households fell a whopping 9%. During the same time period it is reported that white households median income only dropped a mere 1%. With this being the case, minority households may not have been able to put money into savings or may have had to spend their savings to cover living expenses. Either one of those options could cause a drop in net worth.
Another aspect that could be having an effect on the gap is that the financial markets have made a larger margin comeback than the housing market and in a lot of instances white tend to own stock. This could also contribute to the large gap between the races.

Real Estate Effects
A big chunk of both black and Hispanic wealth relies on the amount of real estate holdings. During the years between 2010 and 2013 there was a sharp decline in the ownership of real estate among blacks and Hispanics. It was estimated that approximately 47.4% of minorities own homes while, 73.9% of whites are home owners. Without having real estate holdings, ones net worth is sure to drop drastically.

Overall Gap Concealed
Finding the true inequalities between whites and the minorities takes some time and research because when looking at the overall national wealth median it gets covered up. The reason for the cover up is:
For ALL households the median income dropped to $82,300
The income decline from last year to this year in white households is only 1.1%
More rental properties are being put on the overall real estate market
The matter of the wealth gap needs to be addressed and a solution needs to be found for the inequalities amongst racial groups.