Study: Wealth Gap Between Blacks, Whites Quadrupled
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A disturbing new study shows African American families have fewer economic resources to fall back on during this economic crisis than do white families, mainly due to discrimination and tax policies that favor the rich.
The study by the Institute on Assets and Social Policy at Brandeis University reveals that the wealth gap between blacks and whites has more than quadrupled over the course of a generation from $20,000 to $95,000. The researchers studied the same set of families over 23 years (1984-2007) and found that white families were able to build assets-what you own minus what you owe, excluding home equity-while blacks essentially lost assets. In fact, a typical white family is now five times richer than its African-American counterpart of the same class.
That means blacks had little or no money to start businesses, send children to college or ensure a secure retirement, the authors say. In fact, because many low-wealth families are forced to turn to high-interest rate credit for emergencies, about 25 percent of all African Americans owe more than they own. Read the entire study here.
