Why are Blacks Still a Lot Less Wealthy than Whites?

According to an article on the CNN Money website the net worth of whites is 13 times the net worth of Black families.  For instance white net worth in the economic recovery rebounded to an medium of $141,900 while in contrast the net worth of a Black family was down 33% to only $11,000 (BTW Hispanic/Latino family net worth was down 14% to $13,700).

The source for the stats in the CNN Money article was the respected Pew Center for Research.  The CNN article also gave opines on why there is such a wealth discrepancy...

"Minority households' median income fell 9% between 2010 and 2013, compared to a drop of only 1% for whites. So minority households may not have been able to sock away as much or may have had to use more of their savings to cover expenses.

Also, the financial markets have rebounded much more than housing in recent years. Since whites are more likely to own stocks, they have seen a bigger wealth boost.

Real estate, on the other hand, makes up a big chunk of blacks' and Hispanics' net worth. But homeownership declined faster among minorities than whites between 2010 and 2013.

Only 47.4% of minorities were homeowners in last year. But 73.9% of whites owned homes." 

Therefore Black family net worth is far less than white families. That is net worth not income.   One of the reasons our net worth is far behind is we are paid much less.

The average Black Family makes $20,000 less than white family. And it isn't all because of education.

Recently a study showed a Black man with a BA is only as employable as a white high school graduate. If you do the math $20,000 less a year over a 40 year work career at 6% compound interest is 1.3 million dollars Black families financial shortfall.

Therefore, most Black families don't have the money to invest in assets to improve their net worth. They're having a hard time just paying necessities to survive.  Contrary to what most people believe Black families aren't overwhelmingly buying Jordans for their children.

Or they may get last years styles at a mark down. They're all not paying $300 for Jordans.

Latinos and Asians have more net worth than Blacks because they invest in businesses while Blacks have been conditioned/socialized to seek good employment. It is hard to get ahead and get assets to increase your net worth when you work a job as your primary source of income.

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