Why is there Wealth Inequality in the Black Community?

Recently there was yet another abysmal article about the terrible conditions Blacks still find themselves in this country.  You can read the article here.

There are a lot of positive things happening in the Black community too. We have to watch these academics who paint a horrible picture of us with skewed stats.

Here is an article I wrote with stats on Black accomplishments from reputable sources: http://kamausquips.blogspot.com/.../discover-7-amazing...

There is a lot of stagnation now in upward mobility noted by these authors because many decent paying jobs Blacks used to rely on have been outsourced to cheaper labor markets in other nations. Also the Black family income even for people with degrees averages $20,000 less a year, a 1.3 million short fall in a life time, and in aggregate at least 10 Trillion dollars collectively within a few decades at 6% compound interest due to racist financial inequities.

But what is most glaring is these stat quote professionals never or ever give solutions. Blacks only spend 7% of our income with each other. If we spent more like 25% we could hire every unemployed Black person in America. Now 1.9 million Black businesses hire over 1 million people. If we would increase out spending to like 25% we could hire millions more and help increase our real estate holdings with more business development in our communities.

Of course these stat quote experts would never offer supporting Black business as an option. It just isn't in their interest. What's in their interest is to demoralize us from being more proactive by filling us with despair.

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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