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View Diary: Wealth gap along racial lines worst in quarter-century since Census began collecting data (72 comments)

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  •  The black/white wage gap is around 20% (1+ / 0-)
    Recommended by:
    phonegery

    It's pretty shocking to see so much disparity in the wealth gap, when the wage gap is ~20%:
    http://www.bls.gov/...

    How does a 20% wage gap translate into a 2000% wealth gap. That's what we need to understand here.

    •  Easy. That extra 20% can (2+ / 0-)
      Recommended by:
      shanikka, davidincleveland

      be parlayed into lower taxes which turns into 25%+ more income.  And that extra income isn't essential to meeting basic living expenses and can be saved/invested.  And savings/investments grow.  

    •  many rich white folks don't have jobs (0+ / 0-)

      They live on stock dividends, money interest, bond payments--things the IRS calls, with wonderful honesty, "unearned income".  They don't NEED jobs, dahling.

      That is why the upper crust has always held a higher proportion of total wealth than of total job income.

      •  That is true enough. However we are looking at (0+ / 0-)

        median wealth, not average wealth. The median wealth would not be skewed too much by the top 0.5% living on investments.

        I think we also need to look at inheritance. Maybe white people simpy inherit substantially more from their parents/ grandparents etc. A lot of middle class whites do inherit substantial amounts from their parents. Whereas most middle class blacks are in fact the first in their family to even be in the middle class.

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