Skip to main content

For decades, Latinos and African Americans had been narrowing the wealth gap between themselves and white Americans. But, according to a new analysis of Census data, the Great Recession has wiped out those gains. According to the Social & Demographic Trends sector at the Pew Research Center, the median net worth of white households is now 20 times that of blacks and 18 times that of Latinos. The crash of the housing market and its continuing malaise are responsible for much of the disparity.

The wealth gap is now the widest it has been since 1984, when the Census Bureau began collecting such data. In 1995, the year the wealth gap was the narrowest, the wealth ratio for whites and African Americans as well as whites and Latinos was 7 to 1.

The data were taken from the 2009 Survey of Income and Program Participation, a questionnaire which the Census Bureau distributes periodically to tens of thousands of households. In this instance, 36,000 households participated.

The Pew Research analysis finds that, in percentage terms, the bursting of the housing market bubble in 2006 and the recession that followed from late 2007 to mid-2009 took a far greater toll on the wealth of minorities than whites. From 2005 to 2009, inflation-adjusted median wealth fell by 66% among Hispanic households and 53% among black households, compared with just 16% among white households.

As a result of these declines, the typical black household had just $5,677 in wealth (assets minus debts) in 2009; the typical Hispanic household had $6,325 in wealth; and the typical white household had $113,149.

Moreover, about a third of black (35%) and Hispanic (31%) households had zero or negative net worth in 2009, compared with 15% of white households. In 2005, the comparable shares had been 29% for blacks, 23% for Hispanics and 11% for whites.

Much of the disparity derives from the fact that the net worth of African American and Latino households depends more on their primary asset, their home, than does that of white households. The housing boom that began more than a decade ago lifted the net worth of minority home owners as prices rose. The boom also boosted the median wealth of Latinos because they are disproportionately employed in the construction industry that was building all those new houses. The bust had the opposite effect. Not only have housing prices continued to fall, but the crippled construction industry lost nearly 2 million jobs.

Although the net worth of white households was also affected by what’s happening in the housing market, they were more likely to have assets in 401k, Keogh and savings accounts, as well as stock holdings. For 2009, these assets made up 28 percent of whites' net worth, compared with 19 percent for blacks and 15 percent for Hispanics. Since then, while housing has continued its downward spiral, the stock market has risen significantly, which means the wealth gap may now be larger than it was in the period the Census data covers.

Hope Yen reported:

"I am afraid that this pushes us back to what the Kerner Commission characterized as 'two societies, separate and unequal,'" said Roderick Harrison, a former chief of racial statistics at the Census Bureau, referring to the 1960s presidential commission that examined U.S. race relations. "The great difference is that the second society has now become both black and Hispanic." …

"Typically in recessions, minorities suffer from being last hired and first fired. They are likely to lose jobs more rapidly at the beginning of the recession, and are far slower to gain jobs as the economy recovers," said Harrison, who is now a sociologist at Howard University. "One suspects that blacks who lost jobs in the recession, or who have tried to help family members or relatives who did, have now spent whatever savings or other cashable assets they had."

While the recession worsened the wealth gap, the trend has been headed in that direction for a long time. A study conducted in 2007 by the Institute on Assets and Social Policy found that middle-income whites had less wealth than high-income African Americans in 1984, but by 2007 they had accumulated four times as much wealth. Tom Shapiro noted that this period coincided with lower tax rates for more affluent Americans. That has been one of the main contributors to the wealth and income inequality that now plagues the United States in a ratio that is—or should be—more akin to banana republics than mature industrialized nations.

Currently 1 percent of the population owns 40 percent of the wealth and 25 percent owns 87 percent. During the so-called “recovery” from the recession, which officially ended 25 months ago, 88 percent of the rise in income has been captured by corporate profits, while only 1 percent has gone to wage-and-salary earners. That kind of income disparity adds to the gap in a country where wealth is already distributed more unequally than anywhere else in the developed world.

Given the attitude toward cutting taxes on "job creators" now prevalent in Washington, there’s every reason to believe this situation will worsen.

Originally posted to Meteor Blades on Tue Jul 26, 2011 at 08:44 AM PDT.

Also republished by Daily Kos.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Not surprising (14+ / 0-)

    The Republican economic plans are based on class, not race, but accumulated wealth aligns with race, and so any policy which is designed to benefit the rentier class will disproportionately harm non-whites.


    In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra

    by blue aardvark on Tue Jul 26, 2011 at 08:47:23 AM PDT

    •  Krugman on how to deal with rentiers (8+ / 0-)


      In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra

      by blue aardvark on Tue Jul 26, 2011 at 08:50:10 AM PDT

      [ Parent ]

    •  I am surpised (6+ / 0-)

      not by the trends or the pattern, since minorities get the short end of every stick in America (actually most places) but I am absolutely stunned by the magnitude of it.  $5600 v $113,000?   I have read a lot of things on dailykos that have made me mad or upset, but this brings on tears or despair.  What the fuck do we have to do to make things right here in this country?  How?  Is it even possible?

      Intelligent, passionate, perceptive people will always disagree, but we should not let that disagreement, however heartfelt, lead us to become deaf to those better angels of our nature.

      by Mindful Nature on Tue Jul 26, 2011 at 06:37:10 PM PDT

      [ Parent ]

      •  It's not going to look equal, but the first thing (1+ / 0-)
        Recommended by:
        blue aardvark

        I thought when I heard this on the radio is that 113K number for whites is an overall average.

        A normalized average would be much more useful for comparison. In other words, outside of the top 2-5% of income level, how do the numbers compare?

        Non-whites making less than 66 % of the mean overall income for all incomes are going to look closer in income to whites. There will still be a disturbing difference, but nothing like the graphs shown above.

        •  actually, it was medians I think (2+ / 0-)
          Recommended by:
          blue aardvark, zapus

          which is to say that 50% of whites have mroe, 50% have less.

          Also in that study, 1/3 of all blacks and latinos have zero or negative net worth...

          but I think this impulse to look more deeply at the numbers is important.

          Intelligent, passionate, perceptive people will always disagree, but we should not let that disagreement, however heartfelt, lead us to become deaf to those better angels of our nature.

          by Mindful Nature on Tue Jul 26, 2011 at 10:25:47 PM PDT

          [ Parent ]

  •  These are numbers (11+ / 0-)

    you'd expect to see in South Africa. It will be interesting to see how this plays out as the US becomes dramatically less white over the coming decades.

    If the fall of the house of Murdoch is a tragedy, it is the feel-good tragedy of the century-James Wolcot

    by beltane on Tue Jul 26, 2011 at 08:56:37 AM PDT

    •  Why? They've Always Been Seen in the US. (6+ / 0-)

      We never brought minorities to economic parity, never anywhere close.

      The widening gap is of course a further tragedy, but it's not like the white middle class which has been sliding down for 40 years from a very comfortable peak.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Tue Jul 26, 2011 at 09:29:22 AM PDT

      [ Parent ]

      •  Well, in 2030, when the top 1% is white (7+ / 0-)

        and the bottom 60% is not-white, and is excluded from the political process through voter suppression, etc.,  the conditions will be perfect for a Cuban-style revolution. Our oligarchs are no more immune to the forces of history than all the other "invincible" tyrants that preceded them.

        The forces that caused Ayn Rand to flee Russia may one day cause her worshippers to be booted from the USA.

        If the fall of the house of Murdoch is a tragedy, it is the feel-good tragedy of the century-James Wolcot

        by beltane on Tue Jul 26, 2011 at 09:37:23 AM PDT

        [ Parent ]

    •  As the income and wealth inequality (1+ / 0-)
      Recommended by:
      davidincleveland

      has been increasing for decades, it's a safe bet (assuming the people don't revolt) that there will simply be larger percentages of poor whites and non-whites.  

    •  I wonder what the number are in CA (2+ / 0-)
      Recommended by:
      mightymouse, davidincleveland

      we have been majority minority for a while and I'd bet with even more disparity.  No revolution here yet.  Just more bullshit tax cutting and constitutional amendments to scree things up. (you know that cut cap and balance business?  California already has most of that in place.  If it passes the Congress, move to Canada or wherever you can)

      Intelligent, passionate, perceptive people will always disagree, but we should not let that disagreement, however heartfelt, lead us to become deaf to those better angels of our nature.

      by Mindful Nature on Tue Jul 26, 2011 at 06:40:25 PM PDT

      [ Parent ]

  •  This is a terrible trend. All that wealth captured (11+ / 0-)

    by corporate profits isn't being invested. It's just being hoarded.
    This is a long episode of Hoarders on a grand scale. It has crushed, and will continue to crush, the vast majority of Americans. This economy is so completely unsustainable in so many ways...it will crash and airbags will not deploy.

    -4.38, -7.64 Voyager 1: proof that what goes up never comes down.

    by pat bunny on Tue Jul 26, 2011 at 09:15:07 AM PDT

  •  class warfare (16+ / 0-)

    is also race warfare. but don't call it either, or the villagers will say it's you waging both.

    The cold passion for truth hunts in no pack. -Robinson Jeffers

    by Laurence Lewis on Tue Jul 26, 2011 at 09:22:24 AM PDT

  •  One step forward... (5+ / 0-)

    Five steps back.
    Incredibly frustrating stuff.

    “Sometimes, the most reasonable thing in the legislative process is to be unreasonable.” Mike Pence, R-Ind., on negotiating with the democrats.

    by dclawyer06 on Tue Jul 26, 2011 at 09:28:01 AM PDT

  •  I heard this this morning; (3+ / 0-)
    Recommended by:
    TomP, Kinak, davidincleveland

    It's disgusting how the poor, and minorities', gains have been erased for the past 30 years.

    "Look at this; I'm a coward too; You don't need to hide, my friend; For I'm just like you" - Monster/Sprite (Scary Monsters and Nice Sprites - Skrillex)

    by AZ Independent on Tue Jul 26, 2011 at 09:28:06 AM PDT

  •  Minorities Turning Out in Droves fr Dems 2012 (5+ / 0-)

    once we get Medicare and Medcaid cut down to size for them.

    Image Hosted by ImageShack.us

    Or maybe not.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Tue Jul 26, 2011 at 09:30:55 AM PDT

  •  Excellent MB. (2+ / 0-)
    Recommended by:
    mightymouse, davidincleveland

    I wrote on this ealier today, but yours is much better.  Glad you did so.

    The American people must wise up and rise up!

    by TomP on Tue Jul 26, 2011 at 09:50:09 AM PDT

  •  I don't find this surprising (1+ / 0-)
    Recommended by:
    penguins4peace

    When you consider the demographics. Just do the math:

    Subtract the disadvantaged, dividing and conquering them.

    Then take the remaining fraction multiplying their incomes by privilege and compounding their excess weath daily.

    What do you get?

    What about my Daughter's future?

    by koNko on Tue Jul 26, 2011 at 10:01:19 AM PDT

  •  Classic divide and conquer (5+ / 0-)

    Except for the top 1% the rest of us are in a miserable financial situation.
    ..But we're divided over illusions of our miserable situation not being as bad as the other guys.

    Make no mistake about it 90% of the population is only a few pay checks away from complete financial collapse.

  •  In the 90s I liked seeing (4+ / 0-)

    a prosperous and apparently growing black middle class.  Even in Albuquerque, where black folks are  relatively few.  

    But I suspect you have to grow the WHOLE middle class in order to grow the black middle class.

    As real wages shrink and prosperity slips ever further from our grasp, there's a "last in, first out" phenomenon.  Can't be good.  

    "The extinction of the human race will come from its inability to EMOTIONALLY comprehend the exponential function." -- Edward Teller

    by lgmcp on Tue Jul 26, 2011 at 10:16:34 AM PDT

  •  What's also interesting (1+ / 0-)
    Recommended by:
    Kinak

    is to compare this information with the findings of Ellis Cose.

    As the United States struggles through its worst economic crisis in generations, gloom has seized much of the heartland. The optimism that came so easily to many Americans as the new century dawned is significantly harder to summon these days. There is, however, a conspicuous exception: African-Americans, long accustomed to frustration in their pursuit of opportunity and respect, are amazingly upbeat, consistently astounding pollsters with their hopefulness. Earlier this year, when a Washington Post–Kaiser–-Harvard poll asked respondents whether they expected their children’s standard of living to be better or worse than their own, 60 percent of blacks chose “better,” compared with only 36 percent of whites.

    Numerous previous polls found the same cheerful confidence. On the eve of President Barack Obama’s inauguration, 69 percent of black respondents told CNN pollsters that Martin Luther King’s vision had been “fulfilled.” Nearly two years later, as America prepared for the 2010 midterm elections, blacks shared little of the disenchantment that had overtaken many whites. African-Americans were more likely than whites to say that the economy was sound, found CBS News. And nearly half (compared with 16 percent of whites) thought America’s next generation would be better off.

    Over the past few years, pollsters repeatedly have corroborated the phenomenon. Whereas whites are glum, blacks are upbeat—which is remarkable since the economic crisis has hit African-Americans with particularly brutal force. Employment among black men, for instance, has dropped to an all-time low. When I asked Harvard Business School professor David Thomas about the CNN poll, he laughed. “It’s irrational exuberance,” he said.

    I don't share that to in any way discount the tragedy of the news this diary highlights. But before we assume how this flies in the Black community and start running with it - I suggest we listen a little deeper.

    •  Check out the latest ABC/Washington Post... (6+ / 0-)

      ...poll on the economy:

      The Post-ABC poll found that the number of liberal Democrats who strongly support Obama’s record on jobs plunged 22 points from 53 percent last year to 31 percent. The number of African Americans who believe the president’s actions have helped the economy has dropped from 77 percent in October to just over half of those surveyed.

      That is a stunning drop among African Americans.

      Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

      by Meteor Blades on Tue Jul 26, 2011 at 10:32:51 AM PDT

      [ Parent ]

      •  You miss my point (0+ / 0-)

        if you think I brought in that quote to say anything about President Obama.

        I simply wanted to make the point that we can't make assumptions about what African Americans are thinking based on one piece of data. I've seen a lot of people doing that around here lately.

        I'd be much more interested in polling about whether or not there's been any change in optimism amongst African Americans. I think President Obama was only a small contributor to that. Its actually a much bigger dynamic that Cose is writing about.

      •  Why is it stunning, in light of the stats you (0+ / 0-)

        posted?

        “Do not think that I came to bring peace on Earth; I did not come to bring peace, but a sword. For I came to set a man against his father, and a daughter against her mother, and a daughter-in-law against her mother-in-law." - Jesus

        by Jose Bidenio on Tue Jul 26, 2011 at 07:01:50 PM PDT

        [ Parent ]

        •  It's a 50% drop in nine months... (3+ / 0-)
          Recommended by:
          shanikka, davidincleveland, navajo

          ...in a demographic that has shown very little movement in positive views expressed about the president on every issue. We don't know what it means, or whether other polls will show the same shift, but it is certainly worth paying attention to.

          Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

          by Meteor Blades on Tue Jul 26, 2011 at 07:12:16 PM PDT

          [ Parent ]

          •  It just doesn't stun me that AAs could become (0+ / 0-)

            disenchanted with this President.

            “Do not think that I came to bring peace on Earth; I did not come to bring peace, but a sword. For I came to set a man against his father, and a daughter against her mother, and a daughter-in-law against her mother-in-law." - Jesus

            by Jose Bidenio on Tue Jul 26, 2011 at 07:20:31 PM PDT

            [ Parent ]

    •  I have to wonder if some of that (0+ / 0-)

      was due to a lower rate of home ownership - though African American homeowners were hit particularly hard, fewer were homeowners to begin with.  The stat still doesn't seem to match reality, but if you weren't crushed by the housing crisis,  it's easier to see the path forward, even for someone who rents a modest place and has a modest income.

      •  Much of Cose's work (1+ / 0-)
        Recommended by:
        decembersue

        that is quoted later in that article is about generational shifts in the perspective of African Americans. Its much more longitudinal than a snapshot of our current economy or the occupant of the White House.

        But you're right. My work is mostly with African Americans who are living in poverty. The current recession didn't really affect them. Its like many in the rest of the world finally joined a status they have become accustomed to. They never had much faith in the American Dream to begin with. "Justice and liberty for all" is something that has never rung true for them.

        These are the kinds of lenses we need to think about before we go jumping to conclusions about the reactions of African Americans to the current situation.  

  •  This is classic MSM misdirection... (1+ / 0-)
    Recommended by:
    phonegery

    It's a class war, pure and simple, and we're losing.  The wealth disparity is greater among all ethnicities than ever before.  This is a clear attempt at establishing friction along race lines to disassociate natural allies - the poor and working classes of all ethnicity.  It's trying to build resentments that take the steam out of the obvious ongoing class war.  Same as Dem/Rethug, same as all "social issues" voters/moral majority b.s.  The more we quarrel amongst ourselves, the more easy the outright thievery becomes.

  •  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.

  •  25 percent owns 87 percent of the wealth. (7+ / 0-)

    This says it all IMO. The remnants of the white middle class are an illusion. They're all on the edge of collapse just like everyone else, but they refuse to see themselves in the same position as those "others" i.e. people like me (poor and white) or impoverished minority groups. The Republicans have done a great job in dividing people who should be united. There's an upper class rich beyond our imagination, an upper middle class that gets their scraps, and the rest of us who fight over 13%.

    O sistema faz o povo lutar contra o povo, mas na verdade o nosso inimigo é outro. O inimigo usa terno e gravata, mas ao contrário a gente aqui é que se mata, através do álcool, através da droga.

    by bozepravde15 on Tue Jul 26, 2011 at 10:22:06 AM PDT

  •  This is stunning: (6+ / 0-)
    During the so-called “recovery” from the recession, which officially ended 25 months ago, 88 percent of the rise in income has been captured by corporate profits, while only 1 percent has gone to wage-and-salary earners.

    The average voter knows he or she is hurting, but doesn't know these kinds of stats, or recognize the degree of oligarchy that they represent.  

    THe most crippling thing going on in this country, I think, is the passivity and conservative bias of the corporate media, which is keeping the people ignorant.

    In addiiton, I knew that the recession would hurt the African American and Latino communities disproporitonately, but I had no idea it was this bad.  That 2009 graph at the top of the diary is ugly as sin.

    Where do we even start to respond to this? What policy changes would help?  Jobs, jobs, jobs -- yeah, that's the key.  Anything else?

  •  I wonder what it would look like (0+ / 0-)

    if the top 1% or 2% were taken out of the statistic?

    When shit happens, you get fertilized.

    by ramara on Tue Jul 26, 2011 at 12:16:55 PM PDT

  •  This shouldn't be that outrageous (0+ / 0-)

    In the sense that we aren't seeing new data here.

    The changes across demographiocs between 2005 and 2009 reflect the fact that financially better off households have the time and resources to better insulate themselves against economic fluctuations.  Those families with 6 figure net worth probably have savings, investment vehicles and insurance.  A household worth 6k is probably living paycheck to paycheck.

  •  Oddly and sadly enough (2+ / 0-)
    Recommended by:
    allie123, davidincleveland

    I heard a report of these statistics on BBC yesterday.  Our media (and I don't mean here) doesn't really care, methinks (other than mercurynews).  

    We have major distinctions since the Great Depression since African Americans weren't deemed part of the calculations since they were already in abject poverty for the most part.  Other ethnic groups weren't on the radar (because they didn't have radar).  

    Greatest nation in the world.  I support the President, but even I cringe when he says that phrase.

    Vi er alle norske " My faith in the Constitution is whole; it is complete; it is total." Barbara Jordan, 1974

    by gchaucer2 on Tue Jul 26, 2011 at 06:29:28 PM PDT

  •  This is what Post-Racial looks like (1+ / 0-)
    Recommended by:
    davidincleveland

    I am scared to look at school and prison statistics. Depressing.

    Currently 1 percent of the population owns 40 percent of the wealth and 25 percent owns 87 percent. During the so-called “recovery” from the recession, which officially ended 25 months ago, 88 percent of the rise in income has been captured by corporate profits, while only 1 percent has gone to wage-and-salary earners.

    That say's it all.

    "IJDH provides the tools for people who care about Haiti to make a real difference on the ground."-- Bishop Thomas Gumbleton

    by allie123 on Tue Jul 26, 2011 at 06:30:07 PM PDT

  •  Ya because this is obviously (0+ / 0-)

    clearly a race issue.

    You chose to deal with percentages omgz white people now have 7 times person XYZ.

    So let me get this strait

    The absolute difference  in net worth went down between Hispanics and Whites
    The absolute difference  in net worth went down between Blacks and  Whites
    Whites  have lost twice as much net worth as Hispanics
    Whites  have lost three times as much net worth as blacks.

    But you chose the one single metric (with these numbers) which makes it seem like white people are gaining ground and oppressing everyone else.

    I am not saying its not reasonable to deal with the percentages. But this clearly is one of those situations where people are seeing what they want to see.

    To me it looks like the wealth gap has gone down NOT up! But I would not want to make a strong argument as like you said the percentages have indicated that minorities have lost a great % of their wealth.

    The fact of the matter is this is data which should be studied and good information can be gained from it but should not be used to announce that "Wealth gap along racial lines worst in quarter-century" which misleading at best and really over simplified.

  •  BLAME (1+ / 0-)
    Recommended by:
    decembersue

    The blame for any income gap in wealth is because educators in urban settings aren’t giving children the tools to become wealthy so how about we:

    Talk away all job protections for teachers, link their income to student standardized test scores, reduce their terms of employment to indentured servitude, blame this whole situation on “making excuses”…….

    Oops, I thought I was one of the anti-teacher dupes on here for a second.

    On a serious note, we need to double or triple down the funding we give to programs, including education, that aid the poor of this nation. Not get into blaming and punishing the hard working teachers, social workers, firefighters, city council members, etc. that work their rear ends off to help people every day.

  •  Something to remember when considering (1+ / 0-)
    Recommended by:
    zapus

    jobs, pay, and what our priorities are in these United States. I'd assume if you took out the top 1% the numbers would close quite a bit.

    "Don't fall or we both go." Derek Hersey 1957-1993

    by ban nock on Tue Jul 26, 2011 at 06:39:24 PM PDT

  •  Reading the comments, is not encouraging (4+ / 0-)

    So many people are defensive. It is not a contest between class and race--It is however a fact that we need to understand the role of both in maintaining our current unfair and unjust economic system.

    The Black Jacobins: a Class Analysis of Revolution:

    The race question is subsidiary to the class question in politics, and to think of imperialism in terms of race is disastrous. But to neglect the racial factor as merely incidental is an error only less grave than to make it fundamental. (283)

    "IJDH provides the tools for people who care about Haiti to make a real difference on the ground."-- Bishop Thomas Gumbleton

    by allie123 on Tue Jul 26, 2011 at 06:40:23 PM PDT

    •  And from the Reuter's site (0+ / 0-)

      we get these insightful comments:

      Bear589 wrote:
      I’ll be sure to file this in my Data Bank Of Useless Knowledge.

      Jul 26, 2011 3:04pm EDT  --  Report as abuse
      ConradU812 wrote:
      Thanks Reuters. I suppose the whites are, once again, responsible for this disparity?

      Jul 26, 2011 3:06pm EDT  --  Report as abuse
      CadronBoy wrote:
      And yet another “record” under the Obama administration. I knew he was spending, printing and borrowing money like there was no tomorrow, but I didn’t realize he was doing it on the back of those minorities that helped him into the White House. Just more of Obama’s “change” and “hope”….

      http://www.reuters.com/...

      Frankly, I blame everything on Nixon.

      by J Orygun on Tue Jul 26, 2011 at 09:45:02 PM PDT

      [ Parent ]

  •  That's OK. (1+ / 0-)
    Recommended by:
    mightymouse

    The country's collapsing anyway.

    Ideology is an excuse to ignore common sense.

    by Bush Bites on Tue Jul 26, 2011 at 06:43:22 PM PDT

  •  rachel (1+ / 0-)
    Recommended by:
    davidincleveland

    Melissa Harris-Perry is subbing for Rachel tonight and discussed this topic. Maybe you can catch the replay.

    America is so not like her hype.

    by OLinda on Tue Jul 26, 2011 at 06:45:52 PM PDT

  •  Talk about white privilege.... (1+ / 0-)
    Recommended by:
    angelajean

    What percentage of the top 1% is white?

  •  Should have read this before I published my (0+ / 0-)
  •  Result of the worst economic crisis since GD (0+ / 0-)

    Studied this a bit as part of my economic concentration in undergrad.  The historical data are just amazing.  The middle class and the poor always suffer the worst in an economic downturn.  The wealthy usually maintain or better their position.  

    Trust-Fund Kids of America Unite... save the Bush tax cuts!

    by JCPOK on Tue Jul 26, 2011 at 06:54:14 PM PDT

  •  CNBC profits galore (0+ / 0-)

    You turn on CNBC and every major industry leader is reporting record profits. Most these corporate assholes will bitch about uncertainty in the economy. That is true and new demand is low.

    However, corporate America isn't taking steps forward to hire educated American workers. Many of these companies are satisfied with their current skeleton staffs working at 110% to 130% capacity.

    Many democrats are stupid and don't understand this economy. However, the far right is mental and has less of an understanding about this process.

  •  no cramdown, HAMP FAILs, unchecked foreclosure (2+ / 0-)
    Recommended by:
    Youffraita, davidincleveland

    epidemic exacerbate this trend.

    Dem base was hurt by those policy failures.

    but the investment banking sector is still healthy.

    more disaster capitalism.

    Here I am! I'm up here! Where are you? - the Red-eyed Vireo

    by mightymouse on Tue Jul 26, 2011 at 07:00:33 PM PDT

  •  I just put up a diary on this (2+ / 0-)
    Recommended by:
    shanikka, davidincleveland
    America's racial wealth gap slides backwards 25 years

    The Christian Science Monitor  article notes that unemployment rates for Blacks and Hispanics is much higher that it is for Whites. I wouldn't be surprised if racist practices by mortgage lenders who routinely steered Blacks and Hispanics into costlier subprime mortgages had more than a little to do with this shameful finding.

    Subprime Loan Sharks

        Steering & Targeting

        Brokers and lenders frequently overcharge through ‘interest rate steering’ – setting rates on the basis of perceived financial sophistication rather than risk. Elderly, minority, and low-income homeowners are prime targets. Vulnerable borrowers may be subjected to aggressive sales tactics and sometimes outright fraud. Fannie Mae has estimated that up to half of borrowers with subprime mortgages could have qualified for loans with better terms.

        The Department of Housing and Urban Development (HUD) points out that predatory lenders also sometimes make loans without regard to the borrower’s ability to repay. This involves lending based upon a borrower’s home equity, where the borrower clearly did not have the capacity to repay the loan. In the extreme, sometimes elderly people living on fixed incomes had monthly payments that equaled or exceeded their monthly incomes, which quickly leads borrowers into default and foreclosure.


    The Great Recession has been a very different experience for many Hispanic and Black households than his has for the vast majority of White households. A racially stratified economy is not going to work for much longer for a country heading toward having a majority minority citizenry.  

    Plutocracy too long tolerated leaves democracy on the auction block, subject to the highest bidder ~ Bill Moyers

    by Lefty Coaster on Tue Jul 26, 2011 at 07:03:19 PM PDT

  •  Y'know what? NO shit! (1+ / 0-)
    Recommended by:
    zapus

    Anybody with half a brain could see that.

    Whites are unemployed at -- what? -- 20 percent?

    For African-Americans the percentage goes up.

    I am not sure what it is for our Latino friends.

    I remain confident that our society is at least as racist as it was when I was a tadpole.  Why would we expect our Evil Corporate Overlords to become better people since then?

    Over the past 30-odd years, the Democrats have moved to the right, and the Republicans have moved into a mental hospital. --Bill Maher

    by Youffraita on Tue Jul 26, 2011 at 07:04:22 PM PDT

  •  The giddiness and faux concern in this thread (0+ / 0-)

    is funny.

    Wealth, assets, and money ain't everything.

    What is important to make you happy?

    Eventually you will find that family, friends and personal relationships is where it's at.

    Works for me, anyhow.

    “Do not think that I came to bring peace on Earth; I did not come to bring peace, but a sword. For I came to set a man against his father, and a daughter against her mother, and a daughter-in-law against her mother-in-law." - Jesus

    by Jose Bidenio on Tue Jul 26, 2011 at 07:08:35 PM PDT

    •  Nothing "faux" about the concern... (1+ / 0-)
      Recommended by:
      navajo

      ...expressed when whole segments of the population see whatever economic well-being they have been able to accrue over the years shattered. Money isn't everything. A good job isn't everything. A house of one's own isn't essential to thrive. But it's far from laughable that people who didn't have much money to begin now have less, that people with jobs have none and that people lost homes they had been paying mortgages for years.

      Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

      by Meteor Blades on Tue Jul 26, 2011 at 07:24:17 PM PDT

      [ Parent ]

      •  I said that the faux concern and giddiness is (0+ / 0-)

        funny, not the economic plight of AAs which, if anyone has been paying attention for the past 400 years, is clearly evident, without this latest statistic.

        Melissa Harris-Perry made the point tonight that AA housing wealth is so low precisely because white Americans do not want to live in black neighborhoods, thereby lowering property values.

        I submit that homes in black neighborhoods still have immense value to black homeowners, property taxes and school funding aside.

        “Do not think that I came to bring peace on Earth; I did not come to bring peace, but a sword. For I came to set a man against his father, and a daughter against her mother, and a daughter-in-law against her mother-in-law." - Jesus

        by Jose Bidenio on Tue Jul 26, 2011 at 08:10:01 PM PDT

        [ Parent ]

    •  Try being poor (1+ / 0-)
      Recommended by:
      navajo

      Being poor trumps everything.

      The invasion of Iraq was a war crime, a crime against humanity, and a crime against civilization. Prosecute the crime.

      by Positronicus on Tue Jul 26, 2011 at 07:39:46 PM PDT

      [ Parent ]

    •  alas, the food store refuses to take "happiness" (1+ / 0-)
      Recommended by:
      navajo

      as payment.

      Perhaps you could speak to them about that.

  •  $113 K eh? How many of the top 2% in America are (0+ / 0-)

    white? How many minorities?

    There's your answer. It's bad for middle class whites, even WORSE for MC non-whites.  And abysmal for the poor of all colors.

    That's the story I want to see in the headline, not in the last two paragraphs.

  •  Those trends follow the general demographic (3+ / 0-)
    Recommended by:
    zapus, Positronicus, splintersawry

    trends of the races in the general population. The US is largely white, far behind are Latinos, the then black people comprise a slightly smaller percent. A more interesting graphic would be a normalized percent - The ultra wealthy white people as a percent of white people, and the same thing for Latinos and black people. The reason that this would be more interesting is because it's pretty intuitive that there would be more ultra rich white people, thereby skewing the scale. It's more interesting to compare like to like.

    •  demographics is already changing this (0+ / 0-)
      The US is largely white, far behind are Latinos, the then black people comprise a slightly smaller percent.

      By 2050, white people will be just another minority in the population. In many local areas, they already are.

      And I'm quite willing to bet that rich white people will still own most of the wealth.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site