Racial Wealth Gap – Chicago

Chicago’s racial wealth gap far worse than U.S. average, report finds, By Gail MarksJarvis, January 31, 2017, Chicago Tribune: “About 65 percent of African-American, Latino and Asian households in Chicago have so little savings and other assets that a sudden job loss, medical emergency or other income disruption would throw them into poverty within three months, according to a report on wealth inequities in the city.  The report by the Corporation for Enterprise Development identified the divide between the incomes of white households and minority households as wider in Chicago than the nation as a whole. And the national divide is large. Not only do Chicago’s white households on average far exceed African-Americans, Latinos and Asians in income, but there is a sharp difference in the city between the wealth held by whites and that held by minority communities…”

Racial Income and Wealth Gaps

Blacks still far behind whites in wealth and income, By Tanzina Vega, June 27, 2016, CNN Money: “Blacks in the United States continue to lag far behind whites in key areas of economic well-being like wealth, income and homeownership, a new report from the Pew Research Center finds.  While these trends have been consistent for decades, what’s particularly notable is that these disparities between blacks and whites persist regardless of the level of education they attain, said Juliana Horowitz, an associate director of research at Pew…”

Racial Wealth Gap

  • Whites have 12 times the wealth of blacks, By Tami Luhby, February 18, 2015, CNN Money: “The numbers say it all.  The typical white family had accumulated more than $134,200 in wealth in 2013, while black families scraped together a little more than $11,000 and Hispanic families $13,700, according to a new Urban Institute report.  It’s yet another example of how financial inequality is pervading this country and it’s is only getting worse. Whites now have 12 times the wealth of blacks and nearly 10 times more than Hispanics. But in 1995, the spread was only 7 times for blacks and 6 times for Hispanics…”
  • The corrosive impact of America’s growing wealth gap, By Aimee Picchi, February 18, 2015, CBS News: “The idea that everyone has a chance to get ahead in life is a defining belief of American life. But the more complicated reality is that a family’s wealth has a huge impact on how far people get.  Unfortunately for many Americans, the wealth gap — or the difference between the assets of the poor and the rich — has been growing over the past several decades, making it harder than ever for certain groups to climb the economic ladder. Families near the bottom of the wealth distribution actually ended up in debt in 2013, a backward step from having no wealth in 1963, according to a new analysis from the Urban Institute. Blacks and Hispanics are also falling behind, the think tank said in a report on Wednesday…”
  • The racial wealth gap we hardly talk about: What happens in retirement, By Jonnelle Marte, February 18, 2015, Washington Post: “Much has been said about the racial wealth gap and how the financial crisis widened that disparity, especially as minorities have had a harder time keeping their homes and rebuilding their portfolios.  But there’s another side to those challenges that doesn’t get as much attention — the retirement savings gap.  If minorities are less likely to get an inheritance from a family member than a white person is, or to have wealth to fall back on when they want to buy a house or start a business, they are likely to have less money to save for retirement, too. And if they are saving, the weaker safety net makes it more likely that they’ll have to raid that reserve or take on debt when things go wrong…”

US Wealth Gap

  • U.S. wealth gap is widest in at least 30 years, study finds, By Patricia Cohen, December 17, 2014, New York Times: “The wealthy are getting wealthier. As for everyone else, no such luck. A report released on Wednesday by the Pew Research Center found that the wealth gap between the country’s top 20 percent of earners and the rest of America had stretched to its widest point in at least three decades. Last year, the median net worth of upper-income families reached $639,400, nearly seven times as much of those in the middle, and nearly 70 times the level of those at the bottom of the income ladder…”
  • Wealth gap in America widens to record level, report says, By Don Lee, December 17, 2014, Los Angeles Times: “The wealth gap between middle- and upper-income households has widened to the highest level on record, says a new report. Using the latest Federal Reserve data, the Pew Research Center said Wednesday that the median wealth for high-income families was $639,400 last year — up 7% from three years earlier on an inflation-adjusted basis. For middle-income families, the median wealth — that is, assets minus debts — stood at $96,500 last year, unchanged from 2010. The result is that the typical wealth of the nation’s upper-income households last year was nearly seven times that of middle-class ones…”

Racial Disparity Statistics

America’s racial divide, charted, By Neil Irwin, Claire Cain Miller, and Margot Sanger-Katz, August 19, 2014, New York Times: “America’s racial divide is older than the republic itself, a central fault line that has shaped the nation’s history. This month it has manifested itself in sometimes violent protests in Ferguson, Mo., after a police killing of an unarmed young black man. The resonance of that event is related to deeper racial fissures between blacks and whites; that divide is the reason that the events in Ferguson amount to something bigger than a local crime story. What is the state of that larger divide? In what areas has there been meaningful progress toward shared prosperity over the last generation, and in what areas is America as polarized by race as ever…”