A $95,000 question: why are whites five times richer than blacks in the US?

The Guardian (UK) ^ | 5/17/10 | Chris McGreal

[reaganrevolutionin2010]

A huge wealth gap has opened up between black and white people in the US over the past quarter of a century – a difference sufficient to put two children through university – because of racial discrimination and economic policies that favour the affluent.

A typical white family is now five times richer than its African-American counterpart of the same class, according to a report released today by Brandeis University in Massachusetts.

White families typically have assets worth $100,000 (£69,000), up from $22,000 in the mid-1980s. African-American families' assets stand at just $5,000, up from around $2,000.

A quarter of black families have no assets at all. The study monitored more than 2,000 families since 1984.

[Lonesome in Massachussets]

I'm going from memory from an article in National Review that I read years ago.

Try: http://www.federalreserve.gov/boarddocs/speeches/2004/20041006/default.htm

Go the paragraph "Savings and minority households" See also the cited studies.

I also recall reading in an advertising promotion for Ebony (in Ebony itself) that their readers spend a higher percentage of their income on clothing, cosmetics, liquor and automobiles than the general public. (Though not vacations, iirc.) So if you're selling any of those products, their readers are a better market than an otherwish economically similar demographic.

[SkyPilot]

There is inequality in America and discrimination.

Here is an example (and article was written in 2004):

The higher education industry has ruthlessly exploited its privileged role as the assigner of prestige to young adults beginning their professional lives, in order to grab a larger share of national income. Tuition has increased substantially faster than inflation for the last half century, rising from 6% to 9% a year over any 17 year period, between 1958 and 2001, ranging from 1.2 times to 2.1 times the underlying general inflation rate. At the same time, the industry engages in unconscionable practices, including rampant price discrimination —— charging different prices to different customers, based on management's preferences for certain kinds of customers over others. If a car dealer, steel producer, or grocery store gave massive discounts to some groups of customers, based on demographic and wealth characteristics, they would quickly encounter public outrage and legal consequences. But by calling its price discrimination 'financial aid,' the higher education industry cloaks its actions in the garb of charity. In order to understand how pernicious the price scam is, let us consider the nature of 'financial aid' or 'scholarships,' putting aside the question of a college's endowment income. In fact, all but the top hundred or so private colleges and universities do not enjoy substantial endowment income, and rely on tuition for the funds to keep operating. Greatly simplifying, let us hypothesize two groups of students. The 'A group' come from an upper middle class families, and pay the full $36,000 per year in tuition. The 'B group' comprise various racial minorities, athletes, residents of underrepresented regions, exceptionally—intelligent youngsters, or those possessed of some other attribute prized by the management. The B group gets a $10,000 discount, euphemistically called a 'scholarship.' If the two groups were equally large, then the parents of the A group in effect each write a $5,000 check to the parents of the B group. By paying higher than average tuition (i.e., full price in a system which commonly offers discounts), they make a non—tax deductible charitable contribution. These transfer payments from one group of families to another are tolerated only because parents fear the consequences of denying their children the best possible shot at gaining entry to prestigious and lucrative careers.

How many of you enjoyed that Census form?

"What is the RACE of this person living in your home?" "What is your RACE?" "What is the RACE of etc, etc, etc."

[SkyPilot]

IQ and the Wealth of Nations

The central thesis of IQ and the Wealth of Nations is that the average IQ of a nation correlates with its GDP[1] Above is a scatter plot with Lynn and Vanhanen's calculated IQ values (without estimates) and GDP data.[3] Data from Table 7.7 in the book - Real GDP per capita 1998, and IQ. Residual real GDP, and Fitted real GDP columns not displayed. Table 7.7 in the book titled, The Results of the Regression Analysis in which Real GDP Per Capita 1998 is Used as The Dependent Variable and National IQ is Used as the Independent Variable for 81 countries.

[EyeGuy]

Them graphics is racist.

Eric Holder on Line 2 for you.

[truthguy]

Enoch Powell was wrong. There are many immigrants in the UK who merge well. Most of these (who assimilate) tend to be non-Muzzies.....

Enoch Powell was right and he has been proven right since his famous Rivers of Blood speech. Powell was right and you can go back and read (or listen) to this speech and others and see just how accurate his predictions were. Yes there are many immigrants who merge well but there are also many who don't or don't even want to. Not every group has the cultural apparatus to assimilate into an Anglo-Saxon civilization. When you want to marry off your 14 year old daughter to a 50 year old man you probably aren't a good fit for the British Civilization.

The type of immigration that Powell was talking about has essentially destroyed Britain. It is nothing like the civilized, and gentlemanly country it once was. The respect for law has broken down in a major way. My belief is that the political left (Labor) encouraged this type of immigration because they knew it would destroy Britain. They knew these future citizens could be counted upon to vote for the socialist policies of the Labor and Left. They've succeeded beyond their wildest dreams, but I assure you their victory will be Pyrrhic.

Again, Enoch was a visionary. He had the ability to think beyond his current situation and project into the future. He got it right and most thinking people now realize this now. It's probably too late to save the UK.

[SkyPilot]

Eric Holder on Line 2 for you.

Eric Holder - the epitome of "equal justice for all."

[Cronos]

interesting, thanks. and the magazine bit is really good — marketeers may know better than statisticians at times!

[Lonesome in Massachussets]

Marketing is applied statistics.