Posted on 03/26/2015 7:56:02 AM PDT by Responsibility2nd
The United States is becoming much more racially and ethnically diverse. At the same time, it’s becoming more unequal in terms of wealth and income. These two trends are combining in an uncomfortable way: the wealth and income divide is happening along racial and ethnic lines.
The typical black household now has just 6% of the wealth of the typical white household; the typical Latino household had just 8%, according to The Racial Wealth Gap: Why Policy Matters, by Demos, a public policy organization promoting democracy and equality, and the Institute on Assets and Social Policy.
In absolute terms, the median white household had $111,146 in wealth holdings in 2011, compared to $7,113 for the median black household and $8,348 for the median Latino household. (All figures come from the U.S. Census Bureau Survey of Income and Program Participation.)
This is what is called the racial wealth gap.
(Excerpt) Read more at forbes.com ...
They conveniently use “wealth” as the metric. If they used “income”, they would have to face the fact that the blacks and hispanics are getting generous welfare payments, and the whites are paying terrible taxes.
I have posted this many times before. To avoid poverty you need to:
1. Refrain from sex until married
2. Refrain from illegal drugs, abuse of other drugs
3. Refrain from alcohol until you are of age
4. Refrain from gambling
5. Work hard at school
6. When you get a job work hard and try to improve yourself
7. Save money for emergencies and retirement
8. Avoid illegal activity
9. Do not become violent with the police or anyone else
10. When you get married, do not commit adultery.
Yes one of my talking points
“Avoided 3-4 illegitimate kids by age 20.”
You're looking at annual income ("a year typical net"). The article is talking about wealth or net worth.
IF you are not educated you will have a hard time finding a job that will pay you enough to become a home owner.....
What would be more interesting is for them to study a city like Atlanta where there is a large upper and middle class of African Americans....and an all too present lower class. Truth is that those with money enough to move away from the ‘inner city’ have
“Number 2 should say “Get married and STAY married.” Divorce basically cuts your household wealth in half.”
That’s for sure. If getting and staying married is better for building wealth than being single, being and staying single is probably still better than getting married and then divorced (from a purely monetary point of view).
I’d say a good start is: make HALF an effort!
Otherwise, You need to start at the beginning. save up for reliable transportation. Life, especially early on is a struggle. Work/save/repeat. Find inexpensive entertainment. Scrimp and save. Never spend over your head.
Do not consider buying a house until you have at least 20% of the cost of the house saved in the bank.
Blacks and whites making the exact same income - with same number of children - have large wealth differences in wealth based on savings and investments..
“High school drop outs seldom have a good standard of living. Yes, occasionally it happens, but not for the majority of cases.”
My father was a high-school dropout. Dropped out after grade 10 at the age of 17 to join the Navy, which my grandparents had to sign off on. But then he met my mother, got married, and she got pregnant with me (not necessarily in that order, LOL, but close enough). Anyway, then he started working hard, working his way up to Petty Officer, first class, while also getting his high school equivalency. Apparently he did something right, because he applied for and was able to get a commission from the ranks.
But that’s a fairly exceptional story. In this day and age, not finishing high school is pretty much the kiss of death for employment.
Its all really common sense. But then again a lot people seemingly don’t have common sense these days?
Don’t wear a t-shirt to a job interview. Work overtime if it is offered. Once you have a job make yourself an asset to your employer. Don’t burn bridges as you go. Remember, the job you are in, even if it is lame, will be a job reference for your next job better job.
The biggest reason - the marriage gap.
Marriage leads to longer relationships, whereas never marrying means the couple is 75% of the time broken up by the time the kid is 12, whereas 75% of married couples are together that long.
The broken families lose economies of scale, hurting their income and savings. The kids are more likely to not finish school, commit crimes, get addicted, never work, not get married themselves, become mentally ill.
For women with a high school diploma or less, 80% of kids are illegitimate, and the black community is 2-3 generations into this cycle. This is a guarantee of multi-generation poverty.
Even unmarried couples that live together with children for 18 years are less likely to work together to save for colleges for the kids and retirement.
So even when the parents are not married but living together raising kids, they don’t save and spend well, hurting their net worth even when they don’t cause the kids to be 3-4 times as likely to have negative life outcomes.
And have at least one adult work full time.
The Black Family: 40 Years of Lies
Rejecting the Moynihan report caused untold, needless misery.
Summer 2005
http://www.city-journal.org/html/15_3_black_family.html
Why were the schools poor, the neighborhoods bad, and why would banks direct qualified borrowers into risky mortgages?
The truth is the minorities themselves made the schools poor and the neighborhoods bad. And no reputable lending institution would steer a qualified borrower into a risky loan unless they were forced to. Which is what happened under the Clinton admin.
No forcing of lending institutions to create subprime mortgages for unqualified borrowers under the direction of the Clinton admin, and there is no financial crisis in 2007.
In fact, for many it is harmful to the students and society as well who have to deal with millions of college grads with worthless degrees and a lib/leftist indoctrination.
There is also the fact that more blacks work for government.
A private-sector person’s 401K is counted as an asset. In many of these “studies”, the net-present-value of the anticipated pension is not counted.
The white households were obviously SAVING their money and not blowing it on depreciating assets.
The wealth gap actually started right around the start of the industrial revolution. That was the era, from 1850 to 1900, when many enterprising young men became wealthy thanks to the invention and implementation of the explosion of technology and innovation.
But it was also the era of American history with the greatest pct. of increase of wealth for the average American worker. The fact is before the industrial revolution there was a very small segment of society with money like large landowners and merchants and traders.
After the i.r., the prospects for many more enterprising people became greater.
So what you had from 1850-1950 is the growth of a middle-class with people living far better lives than their predecessors from one hundred years before. Or just 20-50 years before.
Today the very wealthy have a lot more wealth. But the average middle-class person also has far more wealth. But because for obvious reasons a professional usually will make more money than a person with say a skilled trade, the gap will always grow.
Again, that does not mean the average worker is living a horrible life. Most average Americans live good lives. It just means that while they have more wealth, some people make percentages more. The only way to correct this "problem" is thievery i.e. communism.
.. Yes and no..it was part of my point.. the article gives that impression that it has to do with income.........but if your just talking net worth.. that id being smart or frugal with the money you have..or saving. Just owing some with equity vs a paycheck to paycheck live
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