The Insight Center, together with the Closing the Racial Wealth Gap Initiative, released new research last week in a paper written by Trina Shanks of the University of Michigan School of Social Work is the primary with research and statistical analysis from Anne Price, Meizhu Lui, Victor Corral, Sharon Simonton and Antonette King. The paper Diverging Pathways: How Wealth Shapes Opportunities for Children, found:
The income and wealth profiles of various racial and ethnic populations differ; however, white households do better than any other group. Highlighted below is a summary of household wealth and economic status disaggregated by race and ethnicity:? About 32% of white children live in low-income households and only 14.2%
live in households with no financial assets. On average, many Asian children
(particularly Asian Indian and Chinese) live in similar circumstances. However, Southeast Asian children are more likely to live in low-income households.? Native Hawaiian/Pacific Islander children are closely split between households above and below 185% FPL, and a majority has assets such as savings and investments. In contrast, American Indian and Alaskan Native children live in households that are overwhelmingly low-income, and yet many do own assets.
? Sixty-nine percent of Latino and 71% of black children live in low-income households and more than 40% live in households with neither savings nor investments.
? While vulnerable white households with children that have no money in savings or investments have a median wealth of $785, similar black households have a median debt of $55.
? Black households that are economically advantaged (not poor and with multiple assets) have assets of less value than their white counterparts. The median wealth for these white households with children is more than $57,000. However, the few (8%) advantaged black households have a median wealth of only $38,000.
? Having little or no wealth makes it more difficult to make ends meet and save for the future. Nearly 21% of black households with children report having no money left over at the end of the month compared to only 9% for whitehouseholds.
In 13 years, the wealth gap between white and black households with children increased by $22,000, rising from $25,000 to $47,000. Worsening this already bad circumstance were the effects of the Great Recession.
? In the years leading up to the recession, the financial stability of black households was declining. Between 2005 to 2007, black households with zero or negative net worth (debt) grew from 35% to 39%, while the percentage of similar white households stayed the same at 15%.? In 2007, black households with children held only 4% of the wealth of white households. ... Put another way, the black median net worth of $1,495 is barely enough to cushion the average family who experiences a job loss or financial crisis at the poverty level for one month, while the white median net worth of $33,232 can support that same family at the poverty level for two years.
The study's conclusion?
The vastly changing demography, where the majority of children will no longer be white, can bring new energy and creativity to our nation. Yet, right now, many racial and ethnic groups find themselves living in the same country but inhabiting completely different landscapes, both literally and figuratively. Children of color are more likely to live in the most economically fragile households.Concentrated pockets of racialized poverty are unfortunately still the norm for low-income and/or low-asset families of color: neighborhoods which do not provide good schools, violence-free streets, mainstream financial institutions, sound housing stock, environmental safety, good jobs, transportation access, or stores with healthy foods, all exacerbate the lack of opportunity that comes with few financial resources.
Related disparities in academic achievement and health typically emerge early, before the child is even in a position to understand and respond. During times of crisis or economic downturn, the situation of economically vulnerable households can fall further behind quickly and dramatically. What might be simply a temporary setback for a family with wealth can turn into an economic catastrophe for a family with no wealth?further dimming prospects for the next generation. Even education and a higher income cannot compensate for significantly different levels of wealth.
Our quality of life and ability to secure a strong, common economic and social future depends upon our ability to invest wisely in our children now. We are a land of rich diversity and opportunity, but if current trends continue, a growing number of children of color will be locked out of the economic mainstream as they reach adulthood. ...
Count on right-wing chopping of government-funded social programs to worsen those current trends. But, c'mon, somebody has to cover the cost of those essential tax cuts for the wealthy.
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At Daily Kos on this date in 2008:
As if this wasn't bad enough:The House had a meltdown today in the middle of the memorial service for the late Rep. Tom Lantos, a Holocaust survivor who was chairman of the House Foreign Affairs Committee. The service, in the Capitol's historic Statuary Hall, was disrupted when a Republican House member [Rep. Lincoln Diaz-Balart] unexpectedly called for a procedural vote.they decided to greet Lantos's successor, Jackie Speier with another display of childish petulance during her inaugural speech on the House floor.
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