Study Shows Racial Wealth Gap Grows Wider

http://www.npr.org/2011/07/26/138688135/study-shows-racial-wealth-gap-grows-wider

 

blacks put everything into home ownership.

whites diversified.

 

Fixed. :smt039

 

Not poor whites..

 

Not poor whites.

 

that's another gap for another thread, but it's the sad truth

blacks..especially black males, just arent getting degrees like that

true, you dont always need a degree to start off at 40/50k a year, but it does increase your chances. We're not even talking about the engineering or nursing degrees that start you off at 60k/yr either.

Brothas are really missing out

 

That's why I've invested in Forex. I put in $24 in the account and made a gain of around $9 today. I'm currently at $33.

 

You may want to direct yourself HERE. It's a thread devoted to investments. By the way, when did you start investing in Forex and how many days before you acquired additional revenue?

 

I tried it a few years ago with demo testing accounts. Back then I was using the programs to execute out the trades. Then I took a break from it when the demo accounts I was using went into draw down and the programs made bad trades Recently I've started back again, this time using a manual system which I posted in the link you directed me to.

We've got to find creative ways to stay afloat during the economic downturn.

 

Agreed. The main concern I have is that people don't really know how to invest in their money well, nor do they know when to practice frugality and know when not to spend crazy.

 

MILLIONS of people with degrees are moving back home because they can't find work and are crushed by student loan debt.

 

hell yeah to you and petty. I believe we could talk about it here but the other thread was the education thread I made. In any case blacks allow this to happen. we have more obstacles than whites so getting a degree removes one out the way

yeah but they dont have the racism to deal with in getting a job.

 

paying off your home is the best thing you can do. buying aint shit. anyone can buy something

 

Hell to the yeah!! I have a degree, a so so job but the debt is out weighing it right now. Still I'm in favor of higher education while there are a few people at my job that still don't believe in it.

 

People act like a degree will part the seas to success like Moses.

That was true BEFORE globalism.

 

actually the stats show that people without a degree are twice more unemployed.

see chart

http://www.bls.gov/news.release/empsit.t04.htm

 

what archie says about jobs and race


[YOUTUBE]Cbu0voHaqbA&playnext=1&list=PL8D83A6B2E5B7D416[/YOUTUBE]

 

People with degrees are statistically more likely to outearn people without one. My advice is to get one that's worthwhile and not because you want to say 'look I graduated college'

engineering, it, nursing are all hot right now, with nursing being in high demand for years in philly

Education also opens up more socioeconomic choices involving marriage and friendships, which in turn has it's own financial benefits (especially with marriage)

 

there you go tight thurrrrreeee...have to spread rep around first

 

As usual, you have taken a myopic view of the topic and come to a wrong conclusion. The topic is about wealth and you draw the erroneous conclusion that this gap is based on a lack of education rather than racism.

You should be aware that the greatest source of inter-generational wealth has been home equity. Home equity has risen fairly steadily until recently and was considered a good investment. Consider the fact that African Americans have historically been denied mortgages, often not based on a lack of financial ability. If you look a the same time period, this was a time when Black Americans were denied jobs or promotions based on racism. Add to that the discrimination that denied African Americans the ability to buy homes in highly desirable areas, which would represent areas of faster equity growth, then the effects of racism created a bigger gap in the ability to pass on homes with greater equity.

During those four to five generations, White Americans received home mortgages and enjoyed home equity increases. At the time of their deaths those assets passed to their children who then had a head start to make down payments and purchase homes. In the work place they advanced and received pay increases with the potential to invest the extra money in other investments.

The same picture presents itself with small businesses, which employ more people than large companies. Black Americans were denied loans to start business and often didn't have the money to invest to start businesses themselves. Again, White Americans received loans in far greater numbers and had the capital to invest because they had received the benefits of inter-generational wealth. The tax benefits that help to preserve wealth from small businesses and the home equity of the business owners becomes wealth that's passed along to their children. Notice how this is starting to add to one's wealth, and it started as uneven playing field that becomes impossible to change, because others have had a tremendous head start.

If you look at stocks as well, for the same reasons that I mentioned above, Whites would potentially have more discretionary income to invest in equity markets.

My point is that wealth doesn't come primarily as the result of having a good job, and education , especially if you are consider middle income Americans. In fact, most Americans, including White Americans don't earn a salary great enough to save and invest a lot of money. They have families to support, probably send their kids to Christian or public schools to avoid public schools, have a mortgage and are a few weeks away from financial failure because they don't have large savings accounts.

Flash forward to today and you can see that over the last 10 years, both equity and home equity have significantly decreased. Dependably increasing home equity has resulted in home purchase not being a good investment at the moment, if for an unforeseen time in the future. People have seen home equity crash by as much as 50%, or more, and those who purchased homes in the last five years are underwater. Is it any wonder that the gap would grow wider over this period for African Americans versus White Americans who have the cushion of wealth from previous generations. Even if you consider that they are in the same positions, in terms of these effects, the relative wealth between the two groups is still large.

Is education important, of course it is, but as some mentioned, that's a different thread and this one is about wealth. So, let's clean our porch of the inability to look beyond what seems to be simple, as things are seldom as simple as they appear.