DrBanneker
Space is the Place
One of the big sources of data you see about racial wealth gaps is the Survey of Consumer Finances the Federal Reserve does every 3 years or so. They just released the latest one a bit over a week ago and it takes into account the changes in wealth for different races due to COVID and its aftermath.
Because of the perpetual racial wealth gap we deal with I came into reading this with a pit in my stomach but some of the news is good and it gave me heart that some Black folks took advantage of COVID WFH and stimulus checks to raise our collective wealth via stock ownership and business formation. I will show the good and bad below. Link to the study results summary is here:
THE GOOD
Black median wealth did increase. It had the lowest uptick amongst all races, but it did go up. Why is this important? Remember those doom and gloom studies about Black wealth going to zero about 10 years ago? They were partially based on the negative trend in Black wealth after the 2008 global financial crisis. The bleeding stopped in 2013 and we started going back up and the median wealth has finally increased past where we were in 2008. So we lost time, but we regained ground.
One other good thing that people might miss is that the Black mean (average) wealth increased slower than other groups. Why is this good? Because the mean wealth is heavily skewed by the richest top 0.1%, etc. families whereas median is just the middle. The fact our median went up but the mean didn't change much means the wealth gains for Black people are much broader based than other races and aren't all just accruing to the upper Black elite like in White and "other" (mostly Asian) families.
THE BAD
As is obvious above, we still have the lowest median wealth and we were tied with Hispanics but they began pulling away in 2013 recovering faster than we did from 2008. Black median wealth is $42k per household compared to $62k per household for Hispanics. Let's not talk about Whites who are at a median of $285k or Asians who are at a median of $536k.
Per the study
These are in inflation weighted dollars so inflation is not the reason.
THE GOOD
While Black wealth increased by small amounts, it had some of the biggest percentage increases. The top reason was home values, primarily due to appreciation (I will explain later). But second after that is wealth due to business ownership which saw the largest percent growth of any group. Those naysayers who claim Black entrepreneurship is just Black men side hustling or Black women selling on Etsy are wrong. Enough business capital is being accumulated to shift (albeit in small amounts now) the wealth of the Black community.
Also good is a huge surge in stock ownership and business ownership in the last few years
However, it is clear the big surge in wealth came from home price increases. Note above the Black home ownership rate has not changed much and is still below 2007. However, the chart below shows that those with homes have seen their values increase a lot. Business value was also surging until COVID hit so Black business values have been doing much better but COVID knocked off almost half their value. More Black people got into business during COVID though so hopefully this will reverse.
THE BAD
Home ownership is stagnant and stock value has increased less rapidly than stock ownership showing that most stockholding by Black people are small or not making returns in line with other races. I have no idea if crypto is in this measure.
Also, income growth in the Black community received almost no impact from wage increases. If not for COVID investments, government transfers, and self-employment/business income, we would have no income growth. Black people, men and women, are dealing with stagnant wages.
DISCUSS
@get these nets @Rhakim @Suge Shot Me @Anerdyblackguy @Voice of Reason @Gloxina @HarlemHottie @Peachstate @℃ertifed @Neuromancer @Tair
Because of the perpetual racial wealth gap we deal with I came into reading this with a pit in my stomach but some of the news is good and it gave me heart that some Black folks took advantage of COVID WFH and stimulus checks to raise our collective wealth via stock ownership and business formation. I will show the good and bad below. Link to the study results summary is here:
Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
THE GOOD
Black median wealth did increase. It had the lowest uptick amongst all races, but it did go up. Why is this important? Remember those doom and gloom studies about Black wealth going to zero about 10 years ago? They were partially based on the negative trend in Black wealth after the 2008 global financial crisis. The bleeding stopped in 2013 and we started going back up and the median wealth has finally increased past where we were in 2008. So we lost time, but we regained ground.
One other good thing that people might miss is that the Black mean (average) wealth increased slower than other groups. Why is this good? Because the mean wealth is heavily skewed by the richest top 0.1%, etc. families whereas median is just the middle. The fact our median went up but the mean didn't change much means the wealth gains for Black people are much broader based than other races and aren't all just accruing to the upper Black elite like in White and "other" (mostly Asian) families.
THE BAD
As is obvious above, we still have the lowest median wealth and we were tied with Hispanics but they began pulling away in 2013 recovering faster than we did from 2008. Black median wealth is $42k per household compared to $62k per household for Hispanics. Let's not talk about Whites who are at a median of $285k or Asians who are at a median of $536k.
Per the study
These are in inflation weighted dollars so inflation is not the reason.
THE GOOD
While Black wealth increased by small amounts, it had some of the biggest percentage increases. The top reason was home values, primarily due to appreciation (I will explain later). But second after that is wealth due to business ownership which saw the largest percent growth of any group. Those naysayers who claim Black entrepreneurship is just Black men side hustling or Black women selling on Etsy are wrong. Enough business capital is being accumulated to shift (albeit in small amounts now) the wealth of the Black community.
Also good is a huge surge in stock ownership and business ownership in the last few years
However, it is clear the big surge in wealth came from home price increases. Note above the Black home ownership rate has not changed much and is still below 2007. However, the chart below shows that those with homes have seen their values increase a lot. Business value was also surging until COVID hit so Black business values have been doing much better but COVID knocked off almost half their value. More Black people got into business during COVID though so hopefully this will reverse.
THE BAD
Home ownership is stagnant and stock value has increased less rapidly than stock ownership showing that most stockholding by Black people are small or not making returns in line with other races. I have no idea if crypto is in this measure.
Also, income growth in the Black community received almost no impact from wage increases. If not for COVID investments, government transfers, and self-employment/business income, we would have no income growth. Black people, men and women, are dealing with stagnant wages.
DISCUSS
@get these nets @Rhakim @Suge Shot Me @Anerdyblackguy @Voice of Reason @Gloxina @HarlemHottie @Peachstate @℃ertifed @Neuromancer @Tair
can only tell you what you're looking for and that fact has become lost on many pushing it along with their adherents. Not talking about OP, he's cool. Folks like bytchass Tone Talks and Yvette Carnell