Wealth gap between whites and African Americans has tripled over last 25 years

Mr. Somebody

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The love of money is one of the roots of all evil, friends. Lets work on being great people and inspiring millions, not getting rich so we can isolate ourselves from friends, friends. :sitdown:


Researchers have long been fascinated by the idea that people who spend too much time "keeping up with the Joneses" are only increasing their likelihood of suicide.
For the first time, there's concrete evidence to back up the theory.
Researchers from the San Francisco Federal Reserve found people who earn 10 percent less than their neighbors are 4.5 percent more likely to commit suicide.
While the effect was seen among high-earning individuals, the most vulnerable to this phenomenon are low-income people living amongst the wealthy.
Here are some of the financial factors that contribute to suicide:
Location, location, location. Poverty has been shown to increase suicide risk, but location plays a big role as well. Low-income individuals who lay down roots in wealthier communities are essentially setting themselves up for disaster. Not only do they have less cash to afford a higher cost of living –– health care, housing, and other expenses are typically higher in high-income areas –– but they're basically living inside of the wealth gap. That all leads to an increased risk for suicide.
$34,000 is the misery line. If earning $75,000 annually is the benchmark for financial happiness –– earnings over that amount haven't been shown to increase happiness in the long-term –– then consider $34,000 the new tipping point for financial misery. People who earned less than $34,000 were 50 percent more likely to commit suicide, researchers found. People who earned between $34,000 and $102,000 increased their risk for suicide by only 10 percent.
Unemployment. The secret to happiness may simply be having a 9-to-5. "We find that being unemployed or out of the labor force, for any reason, raises suicide risk relative to being employed," the researchers write. Unemployed people, in fact, are 72 percent more likely to commit suicide than people who are working. Retirees and people on leave from work also had higher suicide rates.
The study, "Relative Status and Well Being: Evidence from U.S. Suicide Deaths," was based on data from the National Longitudinal Mortality Study and the National Center for Health Statistics’ Multiple Cause of Death Files, along with 1990 census data.


Read more: Link Between Wealth And Suicide Rates - Business Insider
 

Johnny Kilroy

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What the fukk are you talking about?

You can't save money and create wealth

What I'm saying is the person making 100k can buy better real estate (asset)
And after necessaties will have more money left over to do whatever then someone spending wisely on 50k?

You're switching up the criteria, breh.

50K spent wisely > 100K spent foolishly

The point is about spending money wisely so of course if you're spending the 100K wisely then it's better. :comeon:

Also, if done right, you won't be spending "the money you have left over" you'll be spending your return from your wise investment.
 

MeachTheMonster

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a big home and a big car note are 2 very different things, a home is an asset and a car note is a liability, there is nothing idiotic about how wealth is measures, and in a downtown the wealthier you are the better you survive a downturn

When these people do studies on who has wealth or not. Cars are considered part of that wealth cash is not. Black people usually have more cash on hand than credit or assets so they are considered less "wealthy"

Using our two examples from before. A guy who makes 100k and ties all that money up in assets and investments is way worse of in an economic downturn than the guy who made 50k and saved most of his money.
 

beenz

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I think the main reason is that blacks (and latinos to a lesser extent) usually aren't in a position to pass any sort of wealth down to their offspring, in fact often pass debt down. In white families wealth tends to flow from parent to child, in minority families it's usually the opposite.

For example, I know a white guy that graduated college with the same major and about the same GPA as myself. However, his family paid for most of his college, whereas mine didn't, so I had to take on more debt. Also, his grandfather was the VP of some IT company so he pretty much had a good job waiting for him even in the recession. Later on, his parents (or grandparents, I forgot) let him have their house when they retired.

I graduated with more debt (as did most other black people I went to school with), and didn't have a hookup so it took me a while to find a job (wouldn't be surprised if he made more). So far I haven't bought a house, but when I do I'll actually have to pay a mortgage, I'm definitely not getting one from a relative. In addition, I frequently have to let my parents/family borrow money, which reduces the amount of savings/wealth I can accumulate.

Don't get me wrong though, I'm not absolving black people of personal responsibility or anything like that, nor am I dismissing cultural factors, but the situation is a little more complicated than assuming that most black people waste their money on BS. Granted, some nyggas do but it's not the root of the issue.

this is totally believable. my pops and I were talking about how white people have a leg up in the world cuz they might not have to deal with student loans, or they have family with money leaving them shyt in their will or some kinda trust fund. obviously that almost never happens with black folks.
 

Rawtid

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When these people do studies on who has wealth or not. Cars are considered part of that wealth cash is not. Black people usually have more cash on hand than credit or assets so they are considered less "wealthy"

Using our two examples from before. A guy who makes 100k and ties all that money up in assets and investments is way worse of in an economic downturn than the guy who made 50k and saved most of his money.

Ummm nah, wealth is measured by assets.

If you have a car that's worth 40k and you owe 30k on it, then you have 10k in assets. If you have a car that's worth 10 and you owe 15k on it, then you have -$5000 in assets.
 

MeachTheMonster

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Ummm nah, wealth is measured by assets.

If you have a car that's worth 40k and you owe 30k on it, then you have 10k in assets. If you have a car that's worth 10 and you owe 15k on it, then you have -$5000 in assets.

:what:Obviously if you owe money on the car the money you owe isn't considered an asset.

But the person who owns a car worth 20k is considered more wealthy than the guy with 20k cash in his pocket. In my opinion that's backwards as hell.
 

Rawtid

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:what:Obviously if you owe money on the car the money you owe isn't considered an asset.

But the person who owns a car worth 20k is considered more wealthy than the guy with 20k cash in his pocket. In my opinion that's backwards as hell.

No. The difference between the car's value and what you owe is the asset. If you have a car worth 20k and it's paid for, then 20k is the asset amount.
 

CrimsonTider

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Because in my opinion, it is a bad thing. It's crippling. Yes, SOME use it to move beyond their circumstance but others rely on it and often continue to rely on it well into old age. That's not cool. Social Security is different than food stamps and public housing and I've never said anything bad about it. Aside from it bankrupting us...



I'm not being self-absorbed. He asked me what was my motivation and I told him. I didn't have access to anything that the average black person didn't have access to. I can understand needing assistance for a few months to a year to get back on your feet, but continuous years of needing assistance to me means, there is something YOU'RE not taking advantage of.

I love black people but we are out of excuses. We consume a large amount of goods, but we don't save anything. The wealth gap is widening because we make the SAME fiscally poor decisions that our ancestors made. It's not like we don't know the outcome of those decisions.

:what:Obviously if you owe money on the car the money you owe isn't considered an asset.

But the person who owns a car worth 20k is considered more wealthy than the guy with 20k cash in his pocket. In my opinion that's backwards as hell.

:mindblown: have you ever looked at a balance sheet

Asset = liabilities + Equity

If you owe 20k and the car is worth 20k, then you have an asset an liability worth 20k
 

theworldismine13

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When these people do studies on who has wealth or not. Cars are considered part of that wealth cash is not. Black people usually have more cash on hand than credit or assets so they are considered less "wealthy"

Using our two examples from before. A guy who makes 100k and ties all that money up in assets and investments is way worse of in an economic downturn than the guy who made 50k and saved most of his money.

a paid off car is an asset but a car note is a liability

i dont see what the difference is between saving money and an asset and investment, a savings account is considered both an asset an investment

and your assertion is just plain wrong, the people with the most assets (which includes savings accounts) do better during an economic downtown, holding assets is the reason why the rich people got even richer during the downturn, so your facts are just plain wrong
 

Rawtid

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:snoop:

Reading comprehension is not your strong suit. I'm talking about OWNING the car not taking out a loan.

Ok so if they own the car worth 20k, no one is goig to think they are more wealthy than someone with 20k in cash. They have an equal amount of assets so where do you get someone will think a car is better off than cash?
 

MeachTheMonster

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a paid off car is an asset but a car note is a liability

i dont see what the difference is between saving money and an asset and investment, a savings account is considered both an asset an investment

and your assertion is just plain wrong, the people with the most assets (which includes savings accounts) do better during an economic downtown, holding assets is the reason why the rich people got even richer during the downturn, so your facts are just plain wrong

I'm saying. In these "wealth" studies cash on hand isn't considered an asset. In my opinion cash on hand is much more valuable than having a paid for car, home, etc, or having a bunch of money tied up in investments.

The super rich get richer during an economic downturn, but for the rest of us having cash on hand is a much better safety net than owning a car, home, etc.

That's why when the recession hit and people lost all their investments, savings, etc they were ready to commit that and some did. While those who had cash money saved up were able to ride it out and live comfortably.
 

MeachTheMonster

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Ok so if they own the car worth 20k, no one is goig to think they are more wealthy than someone with 20k in cash. They have an equal amount of assets so where do you get someone will think a car is better off than cash?

Studies like the one that started this thread don't consider cash on hand as "wealth"
 
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