Tag Archives: Income Inequality

Black/White Wealth Gap Triples Since 1984

Contrary to what the Right Wing, the Tea Party, the Republican Party and certain Supreme Court Justices may think, just because we have twice-elected an African-American President does not mean racism and it’s long-term impacts are a thing of the past.

Very disturbing- really shocking- news from this new study….

This really shows how hard it is for minorities, not just Blacks, but also Hispanics and Asians,  to move ahead in America.  This is especially true if you look deeper at some of the drivers of income disparity such,  as  less inherited wealth and homeownership rates and home values resulting from segregated neighborhoods.  It’s not just coming from the expected sources of income/education disparity and unemployment….

From MSNBC (emphasis mine):

The racial wealth gap between blacks and whites has increased by $152,000 in the past 25 years, according to a new study [PDF] from Brandeis University’s Institute on Assets and Social Policy. The median wealth of white families has shot up precipitously since 1984, while the median wealth of black families has barely moved.

“Tracing the same households during that period, the total wealth gap between white and African-American families nearly triples, increasing from $85,000 in 1984 to $236,500 in 2009,” write the authors of the report. The chief driver of the inequality increase, they write, was disparities in homeownership, with household income arriving in second and unemployment in third.

White households were found to benefit disproportionately from average income increases, and residential segregation was said to be a major reason for inequality in homeownership. Additionally, “whites received about ten times more wealth than African-Americans” among those earning an inheritance.

“Our analysis found little evidence to support common perceptions about what underlies the ability to build wealth, including the notion that personal attributes and behavioral choices are key pieces of the equation,” they write. “Instead, the evidence points to policy and the configuration of both opportunities and barriers in workplaces, schools, and communities that reinforce deeply entrenched racial dynamics in how wealth is accumulated and that continue to permeate the most important spheres of everyday life.”

via Study: Black/white wealth inequality has exploded since ’80s — MSNBC.

From the Washington Post:

The large and growing wealth gap separating white and black families is the product of stubborn barriers that disproportionately consign African Americans to less-valuable real estate and lower-paying jobs, according to a new study.

A long-term examination of the financial lives of black and white Americans revealed that African Americans typically face a subtle but persistent opportunity gap that has served to widen financial disparities remaining from a long history of overt discrimination, according to a report to be released Wednesday by Brandeis University’s Institute on Assets and Social Policy.

via Study ties black-white wealth gap to stubborn disparities in real estate – The Washington Post.

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CBO: Income Of The Top 1 Percent Exploded Over The Last Three Decades

It will be interesting to see how the GOP handles this report from the non-partisan and highly respected Congressional Budget Office.

Well, not really.  They will just loudly spread lies and propaganda while impugning the reputation of the CBO.

At this point, their reaction to news and facts not supportive of their goals is really rather predictable.

From ThinkProgress.org:

The Congressional Budget Office today released a new report on the growth in income that’s occurred in the U.S. over the last three decades. CBO found that, “for the 1 percent of the population with the highest income, average real after-tax household income grew by 275 percent between 1979 and 2007,” while it grew by just 18 percent for the bottom 20 percent of the income scale. “As a result of that uneven income growth, the distribution of after-tax household income in the United States was substantially more unequal in 2007 than in 1979,” CBO said.

via CBO: Income Of The Top 1 Percent Exploded Over The Last Three Decades | ThinkProgress.

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$39,000 For a Backpack? Luxury Items Flying Off the Shelves

As Marie Antoinette allegedly said, when told the poor had no bread, “Let them eat cake.”

I bet she would have had one of these bags….

Some kids can’t pay their college tuition without mortgaging their future with student loans and others carry a backpack that costs more than a year’s tuition at an Ivy League College???

Something is very wrong here….

From AlterNet.org:

If you wanted to sum up what people mean when they toss around phrases like “class war” and “the 99 percent”  and “WTF,” you might put it all down to this: $39,000 backpacks. Sold out.

It’s been four years since the entrepreneurial Olsen sisters, Mary-Kate and Ashley, launched their luxury fashion line, the Row, and three months since they debuted their stylish and exorbitantly priced black crocodile bag. But it was the news this week that at the Paris launch of the handbag line, Ashley Olsen bragged that the backpack “was the first thing that sold off the shelf” that really took the let-them-eat-cake. Olsen added that luxury brands do well in hard times, noting that “During our last economic crisis in the U.S., the only thing that went up was Hermès,” before, in the words of Women’s Wear Daily, “returning to sip Champagne with guests including Michelle Harper and Christian Louboutin.” As a commenter on CNN observed of this news, “This is what’s wrong with America. The income inequality in this country is outrageous, we are well on our way to becoming a 3rd world country.” Or, as another more aptly expressed it, “That’s cray cray.”

via $39,000 For a Backpack? Luxury Items Flying Off the Shelves | | AlterNet.

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Filed under Politics, The Economy, Uncategorized