African Americans
One in four African Americans lives in poverty, the highest percentage of any racial group in the United States. Since 2000, African Americans’ median weekly earnings (in 2006 dollars) have essentially remained unchanged, declining at an average annualized rate of 0.001 percent, while whites’ earnings grew at an average annualized rate of 0.2 percent. At the end of 2007, African American incomes were $553.10, or $0.04 below where they were in 2000 (in 2006 dollars). Thus, the earnings gap between African Americans and whites has continued to widen, standing at a $142.89 difference at the end of 2007.
Given these income disparities, it is more difficult for African-American families to build assets and, as a result, they are more likely to experience economic instability. This means they are also more vulnerable to predatory financial practices. For example, more than 53% of home-purchase loans made to African Americans in 2006 were high-cost, as opposed to only 18% for whites. Similarly, payday lenders target minority communities: payday lenders are eight times more likely to be concentrated in minority neighborhoods than in white neighborhoods.
For these and many other reasons, creating asset-building opportunities for the African-American community is extremely important.
Given these income disparities, it is more difficult for African-American families to build assets and, as a result, they are more likely to experience economic instability. This means they are also more vulnerable to predatory financial practices. For example, more than 53% of home-purchase loans made to African Americans in 2006 were high-cost, as opposed to only 18% for whites. Similarly, payday lenders target minority communities: payday lenders are eight times more likely to be concentrated in minority neighborhoods than in white neighborhoods.
For these and many other reasons, creating asset-building opportunities for the African-American community is extremely important.
Resources:
Closing the Racial Wealth Gap Initiative
Description:
PowerPoint presentations focused on the intersections of race, gender, wealth, and immigration:
The Intersection of Race, Gender, and Wealth: Why Disparities Matter
The Experience of the African-American and Latino Middle Classes (February 2008)
Description: As the next installment in the By a Thread series, Economic (In)Security uses the Middle Class Security Index to provide the first comprehensive portrait of the level of financial security enjoyed by African American and Latino middle-class families. The findings show that in the wake of fading economic opportunity, these two rapidly growing groups face mounting obstacles in becoming part of and remaining securely in America's middle class.
Links to Fact Sheets and Policy Briefs:
Description:
A brief overview on the different barriers to asset building in communities of color as well as policy recommendations for addressing them:
Native American Women and Wealth
The Racial Gap in Debt, Credit and Financial Services
The Racial Gap in Homeownership and Home Lending
The Racial Gap in Savings and Investments
The Racial Gap in Wages and Employment
The Racial Gap in Business Development
Social Insurance and Communities of Color
The Racial Gap in Land Acquisition, Development and Retention
