A huge wealth gap makes economic recovery harder for Black Americans
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An average single white man under the age of 35 is 224 times as wealthy as the average single Black woman the same age, according to a new report from the Brookings Institution’s Hamilton Project.
The report also found that going into the pandemic recession, Black households held 4% of household wealth in America even though they’re a little over 13% of the population.
White households — 60% of the population — held 84% of household wealth.
What do those numbers mean for people of color as they struggle through this pandemic economy?
Gary Hoover is a Black man whose father raised his family and worked in a factory in Milwaukee. When his father died in 2008, Hoover said, there was a lot of worry in the family.
“How we were going to be able to handle expenses?” he said, like clearing his dad’s debts and paying for the funeral.
Now, Hoover’s an economist and department chair at the University of Oklahoma.
“It just so happened that, you know, me being a university professor, I was able to cover those final expenses and to take care of some outstanding debt that he left,” he said.
But he knows many Black families don’t have someone like him to step in.
Kristen Broady at the Brookings Institution’s Hamilton Project has been looking at household wealth by race and how disparities make families more resilient or precarious in this pandemic.
She said white households inherit more, more often. And “white people are more likely to own homes and their houses are likely to be worth more,” Broady said.
“There’s going to have to be a recovery of income, and then there’s going to have to be a recovery of wealth” when the economy bounces back, Hoover said.
“Given that Blacks started out with so fewer assets available to them in their wealth portfolio, it’s going to take them even longer to recover, therefore exacerbating the already existing problem,” Hoover added.
Which is exactly what happened after the Great Recession.
COVID-19 Economy FAQs
What are the details of President Joe Biden’s coronavirus relief plan?
The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.
What kind of help can small businesses get right now?
A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.
What does the hiring situation in the U.S. look like as we enter the new year?
New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.
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