Mind the wealth gaps

Posted: 21 June 2012 in Uncategorized
Tags: , , , ,

Ownership of wealth in the United States is even more unequal than the distribution of income. And it’s been getting worse.

According to data recently released by the Census Bureau, those in the highest twenty percent of income earners have 64 times more wealth than those in the lowest twenty percent, while white Americans have 22 times more wealth than blacks.

The median household net worth for those in the highest quintile was $333,168, versus $5,193 for those in the lowest quintile. The net worth of whites was $110,729 in 2010, compared to $4,995 for blacks. The difference is similarly notable when it comes to those of Hispanic origin who had a median household net worth in 2010 of $7,424 (giving rise to a ratio of white to Hispanic of 15 to 1)

After the crash, the inequality of net worth only got worse. In 2005, the ratio of the wealth of the highest to the lowest quintile of income earners was 38.6 ($386,982 compared to $10,000), while the ratio of white to black wealth was 11.8 ($130,350 compared to $11,013) and white to Hispanic was 7.6 ($130,350 compared to $17,078).

According to CNN [ht: ja],

Asians, meanwhile, are more concentrated on the West Coast, which was hit harder by the mortgage meltdown. And the arrival of new Asian immigrants in the last decade contributed to the decline in overall wealth, according to Rakesh Kochhar, co-author of the Pew Research Center report on wealth.

Thus, the wealth gaps—by income and race—which were already very large before the crash, have continued to grow during the course of the Second Great Depression.

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