White Americans have 22 times more wealth than blacks. This racial gap nearly doubled during the Great Recession.
Recently released Census Bureau figures show that the median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks.
The gap between the races widened considerably during the recent troubled economic times, where whites have faired better than blacks, Hispanics and Asians. The three minority groups’ median household net worth fell by roughly 60 percent between 2005 and 2010, while the median net worth for white households slipped only 23 percent.
This wealth gap has been a perpetual issue in America, where whites continue to hold a disproportionate amount of the wealth. However; the Great Recession intensified the problem.
In 2005, the net worth difference was not as severe. Whites had 12 times more wealth than blacks and 8 times more than Hispanics. As mentioned before, that number has increased, as white Americans now have 22 times more wealth than blacks.
According to CNN, the main reason blacks and Hispanics did not fare as well during the economic downturn is that home equity makes up more of their wealth than it does for whites.
The housing bubble that preceded the collapse pushed up homeownership rates among blacks and Hispanics, who relied more heavily on high-cost subprime loans to finance their purchases.
Whatever the cause may be, it’s obvious that disparities between races continue today in 2012. In the near future, we hope to see this gap narrow as well as see the economy improve as a whole.