Recession made Wealth Gap between Whites & Blacks/Latinos Larger

The wealth gap between White families and Blacks and Hispanics grew larger after the most recent recession, a private analysis of government data finds. White households had a median net worth of more than $88,000 in 2002, 11 times more than Hispanics and more than 14 times that of Blacks, the Pew Hispanic Center said in a study being released today. Blacks were slowest to emerge from the economic downturn that started in 2000 and ended early in 2001, the report found.  Net worth accounts for the values of items such as a home and car, checking and savings accounts, and stocks, minus debts such as mortgage, car loans and credit card bills. Greater wealth means a greater ability to weather a job loss, emergency home repairs, illness and other unexpected costs, as well as being able to save for retirement. According to the group's analysis of Census Bureau data, nearly one-third of Black families and 26 percent of Hispanic families were in debt or had no net assets, compared with 11 percent of Whites.  "Wealth is a measure of cumulative advantage or disadvantage," said Roderick Harrison ofthe Joint Center for Political and Economic Studies, a Washington think tank. "The fact that Black and Hispanic wealth is a fraction of White wealth also reflects a history of discrimination." [more ]

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