The wealth gap between races continues to widen despite recession recovery.
While it could be debated to no end whether or not the Great Recession is over, a new report points out that consumers are still worth less money than they were before the bottom fell out of the economy.
A new analysis from Pew Research Center found that even as the economy has recovered, many households still face financial disparity and wealth inequality continues to widen along racial and ethnic lines.
According to the report, the net worth of American families – the difference between values of their assets and liabilities – fell 39.4% from the start of the recession to the purported end. Back in 2007, families had a net worth of $135,700, while they currently have a net worth of $81,400.
There has been significant decreases in consumer wealth since the recession ended.
In addition to the different in wealth from year to year, Pew’s analysis of Federal Reserve data found a stark divide between the experience of different races during economy recovery.
From 2010 to 2013, the median wealth of non-Hispanic white households increased from $138,600 to $141,900, or by 2.4%, while median wealth of non-Hispanic black households fell 33.7%, from $16,600 in 2010 to $11,000 in 2013.
Among Hispanics, median wealth decreased by 14.3%, from $16,000 to $13,700.
Pew points out that difference in wealth can, in part, be attributed to difference in median income between races and the use of financial assets such as stocks.
Still, since the recovery started all families have faced the same issues, including the reduction of ownership of key assets, such as homes, stocks and business equity.
Wealth inequality has widened along racial, ethnic lines since end of Great Recession [Pew Research Center]
by Ashlee Kieler via Consumerist
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