NikeTalk › NikeTalk Forums › The Lounge › General › Sobering Truth: Black Households Lose Half Of Wealth Despite Having College Degrees
New Posts  All Forums:Forum Nav:

Sobering Truth: Black Households Lose Half Of Wealth Despite Having College Degrees

post #1 of 18
Thread Starter 
Quote:

 Sobering Truth: Black Households Lose Half Of Wealth Despite Having College Degrees

In America, education has always been pushed as the great equalizer in the path for success, especially for Blacks and the Black community as a whole.
 
However, a new study shows that Black households headed by college graduates have actually lost half of their wealth over the last 20 years when compared to White counterparts.
 

The Federal Reserve Bank of St. Louis found that the wealth of Blackmoney families headed by college graduates have fallen drastically between 1992-2013.  There were three major recessions during this time period, yet the median net worth of White households headed by a college graduate increased by an eye-catching 86%.

Asian families led by a college graduate actually seen their median incomes rise the most seeing their wealth rise by 90%, while Hispanic families led by a college graduate lost a disheartening 72% of their wealth.

The recessions saw middle-American wealth erode due to the crashlosehouse in the housing market in which Hispanics were more heavily invested in housing compared to Blacks.

Black and Hispanic college households sank more of their money into the family homes and had to watch that wealth disappear during the “Great Recession”.  There is a glaring disparity when compared to White college graduates whose homes declined by only 25% during the economic meltdown.

The high costs of education, normally paid for by student loans, coupled with the housing market collapse crushed Black and Hispanic wealth, but there are more factors that come into play.

The lack of affluent relatives and a job market riddled with racism neutralized any benefits or protection a college degree could provide during economic downturns.medianwealthreturn

Surprisingly, Black households headed by people without college degrees only seen their wealth decline by less than 4%, however, this is only because they had less to lose.  The last recession saw the Black median household wealth shrink to one-twentieth of White families.

The study revealed the obvious – that “higher education alone cannot level the playing field.”  The sobering truth is that it is statistically impossible to reach economic parity with Whites, regardless of education, until there is an overhaul of the current system mired in systematic racism.

 

thoughts? 8o

post #2 of 18
Their land their rules.
أشهد أن لا إله إلاَّ الله و أشهد أن محمد رسول الله
Reply
أشهد أن لا إله إلاَّ الله و أشهد أن محمد رسول الله
Reply
post #3 of 18
Link?
"This that mob ish you nerd $&*#@ heard about"
Reply
"This that mob ish you nerd $&*#@ heard about"
Reply
post #4 of 18

difference between buying your house in the 2000s because of lenient (shady) banks and working with your house/land thats been in your family for 2 generations bought dirt cheap. not to mention blacks and hispanics who went to school on loans that are accruing interest vs mom and dad helping you out

post #5 of 18
Quote:
Originally Posted by DLee23 View Post

difference between buying your house in the 2000s because of lenient (shady) banks and working with your house/land thats been in your family for 2 generations bought dirt cheap. not to mention blacks and hispanics who went to school on loans that are accruing interest vs mom and dad helping you out

because every white person comes from a wealthy family who can pay for all their college and every white person lives in a house passed down through generations?

The disparity is real though
post #6 of 18
This was primarily due to faltering home values, not a loss of money per se. Whether or not they had degrees isn't nearly as reflective as the cross streets of their respective homes.

Dunno why they're making the college degree portion such a big deal.

"...he's the Duncan MacLeod of IT on NT..."

Twitter

Programming Languages: ASP.NET, C/C#, HTML/CSS, Java, JavaScript, MIPS, SQL.


Ask me for help with any of the programming languages above.
Reply

"...he's the Duncan MacLeod of IT on NT..."

Twitter

Programming Languages: ASP.NET, C/C#, HTML/CSS, Java, JavaScript, MIPS, SQL.


Ask me for help with any of the programming languages above.
Reply
post #7 of 18

I got the vibe they were trying to detract from the value of a college degree...IDK what you say, education is the key, formal or informal.

"Independence is my happiness, and I view things as they are, without regard to place or person; my country is the world, and my religion is to do good." - Thomas Paine
Reply
"Independence is my happiness, and I view things as they are, without regard to place or person; my country is the world, and my religion is to do good." - Thomas Paine
Reply
post #8 of 18
Due to housing discrimination in the 40s-50s whites were able to get homes dirty cheap with govt subsidies while blacks were not allowed to get these loans and grants. Whites were able to get homes for sh 50k that over time became "valued" at 300k while blacks were shut out of this. When this ended homes were already inflated in cost and whites were able to have a ton of equity thus creating wealth for non wealthy families.
post #9 of 18
Quote:
Originally Posted by 360waves View Post

Their land their rules.

indifferent.gif

you're kidding i hope.
post #10 of 18
Quote:
Originally Posted by LuckyLuchiano View Post

Due to housing discrimination in the 40s-50s whites were able to get homes dirty cheap with govt subsidies while blacks were not allowed to get these loans and grants. Whites were able to get homes for sh 50k that over time became "valued" at 300k while blacks were shut out of this. When this ended homes were already inflated in cost and whites were able to have a ton of equity thus creating wealth for non wealthy families.

Ding ding ding, and cats think that what happened in the 50's and such doesn't still affect people today. grin.gif

Once the recession hit, and jobs were lost, those in power looked to their own even more before they looked to those that didn't look like them.
PSN: StarCityPA

Programming Languages: HTML/CSS, Bootstrap, JavaScript, JQuery
Reply
PSN: StarCityPA

Programming Languages: HTML/CSS, Bootstrap, JavaScript, JQuery
Reply
post #11 of 18
Thread Starter 
Quote:
Originally Posted by Mangudai954 View Post

Link?

 

http://financialjuneteenth.com/blkcollegewealth1/

post #12 of 18
Quote:
Originally Posted by LuckyLuchiano View Post

Due to housing discrimination in the 40s-50s whites were able to get homes dirty cheap with govt subsidies while blacks were not allowed to get these loans and grants. Whites were able to get homes for sh 50k that over time became "valued" at 300k while blacks were shut out of this. When this ended homes were already inflated in cost and whites were able to have a ton of equity thus creating wealth for non wealthy families.

 

That explains the Boomers, but what about the Gen-Xers and Millenials?

 

What I want to see from the study is the breakdown of debt levels used to go to college and the types of degrees obtained. Just because you "got an education" doesn't mean that all education is equal. Equally, if someone went to school with no debt, whereas another went to school with a significant amount of debt, that will cut significantly into future wealth building potential due to the time value of money.

post #13 of 18
^^ missing the entire point laugh.gifmean.gif
post #14 of 18

Instead of reading the blog, I went straight to the source:


 

Quote:

 

Job-market difficulties specific to Hispanic and black college graduates probably played a role, especially over the longer term. Financial decision-making appears even more important in explaining large wealth declines among Hispanic and black college-educated families during the Great Recession and its aftermath.

 

Quote:
Financial choices probably played a bigger role than income fluctuations in determining wealth outcomes in recent years. Figure 3 shows that the median debt-to-income (DTI) ratios among college-educated Hispanic and black families in 2007—on the eve of the Great Recession—were far higher than those among any other group.

 

post #15 of 18
Can we ever win?
post #16 of 18
Quote:
Originally Posted by DipsetGeneral View Post

Can we ever win?
no,apparently.
"This isnt even my final form"
Reply
"This isnt even my final form"
Reply
post #17 of 18
sucks that "education" is a debt trap in disguise for many folks.

And it's partially everyone's fault, from the govt giving loans to everyone with a pulse (do we really need that many psych majors?) to colleges milking students to parents and their kids being financially illiterate. Sprinkle in a little bigotry and we get this cluster****
post #18 of 18
Talking about property values, there's Willow Glen in San Jose. Mainly white area and rather wealthy. Their home values didn't drop during the recession. Minorities weren't allowed to live there a few decades ago. If you were Latino or black you lived on the other side of the rail road tracks.
E q u i p o T R I c o l o r W$GT$
Reply
E q u i p o T R I c o l o r W$GT$
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General
NikeTalk › NikeTalk Forums › The Lounge › General › Sobering Truth: Black Households Lose Half Of Wealth Despite Having College Degrees