Tuesday, July 26, 2011

WEALTH – AND THE DISPARITY BETWEEN THE RACES

There is an article today on Politico about a Pew Research survey that’s very disturbing – partly because the results are astounding but also because the results are self-serving for the left in promulgating class envy.  Look to see this quoted during the debt debate when taxes (a/k/a/ revenues) are brought up.

‘The median wealth of white U.S. households in 2009 was $113,149, compared to $6,325 for Hispanics and $5,677 for blacks, according to the analysis released Tuesday by the Pew Research Center. Those ratios, roughly 20 to 1 for blacks and 18 to 1 for Hispanics, far exceed the low mark of 7 to 1 for both groups reached in 1995, when the nation's economic expansion lifted many low-income groups to the middle class.’ [1]

White households on average now earn 20 times more than the typical black family and 18 times more than the average Hispanic family, the study found. The disparities are three times the gap that existed just three years ago. [1]  (I find that last line interesting, especially the ‘three year’ thing – but don’t look for that to be highlighted by the MSM)

At first read, this sounds unbelievable.  This data screams ‘tax the rich, tax the rich.’

One analyst in the halls of academia concludes:  “What’s pushing the wealth of whites is the rebound in the stock market and corporate savings, while younger Hispanics and African-Americans who bought homes in the last decade - because that was the American dream - are seeing big declines.” [2] (Note to the author – it’s not just minorities who are seeing big declines because of the housing slump – a sinking ship drags everyone under water.)

Wealth, by definition,  is the abundance of valuable resources or material possessions. [Pew defines wealth as assets minus debts] Wealth can be inherited, as Ted Kennedy did, or earned, like Bill Gates did.

Income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received... in a given period of time.  If you work at a job, you have income.  If you invest that income you can hopefully accumulate wealth.

Take a walk through most economically depressed minority areas in any large city and you will find (unemployed minority) young people with tats all over their bodies, diamonds in their ears, gold chains around their necks, high dollar sneakers on their feet, and a fancy cell phone pressed to their ear.  Many will be driving a muscle car and will park it in front of a seedy, run-down flat.  A look inside often belies the exterior, with the high-end sound and video system, just to name a couple of things. [As an aside - did you know Nike makes a pair of sneakers called Air Force One ‘So Cals’ that can be had for a mere $50,000]. 

Choices.  It’s all about choices.  I submit this disparity is (in many cases) self-inflicted and government sponsored.

[2] Timothy Smeeding, a University of Wisconsin-Madison professor who specializes in income inequality

1 comment:

  1. I sold my job in mid 04.

    Had I a clue as to what was going to coming, I would not have done so. If nothing else I would know where I would be at 9 in the morning! In a small town, such carries big importance.

    Three weeks ago I got a job, not great in pay, but in my industry of hotels and the setup is pretty decent. I'm doing what I was doing, but don't have need to make a payroll or mortgage pmt! Just do what I did and coach and train the new owners while trying to rebuild a business into the status it once held.

    I'm guessing that the minorities are not reporting their drug sales? Didn't think so.

    Actually amazing at how many ways there are to hide legit income. Evidently white folks don't do that so much.

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