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The Racial and Gender Wealth Gaps
in the U.S.
''As all of us saw on television, there is also some deep, persistent poverty in this region (the South) as well. That poverty has roots in a history of racial discrimination, which cut off generations from the opportunity of America. We have a duty to confront this poverty with bold action.”
- George W. Bush
Lets start with Louisiana, the center of Hurricane Katrina. There, the average
income for African-Americans is $21,461, while that of whites is $40,049.
While African-Americans comprise 31.5% of the population in Louisiana,
69% of the children in poverty are African-Americans.
Average Income by Race
$21,461
$40,049
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
African American White
Bush suspended the requirements of the Davis-Bacon Act in the storm-ravaged areas. Passed during the Great Depression, this law requires contractors on federally funded construction projects to pay at least the prevailing wage in the region. Imagine, for example, the impact of this on truck drivers doing highway construction in Gulfport, Miss. who earn the Davis-Bacon wage rate of $6.14 an hour. Even at this rate, they earn less than the poverty threshold, even if they work full-time, 52 weeks a year.
About 1.5 percent of the $1.6 billion awarded by the Federal
Emergency Management Agency has gone to minority businesses - less than a third of the 5 percent
normally required.
But if you think that racial economic inequality is particular to the south,
think again. It is the norm nationwide. In 2001, the median
household net worth of the typical white family was $121,000, while for the typical African-American family
it is $19,000, and for Latinos only $3,000.
Total Assets by Race
$121,000
$19,000
$3,000$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
White African American Latino
Despite a growing economy, the number of African-Americans in unions has fallen by 14.4 percent
since 2000, while white membership is down 5.4 percent.
As many jobs move overseas, this means an increasing loss of
blue-collar jobs for African Americans.
Black Union Members
2.5
2.4 2.38
2.3
2.1
1.9
2
2.1
2.2
2.3
2.4
2.5
2.6
2000 2001 2002 2003 2004
(In
Million
s)
It’s not as if all whites are doing well though. White unemployment rose from 2.75% in 2001 to 4.2% in 2005, but during this same time, Black unemployment
rose from 7% to 9.6%.
Unemployment from 2001 to 2005
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
2001 2005
White
Black
In New York, for example, in 2003, only 51.8% of black
men between 16 and 65 had jobs. This compares with 57.1% for Black women,
65.7% for Latino men, and 75.7% for white men.
% of People with Jobs in NY (2003)
51.8%57.1%
65.7%
75.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Black Men Black Women Latino Men White Men
Many families are not poor, but very close to it. For example, 79%
of African American families would run out of money in three months if they lost their income, and similarly 73% of Latinos would. For whites, however, only 38% would run out
of money in three months.
Percent of Families Whose Money Would Run Out In 3 Months
79%
73%
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
African American Latino White
A gender gap is prevalent as well as a racial wealth gap… For example, in 2004, the average man got paid
$15.26/hour while the average woman made only $12.49/hour. The
median income for a man working full time was $38,275, whereas it
was only $29,215 for women.
Hourly Income Differences by Gender
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Men Women
In 2004, college-educated women aged 45-49 earn
$36,842 (or 38%) less per year than their college-
educated male counterparts
Median Income for Men & Women (working full-time, 2004)
$38,275
$29,215
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Men Women
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