Recession worsens racial Gap in America

Wealth gap widens for whites over blacks, Hispanics - Pew

source: CNNMoney

(CNNMoney) — The wealth gap in the United States has grown wider in the wake of the Great Recession, with black and Hispanic American households faring much worse than white households, according to a study published Tuesday.

Household wealth is defined as the sum of a family’s assets minus the sum of its debts. The study defines assets as homes, cars, savings and financial investments, while debts include mortgages, auto loans and credit card debt, among other things.

Based on data from the Census Bureau, the study highlights how blacks and Hispanics have been disproportionately affected by the collapse of the housing market, the financial crisis and the recession that marked the period from 2005 to 2009.

According to the study, the inflation-adjusted median wealth among Hispanic households fell 66% from 2005 to 2009. Black households suffered a 53% drop in net worth over the same period. By contrast, whites saw a decline of 16% in household wealth.

In 2009, the typical black household had just $5,677 in wealth. Hispanic families had about $6,325 in wealth. The average white household had a net worth of $113,149.

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