Recession widened wealth gap along racial and ethnic lines

  The Great Recession hit American families hard across the board, but it turns out that certain households haven’t recovered as well as others, especially Hispanic households. According to a new Pew Research Center analysis, the wealth inequality in America has widened significantly along racial and ethnic lines since the country began recovering from the Great Recession, and blacks and Hispanics have been hit the hardest. SEE ALSO: Obama shows admiration for the Pope and views on income inequality The current white-to-Hispanic median wealth ratio has reached its highest point since 2001. The study shows that the median white household has 10.3 times the wealth of the median Hispanic household. That number is drastically higher than at the beginning of the Great Recession in 2007, when white households had 8.2 times the wealth of Hispanic households. From 2010-2013, the median wealth of Hispanics decreased from $16,000 to $13,700. During the same time frame, the median wealth of non-Hispanic white households actually increased by 2.4 percent, rising from $138,600 to $141,900. The wealth inequality between black households and white households grew even wider than the white-Hispanic ratio. In 2013, the median wealth of white households was 13 times that of black households. In 2013, the median black household had a wealth of $11,000, compared to $19,200 in 2007. Why the huge gap in the US for Latinos and Blacks? The study notes a few possible reasons why white households may have recovered more quickly than minority households, including stock ownership and homeownership. White households are more likely to own stocks than minority households, and stocks have quickly recovered their value since the end of the recession. Also, minority households seem to have reduced their ownership of assets more than white households since the recession. The homeownership rate amongst white households dropped 2 percent from 2010 to 2013, while the rate amongst minority households dropped 6.5 percent during the same time period. SEE ALSO: Student loan debt weighing down young Latinos While white households have recovered better than both black and Hispanic households, there is still one common trend throughout every group – everyone’s median wealth is still below its pre-recession level.The post Recession widened wealth gap along racial and ethnic lines appeared first on Voxxi.

These graphs by the Pew Research Center show how economic inequality has grown among ethnic/racial lines since The Great Recession in the US. (Pew Research Center)

The Great Recession hit American families hard across the board, but it turns out that certain households haven’t recovered as well as others, especially Hispanic households.

According to a new Pew Research Center analysis, the wealth inequality in America has widened significantly along racial and ethnic lines since the country began recovering from the Great Recession, and blacks and Hispanics have been hit the hardest.

SEE ALSO: Obama shows admiration for the Pope and views on income inequality

The current white-to-Hispanic median wealth ratio has reached its highest point since 2001. The study shows that the median white household has 10.3 times the wealth of the median Hispanic household.

That number is drastically higher than at the beginning of the Great Recession in 2007, when white households had 8.2 times the wealth of Hispanic households.

From 2010-2013, the median wealth of Hispanics decreased from $16,000 to $13,700. During the same time frame, the median wealth of non-Hispanic white households actually increased by 2.4 percent, rising from $138,600 to $141,900.

The wealth inequality between black households and white households grew even wider than the white-Hispanic ratio. In 2013, the median wealth of white households was 13 times that of black households.

In 2013, the median black household had a wealth of $11,000, compared to $19,200 in 2007.

Why the huge gap in the US for Latinos and Blacks?

The study notes a few possible reasons why white households may have recovered more quickly than minority households, including stock ownership and homeownership.

The wealth gap has widended between Latinos and whites after the great recession.
Federal Reserve Chair Janet Yellen announced that the Federal Reserve will be lowering interest rates, a sign that the US economy is recovering, but the wealth gap between Hispanics and Anglos has widened. (AP Photo/Cliff Owen)

White households are more likely to own stocks than minority households, and stocks have quickly recovered their value since the end of the recession.

Also, minority households seem to have reduced their ownership of assets more than white households since the recession. The homeownership rate amongst white households dropped 2 percent from 2010 to 2013, while the rate amongst minority households dropped 6.5 percent during the same time period.

SEE ALSO: Student loan debt weighing down young Latinos

While white households have recovered better than both black and Hispanic households, there is still one common trend throughout every group – everyone’s median wealth is still below its pre-recession level.

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