In 2008, Barack Hussein Obama, a black man – half-black for those who wish to make the distinction – was voted president of the United States. The narrative of Obama thus offered tangible proof America had lived past its racism-scarred past and has transcended the notion of race division entirely.
While the election of Obama certainly represents a cultural leap and bound in combating racism, a year later a stunning report from the Pew Research Center revealed race divisions are still very much alive.
In fact, a CNN article from July 26, 2011 reveals the racial wealth gap is the worst it has ever been. The racial wealth gap has been tracked since the 1980s.
The numbers from the aforementioned CNN article are quite shocking:
“The inflation-adjusted median wealth among Hispanic households fell 66 percent from 2005 to 2009. Black households suffered a 53 percent drop in net worth over the same period. By contrast, whites saw a decline of 16 percent 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.”
The article adds two caveats: first, it is likely the gap has narrowed very slightly since 2009 given the Great Recession and second, economic data typically lags a few years behind, which explains the data being from 2009.
Of course, when analyzing the predicament the victims of this gap find themselves in, it is clear there is an explanation that goes beyond the refusal of minorities to “pull themselves up by their own bootstraps.”
A Color Lines article from July 26, 2011 begins to explain the racial wealth divide by stating: “Black and Latino families are also far more likely to live in places crawling with expensive, deceptive consumer lending of all sorts, from car loans to refinance mortgages.
They are more likely to turn to that lending because they make less money and because they already hold less wealth to cushion themselves in tough times. It’s an ugly cycle: inequality across the economy creates demand for predatory credit to bridge the gap, which in turn worsens inequality.”
Given Eastern Michigan University’s own incredible diversity, Eagles should begin to think critically about the remarkable difference between the average financial narrative of a white person and a black person.
Fortunately, the wealth divide is not one that cannot be closed. In her article “Closing the Wealth Gap for the Next Generation,” author Meizhu Lui argues through steps involving home ownership, higher education and health care, we can begin to see the chasm close.
Obviously, this problem is far too massive to be solved through an article – academic journal or newspaper – but Lui urges “activists, scholars and policy makers” to bear in mind that “Whites and people of color move along different economic tracks. Because of past and present discrimination, people of color begin several paces behind the starting line and face more hurdles along the course.”
It goes without saying we have much to do when it comes to the multiplicity of divides that come with race. Yet when considering Obama’s successful presidential campaign in 2008, I immediately recall his logo. In the context of the racial wealth gap, it could be a positive omen: a sunrise and bridge.
