THE AMERICAN RACIAL WEALTH GAP PART 2 OF 2
Posted: Wednesday, August 21, 2013 by Unknown in Labels: African American, education, financial stability, middle class, wealth gap
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Many may not know that the middle class was actually created by the U.S. in the aftermath of World War II. After the second World War, demand for U.S. products rose to as high as it had ever been. New government programs enabled more individuals to obtain home loans. New programs also enacted reforms targeting discriminatory lending practices and made mortgage interest tax deductible. Minimum wage was raised to the highest than it had ever been in 1968. [here]
That was then and this is now.The structures that provided these opportunities have now either weakened or become obsolete over the last forty years. Because of this, a growing gap between the rich and the poor has emerged. The factors that make up the middle class, (a home, healthcare, and college education), have risen to extraordinary costs, outpacing growth in incomes. Because of this, the American people are finding it increasingly difficult to enter and remain in the middle class. [here]
WHY THERE IS A WEALTH GAP
As we discussed in Part 1 of this series, low wealth individuals are predominantly African Americans. Also, most African Americans own more debt than they do assets. As long as there is more debt owed than assets owned, there will continue to be a large wealth gap.
Education is a definite way to eliminate the wealth gap. The question is, how will many low wealth individuals be able to afford education?
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