Economics

OP-ED: Shrinking middle class squeezes African Americans, Latinos

Published

11 years ago

June 10, 2015

They teach our children, drive our buses, clean our streets and deliver our mail. They staff the government and make it run. Their public-sector jobs are at the heart of the middle class, particularly for African-Americans and Latinos. And they are in steep decline.

One of five African-American adults works in government employment. This is a higher percentage than either white Americans or Latinos. It isn’t surprising. Freed of segregation, African-Americans came into our cities just as manufacturing jobs — the traditional pathway to the middle class — were headed abroad. Government employment offered secure jobs, decent pay and benefits, a chance to buy a home and lift your family.

Women also flocked to public service jobs, which offered greater professional and managerial opportunities.

But in 2008 when the economy collapsed, state budgets were savaged. Tax revenues plummeted; spending needs soared. Deep cutbacks in regular programs followed. No one will be surprised to learn that African Americans lost jobs at a higher rate than whites, often because of seniority.

Now, in the sixth year of the recovery, the economy has inched back, unemployment is down. But employment in the public sector hasn’t bounced back. The new jobs being created pay less and offer less security than the jobs that were lost.

And this has devastating effects on the African-American middle class, the very people who have worked hard, played by the rules, and sought to get ahead.

The Economic Policy Institute estimates that since 2007, there are 1.8 million missing jobs in the public sector. Moreover, across the country, conservative Republican governors have assaulted unions and sought to curb collective bargaining, erase teacher tenure, and dramatically cut pensions and other benefits.

The loss of jobs and cutback on wages exacerbated the housing collapse. We’ve learned that banks and other predators targeted black neighborhoods like Prince Georges County in Maryland.

They marketed shoddy mortgages, leaving those with good credit paying higher rates than they could have and those with no credit betting it all on the assumption that housing prices would never fall.

Many report on the decline of the middle class, which has fallen backward over the last decade in both median income and wealth. More than 8 of 10 Americans, according to a Pew Poll, now report that it is harder to maintain their standard of living than it was 10 years ago.

And African-Americans and Latinos got hit the hardest. The race gap has widened, not narrowed, in this century. The New York Times reports that 50 percent of African-Americans now are low-income households, along with 43 percent of Latinos — a category that has been growing since 2000.

In Illinois, the nonprofit Corporation for Enterprise Development reports that more than one in three households suffers a “persistent state of financial insecurity.” Again, African-Americans, Latinos and single women with children fare worse.

Numbers like this numb. We know the reality. But we seem in denial. When Baltimore blows up, the spotlight is put on the police and their practices, as it should be.

But police forces across the country are ordered to keep order in communities racked with unemployment, homelessness, drugs, guns, collapsing schools, impoverished families and crushed hopes. The best-trained, more empathetic police officers in the country would have a hard time fulfilling that mission.

This country cannot stay in denial. We have to have a bold plan to rebuild high poverty neighborhoods from Chicago’s South Side to Appalachia’s valleys. Across the country we have work to do — from rebuilding 100-year-old water systems to creating the rapid transit that will connect people to jobs to moving to clean energy — and we have an entire generation of young people desperate for work.

We have corporations stashing trillions abroad to avoid paying their fair share of taxes. Billionaire hedge fund operators pay a lower tax rate than their secretaries. We need rebuild America and put people to work. The cost of losing another generation to despair will be far greater than the cost of investing in them on the front side of life.

Oakland Post

Posts by Oakland Post

Up Next

Oakland Is Losing Its Racial, Age and Economic Diversity, Says New Report

Don't Miss

OP-ED: Don’t Stop Window Smashing by Targeting Peaceful Demonstrators

Oakland Post

Click to comment

Activism

Oakland Post: Week of March 18 – 24, 2026

The printed Weekly Edition of the Oakland Post: Week of March 18 – 24, 2026

Published

7 days ago

March 22, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Activism

Oakland Post: Week of March 11 -17, 2026

The printed Weekly Edition of the Oakland Post: Week of March 11 – 17, 2026

Published

2 weeks ago

March 17, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Advice

Women & Wealth: Tips for Navigating Your Lifelong Financial Journey

Published

2 weeks ago

March 15, 2026

Oakland Post

Sponsored by J.P. Morgan Wealth Management

We are in the midst of a seismic shift in wealth. This phenomenon, often referred to as the “Great Wealth Transfer,” describes the unprecedented movement of assets from the Baby Boomer generation to their heirs – an estimated $105 trillion by 2048. And women are poised to inherit most of this.

J.P. Morgan Wealth Management’s 2025 Investor Study found that women are not only set to receive significant wealth – they’re actively working to build it on their own. Ninety-three percent of women surveyed who are expecting an inheritance aren’t relying on it to reach their goals.

Here are a few tips for women to consider in their wealth-building journey:

Create a financial roadmap

A detailed, well thought out plan is important. J.P. Morgan’s study found that 90% of those surveyed with a plan feel confident about reaching their financial goals, compared to 49% without one.

Your plan should reflect your unique goals, priorities and circumstances. Consider your investment horizon and risk tolerance, and remember to revisit your plan regularly as life evolves.

Are you saving up for goals like buying a house, sending your kids off to college or retiring early? Where do you want to be in the next five, ten or twenty years? Everyone’s financial situation is unique, so it’s important to think about these questions and build a plan that is unique to your life.

Women tend to live longer than men on average. Many take career breaks or care for family members, which can influence long-term planning. It’s important to adjust your strategy with these factors in mind.

Where to start with investing

Don’t let misconceptions hold you back. Starting to invest doesn’t require a large sum, and beginning early can be beneficial. The earlier you start, the more time your money has to potentially grow over the years. Understand your overall financial situation, set clear goals and develop a long-term plan.

It’s important to also make sure you’re covered for unexpected expenses that come up before you start to invest. Build up a cash emergency fund, typically enough to cover three to six months of expenses, and pay down any high-interest debt.

Taking charge of your finances

The good news is that women are taking charge of their finances. J.P. Morgan’s research found that 75% of women respondents make financial decisions with their partner or take the lead themselves. For those who have a spouse or partner, it’s important for each person in the relationship to play an active role in the process.

Building wealth can be empowering for many women. The same survey found that 73% of women respondents said money gives them “security,” while 64% of Gen Z and Millennial women associated it with “freedom.”

The power of having a team

Some people find it helpful to work with a financial advisor, so you don’t have to tackle things alone. An advisor can help you craft a plan tailored to your needs and keep you on track throughout your lifelong financial journey. If you expect to receive an inheritance, you should also consult with estate planning and tax professionals.

No matter where you are on your wealth-building path, education is key. It’s so important to be an informed investor, and there are plenty of resources out there to help. You can find a library of free educational resources at chase.com/theknow.

As the landscape of wealth continues to evolve, women have a unique opportunity to shape their financial futures and those of generations to come. By staying informed and planning ahead, women have the tools to help them confidently navigate the Great Wealth Transfer and set themselves up for financial freedom.

The views, opinions, estimates and strategies expressed herein constitutes the author’s judgment based on current market conditions and are subject to change without notice, and may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan Research and should not be treated as such. You should carefully consider your needs and objectives before making any decisions. For additional guidance on how this information should be applied to your situation, you should consult your advisor.  

JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.  