National

Increased Black Home Ownership Would Slice Wealth Gap

Published

9 years ago

March 18, 2015

In this Oct. 27, 2014 photo, a realty sign is posted in front of a home for sale in Carlsbad, Calif. Real estate date provider CoreLogic releases its September report on U.S. home prices on Tuesday, Nov. 4, 2014. (AP Photo/Lenny Ignelzi)

In this Oct. 27, 2014 photo, a realty sign is posted in front of a home for sale in Carlsbad, Calif. (AP Photo/Lenny Ignelzi)

by Freddie Allen
NNPA Senior Washington Correspondent

WASHINGTON (NNPA) – Researchers studying the affects of public policy on the racial wealth gap estimated that the median wealth of Black households would rise 451 percent if Blacks owned homes at the same rates as Whites.

“With policies that advance the rate of Black and Latino homeownership to the same rate as White households, Black median wealth would more than quadruple and Latino media wealth would more than triple,” said Catherine Ruetschlin, a senior policy analyst at Demos, a public policy group that advocates for political and economic equality.

A joint effort by Demos and the Institute on Assets and Social Policy (IASP), a research group that advocates for economic opportunity, security and equity for individuals and families, detailed the key factors in housing, education, and the labor market that have contributed to the racial wealth gap for generations.

The report by said that the median Black household had $7,113 in wealth holdings compared to the median White household, which had $111,146 in wealth holdings in 2011.

“Black households hold only 6 percent of the wealth owned by White households, which amounts to a total wealth gap of $104,033, and Latino households hold only 8 percent of the wealth owned by White households, a wealth gap of $102,798,” stated the report. “In other words, a typical White family owns $15.63 for every $1 owned by a typical Black family and $13.33 for every $1 owned by a typical Latino family.”

According to the report if public policy eliminated racial disparities in income, the median Black wealth would grow $11,488 and if disparities in college graduation rates were eradicated, median Black wealth would grow $1,313.

Thomas Shapiro, the director at IASP, said that the racial wealth gap is one of the most critical issues as the United States moves into the 21st century. Shapiro said that researchers designed a new tool called the “Racial Wealth Audit,” to get a real, objective handle on the impact of policy on wealth accumulation in the United States and what the racial wealth gap really looks like.

Tamara Draut, the vice president of policy and research at Demos, said that while researchers and policy analysts have been heartened by the burgeoning debate surrounding rising inequality in the United States and the implications that it has for all of our standards of living, the underlying racial divide that underpins so much of the inequality in this country is less understood and less talked about.

“In addition, Black and Latino college graduates saw a lower return on their degrees than White graduates: for every $1 in wealth that accrues to median Black households associated with a college degree, median White households accrue $11.49,” stated the report.

Black families also experienced lower returns on the income that they earned, when compared to White families.

“If households of color had the same wealth returns estimated for White families with similar incomes, the racial wealth gap would decrease by 43 percent,” said Tatjana Meschede, the research director at IASP. “To make progress in closing the racial wealth gap, policies need to address both income inequality and differential wealth returns to income.”

Meschede said policy recommendations to address income inequality included raising the minimum wage, the creation of a federal jobs program and increasing unionization.

“Homeownership is the largest reservoir of wealth and financial stability that American families have,” said Thomas Shapiro, the director at IASP. “It’s just that it is so inequitably distributed at this point in time in the value of wealth that it creates.”

With the creation of the Federal Housing Administration in 1934, the United States government sanctioned lenders to use “redlining” to systematically deny Blacks access to that reservoir of wealth for decades.

“While redlining was officially outlawed by the Fair Housing Act of 1968, its impact in the form of residential segregation patterns persists with households of color more likely to live in neighborhoods characterized by higher poverty rates, lower home values, and a declining infrastructure compared to neighborhoods inhabited predominantly by White residents,” stated the report. “Discriminatory lending practices persist to this day. When households of color access mortgages, they are more often underwritten by higher interest rates.”

Draut said that some economists and lawmakers have drawn the wrong conclusions about what happened during the financial collapse and that misunderstanding is preventing faster progress towards the policies that we need.

“We know that lower-income homeowners can afford homes, stay in their homes and not be subject to foreclosure, if they have safe, traditional mortgages,” explained Draut. “The defamation of wealth and the resulting foreclosures were really due to the aggressive marketing and selling of toxic mortgages to communities of color that directly put their homeownership status in danger.”

Shapiro expressed concerns about some of the current conversations taking place on Capitol Hill and at the Treasury Department around financial reforms in the housing industry, adding that some policymakers have floated the idea that prospective buyers should take on more risk, possibly in the form of larger down payments.

“Those are precisely the kinds of reforms that will continue to block families of color from homeownership,” said Shapiro.

In order to close the wealth gap, Ruetschlin said that policies that perpetuate differences in homeownership rates and returns should be changed.

The report recommended stricter enforcement of housing anti-discrimination laws, authorizing Fannie Mae and Freddie Mac to make it easier for struggling homeowners to modify loans and lowering the cap on the mortgage interest tax deduction.

Ruetschlin said that, the investor class and international governments increasingly point to widening inequality as a real threat to economic stability and that the amount of wealth a family holds affects their ability to survive that shock when volatility occurs.

She explained, “Growing inequality can really undermine stability overall and make it even harder for an increasingly large portion of the population to weather those shocks when they come.”

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Oakland Post: Week of July 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of July 24 – 30, 2024

Published

16 hours ago

July 26, 2024

Oakland Post

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NNPA NEWSWIRE — Reflecting on his long career, Biden expressed deep gratitude and pride. “Nowhere else on earth could a kid with a stutter from modest beginnings in Scranton and Claymont one day sit behind the Resolute Desk in the Oval Office. But here I am. That’s what makes America special,” he remarked, his voice tinged with emotion.
The post first appeared on BlackPressUSA.

Published

2 days ago

July 25, 2024

Stacy M. Brown

Biden: Our Democracy Demands New Leadership

By Stacy M. Brown, NNPA Newswire Senior Correspondent
@StacyBrownMedia

In an impassioned address from the Oval Office, President Joe Biden laid bare his decision to step down from the 2024 presidential race, urging Americans to embrace a new generation of leadership. “Saving democracy is more important than any title. It’s time to pass the torch to younger voices,” Biden declared in an address that signaled a transformative shift in American politics.

Following his decision over the weekend to bow out of the race for re-election, Biden’s announcement was a clarion call for renewal. Stressing the moment’s urgency, Biden emphasized that the future of democracy depends on fresh, dynamic leadership. He endorsed Vice President Kamala Harris as the embodiment of this new era. “Years ago, I described myself as a transitional candidate, and now it’s time for that transition to take full effect,” Biden said, positioning Harris as the future of the Democratic Party.

While refraining from mentioning former President Donald Trump by name, Biden clarified that he views the twice impeached and 34 times convicted felon Republican presidential nominee as a fundamental threat to democratic values. “My record as president, my leadership on the global stage, and my vision for America’s future all merited a second term,” Biden stated. “But nothing can stand in the way of safeguarding our democracy. That includes personal ambition. So, I’ve decided the best path forward is to pass the torch to a new generation.”

Reflecting on his long career, Biden expressed deep gratitude and pride. “Nowhere else on earth could a kid with a stutter from modest beginnings in Scranton and Claymont one day sit behind the Resolute Desk in the Oval Office. But here I am. That’s what makes America special,” he remarked, his voice tinged with emotion.

Biden acknowledged that doubts about his ability to defeat Trump influenced his decision. “I revere this office, but I love my country more,” he said. “It’s been the honor of my life to serve as your president. But in defense of democracy, which is at stake, I think it’s more important than any title.”

Biden said he is determined to address crucial issues for the remainder of his term. His agenda includes lowering family costs, defending personal freedoms, protecting voting rights, combating cancer, addressing gun violence, and advocating for Supreme Court reform. Internationally, he said he aims to strengthen NATO, support Ukraine, and seek an end to the conflict in Gaza.

Biden’s endorsement of Harris has galvanized the Democratic Party, with Harris swiftly securing the backing of a majority of Democratic delegates. “I’m not going anywhere,” Biden reassured his campaign staff, now supporting Harris. “I’m going to be out there on the campaign trail with her, working tirelessly as both a sitting president and a campaigner.”

The landmark address, along with Biden’s anticipated speech at the Democratic National Convention, could prove pivotal in defining his legacy. “In a few months, Americans will decide the direction of our nation’s future,” Biden stated. “I have made my choice. I’ve expressed my views. Now the decision is in your hands, the hands of the American people.”

In the days before his decision, Biden confided in close advisors about his concerns regarding another run against Trump. His acknowledgment of those doubts underscored his commitment to putting the country’s needs above his ambitions. “The defense of democracy must come before all else,” he reiterated.

As Biden prepares to support Harris in her campaign, he remains focused on his presidential duties. His administration continues to push for significant legislative achievements, reinforcing his enduring commitment to the American people. “In just a few months, the American people will choose the course of America’s future,” Biden said. “The great thing about America is here, kings and dictators do not rule. The people do. History is in your hands. The power is in your hands. The idea of America lies in your hands.”

The post first appeared on BlackPressUSA.

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PRESS ROOM: Reparations Movement Partners Globally Mourn the Passing of U.S. Congresswoman Sheila Jackson-Lee

NNPA NEWSWIRE — we acknowledge the powerful legacy of U.S. Congresswoman Sheila Jackson-Lee. She was a steadfast leader in the fight for reparatory justice, carrying forward the legislative baton from the late U.S. Congressman John Conyers in 2018.
The post PRESS ROOM: Reparations Movement Partners Globally Mourn the Passing of U.S. Congresswoman Sheila Jackson-Lee first appeared on BlackPressUSA.

Published

4 days ago

July 23, 2024

Oakland Post

[July 22, 2024 – Chicago, IL] With an extremely heavy heart and a profound sense of loss, we acknowledge the powerful legacy of U.S. Congresswoman Sheila Jackson-Lee. She was a steadfast leader in the fight for reparatory justice, carrying forward the legislative baton from the late U.S. Congressman John Conyers in 2018. Her relentless efforts nearly brought HR 40 to passage in the House of Representatives in 2022, missing by just one vote. Her leadership was pivotal in advancing the bill out of the Judiciary Committee in April 2021 after a historic debate. Even after her diagnosis, Rep. Jackson-Lee fiercely collaborated with reparations leaders, pushing for President Biden to establish an HR40-like commission by Executive Order. She believed this executive path was crucial for addressing centuries of injustice. Despite setbacks in meetings with the President’s team, she remained optimistic and urged us to stay ready for progress.

The Earn the Black Vote Collaborative formed in 2023 in response to her urging to continue the fight for reparations. On April 25, 2024, the Collaborative released a poll showing significant support for President Biden to issue an Executive Order for Reparations. Congresswoman Jackson-Lee championed the poll’s findings, emphasizing the critical importance of reparations to African American and progressive communities. Her vision was clear: an Executive Order to create a federal reparations commission could drive transformative Black voter turnout and move the ball toward justice. She had wanted the Executive Order done by Juneteenth. Tragically, just a month after Juneteenth, she left us. We have lost a great leader for reparatory justice. In honor of her legacy, we call for the establishment of the Executive Order by President Biden. We extend our deepest condolences to Representative Jackson-Lee’s family. We call on reparation activists, leaders, and legislators globally to stand with us as we honor her legacy. May the Ancestors and the Creator receive her with joy.

About the Author:

Kamm Howard is a national and international reparations scholar and activist working for over 20 years building grassroots movements to obtain reparations for African descendants in the United States.

CONTACT:

Reparations United Phone: 773-985-2990

Email: kamm@reparationsunited.org Website: https://reparationsunited.org/

The post PRESS ROOM: Reparations Movement Partners Globally Mourn the Passing of U.S. Congresswoman Sheila Jackson-Lee first appeared on BlackPressUSA.