Coauthored with Rebecca Wiggins, Executive Director, Association for Financial Counseling & Planning Education
Research shows that the average wealth of White families has grown 84% over the past 30 years, which is 1.2 times the rate of growth for Latino households, and three times the rate for Black households. It is projected that by the year 2043 when people of color will become the majority of the population, the wealth divide will have doubled from $500,000 in 2013 to over $1 million ( Prosperity Now (formerly known as CFED, Institute for Policy Studies , 2016).
By this measure, it […]
View Original: Bridging the Gap: How AFCPE Professionals Can Help Close the Racial Wealth Divide
The story we tell ourselves about upward income mobility is unraveling. The majority of respondents to a New America survey felt that it is harder than ever to attain a foundational element of the American dream, in which children earn more than their parents. But most respondents still believe another tenet of the American mobility narrative: that going to college creates upward mobility.
While it is true that college graduates do better in our economy than nongrads, earnings from different college degrees vary considerably. For low-income students in particular, not all college degrees are equally valuable. These and other recent […]
View Original: Leveraging new data can help low-income students climb the economic ladder, writes Michael Lawrence Collins.
The Skidmore College campus in April. I remember paying close attention to the U.S. News and World Report’s annual college rankings when I was in high school.
Along with the Fiske Guide to Colleges and a few other resources, I considered the rankings a valuable resource — a way to learn more about the colleges that interested me and better understand how they were perceived by the outside world.
In retrospect, all this agonizing over college applications seems a little silly.I enjoyed the liberal arts college experience, but I now know there are plenty of other ways to prepare for life […]
View Original: Foss: We need a better system for evaluating colleges
Over the years, people have attributed the economic inequality in higher education to a variety of conditions: the advantage given to legacy students, the lack of extensive and well-communicated financial aid opportunities and the altogether inscrutable college admissions process. Now, a new factor has been thrown into the mix: the college ranking system.
University rankings have long been criticized for being opaque, inaccurate and reductive. But these lists — particularly the recently released U.S. News and World Report College Rankings — have far greater implications for the higher education landscape than simply misleading high school seniors. According to a new […]
View Original: Mitra ’18: Stop reading college rankings
Opinion » Comment
Scandinavian economies are an outstanding example of how market economics need not necessarily worsen income inequalities. While absolute poverty has reduced in India, relative inequality has worsened. PTI Mythili Bhusnurmath
Thomas Piketty’s book, Capital in the 21st Century, highlighting growing income and wealth inequalities, might have made waves in the West when the first English translation appeared in 2014. But it received scant attention in India. However, Piketty’s new paper, Income inequality, 1922-2014: From British Raj to Billionaire Raj?, co-authored with Lucas Chancel, has more than made up for that. Perhaps, it is the catchy title. […]
View Original: Set priorities to bridge inequalities
There’s a certain type of financial confessional that has had a way of going viral in the post-recession era. The University of Chicago law professor complaining his family was barely keeping their heads above water on $250,000 a year . This hypothetical family of three in San Francisco making $200,000, enjoying vacations to Maui, and living hand-to-mouth. This real New York couple making six figures and merely “ scraping by .”
In all of these viral posts, denizens of the upper-middle class were attempting to make the case for their middle class-ness. Taxes are expensive. Cities are expensive. Tuition is […]
View Original: The Hoarding of the American Dream
AEI Explaining US income inequality by household demographics, 2016 edition The Census Bureau released its annual report this week on “Income and Poverty in the United States” with lots of newly updated data on household income and household demographics. Based on those new data, I present my annual post titled “Explaining Income Inequality by Household Demographics” (see my previous versions of this analysis for years 2009, 2010, 2011, 2012, 2013, 2014 and 2015). Most of the discussion on income inequality focuses on the relative differences over time between low-income and high-income American households. But it’s also informative […]
View Original: Explaining US income inequality by household demographics, 2016 edition – Publications – AEI
The Census Bureau released its annual report this week on “ Income and Poverty in the United States ” with lots of newly updated data on household income and household demographics. Based on those new data, I present my annual post titled “ Explaining Income Inequality by Household Demographics ” (see my previous versions of this analysis for years 2009, 2010 , 2011 , 2012, 2013 , 2014 and 2015 ).
Most of the discussion on income inequality focuses on the relative differences over time between low-income and high-income American households. But it’s also informative to analyze the demographic differences […]
View Original: Explaining US income inequality by household demographics, 2016 edition
STATE OF THE UNION
PATHWAYS â€¢ The Poverty and Inequality Report 2016
economic mobilityKEY FINDINGSâ€¢ When compared to 24 middle-income and high- income countries, the U.S. ranks 16th in the amount of intergenerational earnings mobility.â€¢ The relatively low level of mobility in the U.S. may arise in part because low-income children in the U.S. tend to have less stable and lower- income families, less secure families, and parents who have less time to devote to their children.It is often claimed that there is much tolerance in the U.S. for high levels of inequality, as long as that inequal- ity arises from […]
View Original: The Stanford Center on Poverty and Inequality
Home sale. (photo: AP)
No savings, investments or home equity. This economic dystopia looms for minority families, and so does a choice: Do we want America to be more like Brazil or Canada? hat would U.S. society be like if a majority of families had no wealth – no savings, no home equity, no investments of any kind?
That is exactly where the country is headed if we continue on our current path toward economic dystopia for black and Latino families.
While we celebrate a modest reduction in poverty rates and an encouraging uptick in median income , as disclosed […]
View Original: Inequality Crisis: Blacks and Latinos on the Road to Zero Wealth