Assigment # 11
In the report,” The Roots of the Widening Racial Wealth Gap,” by Thomas Shapiro, Tatjana Meschede, nd Sam Osoro, they indicate the four main factors that have fueled the racial wealth gap in the U.S..They break down and explain in detail each of the four main factors, home ownership, Income and Employment, Inheritance, and College Education.
The first factor they discuss is Homeownership; the study shows that homeownership is the largest form of investment for most American, similar the American Dream which everyone who moved to America dreams of owning a house and have it full pay at once. To own a home is the biggest investment and eventually becomes one of your the most important aspects to your life. At first, African American families were giving loans very quickly and with low-interest rates, once the economy hit a recession they were forced to go into foreclosure, creating a bigger gap for between the equality of Whites and African Americans.
The second-factor Income nd Unemployment, due to African Americans suffering and having to be set back because of the discrimination they have suffered for many years in the employment situation.Due to the discrimination, they have low wages which do not allow them to become wealthy. Many face unemployment because they have been discriminated thru the hiring process. It creates instability for them and their families.
The third factor is inheritance, most White American families have been around for many years, which has given them the opportunity to be able to gain wealth to pass down to their future generations. However, that is not the case with African Americans who have suffered discrimination in labor and wages which have not allow them to create wealth for them and have an inheritance to pass down to their future generations.
The fourth factor is College Education, at first education was a way to better-living condition and way to create wealth for you. The college has become more and more expensive making very hard to be able to attend college and not be in massive debt. Not only having a debt but many have to drop out of college before actually finishing their degrees due to a high cost of college degree and having to support their families. Many White have their parents who pay for their full college tuition or have an inheritance to be able to ay for some of their college years.
Lastly, the article discusses the Social and Cultural factor many believe that marriage is easier for bills when having two incomes, yet when both spouses are paid low wages it does not make it easier having too low incomes to be able to support a family. I strongly agree with the research and numbers show how the discrimination has set back African Americans in a way that it becomes extremely hard to be bale to catch up to the success of the White Americans.
