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Wealth Gap Analysis

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As outlined in chapter 10 of the course text, inequality in housing and wealth is a major problem. The United States is described to be the most unequal countries in the western hemisphere. But with the inequalities when it comes to wealth, the United States is one of the richest countries in the world. Wealth is the sum total of a person’s assets. These assets include, cash in the bank and value of all properties, not only land but houses, cars, stocks, and bonds, and retirements savings. Wealth is one of the factors why residential segregation is an increasing problem. Golash- Boza explains, “Residential segregation happened when different groups of people are sorted into discount neighborhoods” (271). It is because of housing segregation …show more content…

Golash-Boza states that African Americans and Latinos have less than 8 percent of the wealth that whites have. Because African Americans as well as Latinos make less money than Whites, they are unable to own the same type of homes Whites are able to. Based on a study conducted by Shapiro, Meschede, and Osoro; the wealth gap is attributed to five factors. These factors are years of homeownership, household income, years of unemployment, college education, and inheritances or financial support from family members. Years of homeownership accounted for the largest portion of the differences between White and African American families. It is explained that Whites are able to acquire homes earlier in life because they statistically face less obstacles than their Black counterparts. Since whites are able to acquire houses earlier in life than Blacks, they are also able to build home equity for long term home ownership as well as financial support from family members. The wage gap also widens by the fact that African Americans face discrimination from real estate agents who steal them towards black neighborhoods. The wealth gap between Blacks and Whites causes different opportunities for both parties. Wealth allows families to invest in their families futures such as higher education. Whites have better opportunities to provides their families with such resources compared to Blacks. It is up to the government to provide wealth generating programs to the less fortunate and under

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The in the article “Inheriting Footholds and Cushions” by Sleeter she goes into speaking about her own personal history she dug up taking a deep look into what her relatives did. Back in the 1800s land was given to her family, which we know land equals wealth. From this came great profits which allowed most whites to gain all the wealth. Her family grew up in nice houses in nice neighborhoods which allowed family to attended good schools to get good jobs and houses again. To keep wealth within families children need good educations to get good jobs one day, so private money is put into certain schools to make

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This forced Blacks to rent homes which did not build equity or buy homes in low valued neighborhoods. Equity is the value of a house minus the amount owed to the bank for a loan. If property values goes up, a person owns more of their house than they did before. Equity is what allowed people to refinance their houses and get money in return . Equity was only available to Whites as only they could build equity in their houses and have this wealth which they could eventually pass on to their

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gap increases going down the economic profile, where a black family has a mere two percent in wealth compared to a white family. In order for America to overcome this racial gap, the wealth divide must be narrowed. There are many reasons contributing to higher African American unemployment rates. One important factor that plays role in high unemployment is higher crime rates among blacks. According to the Bureau of Justice Statistics, one in three black men can expect to go to prison in their lifetime (“Addressing Chronic Black Male Unemployment."

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