Whites record wealth six times greater than blacks

Abstract

It is a reflection paper of “Whites record wealth six times greater than blacks”, which aims to discuss the major obstacles and hurdles face by black community in order to generate wealth. The economic status between Black and White classes is a vital factor in ongoing debates in the field of racial equity. There is simplicity in terms of income, education or occupation. Like the income gap between rich and poor, gap of wealth in America is also increasing. Unemployment had a devastating effect on the wealth of Black families which is almost double 13.8% as compare to 7% of white. Unemployment disproportionately affecting Black and it also disproportionate hits their accumulated wealth as well. Government is suggested to spread Homeownership Opportunity Program (SHOP) program and provide them short term loan to start business. This strategy will be helpful to overcome Unemployment issue and raise wealth of Blacks.

Discussion

Report of the ILO - International Labor Organization indicates that the black man with same qualification and educational level receive one-third less than white man (Labor, 2007). Black men and women earn less than whites, regardless of educational level. Even with these numbers, the research shows that income inequality between whites and blacks fell (Wells, 2011).

Goodman, (2013) indicates that inequality fell due to successive increases in the minimum wage, reducing inflation and decline in real earnings of white men. The US also has made progress in policies to reduce racial inequality. There are many countries that do not want to acknowledge racial discrimination including United States.

The difference between the incomes of blacks and whites in fell by 31% between 1995 and 2005, according to (Barsky et.al, 2003). Gender and race are not issues of minorities, we are talking about a large majority of society. Goodman, (2013) noted that fight against discrimination in the labor records results significant progress, but there is a concern that persistent with rising income inequality, and opportunities remains significant.

Labor and Discrimination - The difference in average earnings between whites and blacks fell 32.6% between 1995 and 2005. The reduction, however, was not only the evolution of the income of blacks, but mainly by the fall in wages of whites. In the analyzed period, the wages of black men rose 4.7%, in inflation-adjusted numbers. But the white men were the one who fell.

Wage rate is another factor that results a tremendous gap between these two communities. McDonald & Worswick, (2010) analyze that the wage gap between whites and blacks was $313 in 1995 and dropped to U.S. $211 in 2005. In same way, white and black women reduced from $224 to $158, a decrease of 29.5%.

Research conducted shows that the low enrollment and a historical process of exclusion still cause a gap between blacks and whites in the insertion in the labor market. The black and brown professionals earn on average 51.1% of the income of white workers - ie, slightly more than ...