Race And Intergenerational Poverty Essay

Improved Essays
Poverty”

In the article “Race, Wealth, and Intergenerational Poverty” Darrick Hamilton and

William Darity propose blacks families are less wealthy than whites. With recessions, it will

negatively impact blacks and Latino families and will worsen the racial wealth gap. In relation,

the writers introduce the term “the wealth gap”. By the reason of the wealth gap, the writers

propose the help of the public sector (government) is essential.

Darity and Hamilton say families that are wealthier have great access to preeminent

education, an ability to start a business and wellness are adjusted with finances. The writers use

the term “the wealth gap” to measure the disparities of the racial inequalities. The source

illustrates the U.S Census,
…show more content…
For example,

being the first black president of the United States. The writers believe it distorts the truth that

America is a now a “post racial era”. Darity and Hamilton say those who claim America as a

post racial era state reason why racial disparity exist. One of which is: “Blacks are less frugal

when it comes to savings”. Darity and Hamilton uses the economists as reference and argues

blacks would save a lot more than whites. As blacks are more frugal, higher income­blacks

would help lower­income blacks, therefore decreasing their assets to save.

Darity and Hamilton asserts while black and Latino families were struggling during

1991­2001, the household wealth fell 27 per cent, while for whites it went up by 2 per cent.

While whites are more probable to owning a house, blacks are more probable to fall into

subprime loans which will likely lead to detrimental effects towards black wealth. Economic

studies show that inheritance, bequest and intrafamily transfers play a great role for the wealth

gap more than any other factors. Furthermore, Darity and Hamilton propose the help of the

public sector is necessary to close the racial wealth gap. The writers assert more money

Related Documents

  • Superior Essays

    Wealth Gap Analysis

    • 1499 Words
    • 6 Pages

    A reoccurring pattern has been perpetuating the wealth gap between black and white Americans. In order for it to change something drastic needs to happen, aimed at improving the quality of life for low to middle-class black Americans. The authors Oliver and Shapiro in Black Wealth / White Wealth argue that black disadvantages started with their historical segregation in neighborhoods suffering from underinvestment and lower prices (Oliver, 212). Black Americans receive less in inheritance and gifts from parents for down payment and end up having to wait longer to buy their first homes. This resulted in black Americans having less home equity.…

    • 1499 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    In the article, “Confronting Inequality” by Paul Krugman, the author claims that the American Dream is no longer obtainable for most Americans due to the extreme levels of income inequality. The belief of protecting people’s rights to improve their own way of life is the best way to ensure national progress and Krugman believes that the wealth is concentrated heavily on the upper class, making it almost nearly impossible for the middle and lower class to move forward.…

    • 1224 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    First of all, American public has to realize how serious the problem is and establish the awareness that domestic society is less equally than before (The Economist, 2012). Meanwhile, since education has great influence on social mobility, the state and local governments should subsidize both schools and poor college students to eliminate social inequality (The Economist, 2012; Yglesias, 2012). The more accessible opportunities to get higher education definitely increase the chance for poor people to move upward. Furthermore, the government can also simply implement higher tax rate on richest class to improve social mobility and fix inequality. This method will not only smooth the disproportionate distribution of social wealth, but also produce more money to advance social facilities and benefit (Yglesias, 2012).…

    • 1134 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Oxfam (2016) reported that the 62 richest individuals have as much wealth as the poorest half of humanity. The report indicated that the gap between rich and poor had reached the new extreme and the eradication of poverty across the globe would remain struggled due to the inequality crisis. After this report was released, there were more concerns about the impact of globalization on poverty and inequality. Many people believe that globalization makes the developing countries facing the risk of increasing poverty and inequality, but this essay supports the opposite. Globalization would not increase the poverty and inequality in developing countries because of the deep-rooted nature of inequality and poverty, its positive impact on the reducing…

    • 718 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    (Lloyd-Jones and Rakodi, 2014). Education plays a significant role in the reduction of income inequalities. Rise in the levels of education result in poverty reduction not rarely but almost universally. Van Der Berg (2008) stated it as individuals with superior education having a greater probability of being employed and thus being economically more productive resulting in higher incomes and lower levels of poverty. Unemployment is a real matter of concern as it can yield devastating effect on economic welfare, crime, the erosion of human capital, misery and social instability.…

    • 984 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Krugman holds a similar position on this issue by agreeing with King on how the rich minority shouldn’t have all control in the economy. Krugman’s similar position states, “’The lion share of economic growth in America over the past thirty years has gone to a small, wealth minority…the lack of clear economic progress for lower and middle income families is in itself an important reason to seek a more equal distribution of income’ (2007)” (King 574). Both King and Krugman want the government to pass policies to shorten or maybe even close the income gap. The economy is recovering at a very slow pace and there is inequality problem on how the rich and poor is divided. There is not enough distribution between lower and middle class income families, which may cause the economic progress to…

    • 1061 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    Political and economic power is fixated in the smallest socioeconomic bracket occupied by America’s wealthiest and most prestigious. This paper will outline the problems of the income and class gap, and propose solutions that may provide social supports to assist families ' move out of their financial stress. The income inequality seen in the United States today is detrimental to the upward mobility of individuals’ wealth, availability of goods and…

    • 1265 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    There could be a hypothesis that states who were more susceptible to cultural change have a less marginal gap between incomes. Though racial discrimination has been a prominent obstacle in our country as a whole, we can look to states like Maryland for hope. Maryland still has a large gap differentiating the incomes of African Americans and Whites, but it has been de-creasing within the last 10 years from the data given above. We could also make the conclusion that education has a powerful stake in income inequality and poverty within America. Looking at the percentage of individuals that have obtained a Bachelors degree or higher in the state of Mis-sissippi, we can see that races with low education automatically have a higher percentage of pov-erty.…

    • 2619 Words
    • 11 Pages
    Superior Essays
  • Improved Essays

    As Andersen described “this exploitation in turn, keeps them from developing and perpetuates their poverty.” (208) Social inequality also involves race. Andersen argues in chapter nine that most of the poor nation involves the people of color and the wealthy nation involves white. This is also determined as social discrimination because the people of color are put away, and are not recognized for their potential. If the wealthy nation was helping equally the poor nations, many countries will leave any thought of hunger, lack of job, infant mortality, lack of education, and so on. But because they want to use the lower class nation they increase the cheap labor rate.…

    • 818 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    When referring back to the FiveThirtyEight statistics, having black students only 40 percent likely to graduate, means that black students are more likely to pay off their college loans in a job that does not pay as well as an entry-level college career job. Even if blacks were just as likely to graduate, the debt crisis would still be a huge issue, due to the wage inequalities between whites and blacks. According to Casselman’s article “Race Gap Narrows in college enrollment, But not in Graduation”, he is quoted saying “Even a college degree doesn’t fully close the racial gap. College-educated blacks are more likely to be unemployed than…

    • 1667 Words
    • 7 Pages
    Superior Essays