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National Journal: Recession Impact: Minorities' Net Worth Falls By a Third
Racial and ethnic minorities were hit hard by the Great Recession, losing about a third of their net worth between 2007 and 2010, according to Federal Reserve Board numbers analyzing the years 2007 to 2010.
The nation's median household income fell to 1992 levels, losing 39 percent, largely because of the decrease in home values, especially among the middle class, USA Today reports. While fewer minorities owned homes, their median value dropped significantly during a time when people of all income levels encountered hardship on the job and property front.
When considering share of net worth lost, households headed by nonwhites or Hispanics fared about as bad as their white counterparts: white households' median net worth dropped 27.2 percent; nonwhite or Hispanic households lost 31.31 percent.
But nonwhite and Hispanic households had much less to lose.
In 2007, the median household net worth for a nonwhite or Hispanic households was $29,700. It dropped to $20,400 in 2010. By comparison, white households were worth $179,400 in 2007. In 2010, their value was $130,600.
As the nation becomes more diverse, the economic well-being of all Americans has and will become increasingly tied to the financial well-being of racial and ethnic minorities.
