04/24/2024

Minorities and Americans without college degrees showed greatest gains in wealth since 2013, new data says

Americans who were left behind as the country pulled out of the Great Recession — African Americans, Hispanics and people without college degrees — saw large gains in net worth over the past three years, the Federal Reserve reported Wednesday.

But the improvements didn’t narrow the inequality gap: The share of U.S. income held by the top 1 percent of households reached 24 percent in 2016, a record high, and the median net worth of white households, at $171,000, was nearly 10 times larger than for black households.

The findings suggest that although a robust economy has benefited all economic groups, the wealthiest and most educated have been in a position to benefit even more because they began with such a significant advantage.

“The gap between the haves and have-nots hasn’t closed in recent years. It still remains a gulf,” said Mark Zandi, chief economist at Moody’s Analytics. “These groups have a lot of financial catch-up to do.”

Even so, the gains of the past three years marked a significant shift from 2010 to 2013, when wealth fell for all racial and ethnic groups except whites.

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