The reading, Lifting as We Climb: Women of Color, Wealth, and America's Future from the Center for Community Economic Development, describes the distinction between the poverty gap and the wealth gap. The poverty gap is based on income, and the wealth gap is based on the amount of assets one has minus their debt. We always hear about the poverty gap but, the wealth gap is equally as important. The wealth gap has the ability to limit or enhance the prospects of future generations.
Wealth is important for the stability of the home. By this the author means that extra money is need in case of emergencies, like the loss of a job, or a medical emergency. In order to sustain life changes, and we know that they can occur at anytime or any moment, we need to have savings to support ourselves and our families.
Women of color have a significantly lower amount of wealth than white women, and men of the same race. According to the reading, this can be linked to prior institutional factors like government benefits, tax codes and fringe benefits, which all have excluded women of color. This is because women of color are less likely to have assets and if they do it is not much. It can also be attributed to cultural factors that emphasize the importance of giving to your families (economically), and the distrust of financial institutions. I personally know this from my family that's sees economic support as love. Women of color also tend to have more educational debt, loans, or credit card debt. It is sad to think that, "Nearly half of all single black and Hispanic women have zero, or negative wealth". Women of color who are 65 and over are also less likely to receive pensions or asset money from retirement. The reality is this that women of color have a harsher reality than what we think because they experience both the gender disparities and the racial economic disparities.
Awareness of this has called for a change. With the creation of new public policies, that include all women and women of color, we can help the people and their families and America's economic security. Even though we have less knowledge about the wealth of Native and Asian American women, we still should still strive to help them as well. Minorities may not even know about retirement assets or pensions. It is up to us to make a change and inform the women of color. It is imperative that they stay up to speed with the equal opportunity to acquire wealth. If we continue to neglect this on w hole, it could be detrimental to nations economic growth. Do you guys agree that the significance of wealth is overlooked and that women of color should not be left behind? In what other ways do you guys think that we can do this?
I think that not only for women of color but women in general are looked down upon when it comes to finances and aren't taken as serious as a man would be. That most accountants and such are males not females.
ReplyDeleteI believe that the accumulation of wealth, first and foremost, should not define a persons status in society. It is sad to think that someone with assets is considered move valuable to society than someone without. The wealth gap is troubling, especially in emergency situations. Without savings and wealth to fall back on, job layoffs or illnesses would be extremely devastating. However, I do not believe that the wealth gap is as pressing of an issue as the poverty gap. Perhaps looking at the situation as a cycle would solidify the root of the problem. Income is the direct result of education. If a person cannot afford an education, their chances of having a generous salary are low. If a person can afford a continuing education, they are more likely to obtain a better job, which directly adds to their income, which can result in an abundance of wealth. The poverty gap prevents people from moving further ahead in life, devaluing their societal role. Before someone can have wealth, they must first be given the opportunity to surpass income restrictions.
ReplyDeleteNice post. Given the far-ranging and cumulative effects of the wealth gap, what specific things would you like to see? Are there specific policies that you think we should implement? Are there specific educational programs that you think may be helpful?
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