New study shows HUGE disparity between white, minority women

A recent study out of the Insight Center for Community Economic Development shows tremendous wealth inequality among women of different races. Among the findings reported by Democracy Now, the report shows about half of all single black and Hispanic women have debt that exceeds their assets. Thus, they have zero or negative wealth.

Wealth, as defined by the authors of the report, refers to the value of your assets--money held in checking or savings, retirement benefits, real estate--after subtracting debts and liabilities like mortgage and loans. Separate from income, wealth can be said to indicate your long-term financial security.

The most shocking finding, however, is in the comparison of minority women to white women:

The median wealth for single white women is just over $41,000. The median wealth for single Hispanic women is $120, and the median wealth for single black women is $100.

This data is a staggering reminder of the legacy of inequality that continues to this day. The Insight Center points out that wealth can be passed down through generations, and this surely accounts for much of the wealth disparity by race. Policies intended to keep minorities below whites in terms of political, economic and social power have stifled the voices and progress of countless minorities. Residential segregation has kept minorities out of areas with good schools, good jobs and opportunities for growth, a phenomenon referred to as spatial mismatch. The racialization of welfare (think "Cadillac-driving welfare queens") has been followed by reduced support for welfare programs (think Reaganomics and trickle-down theory).

We have outlawed segregation, but many of these roadblocks still exist today. Gerrymandering, or drawing residential boundaries based on demographics of the area, is still allowed, and white flight is alive and well, with many professional jobs following suburb-bound whites. Racial stereotypes persist, both at work and in society, resulting in many minorities' internalization of inferiority.

In short, black and Hispanic women's lack of wealth is the product of history. Rather than a failure to spend responsibly or save diligently, their lack of wealth is a product of generations of hardship and racial prejudice. While white women have had a chance to build wealth and pass their assets onto their children, minority women have struggled against government and social policy to survive.

This report shows that those who extol racial equality speak too soon. Furthermore, and perhaps most importantly, this report underscores the need for action. The Huffington Post lists some of the solutions offered by the Insight Center, but none of these address the legacy of inequality behind the wealth disparity.

We must examine our policies in all areas of life--housing, employment, education, health, etc--that contribute to minority women's lack of wealth. We must tailor existing policies and create new policies geared toward minority women specifically, as any policy intended to help all women will also give white women a leg up and only serve to maintain this racial disparity. We must recognize that any effort at reform that does not look back at the years of discrimination is only a band-aid. We must bear in mind that while white women pass down thousands in wealth, black and Hispanic women pass down years of racism.

Photo Credit: Bet.com