Income versus wealth

The Pew Hispanic Center today released a study showing that the gap in wealth between White households and African American and Latino households appears to be growing, and it is far greater than the gap in income:

According to the study, the median net worth of Hispanic households in 2002 was $7,932. This was only nine percent of $88,651, the median wealth of non-Hispanic White households at the same time. The net worth of Non-Hispanic Blacks was only $5,988. Thus, the wealth of Latino and Black households is less than one-tenth the wealth of White households even though Census data show their income is two-thirds again as high.

The New America Foundation first turned me on to the differences between income and wealth and the corresponding policy challenges a few years ago, and their Asset Building Program is doing some of the most interesting work on the subject. If you believe that every child ought to have an equal shot at the American dream, you ought to check out their work.