Report of The Fed Shows Huge Gap between Minority & White Households

Federal Reserve BankThe Survey of Consumer Finances is commissioned by the Federal Reserve, and it is carried out every three years for getting real-time data from the American households across several categories like for instance annual remuneration, debt, car ownership assets, stock portfolio and home ownership.

In this survey, more than 6,000 households were covered belonging to different economic backgrounds, races and having variant educational qualifications.

According to the survey, there has been significant growth regarding net worth for the Americans who do not possess college degrees along with African Americans and Hispanics over the past three years.

In the past three years, these minorities group saw an increase in stocks, homes, and assets. The Federal Reserve report shows there is an increase in annual income from $14,200 in 2013 to $20,700 in 2016 for the Hispanic households with a rise of 46 percent.

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There is a growth in annual income from $13,600 in 2013 to $17,600 in 2016 for African American households with an increase of approximately 30 percent. One main reason for the growth in annual income for people belonging to these minorities is because these set of people were able to secure jobs for themselves in the last three years.

The statistics show there is a decline in unemployment rate in the US from 7.5% to 5% in the year 2016. The minimum wage requirement has been increased for some states which have undoubtedly helped people from low skilled working group to make more money, clear their debts and increase their savings.

Valerie Wilson who is the Director of the Economic Policy Institute on the program on the economy, ethnicity and race is of the opinion that the numbers are quite encouraging. The average net worth for the Hispanic and African American families continues to remain below $21,000. The Director stated there is an increased percentage gain for the minorities communities was primarily because they started at a lower level as compared to the white households.

Valerie Wilson commented on the vast gap regarding retirement savings, student debt and home ownership program between the minority and white households. More than 70 percent of the white houses possess their own homes and have higher equity level as compared to the families of African American who have less than 35% of their own homes. Only 30% of the African Americans have retirement savings as compared to 60% of the white households.

The survey talks about the galactic gap between the rich people and poor in the United States, and the difference could not be narrowed down as the top 1% of American households had 24% of the market in the year 2016.

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Report of The Fed Shows Huge Gap between Minority & White Households
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Report of The Fed Shows Huge Gap between Minority & White Households
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The Survey of Consumer Finances is commissioned by the Fed and it is carried out every 3 years for getting real-time data from the American households.
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Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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