“The Disappearing Black Middle Class” ran the headline over the Chicago Sun-Times story. And the statistics from the Economic Policy Institute were indeed sobering.
In 2007, best year of the Bush era, white households had a median net worth of $134,280, compared with $13,450 for black households.
By 2009, the median net worth for white households had fallen 24 percent to $97,860. For black households, it had plummeted 83 percent to $2,170, a near wipeout.
As Algernon Austin of EPI’s Program on Race, Ethnicity and the Economy put it, “In 2009, for every dollar of wealth the average white household had, black households had two cents.”
One explanation for this surely is the wave of foreclosures on subprime mortgages, a large share of which were held by African-Americans.
But while unemployment among white men has surged in the Great Recession, among black men it has hit 16 percent, the highest level since the Department of Labor began to keep records in 1972.
Ominously, things are likely to get worse, because Bill Clinton’s assertion, “The era of big government is over!” is today palpably true.
Not only in Wisconsin, Ohio and New Jersey, run by Republicans, is this so, but in liberal mega-states like New York and California. There, Govs. Andrew Cuomo and Jerry Brown run the show, and government payrolls are also being slashed and government pensions pared back.
From Greece to Portugal to Ireland to Italy, an age of austerity has begun. And now that age is about to begin in Barack Obama’s Washington.
Why should this adversely affect black America?
Because not only are African-Americans disproportionately the beneficiaries of federal programs, from the Earned Income Tax Credit to aid for education and student loans, they are even more over-represented in the federal workforce than they are on state payrolls.
Though 10 percent of the U.S. civilian labor force, African-Americans are 18 percent of U.S. government workers. They are 25 percent of the employees at Treasury and Veterans Affairs, 31 percent of the State Department, 37 percent of Department of Education employees and 38 percent of Housing and Urban Development. They are 42 percent of the Equal Employment Opportunity Commission and Pension Benefit Guaranty Corp., 55 percent of the employees at the Government Printing Office and 82 percent at the Court Services and Offender Supervision Agency.
When the Obama administration suggested shutting down Fannie Mae and Freddie Mac, the mortgage giants whose losses of $150 billion have had to be made up by taxpayers, The Washington Post warned, in a story headlined, “Winding Down Fannie and Freddie Could Put Minority Careers at Risk,” that 44 percent of Fannie employees and 50 percent of Freddie’s were persons of color.
Copyright 2017 TakiMag.com and the author. This copy is for your personal, noncommercial use only. You can order reprints for distribution by contacting us at email@example.com.