Obama Economy Erasing Gains Made After Civil Rights

Tony Lee, Breitbart, November 26, 2012

On the stump, President Barack Obama often insinuated to black voters that Republicans would take them back to the pre-Civil Rights era of Jim Crow, but his economy has wiped out nearly all the gains the black middle class has made since integration.

A record number of black voters went to the polls in 2008 and 2012 for President Barack Obama, but his economic policies–on top of the housing bubble that burst due to reckless subprime mortgages before the Great Recession–have decimated the black middle class, wiping out nearly 30 years of gains.

According to the Economic Policy Institute, “black households had a median net wealth of just $4,900 in 2010, compared with $97,000 for white households,” and a “a third of black households had zero or negative wealth.”

Since blacks have not been able to accumulate “generations of wealth,” home values account for nearly 60% of an average black family’s wealth.

The American Prospect found that while most “middle-class families hold all of their wealth in their homes,” this is “especially true for the median black family” because many families do not own any stocks.

“That means the housing crisis has wiped out an entire generation of black wealth,” The Prospect wrote. This is made tougher because there is “no family wealth to fall back on in hard times” because “wealth is not very deep” in minority communities.

{snip}

The Prospect profiled Prince George’s County in Maryland as being emblematic of the rise and fall of the black middle class. In that county, foreclosure rates “were 4.19 percent, compared to 1.87 percent in Maryland and 2.21 percent in the nation as a whole.”

In 1999, after President Bill Clinton signed the Gramm-Leach-Bliley Act, which “allowed lending banks and investment banks to operate under one roof,” predatory lenders targeted areas like Prince George’s County, which had a lot of minorities.

{snip}

Today in Prince George’s County, “the typical client has a mortgage of $300,000, and their house is worth $150,000.”

{snip}

In 1990, Prince George’s County became majority black for the first time since slavery “because black professionals were mostly displacing rural and working-class whites.” It also became the “wealthiest majority-black county in the nation” as “most of the professionals who bought homes in Prince George’s County came from Washington’s black middle class.”

According to the Prospect,  laws “that expanded minority homeownership, combined with a booming mortgage market, brought more and more black residents out to the suburbs” as blacks made up 65% of the county’s population in 2010, up from 14% in the 1970s. In addition the county was one of the few “that grew wealthier as it became blacker” as “median income in Prince George’s outpaced the national median from the 1970 census forward.”

But when the house of cards that was the housing market collapsed, many in the black middle class were left living paycheck to paycheck. This is an issue Obama has rarely discussed or addressed because his economy has made it nearly impossible for those in the black middle class to rebuild their wealth let alone tread water.

Topics:

Share This

We welcome comments that add information or perspective, and we encourage polite debate. If you log in with a social media account, your comment should appear immediately. If you prefer to remain anonymous, you may comment as a guest, using a name and an e-mail address of convenience. Your comment will be moderated.
  • pcmustgo

    This is made tougher because there is “no family wealth to fall back on in hard times” because “wealth is not very deep” in minority communities.

    NO, THERE IS NO FAMILY WEALTH IN BLACK COMMUNITIES BECAUSE THERE IS NO (NUCLEAR) “FAMILY”…. there are baby daddies and baby mama’s blowing away money by maintaining separate residences and not pooling resources like couples in 2 parent households…. There is no “family wealth” because whatever inheritance there is (and that’s rare seeing as how black’s spend all their money on “bling” and flashy cars and clothes and such) must be split among their very very numerous offspring…. 4 kids, 10 kids, etc. More that are secret out of wedlock children the mother’s don’t find out about til’ their husbands death bed. Children on the “other side of town”.

    Screw them!

    Get some birth control black women!

    • IstvanIN

      I might also point out that in NJ, and as I understand it most other states, you are not even permitted to will your EBT card to your heirs. Sad.

      • Katherine McChesney

        Perhaps I am a bit naive but I’ll ask it anyway considering who’s making new rules while desecrating the White House. What information do you have that states EBT cards can be part of an inheritance….or are you just making a joke?

  • pcmustgo

    Also, as blacks take over these white hoods, as time passes and more blacks move in, their homes DECLINE with value. Add that to the national decline in general of housing prices and boy do black’s homes decline. That being said, many blacks who OWN homes in black hoods that are currently getting gentrified are making off rich, as trendy whites move in and the values of homes increase. Any blacks who owned in NYC have done very, very well these past 15 years.

  • handyandy2@optonline.net

    The so called “black middle class” is, and always has been an illusion held together by massive fedgov interfereance in the workplace.

  • JackKrak

    Only the willfully blind fail to acknowledge that PG county is always dragged out in stories like this because of the gubbmint workers that make its “middle class”.
    Is it a coincidence that there’s not another county in the WHOLE NATION that has enough of these people to create the illusion of a “class”?

  • libertarian1234

    So blacks have lost considerable wealth, eh?

    And jobs too, with the highest unemployment figures of all the groups in the country.

    With an even scarcer job picture due to a falling economy and an influx of aliens, plus the ones already here waiting for amnesty to take over another big chunk of the labor market from blacks.

    If that isn’t repaying a loyal voting base, I don’t know what is.

    Mmmmm…..mmmmm………mmmmm. Barack Hussein Obama!

  • fakeemail

    Low IQ’d peoples DO NOT SAVE MONEY! They spend every cent as they get it on trivial crap and alcohol. Virtually the entire growth of the welfare state has been directly proportional to the number NAMs.

    Not to say there aren’t plenty of white fools who never save a buck. That was part of the reason we got garbage ponzi schemes like social security and medicare. This is pure dygenics that harms those with the simple ability to think ahead.

    • Liberalsuck

      The problem is that we (whites) have to suffer the consequences of low IQ’d, angry, impulsive overgrown children who can’t think or act rationally and who can’t or won’t plan for the long term.

  • http://twitter.com/seedymedia r j p

    Tell me Prince George’s County, how are the black gumint workers working out for you if they have “mortgages of $300,000, and their house is worth $150,000.”?

  • Liberalsuck

    Is it ever black people’s fault why their lives are miserable? Conservatives blame “liberalism” for why blacks struggle whereas liberals blame conservatives or “past injustices.”

  • George White

    There is no family because welfare destroyed it. And there’s no work because the illegals took it, and the illegals are given the red carpet by the Great Emperor.

    • dukem1

      I’d say you just summed up the current state of the USA in two sentences.

  • yootley

    I do not believe that this story is true. The reason that I
    do not believe that this story is true is that I was stranded in Washington DC
    during superstorm Sandy, and having lots of time to watch, I saw lots of blacks
    pull up to the airport in black Cadillac Escalades.

    • Katherine McChesney

      In my city, they can drive Escalades, Hummers and other expensive cars and still live in ramshackled houses. A racist black woman I once knew told me they do this because big cars impress other people and make them appear to be wealthy. Appearance means everything thing to blacks.

  • seek

    This article shows why mainstream “conservatives” can’t be trusted on race. The author thinks that blacks will become Republicans if they can be persuaded of the harm “done” to them by Obama. Obviously, the exit polls in 2012 showed it’s a fantasy, that blacks overwhelmingly voted for him despite the drop in black “wealth,” largely the product of an artificial credit expansion.
    Here’s an idea for the Breitbart people: How about showing concern for whites harmed by anti-white policies advanced by both major parties?

  • Howard W. Campbell

    “According to the Prospect, laws “that expanded minority homeownership, combined with a booming mortgage market, brought more and more black residents out to the suburbs” as blacks made up 65% of the county’s population in 2010, up from 14% in the 1970s. In addition the county was one of the few “that grew wealthier as it became blacker” as “median income in Prince George’s outpaced the national median from the 1970 census forward.”

    The last line might be indicative of what is called a “Giffen Good” in the world of economics. That is a case when there is increased demand even though the price has risen. You have a group of people with Iron-Clad employment who probably earn fairly decent money and they still cannot manage to create a livable society. It should be interesting to see what happens when the white man runs out of money and those “secure middle class” government jobs go away.

    Darn that white privilege, I do not own an Escalade, my wife, kids and I live under one roof, and I will not be ruined if I miss a couple of paychecks.I doubt that the majority of people in PG county can say the same.