Political Economy of Racism-page3

Political Economy of Racism-page3 - -White Alone = $65,000...

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September 15, 2011 Earnings, Income, and Wealth: What is the difference? The fact that measureable education, training and other worker characteristics cannot explain all of the racial inequality we observe fosters a debate among scholars about whether an dhow racial discrimination is a factor. Earnings: - Wages or salaries paid to an individual for labor time. Most families in the US depend upon earnings to survive. Earnings are a flow, usually reported hourly, weekly, or annually. Income: - Also a flow comes not only from earnings but also from unearned sources such as dividends, interest, benefits, transfers. At the top of the income distribution in the US unearned income as a large share of the total. For most American sthe opposite is true, it’s a very small part. Usually reported as a family measure. Median Family Income - Black Alone = $39,879 - Native American = $ 33,144 - Asian Alone = $ 73,578 - Hispanic or Latino = $40,466
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Unformatted text preview: -White Alone = $65,000 Wealth: -A stock of value for assets. It is a dollar amount, savings in the form of stocks, bonds, equity on property. The authors call it the difference between “what you own and what you owe” at a point in time. -Tell me what you know about wealth: What are some of its sources? -What benefits does it provide families? -What is net work? Net financial assets? -What is equity? o The difference between what the house is worth, and what you still owe on it. -Wealth (and income) inequality has grown over time and is growing nationally and internationally. -Wealth is valuable as insurance against an emergency (lost job medical crisis); has a legacy effect (can be used as collateral for borrowing). -Wealth inequality left unchecked will grow/persists across time. Median Home Value in 1999 Dollars -Black = $80,600 -Native American = $81,000 -Asian = $199,300 -Hispanic or Latino = $105,600...
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This note was uploaded on 11/08/2011 for the course ECON 144 taught by Professor Lisasaunders during the Fall '11 term at UMass (Amherst).

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