President Lyndon Johnson famously announced his â€œwar on povertyâ€ when one in six Americans were considered poor. Half a century and trillions in government spending later, poverty still accounts for one in six Americans.
A study by the Federal Reserve Bank of St. Louis reports that race, ethnicity, education and age are key indicators of who will likely accumulate wealth. And who may end up poor. Wealth is measured as assets minus liabilities.
Look at these numbers when considering race.
The median wealth of a white family in 1989, in inflation-adjusted dollars, was 130,000. In 2013, it was 134,000 dollars.
For Asians it was 64,000 and 91,000.
Hispanics moved from 9,000 to nearly 14,000 dollars.
And blacks went from just under 8,000 dollars to 11,000.
One key factor affecting these numbers is whites and Asians tend to have half as much debt as do blacks and Hispanics.
Whites and Asians also tend to have higher incomes. This isnâ€™t just salaries. The data show that whites and Asians have significantly higher savings and investment rates.
Median Asian family wealth is expected to soon surpass that of whites because Asian median household income is now the highest of all races.
Another contributor toward higher wealth is education. Today, Asians lead the other races with the highest education levels.
The entire study is on our website [here].