The Hidden Cost of Being African American : How Wealth Perpetuates Inequality

Over the past three decades, racial prejudice in America has declined significantly and many African American families have seen a steady rise in employment and annual income. But alongside these encouraging signs, Thomas Shapiro argues in The Hidden Cost of Being African American, fundamental levels of racial inequality persist, particularly in the area of asset accumulation--inheritance, savings accounts, stocks, bonds, home equity, and other investments-. Shapiro reveals how the lack of these family assets along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped. Shapiro uses a combination of in-depth interviews with almost 200 families from Los Angeles, Boston, and St. Louis, and national survey data with 10,000 families to show how racial inequality is transmitted across generations. We see how those families with private wealth are able to move up from generation to generation, relocating to safer communities with better schools and passing along the accompanying advantages to their children. At the same time those without significant wealth remain trapped in communities that don't allow them to move up, no matter how hard they work. Shapiro challenges white middle class families to consider how the privileges that wealth brings not only improve their own chances but also hold back people who don't have them. This "wealthfare" is a legacy of inequality that, if unchanged, will project social injustice far into the future. Showing that over half of black families fall below the asset poverty line at the beginning of the new century, The Hidden Cost of Being African American will challenge all Americans to reconsider what must be done to end racial inequality. Thomas Shapiro Blends Personal Stories, Interviews, Empirical Data, And Analysis To Illuminate How Family Assets Produce Dramatic Consequences In The Everyday Lives Of Ordinary Citizens. This Book Will Re-shape Public Understanding Of Racial Inequality And Will Help Us Understand Why New Policies Are Necessary. Over The Past Three Decades, Racial Prejudice In America Has Declined Significantly And Many African-american Families Have Seen A Steady Rise In Employment And Annual Income. Alongside These Encouraging Signs, Shapiro Argues That Fundamental Levels Of Racial Inequality Persist, Particularly In The Area Of Asset Accumulation. This Book Demonstrates How Families Use Private Wealth To Leverage Advantages In Communities And Schooling For Themselves And Their Children. In This Eye-opening Volume, Shapiro Uses A Combination Of In-depth Interviews With Almost 200 Families From Los Angeles, Boston, And St.^ Louis, And National Survey Data With 10,000 Families To Show How Racial Inequality Is Passed Down From Generation To Generation Through The Use Of Private Family Wealth. Shapiro Adroitly Illustrates The Profound Importance Of Assets--savings Accounts, Stocks, Bonds, Home Equity, And Other Investments--to The Past, Present, And Future Lives Of American Families. For Instance, Young, White Middle Class-families Typically Purchase Their First Homes With Substantial Financial Assistance From Their Extended Family, And Thus Wealth Accumulated From The Past Transforms Opportunities Into A Substantial Head Start In Life. This Wealthfare Is A Legacy Of Past Inequality Visiting The Present And May Well Project Social Injustice For Generations Into The Future. An Asset Perspective, Shapiro Shows, Is A Truer Measure Of The Economic Health Of The Black Community--over Half The Black Families Fell Below An Asset Poverty Line In 1999.^ Moreover, An Asset-based Perspective, Unlike Currently Used Income-based Approaches, Gives Insight Into Issues Underlying Debates Ranging From School Choice, Welfare Reform, And Economic Inequality. Assets --the Color Of The Safety Net -- The Cost Of Being Black And The Advantage Of Being White -- Inheritance : That Parent Thing --making Racial Inequality -- Middle Class In Black And White : How Level Is The Playing Field? -- The Homeownership Crossroad -- Leveraging Assets -- Where People Choose To Live -- Getting A Decent Middle-class American Education : Pursuing Advantage In Schools. Thomas M. Shapiro. Reprint. Originally Published: C2004. Includes Bibliographical References (p. [223]-230) And Index. Thomas Shapiro reveals how the lack of family assets--inheritance, home equity, stocks, bonds, savings accounts, and other investments-- along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped. Shapiro argues that what separates the races is not industriousness or a culture of poverty but rather the presence of absence of financial safety nets, particularly those that come in the form of parental financial support and inheritance. "VIVIAN ARRORA, 40 YEARS OLD, is the struggling single mother of a young teenage son, Lamar and 4-year-old twin girls, Bria and Britany."