Latinos and the Wealth Divide
According to data released by Prosperity Now, 60.7 percent of Latino households are liquid asset poor, compared to 50 percent of Black households, and 28 percent of White households. In essence, this means that most Latinos are one crisis away from financial ruin. Latino’s are also more likely to have less income than the national average of $53,889, with Latinos earning an average of $39,005 a year. It turns out that Latino men earn roughly 69 cents to every White non-Hispanic male’s dollar. This data is very significant for Latinos as they get older and look to retire.
The pay gap between men and women is even more evident for Latinas. The average income for a Latina is $31,109. Latina women earn about 58 cents for every dollar. Surprisingly, the median wealth, assets minus debts, for a Latino household in 2013 was only $2000, which is almost 60 times less wealth than White households with a median wealth of $116,000. The national mortgage crisis affected Latinos particularly hard because they lost 66 percent of their wealth compared to 16 percent for White families and 53 percent for Black families. Even though the Latino community has been progressing over the years, it is important to reflect on the progress that still needs to be made.