During the pandemic, the real value of Black-held financial assets dropped below their 2019 level while Hispanic-held assets remained relatively stable.
The wealth gap between white and Black Americans has widened during the pandemic, despite government financial support and a strong job market.
White individuals saw an increase in real net worth by 30 percentage points compared to Black households' growth of only 9 percentage points. However, this disparity is not solely due to differences in stock ownership; it also stems from the fact that more than half of Black financial wealth is invested in pensions rather than stocks and mutual funds.
The wealth gap between white and Black Americans has widened during the pandemic, despite government financial support and a strong job market. The period from 2019 to mid-2023 saw an increase in real net worth for white individuals by 30 percentage points compared to Black households' growth of only 9 percentage points. However, this disparity is not solely due to differences in stock ownership; it also stems from the fact that more than half of Black financial wealth is invested in pensions rather than stocks and mutual funds. Additionally, during the pandemic, the real value of Black-held financial assets dropped below their 2019 level while Hispanic-held assets remained relatively stable.
The real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively, from the first quarter of 2019 through the second quarter of 2023.
Closing the wealth gap is more difficult because a significantly larger number of white households traditionally have money in stocks and mutual funds.
The period featured a remarkable level of government financial support and, after the initial shock of the pandemic, a surprisingly strong job market. The unemployment rate for Black Americans in particular is now at 5.3%, near a record low, compared to an overall unemployment rate of 3.7%. Earnings for the typical Black full-time worker are up 7.1% since before the pandemic.
Black households have more wealth concentrated in pensions than in stocks, mutual funds and exchange-traded funds (ETFs). More than 50% of Black financial wealth is invested in pensions.
During the pandemic, the real value of Black-held financial assets dropped below its 2019 level and continued to decline steadily. Neither group's real financial assets have recovered to their 2019 values.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article reports that the real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively from Q1-2Q23. The period featured government financial support, a strong job market, but also rising stock prices which increased racial wealth disparities despite income gains for the typical Black full-time worker being up 7.1%. This is an example of deceptive reporting because it presents only one side of the story and ignores other factors that contribute to wealth inequality such as systemic racism in hiring, education, housing, etc.
The article states that 'the real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively from the first quarter of 2019 through the second quarter of 2023.' This is deceptive because it implies that wealth inequality only exists between races, when in fact there are many other factors such as class, education level, etc. that contribute to wealth disparities.
The article states that 'the period featured a remarkable level of government financial support and, after the initial shock of the pandemic, a surprisingly strong job market.' This is deceptive because it implies that government support was sufficient to close the wealth gap when in fact there are many other factors such as systemic racism in hiring, education, housing etc. that contribute to wealth disparities.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing the New York Federal Reserve Bank and other sources as evidence for their claims. This is a valid use of authority in journalism, but it should be noted that these sources may have biases or agendas that could affect their findings. Additionally, the article contains several examples of inflammatory rhetoric when discussing racial wealth disparities and how they are growing despite government support during the pandemic. The author also uses a dichotomous depiction by portraying white individuals as having more money in stocks and mutual funds than Black or Hispanic individuals. This is not entirely accurate, as there may be other factors that contribute to differences in wealth between different racial groups.
The article contains several examples of inflammatory rhetoric when discussing racial wealth disparities and how they are growing despite government support during the pandemic.
Bias
(85%)
The article reports that the real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively from the first quarter of 2019 through the second quarter of 2023. The period featured a remarkable level of government financial support, particularly an outsize gain for the stock market in 2021, which helped entrench existing trends of wealth inequality during the pandemic. However, it is important to note that closing this gap is more difficult because a significantly larger number of white households traditionally have money in stocks and mutual funds.
The real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively from the first quarter of 2019 through the second quarter of 2023.
Site
Conflicts
Of
Interest (50%)
Cora Lewis has a conflict of interest on the topic of wealth disparities by race as she is affiliated with Washington Center for Equitable Growth which focuses on reducing economic inequality. Additionally, her article discusses financial markets and stock market in 2021 which are topics that could also be affected by conflicts of interest.
Cora Lewis is the founder and CEO of the Washington Center for Equitable Growth, a nonprofit organization focused on reducing economic inequality. The center has received funding from various sources including government grants and private donations.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of wealth disparities by race as they are affiliated with an organization that focuses on this issue.
White individuals' net worth outgrew that of Black and Hispanic individuals by 30 percentage points from the first quarter of 2019 through the second quarter of 2023.
The period featured a remarkable level of government financial support and, after the initial shock of the pandemic, a surprisingly strong job market. The unemployment rate for Black Americans in particular is now at 5.3%, near a record low, compared to an overall unemployment rate of 3.7%. Earnings for the typical Black full-time worker are up 7.1% since before the pandemic.
Closing the wealth gap is more difficult because a significantly larger number of white households traditionally have money in stocks and mutual funds.
Accuracy
White individuals' net worth outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively, from the first quarter of 2019 through the second quarter of 2023.
Black households have more wealth concentrated in pensions than in stocks, mutual funds and exchange-traded funds (ETFs). More than 50% of Black financial wealth is invested in pensions.
During the pandemic, the real value of Black-held financial assets dropped below its 2019 level and continued to decline steadily while Hispanic-held financial assets dipped below its 2019 level in 2022 and stagnated.
Deception
(80%)
The article is deceptive in several ways. Firstly, it presents the wealth gap between Black and White Americans as a result of government financial support during the pandemic when in fact it was due to existing trends of wealth inequality that were exacerbated by market-linked assets rising significantly with the reopening of the economy through 2021. Secondly, while government support such as increased unemployment benefits and stimulus checks helped stave off a COVID-induced recession, financial asset prices rose so significantly with the reopening of the economy that racial wealth disparities increased. Thirdly, it presents Black households having more wealth concentrated in pensions than in stocks, mutual funds and exchange-traded funds as an advantage when in fact it is a disadvantage because less than 20% of Black wealth is stored in private businesses, corporate equities and mutual funds compared to about 50% for White families. Fourthly, the article presents that owning a business is another component of financial wealth but fails to mention that Black-owned businesses had a tougher time during the pandemic due to being more concentrated in industries hardest hit when COVID first spread.
The real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively, from the first quarter of 2019 through the second quarter of 2023.
Black family members are less likely to get an inheritance.
Closing the wealth gap is more difficult because a significantly larger number of white households traditionally have money in stocks and mutual funds.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
The article discusses the wealth gap between Black Americans and White people in relation to their net worth. The author is Cora Lewis of The Associated Press.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Black Americans' wealth gap as they are reporting for The Associated Press which is known to have financial ties with companies and industries that may be affected by policies related to this topic.
White households hold equities and mutual funds which have performed exceptionally well and boosted investors' net worth.
The wealth of white people grew faster than that of Black, Latino or older individuals during this time period.
Black-owned businesses had a tougher time during the pandemic.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, it presents the idea that white Americans are benefiting most from the stock-market boom when in fact it's not true for all age groups or races. The report shows that young people and Black households also increased their investments in equities between 2019 and mid-2023. Secondly, the article implies that only white families own stocks which is false as other racial groups also own stocks but at a lower rate than whites. Thirdly, it presents the idea that stock equity appreciates more rapidly than housing equity when in fact this is not true for all races or age groups.
The report shows that young people increased their investments in equities between 2019 and mid-2023, yet the article presents the idea that only white Americans are benefiting from the stock market boom.
The S&P 500 saw cumulative returns of 91.8% between 2019 and mid-2023 but this is not true for all races or age groups.
The article states that 'more white households hold equities and mutual funds' which implies that only white families own stocks but this is false as other racial groups also own stocks.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing the Federal Reserve Bank of New York's report on wealth inequality without providing any context or analysis of their findings. Additionally, the author makes a false dichotomy between white households and other groups in terms of ownership of financial assets, stating that more white households hold equities and mutual funds but failing to mention that not all non-white households own these assets. The article also contains inflammatory rhetoric by using phrases such as
The quickest way to gain wealth over the past few years was by investing in the stock market
White individuals experienced sharper increases in the value of real-estate assets from 2019 to mid-2023
Bias
(85%)
The article contains several examples of bias. The author uses language that dehumanizes white supremacists and implies that they are celebrating the reference to a racist conspiracy theory. Additionally, the author makes assumptions about political affiliations based on quotes from sources without providing any context or evidence for those claims.
Inequality by race and age in the U.S. persists in part because ownership of financial assets varies widely between different groups, according to the Federal Reserve Bank of New York's latest report on wealth inequality
The quickest way to gain wealth over the past few years was by investing in the stock market
The S&P 500 SPX saw cumulative returns of 91.8% between 2019 and mid-2023.
The vast majority of wealth in the U.S. continues to be held by white people, whose collective net worth rose 29% from 2019 to 2023
White individuals experienced sharper increases in the value of real-estate assets from 2019 to mid-2023
Site
Conflicts
Of
Interest (50%)
Venessa Wong has a conflict of interest on the topic of wealth inequality as she is reporting for MarketWatch which owns mutual funds and equities.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of wealth inequality as they mention the $112.77 trillion wealth of white people in the US.
White individuals experienced sharper increases in the value of real estate assets between 2019-Q3 and 2019-Q1.
Black households have more wealth concentrated in pensions than in stocks, mutual funds and exchange-traded funds (ETFs). More than 50% of Black financial wealth is invested in pensions.
During the pandemic, the real value of Black-held financial assets dropped below its 2019 level and continued to decline steadily while Hispanic-held financial assets dipped below its 2019 level in 2022 and stagnated.
Accuracy
White wealth grew by a cumulative percentage point more than Black and Hispanic wealth.
The real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points from the first quarter of 2019 through the second quarter of 2023.
Deception
(80%)
The article is deceptive in several ways. Firstly, the author uses misleading language when they say that 'racial and ethnic wealth inequality has been exacerbated since the pandemic'. This statement implies that racial and ethnic wealth inequality was not a problem before the pandemic, which is false. Secondly, the author presents data on real net worth growth by race and ethnicity but fails to provide context for this data. For example, they do not explain what factors contributed to this growth or how it compares to other economic indicators during the same period. Thirdly, the author uses a chart that shows racial wealth inequality in terms of percentage points rather than actual dollar amounts, which can be misleading and make it difficult for readers to understand the magnitude of these disparities.
The chart used by the author shows racial wealth inequality as a percentage point difference rather than actual dollar amounts. For example, it states that 'White-held real financial assets grew by 21% from 2019:Q1 to 2023:Q3', but this does not provide any context for how much money is being discussed here.
The author fails to explain what factors contributed to the growth in racial and ethnic wealth inequality since the pandemic. They simply state that 'Financial asset prices rose with the reopening of the economy through 2021' without providing any evidence or analysis.
The statement 'racial and ethnic wealth inequality has been exacerbated since the pandemic' is deceptive because racial and ethnic wealth inequality was already a significant problem before the pandemic. According to data from 2019, Black individuals held just 4.9% of total net worth in the United States while white individuals held 92.4%. This disparity has not been resolved since then.
Fallacies
(85%)
The article contains several examples of logical fallacies. The author uses an appeal to authority by citing sources such as the Distributional Financial Accounts (DFA) and the Current Population Survey via IPUMS without providing any context or explanation for why these sources are reliable. Additionally, the author uses inflammatory rhetoric when stating that
The quarterly demographic wealth distributions published in the DFA by the Board of Governors of the Federal Reserve System are estimated using microdata from the Survey of Consumer Finances and aggregate financial data from the Fed’s Financial Accounts series.
We find that 2019-2023 growth in real net worth was greater for white individuals than for Black and Hispanic individuals.
Bias
(85%)
The article discusses the racial and ethnic wealth inequality in the United States. The author uses data from Distributional Financial Accounts (DFA) to document these disparities between Black, Hispanic, and white households for wealth and a variety of asset and liability categories. They find that these disparities have been exacerbated since the pandemic due to rapid growth in financial assets more often held by white individuals. The author also notes that non-white financial wealth faltered while real estate kept pace during this period.
The quarterly demographic wealth distributions published in the DFA by the Board of Governors of the Federal Reserve System are estimated using microdata from the Survey of Consumer Finances and aggregate financial data from the Fed’s Financial Accounts series. Sample size concerns lead us to omit Asians, Pacific Islanders, and other smaller groups from this analysis.
We find that 2019-2023 growth in real net worth was greater for white individuals than for Black and Hispanic individuals.
Site
Conflicts
Of
Interest (50%)
The article discusses the wealth inequality faced by racial and ethnic groups in the United States. The author is Rajashri Chakrabarti who has a financial stake in Distributional Financial Accounts (DFA), which may influence her coverage of this topic.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of wealth inequality as they are an economist at the Federal Reserve Bank of New York and have published research on this topic. The article also discusses Distributional Financial Accounts (DFA) which is a tool used by central banks to monitor financial stability, but it's not clear if there is any specific interest or affiliation with this particular tool.
The author mentions their role as an economist at the Federal Reserve Bank of New York and how they have published research on wealth inequality. They also mention Distributional Financial Accounts (DFA) but it's not clear if there is any specific interest or affiliation with this particular tool.
