KAREN: TODAY, A CLEARER
DEFINITION OF THE WEALTH IN
BOSTON AND WHO HAS IT.
PLUS, AND ARTS WEEK PREVIEW.
KAREN: HELLO, EVERYONE.
I AM KAREN HOLMES WARD.
WELCOME.
LATER, DEVELOPING PHILANTHROPY
WITHIN THE BLACK COMMUNITY.
BUT IN ORDER TO GIVE AWAY MONEY,
YOU MUST FIRST HAVE LOTS TO
GIVE.
THE LONG-TERM IMPACT OF WAGE
EQUALITY HAS CREATED A WEALTH
GAP AFFECTING COMMUNITIES OF
COLOR APPEARED THE COLOR OF
WEALTH, AND NEW REPORT BY THE
BOSTON FEDERAL RESERVE BANKS
REGIONAL AND COMMUNITY OUTREACH
DEPARTMENT HAS ANALYZE THE
ECONOMIC WELL-BEING OF BOSTON
AND WHERE THE LARGEST
DISPARITIES CAN BE FOUND.
THEIR FINDINGS -- A WORRYING AND
WIDE RACIAL WEALTH GAP
INDICATING THAT MANY FAMILIES OF
COLOR DO NOT HAVE
THE FINANCIAL
AXIS SUFFICIENT FOR BUILDING
FUTURE SUCCESS.
TO SPEAK WITH US IS THE
CO-AUTHOR OF THE REPORT AND
DIRECTOR OF THE RESEARCH AND
COMMITTEE CASE AND'S AT THE
BOSTON FED.
HELLO, ANA.
LET'S START BY GIVING SOME
DEFINITIONS.
WHAT IS WEALTH?
HOW DO YOU MEASURE WEALTH IN
TERMS OF INCOME?
WHAT EXACTLY IS WEALTH?
THANK YOU SO MUCH
FOR THE
INVITATION AND THE INTEREST IN
THE REPORT.
THAT IS AN IMPORTANT DISTINCTION
AND ONE THAT HAS IMPLICATIONS IN
TERMS OF QUALITY.
THE WAY I LIKE TO THINK ABOUT IT
IS USING AN ANALOGY.
IMAGINE A BATHTUB OR DO HAVE
WATER THAT COMES IN.
THAT IS YOUR INCOME.
THEN YOU HAVE EXPENSES, THINGS
YOU HAVE TO BUY HERE THAT IS THE
WATER COMING OUT OF THE BATHTUB.
THOSE ARE YOUR EXPENSES.
THE WATER YOU HAVE LEFT, THAT IS
YOUR WEALTH, YOUR NET WORTH.
THINGS YOU CAN
USE WHEN YOU FACE
AN EMERGENCY, SUCH AS JOB LOSS,
MEDICAL EMERGENCY.
ALSO, THE THINGS YOU CAN USE TO
BUILD FOR THE FUTURE, FOR A
BUSINESS, TO PAY FOR EDUCATION,
TO PAY FOR RETIREMENT.
EVEN A YOU HAVE INCOME FLOWING
IN, IF YOU DO NOT HAVE THAT NET
WORTH, YOU CANNOT HAVE A BETTER
FUTURE AND PASS IT ON TO FUTURE
GENERATIONS.
THAT IS VERY COMPLICATED TO
MEASURE.
IN THE PAST, WE DID NOT
SAY MUCH
ABOUT WEALTH INEQUALITY.
WE HEAR MORE ABOUT INCOME
INEQUALITY.
WE CALCULATED MORE IN THE
DETAILS.
WE LOOK AT THE FAMILY
BALANCE
SHEET.
ONE HAND ARE ASSETS, FINANCIAL
ASSETS LIKE THE MONEY YOU HAVE
IN YOUR SAVINGS AND BANKING
ACCOUNT.
ALSO, TANGIBLE ASSETS I GEAR
HOUSE.
AND WE LOOK AT THE DEBT.
WE LOOK AT MEDICAL DEBT, CREDIT
CARD DEBT, MORTGAGES.
WE TAKE THAT OUT FROM YOUR
ASSETS.
IT COULD BE THAT FAMILIES HAVE
INCOME AND ASSETS, BUT WHEN YOU
TAKE OUT FOR THE THINGS THEY
OWE, YOU ARE LEFT WITH WHAT
YOU'RE SUPPOSED TO BE BUILDING
UPON.
THAT IS WHAT THIS REPORT IS
ABOUT.
TAKE YOU ARE DOING RESEARCH FOR
THIS REPORT, AND YOU FOUND SOME
VERY DISPARATE OUTCOMES IN TERMS
OF ETHNIC COMMUNITIES AND THE
BLACK COMMUNITIES OF BOSTON.
THIS RESEARCH
INITIATIVE HAS
TWO MAIN GOALS.
ONE IS TO COLLECT DATA AT THE
LOCAL LEVEL.
THIS IS THE FIRST TIME THIS WAS
COLLECTED IN THE BOSTON
METROPOLITAN AREA LEVEL.
THE SECOND IS TO DIFFERENTIATE
AND SEGREGATE THE BROAD
CATEGORIES OF BLACK AND
HISPANIC.
WE HAVE SPECIFIC TARGET GROUPS
SPEARED WE DIFFERENTIATE BETWEEN
U.S. BLACK AND CARIBBEAN BLACK.
AND WE DIFFERENTIATE
BETWEEN
HISPANICS, PUERTO RICANS,
DOMINICANS, AND OTHER HISPANICS.
WE USED
THE FOUNDATION WITH DUKE
UNIVERSITY.
KAREN: WHAT DID YOU FIND?
WHAT IS THE DIFFERENCE TWEEN THE
COMMUNITIES?
WHAT ARE THE MORE STRIKING
FINDINGS?
ALL TYPES OF ASSETS
, THE
DIFFERENCES BETWEEN THE WHITE
AND NON-WHITE GROUPS TARGETED
WERE LARGE.
IT IS THE CASE WITH ALL TYPES OF
ASSETS.
WHEN YOU LOOK AT DEBT, THE
DIFFERENCES ARE NOT THAT
SIGNIFICANT.
IT MEANS THAT NON-WHITE
COMMUNITIES DO NOT HAVE ENOUGH
ASSETS TO RELY ON BUT STILL HAVE
DEBT.
AT THE END, THERE IS NOT MUCH
LEFT TO INVEST AND BUILD FOR
FUTURE GENERATIONS.
KAREN: I HAD A CHANCE TO READ
THE REPORT AND THERE WERE
STRIKING DETAILS.
FOR INSTANCE, WHITE COMMUNITIES,
WHITE FAMILIES SEEM TO HAVE MORE
RETIREMENT ACCOUNTS, IRA'S,
LIQUID ASSETS, MONEY MARKET
FUNDS ARE COMMUNITIES OF COLOR,
NOT SO MUCH FOR WHAT WERE SOME
OF THE OTHER DIFFERENCES?
YOU MENTIONED A GREAT
EXAMPLE.
LESS THAN 8% OF DOMINICANS HAVE
RETIREMENT ACCOUNTS.
SO FOR RETIREMENT, THEY MIGHT
RELY ON SOCIAL SECURITY.
THAT HAS IMPLICATIONS FOR
POLICY.
LOOKING AT OTHER ASSETS, YOU CAN
LOOK IT WHETHER FAMILIES HAVE A
SAVINGS OR CHECKING ACCOUNT.
WHAT WE FOUND IS MORE THAN 80%
OF WHITE HOUSEHOLDS HAVE THAT
,
COMPARED TO ONLY 60% OF PUERTO
RICANS AND DOMINICANS.
JUST ACCESS AND USING A FORMAL
SAVINGS, IT IS NOT HAPPENING IN
COMMUNITIES OF COLOR IN BOSTON.
TERROR AND COAX IT IS IMPORTANT,
BECAUSE IF YOU DO NOT HAVE A
CHECKING IT --
KAREN: IT IS A PORT AND BECAUSE
IT YOU NEED TO GET MONEY INTO
THERE.
YOU MIGHT BE PAYING FEES.
IT IS A DETRIMENT.
THERE ARE ADDITIONAL COSTS
FOR THE FAMILY.
WE ASKED ABOUT LENDING
AND
PAYMENTS.
DOMINICANS WERE MUCH MORE LIKELY
TO USE LENDING THAN OTHER
GROUPS.
MASSACHUSETTS WAS REGULATED.
SOME FAMILIES ARE FINDING WAYS
TO GO THAT
DIRECTION BECAUSE
THEY MIGHT NOT HAVE ASSETS FOR
MORE FORMAL RESOURCES.
KAREN:
I FOUND IT STRIKING THE
AMOUNT OF MORTGAGE DEBT.
NON-WHITE FAMILIES ARE MORE
LIKELY TO HAVE MORTGAGE DEBT.
IF YOU LOOK IN
GENERAL THE
PERCENTAGE OF FAMILIES WITH
MORTGAGES, YOU DO NOT SEE MANY
DIFFERENCES.
THAT IS BECAUSE MOST WHITES DO
NOT HAVE A HOME -- MOST
NON-WHITES TO NOT OWN A HOME AND
DO NOT HAVE A MORTGAGE.
IN OUR STUDY, 60% OF WHITES
HAVE
A MORTGAGE ON HOUSES COMPARED TO
CLOSE TO 90% OF BLACK
CARIBBEAN'S.
YOU CAN SEE A PRETTY GOOD
PICTURE.
YOU ADD THE MORTGAGE, THEN THEY
ARE NOT REALLY OWNING THEIR
HOMES YET.
KAREN: WHAT WERE SOME OF THESE
IS TO MAKE ISSUES THAT FED INTO
THIS DISPARITY?
THIS IS A SNAPSHOT OF WHAT IS
HAPPENING CURRENTLY IN THE
FAMILY.
IT IS NOT A DEEP ANALYSIS OF
THE
ROOT CAUSES.
BUT WEEK AND SAY, FROM PREVIOUS
ANALYSIS CONDUCTED NATIONALLY,
THAT THIS IS AN
INTERGENERATIONAL PROBLEM.
POLICIES THAT AFFECT NON-WHITE
COMMITTED HIS FOR YEARS,
HUNDREDS OF YEARS, HAVE
CONSEQUENCES NOW.
KAREN: BEING DISCRIMINATED
AGAINST IN TERMS OF GETTING
HOUSING, BEING REDLINED AND NOT
BEING ABLE TO GET A MORTGAGE IF
YOU ARE A PERSON OF COLOR,
THINGS OF THAT NATURE.
THAT STILL HAS CONSEQUENCES
NOW.
THE REDLINING WAS A BIG PROBLEM.
I HOPE THAT HAS BEEN DIMINISHED.
THERE ARE OTHER WAYS THAT THE
SYSTEM IS NOT PERFECT YET.
DEFINITELY, WE NEED TO ADDRESS
THOSE PROBLEMS THAT HAPPENED IN
THE PAST AND THOSE THAT ARE
HAPPENING NOW.
KAREN: THIS IS A FASCINATING
REPORT.
THANK YOU FOR TALKING TO US
ABOUT A BEAUTY COULD READ THE
REPORT ON OUR WEBPAGE AT
WCVB.COM.
WEALTH IS NOT AVAILABLE TO ALL,
BUT FOR THOSE WHO HAVE IT, HOW
ARE THEY GIVING BACK TO THE
COMMUNITY?
A QUESTION OF LACK STEWARDSHIP
IN BOSTON, NEXT.