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The Great Recession hit family finances from many directions, from lost or lower wages to falling house values and retirement account balances. Even before this financial crisis, however, young Americans were accumulating less wealth than their parents, and people of color were less wealthy than whites.
Each year, the federal government spends hundreds of billions of dollars to support long-term asset development. But these funds do not seem to be reaching the people who need help the most. Reducing wealth inequality creates better opportunities for all Americans. New Studies
Less Than Equal: Racial Disparities in Wealth Accumulation by Signe-Mary McKernan, Caroline Ratcliffe, Eugene Steuerle, and Sisi Zhang  Income inequality understates the size of the economic gap between whites and minorities in the United States. In 2010, whites on average had two times the income of blacks and Hispanics, but six times the wealth. Analyses of wealth accumulation over the life cycle show that the racial wealth gap grows sharply with age.
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Lost Generations? Wealth Building among Young Americans by Eugene Steuerle, Signe-Mary McKernan, Caroline Ratcliffe, and Sisi Zhang  Despite the Great Recession and slow recovery, the American dream of working hard, saving more, and becoming wealthier than one’s parents holds true for many. Unless you’re under 40. Stagnant wages, diminishing job opportunities, and lost home values may be painting a vastly different future for Gen X and Gen Y.
Further reading on changing wealth - Homeownership Policy at a Critical Juncture: Are Policymakers Overreacting to the Great Recession?
by Bob Lerman, Eugene Steuerle, and Sisi Zhang Many are focusing too intensely on the losses faced by a specific cohort of homebuyers during the Great Recession; a "buy-high, sell low, but don't buy low" prescription is the worst of all worlds for these families.
- U.S. Asset Poverty and the Great Recession
by Caroline Ratcliffe and Sisi Zhang The asset poverty rate increased over 20 percent with the Great Recession.
- Changes in Wealth of Low-Income Neighborhood Residents: A Local View of the Financial Crisis
by Leah Hendey, Signe-Mary McKernan, and Beadsie Woo Place characteristics matter to the assets and debt families’ accrue.
- Coping with the Great Recession: Disparate Impacts on Economic Well-Being in Poor Neighborhoods
by Bob Lerman and Sisi Zhang The onset of the recession hit homeowners and poor neighborhoods, but with no worse job losses than what renters and other areas faced.
- Does Financial Support and Inheritance Contribute to the Racial Wealth Gap?
by Signe-Mary McKernan, Caroline Ratcliffe, Margaret Simms, and Sisi Zhang Large gifts and inheritances play an important role in perpetuating the racial wealth gap.
- Can the Poor Accumulate Assets?
by Signe-Mary McKernan, Caroline Ratcliffe, and Trina Williams Shanks Conventional wisdom says the poor cannot build wealth, but research proves that assumption wrong.
- Savings: The Poor Can Save, Too
by Robert Friedman, Ying Shi, and Sarah Rosen Wartell Encouraging savings and assets among low- and moderate-income families should be part of the national strategy to restore household and economic stability.
- Kids' Share 2012: Report on Federal Expenditures on Children through 2011
by Julia Isaacs, Katherine Toran, Heather Hahn, Karina Fortuny, and Eugene Steuerle The size and composition of expenditures on children have changed considerably over the past 50 years, but children have not been a budget priority.
- Retirement Account Balances
by Barbara Butrica and Philip Issa The retirement savings of American households took a big hit when the stock market crashed, but a good portion of these losses has been reversed.
- Do Assets Help Families Cope with Adverse Events?
by Signe-Mary McKernan, Caroline Ratcliffe, and Katie Vinopal The impact of negative events can be mitigated if a family holds assets.
| Blog Posts
MetroTrends
The Story Behind the Numbers: Why people in their 30s have less wealth than their parents' generation by Caroline Ratcliffe, Eugene Steuerle, Signe-Mary McKernan and Sisi Zhang
The Atlantic Cities
3 Reasons 30-Somethings Are Accumulating Less Wealth Than Their Parents by Signe-Mary McKernan and Caroline Ratcliffe
MetroTrends
Lost Generations? Wealth Building Among the Young by Caroline Ratcliffe and Signe-Mary McKernan
The Atlantic Cities
How the Young Get Left Out of the Wealth Puzzle by Signe-Mary McKernan and Caroline Ratcliffe
The Government We Deserve
Lost Generations? Wealth Building Among the Young by Gene Steuerle Major Media Coverage
New York Times: Younger Generations Lag Parents in Wealth-Building
Washington Post: How young people are getting poorer, in one chart
The Atlantic: Why Twenty-Somethings Aren't Doomed to Be Poor (but Thirty-Somethings Might Be)
Inc: Wealth and Entrepreneurship: Young Americans Saving Less
Forbes: Gen X And Gen Y Wealth Stagnates
New York Times Magazine: Do Millennials Stand a Chance in the Real World?
Al Jazeera: Narrowing the Wealth Gap
HuffPost Live: Are Millennials Doomed?
The New York Times Economix Blog: Declining Wealth Brings a Rising Retirement Risk
Related Policy Centers and Programs Opportunity and Ownership Project Program on Retirement Policy Urban-Brookings Tax Policy Center |
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