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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Feb. 2, 2000)
B U M A ssociated P ress Researchers at the University o f Michigan say the net worth o f the average black family has decreased in the last five years, despite an economic boom that saw the net worth of most American households grow. ’’W e’re very, very surprised,” said Frank Stafford, director o f the school’s Panel Survey o f Income Dynamics. “But w e’ve done a lot o f testing and have corroborating information from external sources that have us very much convinced th at th is is a real th in g .” From 1994 to 1999, the net worth o f the m ed ian b la c k h o u se h o ld decreased by $7,000, a decline of 17 percent. During the same five year period, the net worth o f the median U.S. household rose 9 percent to $59,500. The survey is conducted every five years. The decline comes after a 10 year period where black household net w orth m ore than doubled. The decline is disturbing because the American economy is doing so well. Black net worth declined despite an exploding stock market and real estate market, Stafford said. "There were big gains for the 97th percentile (the richest 3 percent o f February, 2000 Focus ïtiv ÏJariUnh (©bsexwr Page 5 Black’s net worth decreasing African-American households),” Stafford said. “But much o f the rest looks pretty bad.” The results o f the survey, conducted in December 1999, were tested twice. The Michigan group also checked their findings with other researchers before presenting the work at a conference last month. ”We spent a lot o f time rechecking the data and our sample is too large to be a fluke,” Stafford told The Detroit News. “The most important thing is that we track the same families overtime. We interviewed the same people in 1999 that we did in 1994,so it isn’tlikew ere drawing a brand new sample as with other studies. W e’re very sure that the data is right.” This survey is the latest in a series that suggest black households are having financial trouble. Last year, m ortgage lender Freddie Mac reported that almost twice as many blacks have bad credit as whites, 47 percent to 27 percent. The Freddie Mac survey, however, was called flawed and simplistic by critics. A survey conducted by the Federal Reserve found net worth was rising ' for the average U.S. household from 1995 to 1998, but was falling in minority households. That survey did not have a separate report on black net worth. Researchers at Michigan plan a formal investigation ofthe data obtained in the survey, and could ask scholars at Boston U n iv e rsity , N o rth w e ste rn University and the Federal Reserve Bank of Chicago for help. Stafford said he does not know what is behind the decline, but thinks reforms in the nation’s w elfare system could be a factor. That conclusion, he said, is still speculation at this point. Blacks interview ed by the News were both stunned, and unsurprised, by the study. ”1 talk to a lot o f African- American doctors, lawyers, b u sin e ss o w n e rs, m iddle managers and executives, and I don’t get that impression at all,” said Jerry Scales, 66, a retiree. “The people I talk to are better off economically than they’ve ever been.” But 44-year-old Advertise in f tp fflo rtla n b (O bserU er Leroy Nichols, who has been laid off from his job as construction painter, said his net worth is “ b a sic a lly z e ro .” ’’The cost o f living is going up and A frican A mericans in the N orthwest S a tu rd a y , F e b ru a ry 12, a t 2pm D r. D a r r e l l M . M ill n e r. P r o f e s s o r o f B la c k S tu d i e s a t P o r t l a n d S t a t e U n iv e r s ity , o f f e r s a b r o a d - b a s e d p e r s p e c tiv e o n A fr ic a n A m e r ic a n s w o rk in g ' a n d liv in g in th e N o r t h w e s t d u r i n g tb e p a s t tw o c e n tu r ie s . A d m is s io n is f r e e 'Sponsored by M cM cnam ins P u b s and PS U Black S tu d ies D epartm ent 8203 N Ivan hoe • P ortland • (503) 283-8520 w w w .m cm enam ins.com ARTISTS REPERTORY THEATRE For My Husband a is in Johnny Huff “You’ll Always Be The Perfect Man For Me” An anniversary is a special time for reflecting on moments shared, hopes fulfilled, and dreams come true—A special time for looking ahead to more beautiful moments together, for dreaming new dreams, and renewing the promise o f love You’ve always been the perfect man for me. I can’t imagine anyone else who could have shared so fully all the hopes and dreams and disappointments of the years Your calm voice in times o f crisis, your unwavering faith, The little things you do just for me - all of these have made our life together so happy and so full o f love. And no matter how many years go by, I know I’ll keep on loving you with the same deep love I feel for you today. I can’t imagine loving anyone else as much - because you’re the one who will always be the perfect man for me. i Happy Anniversary I Love You Forever your wife Thorresa Huff a lot o f incomes have been frozen for the last fifteen years,I’ve been struggling. I work hard and a lot of hours but I don’t have much to show for it.” 7 ^ ban k Ic k lr u n ix ju s t m a LORRAINE HANSBERRY JANUARY 11 - FEBRUARY 20, 2000 1516 SW Alder Street www.artistsrep.org For tickets call: 503/241-1ART "For me, Raisin is still fresh, it's still relevant. Lorraine Hansberry was a visionary." - Spike Lee, Filmmaker