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
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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
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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