Federal Reserve’s Survey Reveals Drop on Net Worth of American Families, and Huge Disparity Across Ethnicities

A latest research by Pew Research Center from data in the Federal Reserve’s Survey of Consumer Finances shows that the median net worth of households has dropped from $135,700 in 2007 to $81,400 in 2013, almost 40% down since the Great Recession. Besides the drop in overall American households, the research also observed a big gap between blacks and whites, and between Hispanic and white. The white-to-black wealth ratio was 13 times, the highest point since 1989, while current white-to-Hispanic ratio was 10 times. The survey also saw a stability of the overall net worth of American households, which was $82,300 in 2010 and $81,400 in 2013.

See Paul Caron, “Average American’s Wealth Down 40% Since 2007, Inequality Has Widened Across Racial Lines”, TaxProf Blog (December 15, 2014).

Posted by Jiaqi Wang, Associate Editor, Wealth Strategies Journal.

 

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