The Guardian: Staggering US wealth inequality heaps long-term harm on to minority children
Article published: 2 Sep, 2021
IB Economics syllabus:Â Macroeconomics (national income data, economic growth, recession)
Wealth inequality is extremely high among American families with children. The median wealth of white American families is $63,838, while the same is literally $808 for Black households. This essentially means that half of ALL Black families have wealth that is less than $808!!! Furthermore, “wealth inequality between American families has become so extreme that 1% of parents control 44% of all wealth held by households with children, while the top 10% control 82%.” It is also good to know that “Wealth is calculated by aggregating a family’s assets and subtracting from it their debts.” If you choose this article, make sure to use the Lorenz curve, and for the key concept, you can go for equity or economic well-being. Equity is particularly relevant here, as “the American dream, […] that anybody can make it no matter how modest their beginnings, might not be true in reality. Especially if
“Such glaring disparities profoundly influence kids’ potential as they emerge into adulthood. They touch aspects of life that can make or break a child’s life, including the neighborhood they live in, the schools they attend, how secure they feel, how well they perform in exams, their behavioral record, and their health.”ú
Also, make sure to comment on Biden’s child tax credit, which was “designed to help families with children caught in the poverty trap” but which might end in March 2022.
Source of image: digitalskillet/Getty Images
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