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Less than half of all Americans consider themselves middle class, according to a recent poll by ABC. The poll also states that $55,000 is the average middle class income, $35,000 the working class standard, and $95,000 is the benchmark for those who consider themselves well-off. What do these numbers mean to African Americans?
It's hard to say how blacks measure up, since comparable statistics on the black middle class are scarce. We do know the black American median income is about $35,000, spot on with what the ABC poll determined to be an average working class salary. Also, according to the US Census Bureau, of all Americans considered black in 2008, roughly 25% had a median income of between $50,000 and $99,000.
We can assume three things based on this data:
1. What's considered middle-of-the-road for blacks is a working class salary for the rest of America. Plus, only one in four blacks earn the national definition of a "well-off" income, a rate that is half that of the general population. Essentially, a black American who earns a middle class salary by the national definition is doing twice as well as blacks in the middle of our income range -- but not as well as middle class whites. Seems the whole "have to work twice as hard" thing has some truth to it. There's more.
2. Today, in 2010, the median income for blacks is still 40% less than that of the general population, about the same as it was in 1989. In 1989, median income for blacks was roughly $17,000 less than that of all Americans. Over the next two decades, median incomes for blacks rose and fell on par with the rest of the economy, increasing a whopping 22.3% from 1989 - 2000 while the entire economy was riding high, then dropping 5.1% from 2000 - 2007 in the aftermath of 9-11 and during the precursor to the current recession. The decline may seem small compared to the monumental gains made in the 1990s, but because everyone's income rose and fell with the tide, blacks never managed to wipe out what remained a significant disparity in income.
3. During the coming economic recovery, the gap is liable to widen because access to employment for blacks is likely to shrink as it grows for others. Close attention must be paid to how job loss throughout the recession will effect job opportunities during the beginnings of an upswing in the economy. Although solid data on income from 2008 through now many not be available until the 2010 census is complete, current unemployment trends show that the gap in employment between blacks and whites has doubled over the course of the current recession. The working class jobs that blacks have relied on in a higher proportion are the jobs that have been eliminated during the downturn. Everybody agrees that most of these jobs are not coming back. This will hurt our community's ability to take part in the recovery, unless we can develop new skills and access to better job networks.
It is imperative that blacks have connections with people that can get them those better jobs when the economy recovers. This will require more equal representation of blacks among those with the authority to make hiring decisions -- because when the 15 million unemployed Americans begin scrambling for the first few jobs that trickle in, you can be sure that whoever is in charge will be looking to help out the people they know best first. If those people have no connection to you, you're going to have a much harder time obtaining a stable income through employers. This has not always been our strong point. If the black community does not step up its networking game, while learning new job skills, the middle class gap between blacks and whites will definitely get larger even if the recovery is remarkable.
Self-employment is another option, and the good news is that in that respect blacks are ahead of the game. Blacks are using the economic downturn to spur entrepreneurial opportunities far better than anyone else. The number of self-employed blacks grew by 5.7% between the last quarters of 2007 and 2009, compared to a 0% growth for Latinos, a 3.4% decrease for Whites, and a 10.5% decrease among Asians. This is excellent news. But unless those start-ups grow enough in size to employ a significant amount of the African Americans who lost their jobs in the recession, this trend can only help our community so much.
As the economy recovers, black Americans will have to succeed more as entrepreneurs, learn new skills, and gain access to new professional networks in order to thrive. So, as both data and personal experience confirm, we'll still have to work twice as hard.
Comments: (9)
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By: dfgdgegeg on 3/23/2010 5:46PM
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By: Laurence on 3/23/2010 9:44PM
One of the biggest reasons that the income gap will continue to grow is that we have a crisis in education in America. A recent Northeastern University study cited that in 2007 more than one in five blacks dropped out of school (+20%). The dropout rate for whites during that time was 12.2 percent.
The study also estimated that over a working lifetime (ages 18-64), high school dropouts are estimated to earn $400,000 LESS than those that graduated from high school.
Until we make education a priority and close the education gap there is no way we'll ever close the income gap.
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By: 79dfca5b on 3/24/2010 3:07PM
YES I CONSIDER MYSELF MIDDLE CLASS . I AM A UNION-
IZED CONSTRUSTION WORKER. BEING MIDDLE CLASS IN THIS BUSINNESS CAN VARY. IN MY LOCAL THERE IS NO
SENORITY , NEPOTISM , AND CRONYISM IS THE RULE OF
THE DAY. AFFIRMATIVE REALLY WORK TO MAKE WHITE
WEMAN MIDDLE CLASS RIGHT SIDE HER HUSBAND , CHECK IT OUT.
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By: Paul on 3/25/2010 6:09PM
there will always be disparity in earnings between blacks & whites. blacks have made inroads to better positions but overall whites still posess the power thus whites will continue to out earn blacks.
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By: Judith L. Bentley on 3/25/2010 11:52PM
Yes we can!
The statistics are resounding, it may or may not be something we didn’t know or haven’t heard, but the truth is we need to know. However, ‘knowing’ as GI Joe would say ‘is only half the battle’. How then do we who are in the ‘know’ empower those who are not? How do we seek to confirm that the majority cares enough to know that we need to do something more than cite the statistics? I’m part of a black organization that situates ourselves to be a resource for the community and specifically for the minority small businesses people and entrepreneurs. However, it is both challenging and depressing to get the mass to participate in the very situations that are schedule to help or support in our ability to build and compete. I find that unless Media America is speaking to an issue that besets Black America, then it is not worth the time to ear, let alone to react. It seems that some of Black America refuses to take initiative in seeking and finding, they would rather settle for what someone else has found for them, and then choose, or try to choose, if that is the best fit for the handout they want or feel they are entitled to. It is difficult to convince an individual of the benefits of networking especially if that individual feels ‘entitled to something’ or feel that they are ‘owed’ something. They are of the mentality that they need to wait until someone gives them their ‘due’ so the wait continues and the gap widens. When will we wake up to act! rather than react?
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By: Semar on 3/26/2010 9:56AM
Education is a very important aspect in building financial wealth, improving our socio-economic status and bridging the income divide. However, it is imperative that we modify our networking behaviors to meet the challenges of this gloomy job market, and to perhaps increase our chances of gainful employment as the recession folds. Too often we become satisfied with whom we know and do think beyond the idea of who actually knows us, or would willing be a "sponsor" for us. A crippling move and important fact eloquently presented in this article.
I am not sure if we will ever be on equal footing as our white counterparts, but it is refreshing to see African Americas working towards that goal, and even more so to know that some of us have reached and surpassed our potential.
Many of my friends are becoming entrepreneurs as a way of obtaining finanical wealth, and simply living fuller lives; I too am considering the idea. When I read alarming statics such as these it makes me realize how I perhaps might be impeding my own growth.
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By: A.C.L on 3/27/2010 8:54AM
I do believe that if the black community instill education in our children the wealth gap would change.
Before the economy took a nosedive, the overall poverty rate was 12.5% nationally, but that figure has almost doubled for African Americans at 24.5%. And while the national unemployment rate is 9.4%, but for African Americans, it is much higher at approximately 15%.
Jobless rate for young black men and women is 30.5 percent. For young blacks -- who experts say are more likely to grow up in impoverished racially isolated neighborhoods, attend subpar public schools and experience discrimination -- race statistically appears to be a bigger factor in their unemployment than age, income or even education. Lower-income white teens were more likely to find work than upper-income black teens, according to the Center for Labor Market Studies at Northeastern University.
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By: Duane on 3/28/2010 8:02AM
I'm a self-employed pimp and part-time crack dealer.
Does that count?
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By: Steve on 2/01/2011 3:41AM
The strongest factor affecting income is IQ accounting for about 50% of correlation, and Blacks are at about 1 full st dev below the average (85 vs 101 according to Bell Curve book). Not an easy topic to discuss, but one that needs to be addressed to make the positive change - unclear how imo (please do not waste time disputing the theory behind the book - it is as science as gravity and even NY Times endorsed it). Until the IQ gap is bridged no gimmicky affirmative action/scholarships etc would help bridge the gap and no good jobs would become available to blacks on the same level as they are available for the whites.
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