Skip to comments.Federal Reserve Study Shows Race Determines Your Likelihood of Becoming a Millionaire
Posted on 01/24/2016 6:51:30 PM PST by Tolerance Sucks Rocks
Many white Americans like to believe the United States is a country with a level playing field, where everyone has a fair chance of making it. But a recent Bloomberg article states that race has a lot to do with your economic success. Bloomberg gathered data from economists at the Federal Reserve Bank of St. Louis. Writer Victoria Stilwell also posed the question: Would it be possible to calculate the odds of being a millionaire for anyone in the U.S., based on age, education and race?
The economists, who had already conducted extensive research on the subject, found that race plays a significant role in an individualâs earning power.
âItâs a false narrative to say race doesnât matter in the United States,â said William Emmons, a senior economic adviser at the St. Louis Fed. âIt demonstrably does in the results we keep coming upon.â
The bank researchers found that a middle-aged, college educated Asian had a 22.3 percent chance of being a millionaire. Whites had a 21.5 percent chance, Hispanics a 6.8 percent chance and Blacks had a 6.4 percent chance of being a millionaire.
The researchers found education increases an individualâs earning potential. But they also found that a college education only increased a Black personâs chances of becoming a millionaire by 1 percent.
Interestingly enough, the economists found that a white high school graduate had about the same odds of being a millionaire as a middle-aged, Black graduate degree holder. This is not new information. Many studies have showed that Black people who possess degrees from top-notch universities still have high levels of unemployment. White high school graduates have better employment rates than Black college graduates. This calls into question the value of expensive college degrees. If Blacks are spending small fortunes on college education and not improving their job prospects, they maybe looking at things the wrong way.
Former finance professor Dr. Boyce Watkins encourages Black people not to get caught up in the âcorporate plantationâ and create their own businesses.
âWe have to get rid of the lie which says that going to school will guarantee a black man a good job,â said Watkins on his website Financial Juneteeth. âThe right kind of education is valuable, but youâre still going to be Black.â
Many other Americans are beginning to question the value and cost of college education. According to U.S. News & World Report, a study of 2,000 graduates found more than half believed recent college graduates will see lower returns on their education investment than 10-15 years ago.
Emmons said that while the information might be depressingly familiar, it is still useful. He said it was important lawmakers understand the underlying issues if they are going to pass policies to address inequality.
âA lot of what people talk about as responses to inequality of this sort or that sortâ theyâre probably not going to make much difference given that these underlying factors seem to be so powerful,â Emmons said.
He added that the research shattered the myth of everyone starting out equal.
âWe all come out in the birth lottery with different endowments,â Emmons said. âStarting from that point, what can you do to move yourself in a direction youâll be happy with? Thatâs what weâre really trying to get at.â
Who Wants to be a Millionaire? Federal Reserve Study Shows Race Determines Your Likelihood of Becoming a Millionaire
I noticed that the article (and maybe the Fed study as well) did not break down the types of majors and careers that Blacks and Hispanics picked vs. the types of majors and careers that Whites and Asians picked.
Hard to become a millionaire on welfare unless you engage in a lot of fraud.
If you have a family, it’s generally better than not having one. If you have a rich family ...
“..Federal Reserve Study Shows Race Determines Your Likelihood of Becoming a Millionaire..”
Federal Reserve Study Shows WORK and DESIRE Determines Your Likelihood of Becoming a Millionaire.
All my life I have had white people come up to me trying to give me a job, give me money, or give me “A”s in calculus, etc. Dang this white privilege! It is surely a hard thing to shake!
It is IQ privilege.
Or you are a community organizer schooled in fleecing the population.
Why not include intelligence and perserverance and parental skillz as explaining variables?
Behavior has more to do with accumulating wealth than anything. Keep as much of what you make as possible, spend as little as possible. People who are more interested in having a nice car and nice clothes than saving and investing are far less likely to amass a million dollars. That has nothing to do with race.
The Federal reserve is qualified to answer social cultural questions?
How are they qualified to do that? A private club neither elected nor accountable?
The VERY essence of Crony Capitalism?
Homes that are intact with both a mother and a father too.
Race huh, I wonder how those numbers reflect all the gang bangers and promoters of the lifestyle rappers that have become millionaires pedaling hate?
Coincidental that Bloomberg thinking of running? No!!
Do you think it is possible that majors in engineering or finance are more likely to become millionaires than majors in exercise science or grievance studies?
Why pretend to be blind to the obvious?
Hey. Where are the Jews? - over to the right off the chart?
Race does not determine things like that Ambition, entrepreneurial character, are the operant factors economic success. These qualities are not evenly distributed among populations.