Black wealth white wealth a new perspective on racial inequality, 2nd edition

RT19877_FM.qxd 3/21/06 11:29 AM Page Black Wealth/ White Wealth RT19877_FM.qxd 3/23/06 10:30 AM Page TENTH-ANNIVERSARY EDITION Black Wealth/ White Wealth A New Perspective on Racial Inequality M E LV I N L O L I V E R AND T H O M AS M S H A P I R O New York London Routledge is an imprint of the Taylor & Francis Group, an informa business RT19877_RT19876_Discl.fm Page Wednesday, November 9, 2005 11:00 AM Published in 2006 by Routledge Taylor & Francis Group 270 Madison Avenue New York, NY 10016 Published in Great Britain by Routledge Taylor & Francis Group Park Square Milton Park, Abingdon Oxon OX14 4RN © 2006 by Taylor & Francis Group, LLC Routledge is an imprint of Taylor & Francis Group Printed in the United States of America on acid-free paper 10 International Standard Book Number-10: 0-415-95166-6 (Hardcover) 0-415-95167-4 (Softcover) International Standard Book Number-13: 978-0-415-95166-1 (Hardcover) 978-0-415-95167-8 (Softcover) Library of Congress Card Number 2005032020 No part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging-in-Publication Data Oliver, Melvin L Black wealth, white wealth : a new perspective on racial inequality / by Melvin Oliver and Thomas Shapiro. 2nd ed p cm Includes bibliographical references and index ISBN-13: 978-0-415-95166-1 (hardback) ISBN-13: 978-0-415-95167-8 (pbk.) Wealth Moral and ethical aspects Wealth United States Equality United States African Americans Economic conditions United States Race relations I Shapiro, Thomas M II Title HB835.O44 2006 339.2'20973 dc22 2005032020 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com Taylor & Francis Group is the Academic Division of Informa plc and the Routledge Web site at http://www.routledge-ny.com For our mentors Harold M Rose and Gerald Simmons—M.L.O Robert Boguslaw and Patricia Golden—T.M.S George P Rawick—M.L.O and T.M.S RT19877.indb 3/23/06 4:54:14 PM RT19877.indb 3/23/06 4:54:14 PM Contents Preface to the Tenth-Anniversary Edition Preface xiii Introduction 1 Race, Wealth, and Equality 11 A Sociology of Wealth and Racial Inequality 35 Studying Wealth 55 Wealth and Inequality in America 69 A Story of Two Nations: Race and Wealth 93 The Structuring of Racial Inequality in American Life 129 Getting Along: Renewing America’s Commitment to Racial Justice 175 RT19877.indb ix 3/23/06 4:54:14 PM viii  /  Contents Eplilogue Changing Context of Black Wealth/White Wealth: RT19877.indb 1995 to 2005 199 Wealth Inequality Trends 201 The Emergence of Asset‑Based Policy 229 Appendix A 269 Appendix B 283 Notes 287 References 309 References to Epilogue, Chapter 8, and Chapter 323 Index 331 3/23/06 4:54:14 PM Preface to the TenthAnniversary Edition This edition of Black Wealth/White Wealth represents an attempt to answer the question: What are the most important changes in the last ten years affecting racial inequality and the racial wealth gap? Since Black Wealth/White Wealth was published in 1995, we have had the great fortune of presenting our ideas nationally and internationally before interested citizens, students, social scientists, and policy makers These conversations engaged our thinking, often pushing our ideas on many different levels Often, too, interested readers have asked us if we had plans for a new edition This is our attempt to engage old and new readers in the continuing conversation that Black Wealth/White Wealth tapped into The book touched a need for a new way of examining racial inequality and brought a fresh approach to these issues The distinction between income and wealth, the racial wealth gap, the connection of the past and the present through examining wealth, the racialization of state policy, the role of the state, the centrality of institutional arenas in wealth accumulation, and the new policy directions we outlined have all stimulated scholarly discussion and debate and a new policy direction An indication of the stimulating character RT19877.indb 3/23/06 4:54:14 PM References to Epilogue, Chapter 8, and Chapter  /  325 Conley, Dalton 1999 Being Black, Living in the Red Berkeley: University of California Press ——— 2000 “Home Ownership, Poverty and the Welfare State.” www.sscnet.ucla.edu/soc/groups/ccsa/conley.pdf Consumer Federation of America 2003 “More African-Americans Save and Begin To Close Wealth Gap.” http://www.consumerfed.org/ 102903blackamsaves.pdf Crockett, David 2005 “Credit, Conspicuous Consumption and Crisis.” http:// blackcommentator.com/132/132_guest_blacks_credit.html Dickerson, A Michele 2005 “Race Matters in Bankruptcy.” Washington and Lee Law Review 64: 1726–76 Doan, Ashley, and Eduardo Bonilla-Silva, eds 2003 White Out: The Continuing Significance of Racism New York: Routledge Draut, Tamara, and Javier Silva 2003 Borrowing To Make Ends Meet: The Growth of Credit Card Debt in the 90s New York: Demos Duda, Mark and William Apgar, 2004 Mortgage Foreclosure Trends in Los Angeles: Patterns and Policy Issues A report prepared for the Los Angeles Neighborhood Housing Services Dyson, Michael 2005 Is Bill Cosby Right?: Or Has the Black Middle Class Lost its Mind? New York: Basic Civitas Erns, Keith, John Farris, and Uriah King 2004 Quantifying the Economic Cost of Predatory Payday Lending: A Report from the Center for Responsible Lending February 24, 2004 Ferguson, Susan J., ed 1998 Mapping the Social Landscape: Readings in Sociology, 2nd ed Mountain View, CA: Mayfield Publishing Ford Foundation 2003 “Asset Building for Social Change: Pathways to Large-Scale Impact, Asset Building and Community Development Program.” New York: The Ford Foundation http://www.fordfound.org/ publications/recent_articles/docs/asset_pathways.pdf ——— 2004 “Building Assets to Reduce Poverty and Injustice.” New York: Ford Foundation http://www.fordfound.org/publications/recent_articles/ docs/assets_bw.pdf Giddens, Anthony, Mitchell Dunier, and Richard P Applebaum Introduction to Sociology, 4th ed New York: Norton Gilbert, Jess, and Alice O’Connor 1996 Leaving the Land Behind: Struggles for Land Reform in U.S Federal Policy, 1933–1965 Land Tenure Center, University of Wisconsin-Madison http://www.ies.wisc.edu/ltc/ltc156.html Gordon, Nembhard, Jessica and Ngina Chiteji, eds 2006 Forthcoming Wealth Accumulation and Communities of Color in the United States: Current Issues Ann Arbor: University of Michigan Press Greenspan Alan 1996 The Challenge of Central Banking in a Democratic Society Address to the American Enterprise Institute at the Washington Hilton Hotel, December 5, 1996 Grusky, David B., ed 2001 Social Stratification: Class, Race, and Gender in Sociological Perspectives, 2nd ed Boulder, CO: Westview Press Hao, Lingxin 2004 “Wealth of Immigrant and Native Born Americans.” International Migration Review 38: 518–46 RT19877.indb 325 3/23/06 4:55:39 PM 326  / References to Epilogue, Chapter 8, and Chapter Harison, Paige M., and Jennifer Karberg 2002 “Prison and Jail Inmates at Midyear 2002.” Bureau of Justice Statistics Bulletin, NCJ 198877 Washington DC: U.S Department of Justice Harris, Cheryl 1993 “Whiteness as Property.” Harvard Law Review 106 (June): 1709–91 Harvard University Joint Center for Housing Studies The 25th Anniversary of the Community Reinvestment Act: Access to Capital in an Evolving Financial Services System Cambride, MA: Joint Center for Housing Studies Hayner, Priscilla B 2002 Unspeakable Truths: Facing the Challenge of Truth Commission New York: Taylor & Francis Himmelstein, David U., Elizabeth Warren, Deborah Thorne, and Steffie Woolhandler 2005 “MarketWatch: Illness and Injury as Contributors to Bankruptcy.” Health Affairs 10 (February 2, 2005) Holme, Jennifer Jellison 2002 “Buying Homes, Buying Schools: School Choice and the Social Construction of School Quality.” Harvard Educational Review 72 (2): 177–205 Holzer, Harry J., Steven Raphael, and Michael A Stoll 2003 “Employers in the Boom: How Did the Hiring of Unskilled Workers Change During the 1990s?” http://www.urban.org/UploadedPDF/410780_BoomPaper.pdf Howard, Christopher 1997 The Hidden Welfare State Princeton, NJ: Princeton University Press Ignatiev, Noel 1996 How the Irish Became White New York: Routledge Johnson, David Cay 2005 “Richest are Leaving Even the Rich Far Behind.” New York Times, June Joint Center Data Bank August 5, 2003 http://www.jointcenter.org/DB/ factsheet/customer_expenditures.htm Joint Center for Housing Studies of Harvard University 2004 The State of the Nation’s Housing Cambridge, MA ——— 2005 State of the Nation’s Housing, 2005 Cambridge, MA Keister, Lisa 2005 Wealth in America and Getting Rich New York: Cambridge University Press Kerwin, Charles, and Erik Hurst 2002 “The Transition to Home-Ownership and the Black-White Wealth Gap.” Review of Economics and Statistics 84 (2): 281–97 Kim, Hyungsoo, and Jinkook Lee 2005 “Unequal Effects of Elders’ Health Problems on Wealth Depletion Across Race and Ethnicity.” The Journal of Consumer Affairs 39 (1): 148–72 Kochhar, Rakesh, 2004 The Wealth of Hispanic Households: 1996 to 2002 Washington, DC: Pew Hispanic Center Korpi, Walter, and Joakim Palme 1998 “The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality, and Poverty in the Western Countries.” American Sociological Review 63: 661–87 Lipsitz, George 1998 Possessive Investment in Whiteness Philadelphia: Temple University Press RT19877.indb 326 3/23/06 4:55:39 PM References to Epilogue, Chapter 8, and Chapter  /  327 Logan, John 2001 “Ethnic Diversity Grows, Neighborhood Integration Lags Behind.” Albany, NY: The Lewis Mumford Center, State University of New York Magazine Publishers of America 2004 African American Market Profiles http://www.magazine.org/content/files/market_profile_black.pdf Mauer, Marc 1999 Race to Incarcerate New York: The New Press McCulloch, Heather 2001 Sharing the Wealth: Resident Ownership Mechanisms Oakland, CA: PolicyLink Mitchell, Thomas W 2005 “Destabilizing the Normalization of Rural Black Land Loss: A Critical Role for Legal Empiricism.” Wisconsin Law Review 2005 (2): 607–8 Moran, Beverly, and William Whitford 1996 “A Black Critique of the Internal Revenue Code.” Wisconsin Law Review 4: 751–820 National Community Reinvestment Coalition 2005 Preapprovals and Pricing Disparities in the Mortgage Marketplace, June 2005 http://ncrc org/pressandpubs/press_releases/documents/Preapproval_Report_ June05.pdf Oliver, Melvin L., and Thomas M Shapiro 1995 Black Wealth/White Wealth: A New Perspective on Racial Inequality New York and London: Routledge OMB Watch (15), July 25, 2005 Pastor, Manuel, Jr., Peter Dreier, J Eugene Grigsby, III, and Mart Lopez Garza 2000 Regions That Work: How Cities and Suburbs Can Grow Together Minneapolis: University of Minnesota Press Petit, Becky, and Bruce Western 2004 “Mass Imprisonment and the Life Course: Race and Class Inequality in U.S Incarceration.” American Sociological Review (April): 151–69 PolicyLink 2002 Promoting Regional Equity: A Framing Paper Paper presented at Promoting Regional Equity: A National Summit On Equitable Development, Social Justice, and Smart Growth, November 17–19.LosAngeles,California.http://www.policylink.org/Research/RegionalEquity/ powell, john 2002 Racism and Metropolitan Dynamics: The Civil Rights Challenge of the 21st Century A briefing paper prepared for the Ford Foundation Minneapolis, MN: The Institute on Race & Poverty Quercia, Roberto G., Michael A Stegman, and Walter R Davis 2005 “The Impact of Predatory Loan Terms on Subprime Foreclosures.” Center for Community Capitalism http://www.kenan-flagler.unc.edu/assets/ documents/foreclosurepaper.pdf Raines, Franklin D 2002 Harnessing the Mystery of Capital: Closing the Wealth Gap Remarks at Howard University, Charter Day Convocation, March 8, 2002 Rank, Mark 2005 One Nation, Underprivileged New York: Oxford University Press Robinson, Randall 2001 The Debt: What White America Owes Blacks New York: Plume RT19877.indb 327 3/23/06 4:55:39 PM 328  / References to Epilogue, Chapter 8, and Chapter Roediger, David R 2005 Working Toward Whiteness: How America’s Immigrants Become White The Strange Journey From Ellis Island to the Suburbs New York: Basic Books ——— 2000 The Wages of Whiteness: Race and the Making of the American Working Class New York: Verso Rusk, David 2001 The ‘Segregation Tax’: The Cost of Racial Segregation to Black Homeowners Washington, DC: Brookings Institution Center on Urban and Metropolitan Policy Salamon, Lester M 1979 “The Time Dimension in Policy Evaluation: The Case of the New Deal Land-Reform Experiments.” Public Policy 27 (2, Spring): 129–83 Scanlon, Edward, and Deborah Page-Adams 2001 “Effects of Asset Holding on Neighborhoods, Families, and Children: A Review of Research.” In Building Assets: A Report on the Asset-Development and IDA Field, ed Ray Boshara Washington, DC: Corporation for Economic Development Scholz, John Karl, and Kara Levine 2004 “U.S Black-White Wealth Inequality: A Survey.” In Social Inequality, ed Kathryn Neckerman New York: Russell Sage Foundation Schreiner, Mark, Margaret Clancy, and Michael Sherraden 2002 Saving Performance in the American Dream Demonstration: A National Demonstration of Individual Development Accounts A research report St Louis: Washington University, Center for Social Development Segal, Lewis M., and Daniel G Sullivan 1998 “Trends in Homeownership: Race, Demographics, and Income.” Economic Perspectives Reserve Bank of Chicago, issue QIIO: 53–72 Shanks, Trina Williams 2004 The Impacts of Household Wealth on Child Development Working Paper Center for Social Development, George Warren Brown School of Social Work, Washington University ——— 2005 “The Homestead Act: A Major Asset-Building Policy in American History.” In Inclusion in the American Dream: Assets, Poverty, and Public Policy, ed Michael Sherraden New York: Oxford University Press Shapiro, Thomas M 2004a The Hidden Cost of Being African American: How Wealth Perpetuates Inequality New York: Oxford University Press ——— ed 2004b Great Divides: Readings in Social Inequality in the United States Boston: McGraw Hill Sherraden, Michael 1991 Assets and the Poor: A New American Welfare Policy New York: Sharpe ——— 2000 “From Research to Policy: Lessons from Individual Development Accounts.” Journal of Consumer Affairs 32 (2): 159–81 Sherraden, Michael, Amanda McBride, Elizabeth Johnson, Stacie Hanson, Fred Ssewamala, and Trina Shanks 2005 Saving in Low Income Households: Evidence from Interviews with Participants in the American Dream Demonstration Research report St Louis: Washington University, Center for Social Development Shiller, Robert J 2005 Irrational Exuberance Princeton, NJ: Princeton University Press RT19877.indb 328 3/23/06 4:55:39 PM References to Epilogue, Chapter 8, and Chapter  /  329 Silva, Javier 2005 A House of Cards: Financing the American Dream New York: Demos Silva, Javier, and Rebecca Epstein 2005 Costly Credit: African Americans and Latinos in Debt New York: Demos Spriggs, William E 2005a “African Americans and Social Security.” http://www.dollarsandsense.org/1104spriggs.html ——— 2005b “Busting the Social Security Myths.” The Black Commentator February 18, 2005 Stegman, Michael 2002 “Performance of Community Reinvestment Loans: Implications for Secondary Market Purchases.” In Low Income Homeownership: Examining the Unexamined Goal, ed Nicolas P Retsinas and Eric S Belsky Washington, DC: The Brookings Institution Press Stegman, Michael A., Roberto G Quercia, and Walter R Davis “Sharing the Wealth Through Homeownership: A Preliminary Exploration of the Price Appreciation Experiences of Low- and Moderate-Income Families Who Bought Homes Under the Community Advantage Secondary Market Loan Program,” July 21, 2004, Revised September 2, 2004, Revised July 8, 2005, p 18 http://www.kenan-flagler.unc.edu/assets/ documents/ccc-sharethewealth.pdf Stein, Eric 2001 Quantifying the Cost of Predatory Lending: A Report From the Center for Responsible Lending October 30, 2001 Stoesz, David, Michael Sherraden, and Thomas Shapiro 2005 “Sensible Reform of Social Security.” http://PolicyAmerica.org Stuart, Merah 1940 An Economic Detour: A History of Insurance in the Lives of American Negroes New York: Wendell Malliett The Brookings Institution 2005 The Price is Wrong: Getting the Market Right for Working Families in Philadelphia The Brookings Institution Metropolitan Policy Program Wacquant, Loic 2000 “The New ‘Peculiar Institution’: On the Prison as Surrogate Ghetto.” Theoretical Criminology 4: 377–89 ——— 2001 “Deadly Symbiosis: When Ghetto and Prison Meet and Mesh.” In Mass Imprisonment: Social Causes and Consequences, ed David Garland London: Sage Wolff, Edward N 2000 Top Heavy New York: New Press ——— 2004 “Changes in Household Wealth in the 1980s and 1990s.” In the U.S Economics Working Paper Archive, Number 47 Annandale-onHudson, NY: The Levy Economics Institute RT19877.indb 329 3/23/06 4:55:40 PM RT19877.indb 330 3/23/06 4:55:40 PM Index Abrams, Charles, 16 ADD See American Dream Demonstration Adelson, Sherman, 157 AFDC See Aid to Families with Dependent Children Age effect on net worth, 284f wealth and, 77–79, 269t, 272t Aging, 114–121 Agrarianism and Reconstruction Politics, 15 Aid to Families with Dependent Children, 41, 44, 178, 184, 187, 245 Alfred, Georgia, 198 Alger, Horatio, 172, 186 America: Who Really Pays Taxes?, 44, 189 American Apartheid, 35, 139, 150, 153 American Dilemma, An, 14–15 American Dream, 6, 28, 42, 66, 110, 130, 139, 159, 186–188, 194, 211 American Dream Demonstration, 245 RT19877.indb 331 American Inequality, 63 Antidiscrimination laws, 190–191 Arkansas, 15 Asset Building and Community Development Program, 230 Assets, 15–34, 60, 62, 69–174, 259–263 access to, 88–91 change leveraging, 255–257 composition of, 106–110 foundation promotion, 182–187 institutional barriers, 187–182 intergenerational occupational mobility, 166 policy based on, 229–268 racial justice, 175–198 regression, 132, 135 sociology of race/wealth, 35–54 trends, 201–228 Assets and Poor: A New American Welfare Policy, 44, 183–184, 232 Assets for Independence, 245 Atlanta, 19, 149, 192, 218 Atlanta Journal and Constitution, 19 3/23/06 4:55:40 PM 332  / Index Baldwin, James, 13, 175 Baltimore, 218 Banking restitution, 191–192 system access, 246–250 Bankruptcy law, 220–221 Barlett, Donald, 44, 189 Barr, Michael, 246 Being in Black, Living in Red, 232 Bellah, Robert, 72 Beloved, 198 Berresford, Susan, 230 Beyond Margin, 100 Black Enterprise, 197 Black middle class, 94–99, 204–205 Black Reconstruction in America, 14–15, 53 Black Wealth/White Wealth, 199, 201– 204, 207–208, 211, 214, 219, 222, 229–233, 243, 251–252, 263–264 “Black-White Differences in Wealth and Asset Composition,” 131 Blau, Francine, 100, 103, 131, 138 Bluestone, Barry, 26 Board of Governors, 143 Bonacich, Edna, 48 Boston, 15, 19–20, 55–56, 107, 127, 141, 143, 192, 218 Boston Globe, 19–20, 146 Boyle Heights, 41 Braddock Cynthia, 204 James, 204 Bradford, William, 106 Bradley, Senator Bill, 192 “Brain Trusters,” 260 Braun, Denny, 31 Brimmer, Andrew, 99, 111 Bull stock market, 208–211 Bush, George, 202, 234, 236–237, 240 Business accounts, 186–187 Business Opportunities Unlimited, 196 Business Week, 209 Butler, John, 48, 50, 52, 123 CAP See Community Advantage Program RT19877.indb 332 Capital, 15–34, 69–174 policy based on, 229–268 racial justice, 175–198 sociology of race/wealth, 35–54 trends, 201–228 Capital and Communities in Black and White, 144, 152 Capital gains tax, 188–189 CAPTC See Community Action Project in Tulsa County Carnoy, Martin, 194 Census Bureau, 57, 60, 65 Center for American Progress, 259 Center for Community Capitalism, 217 Center for Disease Control, 240 Center for Responsible Lending, 223, 247 Center for Social Development, 257 CFED See Corporation for Enterprise Development Chain Reaction, 194 Chattanooga, 254 Chicago, 19, 192, 218, 253 Chicago Tribune, 21, 147 Children, 91f, 127–128, 276t Children’s Savings Accounts, 245 Chinese Americans, 48 Cincinnati, 50 City of Los Angeles, 218 Civil War, 13, 15, 50, 266 Closing Gap, 190 “Color of Money, The,” 19 Color of Welfare, The, 40 Columbia Heights, 256 Common Destiny, A, 98 Community Action Project in Tulsa County, 257 Community Advantage Program, 249–250, 252 Community Reinvestment Act, 143–144, 248 Congressional Joint Taxation Committee, 188 Conley, Dalton, 232 Contemporary institutional racism, 19–23 Conyers, Representative John, 192 3/23/06 4:55:40 PM Index  /  333 Corporation for Enterprise Development, 243 Cosby, Bill, 1, 224 Cose, Ellis, 130, 142, 153, 176 CRA See Community Reinvestment Act Crabgrass Frontier, 16–17 “Credit and Economically Disadvantaged,” 148 Credit markets, 211–215 Crenshaw District, 100 Crow, Jim, 5, 13, 47, 178 Cuban population, 47 Database, quantitative, 57–58 de Tocqueville, Alexis, 69 Declining Significance of Race, The, 12, 36 Democracy in America, 69 Denton, Nancy, 35, 139, 150, 153 Detroit, 42 Didion, Joan, 177 Dinkins, David, 176 Discrimination, 15–57, 69–174, 201–268 institutional, 139–149 persistence of, 178–180 policy factors, 139–149 racial justice, 175–198 sociology of race/wealth, 35–54 structuring of, 129–174 trends, 201–228 Dobbs Clarence, 100–101, 117–118, 124, 127, 156 Eva, 100–101, 117, 124, 127, 156 Dorn, Edwin, 181 Du Bois, W.E.B., 14–15, 53, 93 Duncan, Otis Dudley, 160, 166 Durham, 51 Dwindling economic growth, 25–29 Dye, Thomas, 29, 31–32 Eakes, Martin, 248–249 Earned Income Tax Credit, 246 Eastern Detroit Realty Association, 42 Economic Basis of Ethnic Solidarity, The, 48 RT19877.indb 333 Economic Future of American Families, The, 77, 84 Education, 84, 184–185, 271t wealth and, 269–269t, 271–272, 272t youth asset accounts, 184–185 Education, Entrepreneurship, and Downpayment Policy, 245 EITC See Earned Income Tax Credit Elderly, 205–206 Entrepreneurship and Self-Help Among Black Americans, 48, 123 Equal Credit Opportunity Act, 143 Equality, 129 Estate tax, 234–236 Faded Dreams, 194 Fair Housing Act, 179 FAME See First African Methodist Episcopal Church Family, 79–82 labor market participation, 275 structure of, 123–127 wealth and, 274 Fannie Mae, 248–250 Feagin, Joe, 121, 176 Federal Housing Act of 1934, 53 Federal Housing Authority, 16–18, 41–43, 53–54, 144–145, 152, 178, 250 Federal Reserve Bank, 19–20, 57, 139–144, 146, 148, 190, 192, 211, 235 First African Methodist Episcopal Church, 197 First Nations Development Institute, 200 Fleet Financial Group, 192 Foner, Eric, 13 Forbes, 1–2 Forbidden Neighbors, 16 Ford Foundation, 230, 249, 257 Fortune 500, 100, 204 Forty Acres and a Mule, 13 Frank, Raymond, 181 Franklin Benjamin, 85 Raymond, 36, 42, 148–149 Freedmen’s Bureau, 14–15 Freedom Riders, 261 3/23/06 4:55:40 PM 334  / Index Garfield Park Conservancy, 253 Gender, wealth and, 79–82, 79t, 274t–275t Ghetto, 16–19 GI Bill of Rights, 243 “Good-Neighbor Mortgages,” 191–192 Graham, John, 100, 103, 131, 138 Graves, Earl, 197 Great Depression, 260 Great Gatsby, 64 Great Lakes, 26 Great U-Turn, The, 26 Greenspan, Alan, 202, 235 Habits of Heart, 72 “Harlem Ghetto, The,” 175 Harris, Abram, 49 Harrison, Bennett, 26 Hidden Cost of Being African American, The, 211, 230, 236, 254 Hidden in Plain Sight, 243 Hidden Welfare State, The, 243 Hispanic population, 44, 89, 141, 213–214, 216, 239, 247 HOLC See Home Owners Loan Corporation Holiday, Billie, 109 Holmes County, 261 Home Mortgage Disclosure Act, 143 Homeowner deduction, 187–188 Home ownership, 15–34, 69–174, 211–215, 217–219, 229–268 racial justice, 175–198 sociology of race/wealth, 35–54 trends, 201–228 Home Owners Loan Corporation, 17 Homestead Acts, 243 “Hooked on Phonics,” 224 Households married, 279, 285 net financial assets, 135 resource-deficient, 91 single-headed, 280, 285 House Judiciary Committee, 192 House Resolution 40, 192 Housing appreciation, 151f Housing asset accounts, 186 Housing values, rising, 149–154 RT19877.indb 334 Howard, Christopher, 243 IDAs See Individual Development Accounts Incarceration, 225–226 Income, 15–34, 58–60, 69–174, 271, 277–280 intergenerational, 166 net financial assets, 132, 135 policy based on, 229–268 racial justice, 175–198 savings, 284 sociology of race/wealth, 35–54 trends, 201–228 Income Distribution and Social Change, 30 “Income, Wealth, and Investment Behavior in Black Community,” 99–100, 111 Individual Development Accounts, 244–245, 254, 257–258, 263 Inequality, 29–30, 35–38, 55–57, 69–92, 129–174, 201–268 contemporary, 131–138 context of, 23–25 historical transmission of, 154–163 institutional, 139–149 persistence of, 178–180 policy factors, 139–149 public understanding, 234 racial justice, 175–198 rise in, 25–29 sedimentation of, 52–54 sociology of race/wealth, 35–54 structuring of, 129–174 trends, 201–228 Inheritance, 154–160 race and, 154–159 taxes on, 189–190 “Inheritance of Poverty or Inheritance of Race,” 160 Inheritance tax, 189–190 Institute on Assets and Social Policy, 259 Institutional policy factors, 139–149 Institutional racism, 19–23 Interest rates, differentials, 144–149 3/23/06 4:55:40 PM Index  /  335 Intergenerational occupational mobility, 166t, 169t Internal Revenue Code, 44–47 Internal Revenue Service, 233 Investment retirement accounts, 45–46, 58, 74, 76, 83, 107–109, 201 Jackson Kenneth, 16–17 Michael, Jamaican population, 47 Japanese Americans, 47–48, 192 Jaynes, Gerald, 98 Jefferson, Thomas, 255 Johnson, Magic, Jordan, Michael, Justice, racial, 175–198 Katz, Michael, 43–44 Keister, Lisa, 232 Kennedy, Joe, 20 Kerbo, Harold, 32 King, Rodney, 10, 175, 198 Korean population, 47 Krishnan, Jayanthi, 91 Labor market, 208–211, 270t, 273t Landry, Bart, 97–98, 111 Lanza, Michael, 15 Latino population, 40, 155 LaWare, John P., 143 Levittown, 17–18 Levy, Frank, 27, 77, 84 “Lifestyles of Average American Family,” 70 “Lifestyles of Rich or Famous,” 231 Lindert, Peter, 63 Lipsitz, George, 41, 233 Living with Racism, 121, 139, 176 Loan rejection rates, 140–144 Los Angeles, 41, 55–56, 87, 100–101, 107, 114–115, 122, 127, 175, 197, 218 Los Angeles Survey of Urban Inequality, 148 Los Angeles Times, 21 RT19877.indb 335 Los Angeles Unified School District, 123 Majority and Minority, 24 Married households, 79–82, 279t, 285f Marx, Karl, 32, 94 Marxist philosophy, 36 Massey, Douglas, 35, 139, 150, 153 Mauer, Marc, 225 Medicaid, 25, 77 Michel, Richard, 27, 77, 84 Microsoft, 209–210 Middle class, 72–75, 94–99, 204–205, 265 Millman, Marcia, 66–67 Mills, C Wright, 29 Mink, Gwendolyn, 40 Minneapolis, 19 Mississippi, 48, 261 Mobility occupational, 159–163 white wealth advantage, 171f Modell, John, 48 Morrison, Toni, 198 Mortgage Bankers Association of America, 147 Mortgages, 15–34, 69–174, 149f, 153, 211–215, 229–268, 281 access to, 19–23, 248–250 “Good-Neighbor,” 191–192 loan rejection rates, 140–144 racial justice, 175–198 sociology of race/wealth, 35–54 trends, 201–228 Myrdal, Gunnar, 14–15 National Community Reinvestment Coalition, 219 Nation Association for Advancement of Colored People, 197 Nation of Islam, 197 Native Americans, 200 Negro as Capitalist, The, 49 Negro Business and Business Education, 50 3/23/06 4:55:41 PM 336  / Index Net financial assets, 60, 62, 71, 73, 76–77, 84–85, 87, 90, 97, 100, 105, 116, 118, 127, 134, 138, 168, 170 Net worth, 15–34, 69–174, 229–268 racial justice, 175–198 sociology of race/wealth, 35–54 trends, 201–228 New American Foundation, 259 New Black Middle Class, The, 97–98, 111 New Deal, 40, 251 Newsday, 140 New York Times, 6, 202 NFAs See Net financial assets North Carolina, 51, 223, 249 North Carolina Mutual Insurance Company, 51 North Shore Bank in Chicago, 256 Nozick, Robert, Occupation, 84–86, 121–122, 270 intergenerational mobility, 166, 169 mobility, 159–163 parents’, 164, 269 work history, 84–86 Occupational mobility, 159–163, 160t, 166t, 169t Oliver, Melvin, 56, 230 Oubre, Claude, 13 Paine, Thomas, 255 Parents’ occupation, wealth and, 164t, 269t Philadelphia, 19, 223–224 Phillips, Kevin, 28 Pierce, Joseph A., 50 Politics of Rich and Poor, The, 28 “Possessive Investment in Whiteness, The,” 41 Power Elite, The, 29 Prather, Leon, 51 Pre-Civil War, 176 Prince George’s County, Maryland, 20 Property ownership, 15–34, 69–174, 229–268 racial justice, 175–198 RT19877.indb 336 sociology of race/wealth, 35–54 trends, 201–228 Protestant Ethic and Spirit of Capitalism, The, 48 Pulitzer Prize, 19 Quadagno, Jill, 40–41 Quantitative database, 57–58 Racial inequality, 15–38, 55–57, 69–174, 201–268 contemporary, 131–138 context of, 23–25 historical transmission of, 154–163 institutional, 139–149 justice, 175–198 persistence of, 178–180 policy factors, 139–149 public understanding, 234 rise in, 25–29 sedimentation of, 52–54 sociology of race/wealth, 35–54 structuring of, 129–174 trends, 201–228 Racialization of state, 39–47 Rage of a Privileged Class, The, 130, 142, 153, 176 Raines, Franklin, 250 Reagan, Ronald, 6, 21, 65, 190 Real Estate News Service, 147 Reconstruction, 13–15, 49 Redlining, 19–23 “Register of Trades of Colored People in City of Philadelphia and Districts, A,” 49 Reparations, 192–194, 263–265 Republican party, 13, 235 Resources of regions, 270t “Rich Get Increasingly Richer, The,” 30, 63–65, 116 Rich Get Richer, The, 31 Riegle, Senator Donald, 21, 143 Rock, John, 15, 176 Room of One’s Own, A, 176 Roosevelt, Franklin D., 16, 260 Rules and Racial Equality, 181 3/23/06 4:55:41 PM Index  /  337 San Diego County, 140 Savings, by income, race, 284f SCF See Survey of Consumer Finances See Corporation for Enterprise Development, 243–244, 257 Self-employment, 47–52, 186–187 Self Help, 248 Senate Banking Committee, 21, 143 Shadow of Poor House, In, 43 Shadows of Race and Class, 36, 42, 148–149, 181 Shapiro, Thomas, 56, 211, 230, 254 Shares of income, wealth, 104f Shawmut National Corporation, 143 Shelly v Kraemer, 17 Sherman’s March, 14 Sherraden, Michael, 44, 183–185, 187, 243, 255, 257 Sikes, Melvin, 121, 139, 176 Simmel, Georg, 32 Single-headed households, 280t, 285f SIPP See Survey of Income and Program Participation Slavery, 13–15 Smith, Donna, 206, 265 Social background, wealth disparity, 83–88 Social distribution, wealth, 75–82 Social investment, to privatized citizenship, 240–242 Social Security, 234, 237–240, 242, 268 Social Security Act, 40, 126 Social Stratification and Inequality, 32 Sociology of race/wealth, 35–54 Souls of Black Folk, The, 93 South Africa, 264 South Carolina, 15 Southern Homestead Act, 14 Spriggs, William, 238–239 Squires, Gregory, 144, 152 SSI See Supplementary Security Income Stable work history, 86–87 Standard and Poor’s 500, 210 State, racialization of, 39–47 Steckel, Richard, 91 Steele, James, 44, 189 Stein, Eric, 247 St Louis, 87, 257 RT19877.indb 337 Stock market, 208–211 Strange Career of Jim Crow, The, 50 “Striving Black Middle Class,” 265 Stuart, Merah, 49 Student Nonviolent Coordinating Committee, 261 Suburbanization of America, 16–19 Supplementary Security Income, 44 Supreme Court, 15, 17, 176, 179 Survey of Consumer Finances, 57, 59, 63, 65 Survey of Financial Characteristics of Consumers, 63 Survey of Income and Program Participation, 57–60, 65–66, 70, 72, 94, 100–101, 103, 105, 108–109, 111, 126, 144, 147, 152, 159, 162–163 “Talk to Teachers, A,” 13 TANF See Temporary Assistance to Needy Families Tawney, R.H., 129 Tax cuts, 236–237 Temporary Assistance to Needy Families, 206, 245, 265 Tennessee, 254 Terrell, Henry, 101–102, 105, 107 Tidwell, Billy, 100 Titmuss, Richard, 30 Treasury Department and Office of Management and Budget, 189 Truly Disadvantaged, The, 35, 106 Truly Disadvantages, 12 Truth and Reconciliation Commission, 264 Tugwell, Rexford, 260–261 Tulsa, 51–52 Underwriting Manual, 17 University of California, 73 Urban market, 221–225 VA See Veterans Administration Van Woodward, C., 50 3/23/06 4:55:41 PM 338  / Index Veterans Administration, 144 Veteran’s Administration, 243 Wall Street Journal, 144, 192 Walt, Vivienne, 140 Warm Hearts and Cold Cash, 66 War on Poverty, 11, 257 Washington, D.C., 256 Washington Post, 20, 141, 143 Washington University, 257 Wealth, 15–34, 69–92, 77f, 93–174, 194–198 age and, 77–79 indicators of, 60–62 of nation, 70–72 policy based on, 229–268 racial justice, 175–198 reserves, 283 sociology of race/wealth, 35–54 trends, 201–228 “Wealth Accumulation of Black and White Families,” 101, 107 Weber, Max, 32, 36, 48, 94 RT19877.indb 338 We Have Taken a City, 51 Wells, Rob, 21 West Garfield Park, 253 Who’s Running America, 29, 31 Williams Robin, 98 Rosa, 205, 265 Wilmington Riot of 1898, 51 Wilson, William, 12, 35–36, 106 Winfrey, Oprah, Wolff, Edward, 30, 63–65, 116 Woolf, Virginia, 176 Work history, 84–86 Working class, 205 Work stability, wealth and, 119t World War II, 7, 22, 25–26, 28, 41, 65, 67, 150, 192, 201, 244 Yahoo, 209–210 Yetman, Norman, 24 Youth asset accounts, 184–185 3/23/06 4:55:41 PM ... AM Page Black Wealth/ White Wealth RT19877_FM.qxd 3/23/06 10:30 AM Page TENTH-ANNIVERSARY EDITION Black Wealth/ White Wealth A New Perspective on Racial Inequality M E LV I N L O L I V E R AND... and Shapiro many whites denies it to blacks, thus forging an intimate connection between white wealth accumulation and black poverty Just as blacks have had “cumulative disadvantages,” many whites... occupational attainment, or education It is our argument that wealth reveals a particular network of social relations and a set of social circumstances that convey a unique constellation of meanings