Casanova//McCann’s Post

In a new report for Pew Research Center, my colleague Mohamad M. and I examine changes in the wealth of U.S. households during the COVID-19 pandemic. Given the initial impact on employment and earnings, it would not have been surprising if household wealth had fallen because of the economic slowdown during the pandemic. But we find that the median wealth of U.S. households overall increased from $128,200 in Dec. 2019 to $166,900 in Dec. 2021, a gain of 30% after adjusting for inflation. The gains benefited all racial and ethnic groups we examined, as well as lower- and middle-income households. Wealth disparities between richer households and those on the lower rungs of the ladder also narrowed. However, debt endured among poorer Black and Hispanic families. Poorer Black households – those in the bottom 25% of Black households ranked by wealth – had $10,000 in debt in 2019 and $4,000 in debt in 2021 at the median (over and above what they had in assets). Overall, one-in-four Black households and one-in-seven Hispanic households either had no wealth or were in debt in 2021, compared with about one-in-ten households overall. Large gaps in wealth across racial and ethnic groups persisted through the pandemic, similar to the gaps that have been present for several decades. The wealth gap is especially acute among lower-income Black and White households (21 to 1). Are you surprised by any of these findings? Why do you think household wealth increased during the pandemic? #wealth #wealthgap #inequality See more at Pew Research Center's site: https://pewrsr.ch/3T81cDA and https://pewrsr.ch/3RaH2Gu

“We have not solved older adult poverty,” said Joshua Hodges, NCOA’s Chief Customer Officer. “It is getting worse.” 👉 One reason, as Hodges recently told USA TODAY reporter Daniel de Vise, is #Debt. More and more these days, Americans who are near or into #Retirement rely on credit cards to bridge the gap between income and unexpected expenses. Relentless #Inflation, increased #HealthCare costs, and fewer opportunities to earn more money make it challenging to cover basic living costs. This is not okay. We already know that government programs like Social Security, SNAP food assistance, and Supplemental Security Income lift millions of older adults out of poverty every year. And that’s why we remain laser focused on our advocacy. Join us. https://lnkd.in/e-Ff2qkk

Did you know debt amounts vary by age? For example, 182-9 year olds average $12,871 in debt whereas 40-49 year olds average $27,838 in debt. To learn more about the demographics of Americans in debt, here is a great resource: https://lnkd.in/eSA93XNa

Here's the Net Worth and Income You Need to Reach the Top 10% of American Households #NetWorth #Top10% https://lnkd.in/g-vnjimC

💸 Pandemic Prosperity: A Tale of Rising Wealth and Lingering Debt Among Black and Hispanic Families 📈📉 Wealth Disparities Exposed: 📊 The pandemic era saw a significant increase in household wealth across the United States, with the typical household witnessing a 37% rise in wealth after inflation. However, this prosperity was unevenly distributed. About 1 in 4 Black households 🖤 and 1 in 7 Hispanic households 💛 either had no wealth or were in debt in 2021, compared to about 1 in 10 U.S. households overall. Debt Endurance in Poorer Households: 💳 Despite overall financial gains, debt remained a persistent issue, especially among poorer Black and Hispanic families. For instance, poorer Black households saw a reduction in median debt from $10,100 in 2019 to $4,000 in 2021, yet they largely remained in debt. In contrast, poorer Hispanic households neared financial solvency in 2021, with their median net worth standing at $0, up from a net debt of $1,100 in 2019. Racial and Ethnic Wealth Gaps: 📉📈 The wealth gap between different racial and ethnic groups remained significant. White households had 13 times as much wealth as Black households and five times as much as Hispanic households in 2021. Interestingly, Asian households surpassed White households in terms of wealth in the same year. Government Stimulus: 💰 The CARES Act, with its tax credits and stimulus payments, played a crucial role in boosting household incomes, especially benefiting lower- and middle-income families. Reduced Consumption: 🛍️⬇️ The pandemic led to decreased consumption due to social distancing and business closures, inadvertently boosting savings. Asset Value Increase: 🏠📈 Rising home prices and stock market gains contributed significantly to the increase in household wealth. Looking Ahead with Emojis: The trends that supported wealth building from 2019 to 2021 have either reversed or become less favorable. Post-pandemic, households are facing challenges like increased spending 💸, rising mortgage rates 📊, and fluctuating stock prices 📉, which impacts the wealth accumulation trends observed during the pandemic. Mike Green Gillian Marcelle, PhD Joel Serface Elizabeth Leiba Samantha Katz #PandemicProsperity #wealthdisparities

40% of Middle-Income Americans Say They’re Depressed About Their Finances as Inflation and Higher Interest Rates Take a Huge Mental Toll! More than half of middle-income earners in the US have a negative view about their finances and a third expect to be worse off over the next year, according to a survey by a leading financial services company. Some 51% of respondents said their finances were either not so good or poor. About four in 10 say they have felt depressed and almost two in five say that it was difficult to sleep in the past month due to their financial situation. Further, about a quarter say their financial situation has impacted their relationship with a spouse or partner as the high cost of living weighs on their budgets. With record-high credit-card rates and increased card usage, 57% say managing debt is difficult. Those with student loan payments, which resume this month for the first time in three years, say that they are worried about being able to afford necessities like groceries, gas, health care and utilities. Adults ages 35 to 49 are more concerned than those who are younger. The online survey of 1,150 adults with incomes between $30,000 and $130,000 was conducted for the financial services firm from Sept. 14-18. The margin of error is 3.3%. Regardless of how you feel about your finances, find out what options you may have by scheduling a complimentary, confidential, and personalized financial analysis using the following link: https://lnkd.in/gAcJQ8ZD

In Los Angeles, we have a substantial shortage of affordable rental housing and their a substantial amount of capital devoted to attempting to closing the demand versus supply shortfall. The efforts to close the Racial wealth gap are underway and the Jamie Dimon - JP Morgan Chase led $30 Billion plan has reportedly deployed $18.2 Billion or 61% of goal through 2022. It appears that $6 Billion (20%) of the $30 Billion plan has been deployed to finance affordable rental housing. While it’s very important to increase the supply of rental housing, I am trying understand how this outcome reduces the racial wealth gap? Any ideas about what Team Dimon is thinking? https://lnkd.in/gs3J2aDd

Having a home is not political, it is key for all young adults. The structure of the UK mortgage market is different than the mortgage markets in other countries where young adults have access to home ownership. The key difference is the availability and regulatory support for long term fixed rate mortgages. Perenna has introduced long term fixed rate mortgages into the UK using a fintech banking model which has proven to keep home ownership in reach for young adults. Change is coming. John Burn-Murdoch James Kanagasooriam Ben Ansell Financial Times #longtermfixedratemortgages #firsttimehomebuyers #housingaffordability The Labour Party The Conservative Party

New data analysis from Pew Research Center found that during the COVID-19 pandemic, the average American household experienced growth in overall wealth. Still, the data shows a significant racial wealth gap. In 2019, 29% of Black households had no wealth or were in debt, and by 2021 that number dropped to 24%. But this percentage remains well above the national average, as 11% of all U.S. households had no wealth or were in debt in 2021.