The Hidden Cost of Being African American: How Wealth Perpetuates Inequality

257 Pages·2004·1.74 MB·English

by  Thomas M. Shapiro

The Hidden Cost
of Being
African American:
How Wealth Perpetuates
Inequality
Thomas M. Shapiro
OXFORD UNIVERSITY PRESS
The Hidden Cost of Being
African American
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The Hidden Cost of Being
African American
How Wealth Perpetuates Inequality
Thomas M. Shapiro
1
2004
1
Oxford New York
Auckland Bangkok Buenos Aires Cape Town Chennai
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São Paulo Shanghai Taipei Tokyo Toronto
Copyright © 2004 by Thomas M.Shapiro
Published by Oxford University Press, Inc.
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Oxford is a registered trademark of Oxford University Press
All rights reserved.No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise,
without the prior permission of Oxford University Press.
Library of Congress Cataloging-in-Publication Data
Shapiro, Thomas M.
The hidden cost of being African American : how wealth
perpetuates inequality / Thomas M.Shapiro.
p. cm.
Includes bibliographical references and index.
ISBN 0-19-515147-X
1.African Americans—Economic conditions.
2.African Americans—Social conditions—1975–.
3.Wealth—United States.4.Equality—United States.
5.United States—Economic conditions—1981–2001.
6.United States—Economic conditions—2001–.
7.United States—Race relations—Economic aspects.
8.Racism—Economic aspects—United States.
9.Interviews—United States.I.Title.
E185.8.S53 2004
330.973'0089'96073—dc21 2003046742
1 3 5 7 9 8 6 4 2
Printed in the United States of America
on acid-free paper
To
Ruth and Izak,
the real wealth in my life
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Contents
Preface ix
Acknowledgments xiii
Introduction: At the Assets Crossroads 1
PART I ASSETS
1 The Color of the Safety Net 21
2 The Cost of Being Black and the Advantage
of Being White 42
3 Inheritance—“That Parent Thing” 60
PART II MAKING RACIAL INEQUALITY
4 Middle Class in Black and White:
How Level Is the Playing Field? 87
5 The Homeownership Crossroad 105
PART III LEVERAGING ASSETS
6 Where People “Choose” to Live 129
7 “Getting a Decent Middle-Class American Education”: 155
Pursuing Advantage in Schools
Conclusion: Assets for Equality 183
Appendix I Tables 205
Appendix II Methodology 208
Notes 211
Bibliography 223
Index 231
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Preface
IMET RICHARD AND KERI BROOKINS in a bookstore in St. Louis.
Black and middle class, until recently they had high-paying jobs in
the telecommunications industry, working their way up the corporate
ladder. Both had worked and taken out loans to get through college,
Richard atWebster College and Keri at the University of Maryland and
then George Washington University. They began their family and
professional lives together in St. Louis. Everything was going according
to plan. But when the company they worked for was bought out and
departments merged, they both lost their jobs. They had purchased a
home a year earlier, cashing out Richard’s retirement plan for the down
payment. With two young, school-age children, modest savings, and
$33,000 in school loans, this college-educated, middle-class family that
had built a good life was forced to start over again. Richard decided it
was the right time to pursue his dream of starting his own consulting
company, but business was so slow during the holiday months that they
startedlivingoff savings.Keridecidedtofreelanceandfoundtemporary
employment. When they drew their savings account down to $2,000,
Richard hedged on his dream and started looking for full-time work.
Describing themselves as optimists, Richard and Keri hope that they
will not be forced to sell their home or borrow against it to pay living
expenses and keep their children in Montessori school. Our conversa-
tion ends with Richard telling me that cashing out his 401(k) retirement
account to buy their house was a gamble but that it should pay off.The
difference between the Brookins family and many white middle-class
families came not in their ambitions, education, achievements, personal
decisions, or even incomes but in the family assistance and financial
safety net they had behind them.