The lists of the highest income earners and wealthiest Americans are some of the most publicized reports. On the list of highest income earners, African Americans are well represented by entertainers such as Michael Jackson, Bill Cosby and Oprah Winfrey. However, the case is different when it comes to the list of the wealthiest Americans. This list mainly focuses on assets rather than money. It contains very few African Americans even though it is ten times larger than the highest income earners’ list. Income and wealth are interrelated but different. Income refers to a flow of money over a certain period of time while wealth refers to assets owned at a particular time. Wealth is different from income as it can be used to create opportunities to secure a good life.
According to the Center of Responsible Lending, 6.4% of individuals who received home loans had lost their homes while 8.3% were facing a serious risk of losing them. 11% of the borrowers who lost their homes were African Americans while 14% were Hispanics. This foreclosure crisis resulted in a 56% decline in median wealth among African Americans compared to 16% among whites. As a result the median wealth of white households is now twenty times larger than that of African Americans. Historically, African Americans are racially segregated resulting in high priced lending of home loans and consecutive foreclosures.
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This economic inequality results in health complications amongst non-white communities. The work of Antwan, Gregory and Cynthia shows that avoidable hospitalizations were highest among areas faced by foreclosures. Foreclosures affect the health of African Americans through the loss of wealth which increases stress levels, reduced access to healthcare and poor health behaviors. Some of the health problems that are prevalent in communities with higher levels of income inequality and foreclosures are high blood pressure and depression. These health conditions are heightened due to increased stress levels among communities facing income inequality.
