Wealth Grew Broadly Over 3 Years, but Inequality Widened
Racial and ethnic minorities experienced the strongest gains in wealth in the 2016 survey, a stark reversal from three
years earlier, when the survey showed minority families losing ground even as white families experienced modest gains.
The recession sliced nearly 40 percent off the typical household’s net worth,
and even after the recent rebound, median net worth remains more than 30 percent below its 2007 level.
The gains were broad-based, cutting across racial, educational
and economic categories — a significant shift from the years immediately after the recession, when both income and wealth continued to decline for many families.
In terms of income, the typical American has made significant progress in recent
years, with median household income nearly back to its prerecession peak.
The median white family had a net worth of $171,000 in 2016, nearly 10 times that of the median black family.
Wednesday’s data, from the Federal Reserve’s triennial Survey of Consumer Finances, shows the strength of the economic rebound in recent years,
but also just how large a hole the recession left in many households’ finances.
The survey is notable for providing information not just on Americans’ yearly income but also on their assets, debts and overall net worth — measures
that are in many ways more important to families’ financial security.