NEWS AND REPORTING: A Financial Nest-Egg for Every American Baby?

January 19th, 2012

Published on Inequality.org, January 15, 2012.

In 2030, the majority of U.S. residents under 18 will be people of color. If current household wealth trends continue, the majority of America’s young people will be growing up in economically insecure households.   

In the two decades between 1948 and 1968 — years that saw the income gap between America’s rich and everyone else narrow significantly — the income gap between black and white Americans also narrowed significantly.

United for a Fair Economy has the numbers on that narrowing in State of the Dream 2012: The Emerging Majority, the Boston-based group’s just-released latest annual Martin Luther King Jr. holiday report.

In 1948, the typical African American family in the United States made 53 cents for every dollar of typical white family income. In 1968, the median black family was making 60 cents for every dollar that went to the median white family.

But that progress has ended:

In 2010, typical African American and Latino families made only 57 cents for every typical white family dollar. And wealth disparities run far wider, especially since the Great Recession hit … //

… Stiff taxes on America’s wealthy, notes the new State of the Dream, could go a long way to help financing the KidSave-like efforts America needs to revitalize that middle class and close the racial wealth gap.

How long?

America’s 400 richest currently hold $1.53 trillion in personal wealth, Forbes reported this past September, a total 12 percent up from the previous year — and 608 percent more than the combined wealth of the Forbes 400 in 1982, after adjusting for inflation.

A simple 10 percent tax on just the wealth of Forbes 400 alone would raise enough money to bankroll a $35,000 KidSave nest-egg for every baby born this year in the United States. Dr. King would approve.

“A society based on making all the money you can and ignoring people’s needs,” as he told his future life partner Coretta Scott in 1951, “is wrong.” (full text).

(My comment: look, if poor want nourrish and develop correctly their children, they have three solutions: 1): stop producing children, 2): fight for equality, 3): wait until any Uncle Sam/ any gov does the job for them … See: forgotten how Govs have to be run?).

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