What impact does the wealth gap play in how women are viewed? Read more in this article.
Edited by Jordan Guzzi
Many people think of the wealth gap as an exaggerated myth. Unfortunately, this myth has some truth to it. For centuries, this issue has persisted and continues to persist, where the unequal distribution of resources predominantly impacts women and people of color. Many use racism and misogyny to try to justify it, but at the end of the day, millions of people lose thousands of dollars each year due to these biases. Wealth inequality in the United States has roots in misogyny and racism. The term “wealth inequality” itself refers to the unequal distribution of assets in a group of people. There is a large gap in wealth between different races, dating back to the creation of the United States. Black people had no way to earn or keep money as they were enslaved and didn’t earn money for their labor. Even after emancipation, they didn’t have access to the same employment opportunities since racism was rampant and many weren’t considered “skilled laborers.”
Historically, people of color have been underpaid and worked in jobs that allowed employers to get away with underpaying them. Black and Hispanic people are less likely to graduate from college and typically, employers pay those with high school diplomas less than individuals with graduate or undergraduate degrees. There are systemic issues in the education system that have historically negatively impacted communities of color, which furthers the cycle of poverty and makes it more difficult for people of color to receive equal pay.
The unequal distribution of wealth presents very clearly in the amount of accumulated wealth. According to Inequality.org’s Racial Wealth Divide report, the average white family owns 41 times more accumulated wealth than the average Black family, and 22 times more wealth than the average Latino family. Black families are also more likely to have the value of the debt they owe be greater than the value of their assets, making them unprepared for unexpected costs and more susceptible to fall into poverty. Failure to pay off extraordinary medical debts can even lead to homeless. The number of families in this category of wealth rose by almost 29% in over 30 years. The median wealth accumulated by Black and Latino families remained stagnant since the 1980s at under $10,000 Black families saw their wealth drop by half. However, white families have seen a growth in their wealth of over $35,000 in the same time. The gender gap, or the difference in men’s and women’s earnings, also remains a pressing issue. On average, women make 82 cents for every dollar a man makes. This gap widens in minority groups: for every dollar a man makes, black women make 62 cents, Latino women make 54 cents, and Native American women make 57 cents and Latino women make 54 cents. Although the average for Asian American women is 90 cents for every dollar a man makes, that number lessens when looking at different ethnic groups within the Asian community. Different sources may have different numbers based on how they collect their data, but the conclusion is the same: women are paid less. Jobs that have mostly women workers tend to have lower pay and don’t offer as many benefits. Even in male-dominated fields, women are paid significantly less than their male counterparts, despite having similar education. The fact that women are monetarily punished for having children also influences the gender gap. It is not the choice to have children itself, but the time the mother takes off of work that is viewed negatively. Mothers seem less loyal to the job compared to their childless female counterparts. Their image at their job suffers and subsequently, their pay. The phenomenon is known as the “motherhood penalty”. In total, the National Women's Law Center reports that women who are mothers make $18,000 less than men annually. Companies assume that mothers don’t want to travel or have more responsibilities on the job, so they will not promote mothers into roles with those requirements. Studies conducted in several countries indicate that this is a global problem affecting mothers, not just one in the United States. Even in countries with paternity leave, women’s pay suffers after having a child. Their husbands’ pay never suffers after having a child. Being a father makes men seem more dedicated to the job. As a result, they won’t be passed over for promotions and their pay will increase as a direct result of their child. In a perfect world, employers would pay men and women equally. However, payment inequalities exist and many suffer as a result. Whether employers are paying less because of gender or race, it is a larger problem that must be addressed. Sources: https://inequality.org/facts/wealth-inequality/ https://inequality.org/wp-content/uploads/2019/01/IPS_RWD-Report_FINAL-1.15.19.pdf https://www.americanprogress.org/issues/women/reports/2020/03/24/482141/quick-facts-gender-wage-gap/
Comments