The Wall Street Journal’s Real Time Economics recently looked at wealth inequality.  The first chart taken from the post shows wealth differences by race and age of head of family.

wealth gap

Racial differences (white versus black and Hispanic) dominate whether looking at average or median net worth, and the gap grows as the head of the family ages.  Median figures are especially sobering, showing the limited wealth generation of representative black and Hispanic heads of families regardless of age.

So, do these advantages and disadvantages transfer to the next generation? Yes, and not just laterally. This second chart looks at the relationship between inheritance and wealth generation.

Inheritance

Inheritance was divided into ten groups.  WARNING: THE TENTH GROUP, WHICH RECEIVED THE LARGEST INHERITANCE, IS NOT SHOWN.

As Josh Zumrun, the author of the blog, explains:

The bottom 10% of inheritors received an inheritance averaging only about $2,000. Families receiving this much inheritance aren’t that wealthy.

But among families that received a $35,000 inheritance, their net worth is over half a million. Families that received a $125,000 inheritance are worth $780,000 on average and those that receive a $200,000 inheritance are, on average, millionaires. (The top 10% of inheritors, not pictured in this chart, inherit $1.6 million on average and have a net worth of $4.2 million.)

The take-away is pretty simple: Wealth inequality is real, with strong racial determinants, and is also, to a significant degree, self-reinforcing.

Originally posted at Reports from the Economic Front.

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Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Wealth inequality in the U.S. is extreme, but global wealth inequality, illustrates a video by The Rules, is even more stunning. Some facts:

  • The top 20% control 80% of the world’s wealth.
  • The richest 2% control more wealth than the bottom half of the world’s population.
  • The richest 300 people on earth have more wealth than the poorest 3,000,000,000.
  • 200 years ago, rich countries were three times as rich as poor countries. Today, they are eighty times richer.
  • Rich countries give $130 billion dollars worth of aid to poor countries every year, but they extract $2 trillion each year thanks to global economic rules.

Here are their sources; or watch the four minute video:

The Rules wants to reveal and challenge the laws that govern our global economy. It is a distinctly sociological project, looking at how factors outside of individuals — or, in this case, countries — shape lives. Shaped strongly by the richest countries in their own best interest, rules governing the trading of goods and money are determining the economic solvency and future of countries.

When those rules are invisible, it can seem like struggling countries are just poorly managed or culturally problematic when, in fact, the rules ensure that the deck is stacked against them.

Hat tip to Martin Hart-Landsberg.

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

One of the concerns of environmental sociologists is the way that harm is unequally distributed. The way, for example, that poor people and people of color are more likely to live with high levels of lead, near toxic release facilities, with bad air quality, and in the paths of airborne pesticides.

I thought of this research when I saw Time‘s 1-minute illustration of the rise of earthquakes in Oklahoma. To sum, thanks to the particular type of oil drilling done there, the state is now “one of the most seismic places on the planet.” There were 21 earthquakes in 2005. In 2015, there were 5,957. Nine hundred of these were magnitude 3 or higher.

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Click here to watch the video.

I am trying to imagine what would happen if an industry caused almost 6,000 extra earthquakes annually (and growing) in or near a city America cared about. I’ve lived in Los Angeles and New York and, I can’t be sure but, I suspect politicians there might be quicker to interfere with business practices. And, if they weren’t, the political power of residents of those cities might force them to.

“But it’s just Oklahoma,” is apparently the refrain. Who cares if the oil companies’ saltwater disposal wells are causing the houses of hillbillies to shake? Apparently Okies don’t have anything — aren’t anybody — worth protecting. At least, not over the rights of corporations.

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

Yesterday was Super Sunday here in New Orleans, the one day each year that the Mardi Gras Indian tribes come together to be seen by the wider community. The tradition dates back to at least the mid-1800s, belonging to the African American population of New Orleans. Today there are over two dozen Mardi Gras Indian tribes.

Here’s a snippet from my Instagram (click to watch with sound):

A video posted by Lisa Wade (@lisawadephd) on

Indian tribes mask together groups, often family and pseudo-kin. It used to be an all-male activity, but now women are heavily involved (as “big queens” to the male “chiefs”), and children make regular appearances. Their tough faces are part of the performance, as one of the most well-known mottos of the Indians is “Won’t bow, don’t know how.” These are some of my photos:

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Originally the intent was to honor the local Native Americans who took in and rescued escaped slaves in the mid-1700s, though they probably took some inspiration from the “Wild West”-style entertainment that was popular at the time. Until the ’60s, tribes sometimes engaged in violent conflict, but today they encounter each other in order to perform ritualized non-violent conflict resolution, fighting only over who is “prettiest.”

With the exception of Super Sunday, when the Indians go out, it’s not a show. It’s a tradition by and for their own communities and one has to be “in the know” to know where to see them. They’ve been largely left out of tourist attraction-type activities for this reason, and because they’re almost entirely African American and New Orleans has only recently embraced it’s multicultural history and present as part of its appeal.

Still, their elusiveness makes them tourist-resistant and even Super Sunday doesn’t attract many tourists because the event is rescheduled at any hint of rain (because, feathers).

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Sociologically speaking, there are lots of fascinating directions to go from here — including the intersection of power, cultural borrowing, and the evolution of artistic vernacular — and I’ll try to get to them in future posts.

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

Law professor and critical race scholar Kimberlé Crenshaw developed the term” intersectionality” to draw attention to the way that all of our socially salient identities work together to shape the stereotypes that apply to us. The experience of being black, for example, is shaped by gender, just as the experience of being a man is shaped by race.

Once a person has internalized an intersectional lens, the old model — epitomized by the famous phrase “all the women are white, all the blacks are men” — can be jarring. It has a way of making certain kinds of people and their experience invisible. In the above case, women of color.

At this weekend’s debate, Bernie Sanders made exactly one of these jarring statements in response to an inquiry about “racial blind spots.”

When you’re white, you don’t know what it’s like to be living in a ghetto. You don’t know what it’s like to be poor. You don’t know what it’s like to be hassled when you walk down the street or you get dragged out of a car.

I imagine poor white people, middle class blacks, and women everywhere sat up and were like “What!?”

Author Joy Ann Reid noted on twitter that Sanders was conflating race and class, making poor white and middle and upper class black people invisible. Most African Americans are not poor and most poor people are white. She noted, as well, that white immigrants have lived in what we call the “ghetto” for much of American history.

I’ll add that one doesn’t need to be black to get hassled when walking down the street, as most women of all races can attest. Or, for that matter, how about being a feminine-presenting or gender queer man? And being dragged out of a car is something that happens to black people who are being accosted by the police, but also those who are being victimized by violent boyfriends or husbands.

Ironically, Sanders was saying that his racial blind spot was not being able to fully understand the black experience, but he revealed a different blind spot: intersectionality.

The comment starts at about a minute, twenty seconds:

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

On Mardi Gras mornings before dawn, members of the North Side Skull and Bones Gang prowl the streets. It’s a 200 year old tradition belonging to African American residents of the city. They first prowled in 1819.

Members of the gang dress up like ominous skeletons. At nola.com, Sharon Litwin writes:

Because the origins of the Gang were with working class folk who had little money for silks and satins, the skeleton suits are made from everyday items and simple fabrics. Baling wire (to construct the shape of the head) along with flour and water to bind together old newspapers, create the head itself.

Their message is to “warn [people] away from violence” — says the North Side Chief, Bruce “Sunpie” Barnes — especially young people, and especially gun and domestic violence. He explains:

The bone gang represents people… waking people up about what they’re doing in life, if they don’t change their lifestyle. You know. We’re like the dead angels. We let you know, if you keep doing what you’re doing, you’re gonna be with us.

Up before most residents, members of the gang cause a ruckus. They sing songs, bang on doors, and play-threaten their neighbors.

Here’s some footage:

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

2 (1)When you travel, the option to stay in a private home instead of a hotel might seem like a nice idea. Your experience of the city might be a little more authentic, maybe you’ll meet a local, and you can keep your money out of the hands of giant corporations. It’s a tiny way to fight the shrinking of the middle class.

These options, though, may not be a panacea. After discovering that his Brooklyn neighborhood had 1,500 listings on Airbnb, Murray Cox decided to take a closer look. How many residences now invite tourists? How small scale were the profits? Did the money really go to locals?

New Orleans wanted to know the answers to these questions, too. The city has been hit by what nola.com reporter Robert McClendon calls a “Airbnb gold rush.” It turns out the city currently has about 2,600 rentals on Airbnb, plus another 1,000 or so on VRBO.com. This has sparked a heated debate among residents, business owners, and politicians about the future of the practice.

So, Cox jumped in to give us the data and figure out where the money is going.

 

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Are Airbnb hosts living in the spaces they rent?

Cox found that they generally are not. Only 34% of rentals are for rooms or shared rooms; 66% of listings are for an entire home or apartment. More than two-thirds (69%) are rented year-round. Almost half of all hosts operate at least two rentals.

These numbers suggest that your modal Airbnb host doesn’t live in the home they rent out. Some may actually live in another city altogether. Others are using Airbnb as an investment opportunity, buying homes and turning them into full time rentals.

What’s the downside?

Locals are complaining about deterioration in the feeling of community in their neighborhoods. It’s difficult to make friends with your neighbors when they turn over twice a week. Tourists are also more likely than locals to come home drunk and disorderly, disturbing the peace and quiet.

And they are pricing people who actually live in New Orleans out of the rental market. Short-term renting offers owners the opportunity to make four or five times the amount of money they could make with a long-term tenant, so it’s an economic no-brainer to sign up for Airbnb. But, as more and more people do so, there are fewer and fewer places for locals to live and so the supply-and-demand curve increasingly favors owners who can jack up long-term rental prices.

So, when you give your money to an Airbnb host in New Orleans or elsewhere, you might be giving some extra money to a local, but you might also be harming the residential neighborhoods you enjoy and the long-term viability of local life.

Cross-posted at A Nerd’s Guide to New Orleans.

Lisa Wade is a professor at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. Find her on TwitterFacebook, and Instagram.

2 (1)There was a great article in The Nation last week about social media and ad hoc credit scoring. Can Facebook assign you a score you don’t know about but that determines your life chances?

Traditional credit scores like your FICO or your Beacon score can determine your life chances. By life chances, we generally mean how much mobility you will have. Here, we mean a number created by third party companies often determines you can buy a house/car, how much house/car you can buy, how expensive buying a house/car will be for you. It can mean your parents not qualifying to co-sign a student loan for you to pay for college. These are modern iterations of life chances and credit scores are part of it.

It does not seem like Facebook is issuing a score, or a number, of your creditworthiness per se. Instead they are limiting which financial vehicles and services are offered to you in ads based on assessments of your creditworthiness.

One of the authors of The Nation piece (disclosure: a friend), Astra Taylor, points out how her Facebook ads changed when she started using Facebook to communicate with student protestors from for-profit colleges. I saw the same shift when I did a study of non-traditional students on Facebook.

You get ads like this one from DeVry:

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Although, I suspect my ads were always a little different based on my peer and family relations. Those relations are majority black. In the U.S. context that means it is likely that my social network has a lower wealth and/or status position as read through the cumulative historical impact of race on things like where we work, what jobs we have, what schools we go to, etc. But even with that, after doing my study, I got every for-profit college and “fix your student loan debt” financing scheme ad known to man.

Whether or not I know these ads are scams is entirely up to my individual cultural capital. Basically, do I know better? And if I do know better, how do I come to know it?

I happen to know better because I have an advanced education, peers with advanced educations and I read broadly. All of those are also a function of wealth and status. I won’t draw out the causal diagram I’ve got brewing in my mind but basically it would say something like, “you need wealth and status to get advantageous services offered you on the social media that overlays our social world and you need proximity wealth and status to know when those services are advantageous or not”.

It is in interesting twist on how credit scoring shapes life chances. And it runs right through social media and how a “personalized” platform can never be democratizing when the platform operates in a society defined by inequalities.

I would think of three articles/papers in conversation if I were to teach this (hint, I probably will). Healy and Fourcade on how credit scoring in a financialized social system shapes life chances is a start:

providers have learned to tailor their products in specific ways in an effort to maximize rents, transforming the sources and forms of inequality in the process.

And then Astra Taylor and Jathan Sadowski’s piece in The Nation as a nice accessible complement to that scholarly article:

Making things even more muddled, the boundary between traditional credit scoring and marketing has blurred. The big credit bureaus have long had sidelines selling marketing lists, but now various companies, including credit bureaus, create and sell “consumer evaluation,” “buying power,” and “marketing” scores, which are ingeniously devised to evade the FCRA (a 2011 presentation by FICO and Equifax’s IXI Services was titled “Enhancing Your Marketing Effectiveness and Decisions With Non-Regulated Data”). The algorithms behind these scores are designed to predict spending and whether prospective customers will be moneymakers or money-losers. Proponents claim that the scores simply facilitate advertising, and that they’re not used to approve individuals for credit offers or any other action that would trigger the FCRA. This leaves those of us who are scored with no rights or recourse.

And then there was Quinn Norton this week on The Message talking about her experiences as one of those marketers Taylor and Sadowski allude to. Norton’s piece summarizes nicely how difficult it is to opt-out of being tracked, measured and sold for profit when we use the Internet:

I could build a dossier on you. You would have a unique identifier, linked to demographically interesting facts about you that I could pull up individually or en masse. Even when you changed your ID or your name, I would still have you, based on traces and behaviors that remained the same — the same computer, the same face, the same writing style, something would give it away and I could relink you. Anonymous data is shockingly easy to de-anonymize. I would still be building a map of you. Correlating with other databases, credit card information (which has been on sale for decades, by the way), public records, voter information, a thousand little databases you never knew you were in, I could create a picture of your life so complete I would know you better than your family does, or perhaps even than you know yourself.

It is the iron cage in binary code. Not only is our social life rationalized in ways even Weber could not have imagined but it is also coded into systems in ways difficult to resist, legislate or exert political power.

Gaye Tuchman and I talk about this full rationalization in a recent paper on rationalized higher education. At our level of analysis, we can see how measurement regimes not only work at the individual level but reshape entire institutions. Of recent changes to higher education (most notably Wisconsin removing tenure from state statute causing alarm about the role of faculty in public higher education) we argue that:

In short, the for-profit college’s organizational innovation lies not in its growth but in its fully rationalized educational structure, the likes of which being touted in some form as efficiency solutions to traditional colleges who have only adopted these rationalized processes piecemeal.

And just like that we were back to the for-profit colleges that prompted Taylor and Sadowski’s article in The Nation.

Efficiencies. Ads. Credit scores. Life chances. States. Institutions. People. Inequality.

And that is how I read. All of these pieces are woven together and its a kind of (sad) fun when we can see how. Contemporary inequalities run through rationalized systems that are being perfected on social media (because its how we social), given form through institutions, and made invisible in the little bites of data we use for critical minutiae that the Internet has made it difficult to do without.

Tressie McMillan Cottom is an assistant professor of sociology at Virginia Commonwealth University.  Her doctoral research is a comparative study of the expansion of for-profit colleges.  You can follow her on twitter and at her blog, where this post originally appeared.