By: Norman J. Dotson Jr./BNC Digital Producer
JP Morgan Chase Institute gives perspective to racial disparities as it relates to available resources to overcome economic upsets and jeopardized income streams.
The study which was released earlier this month shows the racial gap in liquid assets is twice as large as the racial income gap resulting in African American and Hispanic families having fewer options when dealing with economic instability. The study reveals that there are income gaps not only in race but age, gender, and liquid assets.
Liquid assets refer to cash on hand or assets that can be quickly and easily converted to cash such as tax refunds, Government bonds or stocks. According to Chase, the sum of balances in one’s checking account, prepaid debit cards, savings, money market, and certificates of deposit accounts adds to a person’s assets.
“As families face job loss and income uncertainty resulting from the COVID-19 pandemic, this report shows that Black and Hispanic families will bear the brunt of this economic crisis,” Diana Farrell, president and CEO of the JPMorgan Chase Institute said in a released statement.
Farrell added that even though this research holds much weight in light the current crisis it does highlight an ever persisting gap in wealth based on race, age, income, gender, and geographies.
“We hope this research will help inform the policy, business and community response to support vulnerable families through this uncertain time and beyond,” the release read.
African Americans and Hispanics have been hit harder by the coronavirus outbreak than other races. Both groups have lower-paying jobs and are less likely to work from home. Some are calling on policymakers to use this research study to assist in addressing the needs of communities who affected by the pandemic in disproportionate ways.
Darrick Hamilton, executive director of the Kirwan Institute,suggests that the study should be used to make sure African American and Hispanic families don’t fall further behind the curve praising the information gathered by Chase.
“This research underscores the reality that the racial wealth gap has positioned black and Latinx families far more vulnerable to precisely the types of economic events we are experiencing right now as a result of COVID-19 — income and job loss,” Hamilton said in a released statement.
Click here for the entire report from JP Morgan Chase.