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business Tuesday 29 sepTember 2020
Healthy U.S. economy failed to narrow racial gaps in 2019

By CHRISTOPHER RUGABER Black and Hispanic house-
AP Economics Writer holds did gain wealth from
WASHINGTON (AP) — The 2016 through 2019, mostly
solid growth that the United from an increase in home
States enjoyed before the ownership and home val-
viral pandemic paralyzed ues. But those increases
the economy this spring came from such low levels
failed to reduce racial dis- that they didn't much nar-
parities in Americans' in- row overall income dispari-
come and wealth from ties, the Fed said.
2016 through 2019, accord- Black households, for ex-
ing to a Federal Reserve re- ample, reported a 33%
port Monday. gain in net worth and His-
Though Black and Hispan- panic families 65%. Wealth
ic households reported in white households in-
sharper gains in wealth creased just 3%. While en-
than white households did, couraging, median wealth
those increases weren't for white families in 2019
enough to noticeably nar- was still much higher, at
row the racial gaps. The $188,200, compared with
typical white family pos- $24,100 for Black families
sessed eight times the and $36,200 for Hispanics.
wealth of Black families Economic research has
and five times the wealth The Wall Street street sign is framed by a giant American flag hanging on the New York Stock found that differences in
of Hispanic families in 2019, Exchange, in a Monday, Sept. 21, 2020 file photo. Associated Press inheritances are a major
the Fed said. factor behind the racial
The Fed's Survey of Con- creases in income and economists said. By con- Economists typically look wealth gap. A separate
sumer Finances, released wealth for lower-income trast, average incomes at median incomes, which Fed note released Monday
every three years, analyzed and Black families, many among the bottom 60% of reflect the midpoint of all found that 30% of white
incomes and wealth in economists worry that the families rose. earners, as a way to filter families report receiving an
2019. The survey found that pandemic has reversed Yet average figures can be out the extremes. Median inheritance — three times
income for the typical U.S. those gains. Job losses this skewed by huge incomes at income among the poorest the corresponding propor-
family rose 5%, adjusted for year have been concen- the very top. The Fed report one-fifth of Americans rose tion of Black families and
inflation, from 2016 to 2019 trated among lower-in- noted, for example, that 3%, while median income four times that of Hispanic
to $58,600. That was weak- come workers in the restau- while average incomes for for the richest one-tenth in- families.
er than the 9% income gain rant, hotel, retail and travel all families fell 3% from 2016 creased 6%, the Fed said. The richest 1% of Americans
the typical family received industries. Those workers through 2019, excluding The median family income owned one-third of the na-
from 2013 through 2016. are disproportionately non- the richest 1%, average in- for whites grew 6%. For tion's wealth in 2019, down
The survey provides a trove white. comes rose 3.1%. Income Black households, it was slightly from nearly four-fifths
of information on family fi- Some measures did show for the richest Americans slightly better at 7%. For in 2016. But wealth grew for
nances in the United States, a narrowing of income dis- can fluctuate more sharply Hispanic families, incomes the next-richest 9% of the
from the percentage of parities. Average income year to year than income fell 1%. Median income for population, the Fed said in
households that own stock among the wealthiest one- for lower-income earners, white families last year was another research note. So
(53%) to the proportion that tenth of American families Fed economists said, and $69,000, compared with that the richest one-tenth
have a retirement account fell 6%, largely because likely fell because of smaller $40,300 for Black families of families owned 71% of
(50%). of a steep fall among the gains from stock, bond and and $40,700 for Hispanics. wealth, unchanged from
While the report shows in- richest 1%, Federal Reserve property sales. Poorer Americans and 2016.q

Amazon to kick off holiday shopping

with October Prime Day

By JOSEPH PISANI nouncement Monday, ma- Monday it was also holding
AP Retail Writer jor retailers have said they a two-day sale event on
NEW YORK (AP) — Amazon plan to push shoppers to Oct. 13 and Oct. 14.
is aiming to kickstart the start their holiday shopping Amazon started the sales
holiday shopping season in October and offer deals event in 2015 as its answer
early this year. earlier, hoping to avoid to Singles' Day, a shopping
The company is holding its crowds in their stores in No- holiday in China popular-
annual Prime Day over two vember and December. ized by Chinese ecom-
days in October this year, Prime Day, which will run merce company Alibaba.
after the pandemic forced from Oct. 13 to Oct. 14 this Prime Day has become In this Thursday April 16, 2020 file photo, The Amazon logo is
seen in Douai, northern France. Amazon is looking to kickstart
it to postpone the sales year, is sure to put pres- one of Amazon's biggest holiday shopping early this year.
event from July. It's the first sure on rivals to offer deals shopping days, since it of- Associated Press
time Prime Day is being around the same time. In fers some of its deepest dis-
held in the fall, and Ama- past years, Walmart, Best counts of the year. paying $12.99 a month or tries will get access to deals
zon is positioning it as a way Buy and Target have of- Amazon also sees it as a $119 a year can access the this year, including two new
to get people to start their fered their own online dis- way to get more people to deals. ones: Brazil and Turkey. It al-
holiday shopping. counts during Prime Day. In sign up for its Prime mem- The company said Amazon ready held Prime Day in In-
Even before Amazon's an- fact, Target announced on bership, since only those Prime members in 19 coun- dia this summer.q