Financial disparity is a massive problem for Brown and Black residents of Cook County. People of color have a harder time than white people with saving their money properly. Most Brown and Black people are not able to purchase necessary everyday items because of this problem. Studies show that only about 13% of Black residents and 16% of Latino residents are considered to be financially stable in Cook County. Meanwhile, at least half of the white population in Cook County is not suffering from money problems.
“Chicago is known as one of the most segregated cities in America with pockets of both deep wealth and extreme vulnerability,” stated the Financial Health Network. The financial disparities in Cook County are often overlooked making it hard for there to be a possibility of change.
Most Affected
Studies show that 20% of Black individuals nationwide have financial problems. Unfortunately, that number is almost twice as high in Cook County, making it 39%.
“Black and Latino residents are three to four times more likely to be financially vulnerable than their white counterparts,” according to Michael Loria from Chicago Sun-Times.
Latinos are the second highest group also suffering financially. In Cook County, at least 30% of Latinos are financially unstable. These two groups of people are the victims of financial disparities in the United States. Even if Black/Latino people made enough money to have a decent lifestyle, they have families that may not be as lucky and will feel the need to help them out.
Why Does This Happen?
The most popular cause of this is discrimination against these groups of people.
“Financial Health Network research has long demonstrated that financial health is unequally distributed nationwide, a legacy of ongoing, race-based discrimination and decades of disinvestment and marginalization,” said Financial Health network. Many Brown and Black individuals have a harder time getting hired for high-paying jobs simply because of their race.
Brown and Black individuals are more likely to suffer from debt than other races. Most Brown and Black people in Cook County are not able to make a retirement or pension account because they don’t have the money to put into it.
How to Fix Financial Disparity
So far people know the problem exists, but don’t know what to do to solve it. Many people think it’s something out of their control but it’s not. We the people have the power to vote and elect appropriate candidates to help us solve this. There are a few ways to solve this issue.
Raise Wages
Everyone knows that raising the minimum wage would help a lot in fixing this problem. Currently, in Chicago, the minimum wage is $15.40 an hour, which is way better than it used to be. But it is not this same amount everywhere or in every job. For example, most waiters/waitresses get paid less than $4 an hour. This makes it almost impossible to be financially stable.
Fix the Income Tax System
For the wealthy, taxes are not a problem. But for the poor, it is taking big amounts of the money they make, which makes it hard for their financial stability. There is no reason why someone making $35 thousand a year and someone making $350 thousand a year should be paying the same amount of taxes. Taxable income should be raised or lowered depending on their gross income. This creates the financial disparities we see today.
We are the only ones that can make this change happen. Financial disparity should not be a thing, but it is and it needs to be addressed and stopped. Your race should not determine your wealth. We hope we can find a reasonable solution to this ongoing problem in our city.
Written By Erika Cano
Sources:
Chicago Sun-Times: Financial disparities in Cook County are almost double national average, study finds
ABC 7 Chicago: Cook County residents of color are more financially vulnerable, new report finds
Financial Health Network: Financial Health Pulse 2022 Chicago report
The Wicked 7: 12 tools to reduce Income Wealth Inequality
First Inset Image courtesy of Pictures of Money Flickr page – Creative Commons License
Second Inset image courtesy of Pictures of Money Flickr page – Creative Commons License
Featured Image Courtesy of Chuckcars‘ Flickr Page – Creative Commons License
