MLK Day: Lack of Progress

My second post over Martin Luther King Jr. weekend once again focuses on the economic principles preached by Dr. King.  Dr. King was often known for his speeches and activism in social and political spheres, but his work toward equality for all extended to economic issues as well.  As MLK Day offers an excellent time to reflect on how far we as a society have come, it also gives us an opportunity to see just how much further we have to go.

Each year at Princeton University, there is a Martin Luther King Jr. Day celebration held where leaders of the school reflect on the life and teachings of Dr. King.  This year, Cecilia Rouse, the dean of Woodrow Wilson School of Public and International Affairs spoke about the progress, and more poignantly, the lack of progress the United States has made towards King's economic goals.  In a story released by Michael Hotchkiss in Princeton's Office of Communications, Rouse outlines the lack of changes within African American's economic standing within society since the launch of "The Poor People's Campaign" in the late 1960s.  Rouse cites the following economic facts:

In 1966, about 15 percent of Americans lived below the poverty line, Rouse said.  Today, the percentage is about the same.  "That means that today about 45 million people in the United States live on less than $24,000 for a family of four," Rouse said.  For African Americans, the poverty rate is down from 42 percent in 1966 to 27 percent today.  Still, that is twice the poverty rates of whites, she said.

The message that Rouse is sending is clear: while there has been progress toward economic equality, there still remains substantial progress for a substantial part of the population.  It is important to note that Rouse does not simply speak toward one disadvantaged group, but instead tries to focus on all of the underrepresented economic groups.  This flows directly from the teachings of Dr. King, as his teachings were based on equality; every impoverished group should be able to seek assistance and economic promotion.

In the Wall Street Journal, Robert Litan also made use of MLK Day to reflect on the continued economic gap that appears between demographic groups.  In his article Martin Luther King, Race, and the Wealth Gap, Litan focuses his discussion around two charts published by the Pew Research Center in December 2014.  The graph (below) prominently shows the significant gaps that exist between median net worth for white families and median net worth of African American and Hispanic families.

http://www.pewresearch.org/files/2014/12/FT_14.12.11_wealthGap2.png

What is most compelling to note between both of these two graphs are the aftermath of the most recent recession.  In both graphs the ratio of white family net worth to African Americans and Hispanics immediately preceding the financial crisis were approximately 10 times and 8 times, respectively.  However, in the most recent reading, which includes the conclusion of the Great Recession and a partial recovery, the ratios have increased to 13 times and 10 times, respectively.  It is very clear that this recession and subsequent recovery has disproportionately affected minorities, potentially undoing the economic equality gains that had been amassed over the proceeding decades since Martin Luther King Jr.'s passing.