You are currently browsing the tag archive for the ‘personal finance’ tag.
This is super late, but in looking back at responses to my post on reparations this bit from Tim Worstall caught my eye:
“Thus today’s value of what was stolen from the slaves is that $1.75 trillion. Which is, when you look at it, a formidable sum of money. Except, actually, it isn’t. The net wealth of the entire country is around $80 trillion or so. So it’s a trivial percentage of the national wealth. Or we could look at it another way. There’s 42 million or so African Americans (defined as having some possibly slave and black antebellum ancestry) so the capital sum would be some $40,000 for each of them. Which, while a nice enough sum to receive isn’t the sort of life changing sum some might think might be due in reparations.”
This is wrong, but the fact of its wrongness itself goes to show how much many folks underestimate the dire economic straits of black America.
According to the FRB’s invaluable Survey of Consumer Finances, the net wealth of all of black households is around $1.7 trillion. So even that $1.75 trillion infusion (which is the most minimal estimate of the amount reparations ought to be my calculations produced) would double the net worth of black America as a hold.
Put another way, two-thirds of black households have less than $40,000 in net wealth. So this wouldat least double the net wealth of two thirds of black households.
Put another way, the entirety of black America has just over $921 billion in debt. So that $1.75 trillion could wipe out all debt held by all black Americans (in practice, just over two-thirds of black households have debts totaling less than $40,000, so it would leave some black households with some debts).
So given that $1.75 trillion is ‘a trivial percentage of the national wealth’ maybe we should just give it to black America then? I doubt they’d find it so trivial.