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Tom: Are there any differences in outlook between racial groups?

Mellody:  You bet there are, Yom. First, let’s consider the earnings piece. Overall, while Americans of all racial backgrounds identify as middle class at the same rate – about 40% of whites, blacks and Latinos consider themselves in this category – Black and Latino Americans earn less that white Americans who also identify as middle class.

What is amazing is that even though blacks and Latinos who sort into the middle class category make less, they are more optimistic than their white counterparts.

In 2015, only 1 in 3 white Americans who considered themselves poor or working class responded that it was possible for them to move up the class scale in the next five years. By comparison, almost half of African-Americans and Latinos – 49% and 53% – believe that upward mobility is possible for them in the same time period. This fact is in spite of the lower incomes and the fact that blacks and Latinos are more likely than whites to identify as working class or poor. Overall, the survey finds there is just a stronger belief in the opportunities for economic advancement – the core of the American dream –  among minority populations.

Tom: Were there any negative takeaways in the survey?

Mellody: One finding stands out, and that is the question of economic security. Minorities in the U.S. – both black and Latino – are much more worried about the prospects of moving backwards economically. One third of middle class Blacks think it’s likely they’ll lose their standing. That is more than double the percentage of white Americans who responded similarly. Not only does this point to the challenges faced by our community, but the continued uncertainty that is created when wage growth and employment in minority communities lag behind the national average.

Great to have you on again, Mellody! Have a great week!

Mellody: You too, Tom!

Mellody is President of Ariel Investments, a Chicago-based money management firm that serves individual investors and retirement plans through its no-load mutual funds and separate accounts.  Additionally, she is a regular financial contributor and analyst for CBS News and CBS.com.

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Money Mondays: America’s Middle Class  was originally published on blackamericaweb.com

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