changing the tide for texas latinos - texas appleseed
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Ann Baddour of Texas Appleseed presented on the organizational needs of economic opportunity at the 2013 Texas Latino Policy Summit.TRANSCRIPT
Changing The Tide for Texas Latinos:Changing The Tide for Texas Latinos:Building Wealth after the “Great Recession”Building Wealth after the “Great Recession”
Latinos Left Out of the “Texas Miracle”?
“Since the recent economic recession ended, Texas has been responsible for 48 percent of all the jobs created in America.
And yet, the Hispanic population is not participating in our economic prosperity in proportion to its weight in the Texas census.”
--Richard W. Fisher, President of the Federal Reserve Bank of Dallas
Significant Wealth Gap Persists
Latino median household wealth fell 66%, 2005-2009 $6,325 compared to
$113,149 for White households
Latino families have four times poverty rate of White families, 24% vs. 6%
Despite challenges, 40% rise in Latino small businesses, 2002-2007.*Source: Pew Hispanic Center, 2012 American Community Survey, Survey of Business Owners.
Source: 2000 U.S. Census and 2012 American Community Survey. Data in 2012 dollars.
Decreasing Median Household Income 1999-2012 Income Gap Unchanged
Closing the Gap
Building People, Stopping the Wealth Drain
•Developing human capital and promoting growth of living wage jobs.
•Encouraging financial services that profit based on borrower success.
A Small Crisis Can Lead to a Big Debt…
The Highest Cost Loan Options are Proliferating in TexasThe Cost of a 6-Month $500 Loan
Est. Annual Percentage Rate
Loan Type Amount Borrowed
Amount Re-paid
10% Bank/Credit Union
$500 $514
100% Finance Company
$500 $655
600% Payday/Auto Title $500 $1,640
…And A Cycle of Financial Stress
1. Texas must rein in abusive consumer lending, or the wealth drain will continue.Leverage local, state and federal opportunities.
2. Adopt policies and programs to encourage positive market innovations.
New loan program saved 1800 families $1.3 million and is building positive credit history.
Immigration loan program for mixed status families generated thousands in EITC refunds.
A Policy Agenda: Regulation and Innovation
Contact Information
www.texasappleseed.net
Ann BaddourSenior Policy AnalystTel: 512-473-2800x104