by Hans Eisenbeis
WHAT’S HAPPENING
- The Great Recession did not hurt all Americans equally. It tended to punish the middle and lower classes worse than the well-off, and it hurt men more than women. But a July 2011 study shows that the biggest disparity may have been racial. According to the Pew Research Center, Latino and black Americans suffered disproportionately (NYTimes.com, 26 July 2011).
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The wealth of Latino families, which was tied heavily to home equity, fell a whopping 66% from 2005 to 2009. That’s due in part to the fact that Latino laborers made up a significant portion of the housing construction industry, and they socked much of their income into homes in hard-hit areas like Florida and Southern California.
WHAT THIS MEANS TO BUSINESS
- Latino consumers in the US have worked hard to achieve the traditional American Dream of middle-class employment and home ownership. They were disproportionately hurt by a recession that struck deep into home values and the construction industry. African Americans and Asian Americans were also hit hard.
- It may take years of recovery for some consumer cohorts to bounce back from the Great Recession. Brands can help speed the process by focusing on value and leveraging cultural pride.