CWR Building Wealth – Hispanic Resilience In Today’s Economy
By Gil Michel, MBA, CPA
There are few trends in the U.S. that are predictably consistent. The economy at large is supposedly on a roller coaster to recovery but no one knows when the ride will settle into steady growth. However, one certain growing trend in the nation is the rise of the Hispanic population. According to the Pew Pew Hispanic Center , growth is primarily due to birth over immigration among Mexican-Americans. Of the 11.4 million in Hispanic resident increase, 7.2 million of those Hispanics are native born every year. Each Hispanic is infused with the unparalleled work ethic and resilience of the Latino community under even the tightest conditions. Though deeply scythed by the sharp market changes, the unity of the Hispanic community builds their potential for further success in the future.
As the Hispanic population grows, their political influence closely follows. But even with a rise of Hispanic community advocates, city officials, state representatives and federal government agents, the recession has heavily affected the hard earned wealth of Hispanic households. According to the Pew Research Center Project’s latest discoveries, Hispanic household wealth has been cut by 66% over the four year period of 2005-2009 while Caucasians as a whole have been negatively hit by only 16%. Blacks have suffered a drop of approximately 53% but have not been as adversely affected as the Hispanic community according to the research. (See Full Article)
Texas television KCENTV features a story that highlights the desperation of the struggling Hispanic families in Texas and suggest the similar occurrences elsewhere to be just as concerning, etc. But the statistic for struggling Hispanic families, even after such a drop in wealth, only leaves 25% falling below poverty level. Therefore, amidst the exponential growth from year to year, 75% are able to make do with the resources they are given. The communal effort and sense of unity among Hispanic groups distinguish them from other minorities in the U.S. The pride in each other’s individual accomplishments add to the community as a whole making them a force to be reckoned with from the rest of the broken and divided groups of people or systems that might seek to oppose them.
The media tends to focus lots of time and energy magnifying the negative aspects of a the Hispanic’s situation. From reverse perspective, the Hispanic community deserves recognition for the financial resilience displayed in the middle of a financial crisis. Everyone has been affected, but everyone has reacted differently under the pressure. Hispanics have launched new businesses to employ new generations and established Hispanic companies are expanding with countless good intentions. The trend of success among the Hispanic community will easily continue on if there were more business strategy taught to Hispanic entrepreneurs. Good intentions alone do not ensure longevity. The U.S. Hispanic Chamber of Commerce Foundation pose a good example in awarding business coaching to two Hispanic businesses in Milwaukee for their initiative for green business building. (See Full Story) If other sponsors follow this trend, the financial setbacks among the Hispanic community will mend and they will indeed continue to gain influence and rise in power in the United States.
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About Gil Michel: Gil Michel is a CPA and financial planning expert, and is the CEO and President of The Caleb Group, Inc., a small business solutions firm. Gil’s experience has evolved from working in top ten CPA firms to working one-on-one with small business owners in developing realistic budgets to create wealth for their families. Gil’s Caleb Group is the parent company of BlackMoneyMatters.com, an interactive website that seeks to educate, inform, and enlighten the Black community in areas of financial health. Currently Gil is featured on Sheridan Gospel Network’s The Light, which is syndicated in 56 radio stations/48 cities across the United States. In addition, Gil is also featured on The Good Life Radio broadcast financial segment every week in a feature called “Stacking Paper.” Gil’s passion to see urban cities turned around in the next 10 years inspired him to form TACTT, Inc. (www.tactt.org) in 2003 (Teens Achieving Community Through Training). TACTT is a financial literacy program that empowers teens in the five areas of entrepreneurship, real estate, banking/personal finance, investing, and positive life skills.