The Dynamics of Poverty and the Toxicity of Racial Inequality

By Bongs Lainjo

Most of us know that racial overtones, both implicitly and explicitly, are NOT going away anytime soon. To some extent, race is being used as a front to counter personal, racial, political, and ideological differences. But we all need to admit that, overtly or otherwise, racial prejudices are an inherent reaction to uncomfortable or unfamiliar experiences. 

Yes, ignorance is bliss! And indeed, the perpetrators are the first to exempt themselves from promoting racial equalities. Businesses are no exception; partly because “such practices are good for business.” 

Asian communities have, by and large, succeeded beyond their peer groups (see Figure 1) because of, to many extents, compelling strategies of supporting each other. In general, they are perceived as cautious, remain largely seen and not heard, and keep amongst themselves. And yet, despite all this, they still remain victims of racial slurs too. So, shall we all claim some degree of ignorance?

What the Data Say 

A look at US earning power dynamics by race reveals a troubling and mind-boggling reality as shown in Figure 1. The trend, in a way, summarizes racial inequalities in the US over a period exceeding a decade. And as the graph depicts, statistics, when used correctly, do not lie. The figure represents the median (half) earnings of what half the respective populations earned during a period of just over ten years. And that’s where the conundrum lies. That, of course, raises the bigger questions. Are these earnings influenced by racial affiliations or do racial attachments influence their earnings? In other words, which comes first, the chicken or the egg? It is important to characterize this figure (and Figure 2) as the proxy of many other racial inequalities – education, access to healthcare, employment, and more.

During the timeframe illustrated (Figure 1), the Asian population maintain an uncontested lead with an annual earning ranging from $78,000 to $98,000; with Whites and Non-Hispanic a distant second with remunerations between $68,000 and $76,000. The third and fourth group were Hispanics and Blacks with annual median earnings of about $45,000 to $56,000 and $40,000 to $45,000 respectively. Indigenous populations are omitted either by design or happenstance. In general, the effects of recession notwithstanding, there is a positive trend from baseline to end line amongst the different populations. Also, during this timeframe, the intra-racial trends (assuming a straight line between both points) were about 26, 12, 24, and 12.5 per cent for Asian, White, Hispanic, and Blacks respectively. With reference to the inter-racial disparities and using Blacks as the reference ethnic group, the differences were 97, 70, and 12.5 per cent for Asian, White, and Hispanic respectively at baseline. At the end line, and using the same methodology, the respective differences between the three populations when compared with the Black group were about 118, 69, and 24 per cent. A graph (not included) of poverty level distribution places the Black population at the top with the highest level of poverty, with the Asian and White communities switching and placing the White population as the least affected population by poverty. Why the switch? My take on this role reversal is that while Figure 1 highlights household income, it omits the intergeneration wealth transfers within the White population. 

Although attempts to find a similar recent figure for Canada were unsuccessful, The Conference Board of Canada released data in 2010 on the racial wage gap across the country (see Figure 2.). This report found that university-educated members of a visible minority who were born in Canada earned, on average, 87.4 cents for every dollar their Caucasian peers did. Similar to the more recent findings in the US shown in Figure 1, Canadian-born Asians fared better than their Latin American and Black counterparts. For example, those of Japanese ethnic ancestry earned, on average, 3.7 per cent more than their Caucasian peers. At the opposite end of the spectrum, those of Latin American ancestry earned, on average, 31.7 per cent less than their Caucasian counterparts — by far the widest gap in comparison to their Black, Arab, and Chinese peers who earned 19.6, 13, and 7.7 per cent less than Caucasian peers, respectively.  

There is a need to highlight that while the US graph was based on a longitudinal dimension and hence an illustration of a process, the Canadian picture was more cross-sectional, therefore, comparisons need to be interpreted carefully. However, we can see that findings from the same year (2010) were consistent, where Blacks and Hispanics/Latin Americans fared worse than their White/Caucasian and Asian counterparts. The take home here is that the Caucasians have, in general, outperformed other ethnicities with respect to financial inequality. 

It should also be noted that the inclusion of the racial groups listed in Figure 2 are based on Canada’s “visible minority” status. Data for Indigenous groups are not included since The Employment Equity Act, the source of the official definition, defines visible minorities as: “persons, other than Aboriginal persons, who are non-Caucasian in race or non-white in colour.” However, according to Sheila Block, a senior economist at the Canadian Centre for Policy Alternatives, the average total income in 2015 of Indigenous people was 75 per cent of non-Indigenous people (non-Caucasian in race or non-white in colour).

Given the current devastating effects of the COVID-19 pandemic, there is every reason to believe that similar data for 2020 will present a very grim picture of wealth distribution in Canada and globally. 

From a geographic perspective, the county with the highest inequality in the US is Milwaukee (38 per cent black) while the province of Quebec has the widest racial wage gap in Canada. Worldwide, South Africa (80 per cent black) remains the most unequal country. Quebec has the second highest Black population of all the provinces and territories according to Statistics Canada.

And what do they all have in common? In each case, blacks remain at the bottom of the economic ladder while Caucasians, at the top, continue to enjoy the benefits of their privileges. In South Africa specifically, apartheid has been transformed into a stealthy systemic and institutionalized racism (SIR). And in general, SIR has created an unacceptable level of poverty-driven households in these and many populations. In any shape or form, SIR is toxic, polarizing, contentious, disgusting, vicious, divisive and has no place in any society. 

Naming the Problem

In a joint commitment to take action against racism announced in June by the Canadian federal and provincial governments, Quebec was the only province that objected to the inclusion of the term “systemic racism.” The issue was brought into focus again when Joyce Echaquan, a mother of three from the Atikamekw First Nation, filmed two Quebec hospital nurses disparaging her as she lay in her bed shortly before dying. Although Quebec’s premier François Legault described the highly disturbing incident as “racist,” a Legault government spokesman said it would not debate the use of the term, despite public inquiry findings that documented discrimination against Indigenous people when receiving public services. Former minister of Indigenous affairs, Sylvie D’Amours, earned widespread criticism for failing to act on most of the report’s 142 recommendations.

During one of my conference trips a couple of years ago to Durban, South Africa, I decided to visit a neighbouring township (TS). Before the visit, my idea of what to expect was very fluid. I had requested my guide to take me to different sites where Blacks, Indians, and Whites lived. As it turned out, these populations were established within walking distance (I requested that we walk from one site to another). We started by visiting the Black township. Interestingly, once there, I found boarded, abandoned properties in disrepair with broken structures, trash spread everywhere even where there were bins, which were overflowing. The streets — where they existed — were full of potholes. And above all, a refinery spewing hazardous and toxic air pollutions was located right next to the community (The last time I experienced anything close to this environment was in a Black neighborhood in Jackson, Mississippi in the US. And how did I get there? I had gone to the municipal library to find out where the visitor attractions were. The staff (white) member I spoke to directed me to this neighbourhood!). As we walked through the Black TS, I told my guide that while I was not too surprised, my expectations were higher than what I witnessed. We then moved on to the Indian population township and what I saw was so conflicting with my earlier experience that I began to ask myself where they went so wrong. This was the complete opposite of what I had just seen in the Black community: clean neighborhood, planned and well-organized road signs and more. The devastating effects of this level of inequality was so compelling that I told my guide there was no need to visit the White township because I knew what to expect given the disparity between the Black and Indian communities.

Until we all empathize and unite, these types of racial challenges and disparities will continue to linger for a long time. Let’s continue the conversation and acknowledge that no one chooses their race and no one should be penalized for it! 


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