OneWorld.net (U.S.)

OneWorld.net note: Women -- particularly low-income women and women of color -- will likely bear the brunt of the spiralling U.S. economic crisis, writes women's economic development expert Sara Gould.

• "Poverty has a woman's face." Speaking out in Kenya, March 2007. © subcomandanta (flickr)Minority communities are also suffering disproportionately at the hands of the U.S. mortgage crisis, says a report printed on the New America Media Web site. "United for a Fair Economy estimates that the total loss of wealth for non-Whites will equal $164 billion to $213 billion for subprime loans over the past eight years. Blacks have lost $71 billion to $92 billion and Latinos lost $75 billion and $98 billion with foreclosures and falling home values," the report notes.

• The United States' current record-breaking rates of mortgage foreclosure will [also] directly impact 2 million children this year and next, according to a recent report from First Focus, a bipartisan child advocacy organization.

Ms. Foundation for Women President Sara Gould Points to Economic Crisis' Impact on Women

From: Ms. Foundation for Women

Erin Smith

September 18, 2008

Amidst the emphasis on solving the economic crisis facing Wall Street, the crisis crippling women and their families on Main Street continues unabated.

"Even at the beginning of the economic downturn, more women than men, and more African Americans and Latinos than whites, were caught in the sub-prime mortgage trap. Now that the crisis has escalated, we must expect that the negative repercussions for women -- especially women of color -- will escalate as well," notes Sara K. Gould, President and CEO of the Ms. Foundation for Women.

An expert in women's economic development, Ms. Gould has decades of experience spearheading cutting-edge solutions to promote women's economic security. She is available to discuss how the plummeting economy will further threaten millions of women whose lives already hang in the balance.

Gould, who was just named to the NonProfit Times Top 50 Power and Influence List for her visionary leadership in economic development, states, "Women in the U.S. are playing with the economic deck stacked against them. Taking into account longstanding pay inequities, insidious barriers to employment, record levels of inflation and ever-increasing childcare expenses, women and their families are struggling to keep up and get by. For women who confront the additional barriers of race and class, the obstacles are much greater and the economic straits even worse.

"The current instability roiling Wall Street's markets will lead to an increasingly dire economic situation for women. This is especially true for low-income women, women of color, single mothers and others who have long experienced the disproportionate impact of flawed economic policies."

Women faced challenges to their economic security long before the recent turmoil in the stock markets.

• The gender-wage ratio has not improved since 2001. Women are still paid only 77 cents for every dollar a man makes. The disparity is even greater for women of color: African-American women make 62 cents and Latinas make only 53 cents for every dollar of male earnings. [1]
• Women comprise the majority of low-wage workers: Women accounted for 68.2% of minimum-wage and below-minimum-wage workers in 2007. [2]
• Most poor Americans are women and children, with women comprising a full 39%, children, 35%; and men, 26%. [3]
• Accounting for 37% of families in poverty, the poverty rate for single female-headed households is higher than any other demographic group. [4]

The current economic downturn will impact low-income women and their families the hardest, and drive even more into poverty.

• Already, the sub-prime mortgage crisis is taking a higher toll on women -- especially women of color. 32% of women hold sub-prime mortgages vs. 24% of men; and African American and Latino homeowners were 30% more likely to have received sub-prime loans. [5]
• Poverty rates increase during economic downturns. With the increasing costs of even basic necessities of food, transportation and energy, the number of poor families is growing. [6]
• Once a family has fallen into it, poverty is difficult to escape. An estimated 60% of families that are in the bottom fifth of income remain there a decade later. [7]

Ms. Gould continues, "Across the U.S., women are too well-acquainted with poverty and economic insecurity. Because they know these challenges personally, however, they are often best positioned to develop the most effective strategies to address them.

"Women must be better represented at policy tables; their perspectives and leadership are crucial to bring about long-term economic stability and well-being -- for women, families and communities. So as we hold key members of the public and private sector accountable for our country's worsening economic disaster, let's turn to women driving change at local, state and national levels for economic-justice solutions."

About Sara K. Gould:
Ms. Gould is a national authority on women's economic development and economic security, and a groundbreaking innovator in philanthropy. Ms. Gould was named to the NonProfit Times 2008 Top 50 Power and Influence List for her visionary leadership in advancing women's economic security, in particular her founding of the Collaborative Fund for Women's Economic Development, a pioneering grant-making initiative which leveraged over $10 million in the field of women's microenterprise development in the United States.

To read more about the economic crisis' disproportionate impact on women, visit the Ms. Foundation for Women.