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New Data Points Reveal Disproportionate Financial Hardship in Black Households Across Michigan

Michigan Business Network
August 18, 2020 8:00 AM

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Michigan Association of United Ways releases data showing nearly two-thirds of Black households statewide are unable to afford basic needs

LANSING, MICH. – The Michigan Association of United Ways (MAUW) today released new ALICE (Asset Limited, Income Constrained, Employed) data, which shows 63% of Black households statewide are unable to make ends meet.

“Poverty and racism have been inextricably connected since this country’s inception, yet official federal statistics have never fully portrayed the economic impact of that link. The ALICE and Black Households Data clearly illustrates the inequities that are deeply rooted in our national, state, and local systems and institutions,” said MAUW CEO Mike Larson. “Through the release of this data, the Michigan Association of United Ways hopes to support the many efforts underway to dismantle racism, raise awareness, shift attitudes, and change outcomes. As an organization, we are committed to understanding and undoing racism in the communities we serve.”

Included here is an interview by MBN with Mike Larson:

The ALICE data indicates that 40 percent of all Michigan households did not earn enough to cover basic expenses in 2018, including housing, child care, food, transportation, health care, and a basic smartphone plan. The 63 percent of Black households falling below the ALICE Threshold was almost double that of white households—just 36 percent. The percentage of Black households unable to make ends meet is also almost three times higher than the antiquated Federal Poverty Level (FPL).

During the recovery from the Great Recession, outcomes didn’t improve for Black households. Instead, the number of Black households under the ALICE Threshold in Michigan increased by 11% from 2010 to 2018. The number of white households struggling to make ends meet increased by only 1% statewide during that time frame.

The data comes as United Ways across Michigan reinforce their commitment to race and equity, both in policy and in action. United Way Worldwide recently implemented the following benchmarks as membership requirements: develop, maintain and publicly post an organizational statement opposing all forms of racism; at least annually provide racial equity training for all board members and staff; and develop and use a racial equity funding criteria for all community investments.

Local United Ways statewide will launch a 21-Day Equity Challenge at www.miunitedwayequity.org on September 8. The challenge is a self-guided learning journey designed to deepen participants’ understanding of, and willingness to confront, racism. Participants will engage in a series of readings, videos, podcasts, and daily reflections as part of the program. The challenge facilitates an opportunity for participants to identify and commit to their actions to advance racial equity. 

United For ALICE was founded on the need to more accurately measure and track financial hardship nationwide. For more than a decade, its research has been shedding light on the disparity of economic opportunity that exists in every state. The Michigan Association of United Ways releases a study on the condition of Michigan’s working families, which it has dubbed ALICE households, every two years. The “ALICE and Black Households Data” is an analysis of new data points from 2018.

 

For more information about the Michigan Association of United Ways, visit www.uwmich.org.

 

About Michigan Association of United Ways
Michigan Association of United Ways (MAUW) is a partner in developing powerful responses to current and emerging issues in local communities. The State Association provides leadership in policy influence and capacity building to affect positive change. MAUW serves approximately 35 local United Ways that represent the largest network of non-governmental service providers and service funders in Michigan, collectively raising and distributing significant resources to support local health and human service organizations.

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Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.