Chicago City Wire

Steve Cortes, president of the League of American Workers, said that household wealth, particularly for Black Americans, significantly declined during Barack Obama's presidency. This assertion was made during an interview.

"It's a massive problem and made far, far worse by Obama," said Cortes. "A lot of poor white people really suffered under the leadership of Barack Obama. According to Federal Reserve data, black Americans during the Obama presidency lost 30% of their net worth, 30%. It was actually, it was the worst period in terms of total net worth, it was the worst eight year period in American history, even worse than the Great Depression."

During Obama's presidency, overall U.S. household net worth increased following the Great Recession; however, these gains were primarily concentrated among the wealthiest families. The Federal Reserve reported that by 2015, the top 1% had increased their share of wealth to 42%, while the bottom 50% saw their share fall to just over 1%. This data highlights how the recovery disproportionately benefited asset holders and widened gaps between income groups.

According to the Federal Reserve’s Survey of Consumer Finances, in 2016, the median wealth of Black families was $17,600 compared to $171,000 for white families. This disparity indicates that Black households held about one-tenth of the wealth of white households. Between 2009 and 2016, Black wealth levels remained largely stagnant, emphasizing structural barriers to asset accumulation during the recovery.

The Great Depression caused GDP to fall nearly 30% and the stock market to lose almost 90% of its value from 1929 to 1932. In contrast, the 2008 financial crisis resulted in a U.S. per capita income drop of only 5% before rebounding within six years. Economists note that while the Obama-era recession was severe, it was far less devastating than the Depression's collapse. This comparison illustrates the scale of recovery under Obama relative to historic downturns.

Cortes is a former financial markets strategist and television commentator who spent decades trading global assets before serving as Chief Strategist at BGC Partners. He later became a frequent guest on CNBC, CNN, Fox News, and Newsmax and served as a senior advisor to Donald Trump’s campaigns in both 2016 and 2020 with a focus on Hispanic outreach. He currently holds positions as president of the League of American Workers and senior advisor for CatholicVote.