Ann Baddour of Texas Appleseed presented on the organizational needs of economic opportunity at the 2013 Texas Latino Policy Summit.

1. Changing The Tide for Texas Latinos:
Building Wealth after the “Great Recession”

2. Latinos Left Out of the “Texas Miracle”?
“Since the recent economic
recession ended, Texas has
been responsible for 48
percent of all the jobs
created in America.
And yet, the Hispanic
population is not
participating in our
economic prosperity in
proportion to its weight in
the Texas census.”
--Richard W. Fisher, President of the
Federal Reserve Bank of Dallas

3. Significant Wealth Gap Persists
Latino median
household wealth fell
66%, 2005-2009
 $6,325 compared to
$113,149 for White
households
Decreasing Median Household Income 1999-2012
Income Gap Unchanged
Latino families have
four times poverty rate
of White families,
24% vs. 6%
Despite challenges, 40%
rise in Latino small
businesses, 2002-2007.
*Source: Pew Hispanic Center, 2012 American
Community Survey, Survey of Business Owners.
Source: 2000 U.S. Census and 2012 American Community Survey. Data in
2012 dollars.

4. Closing the Gap
Building People,
Stopping the Wealth Drain
•Developing human capital and promoting
growth of living wage jobs.
•Encouraging financial services that profit
based on borrower success.

5. A Small Crisis Can Lead to a Big Debt…
The Highest Cost Loan Options are Proliferating in Texas
The Cost of a 6-Month $500 Loan
Est. Annual
Loan Type
Percentage Rate
Amount
Borrowed
Amount Re-paid
10%
Bank/Credit
Union
$500
$514
100%
Finance
Company
$500
$655
600%
Payday/Auto Title $500
$1,640

6. …And A Cycle of Financial Stress

7. A Policy Agenda: Regulation and
Innovation
1. Texas must rein in abusive consumer
lending, or the wealth drain will continue.
Leverage local, state and federal opportunities.
2. Adopt policies and programs to encourage
positive market innovations.
 New loan program saved 1800 families $1.3
million and is building positive credit history.
 Immigration loan program for mixed status
families generated thousands in EITC refunds.

8. Contact Information
www.texasappleseed.net
Ann Baddour
Senior Policy Analyst
Tel: 512-473-2800x104
abaddour@texasappleseed.net