Executive Summary

People across America have been hit hard by the recession. Recent job figures – that “only” 11,000 jobs were lost in a month – have economists proclaiming the end of the downturn. The newest data from the U.S. Bureau of Labor Statistics (BLS), the U.S. Census Bureau (Census), and the Department of Housing and Urban Development (HUD) are less promising. They show that a large segment of the nation's population is being left out of the recovery generated by the American Recovery and Reinvestment Act (or “Stimulus”). We must make sure that these excluded communities benefit from new rounds of federal job creation, infrastructure, and small business investment strategies.

All communities need jobs and we need to make sure all communities recover. That won’t happen unless we understand who has been hit hardest by the recession and why. CSI’s research shows that Mississippi is a hard hit state, ranking 14 on our index of the recession’s impact.

The subprime lending crisis hurt us all, but is rooted in discriminatory lending

The subprime lending crisis – and the foreclosure crisis that came in its wake – tore down our whole economy and is affecting every community. But instead of blaming exploitative banks and other predatory lenders, many are faulting the borrowers who were taken advantage of. Unfortunately, the crisis disproportionately hurt people of color. Several studies have shown discrimination in the mortgage market. Nationally, Black and Latino borrowers earning over $350,000 were more likely to receive subprime loans than White borrowers earning under $50,000 a year. Our research shows that the housing crisis is also having a disproportionate impact on people of color in Mississippi.

• During the height of the subprime (2004-2006) boom, banks and other lenders made 72,866 subprime mortgages in Mississippi.


• By August 2008, lenders began foreclosure on an estimated 26,856 homes (or 5.2% of all mortgages) in Mississippi.


• Communities of color have the highest subprime lending and foreclosure rates.


• Between 2007 and 2008, homeownership rates dropped further for Black Mississippians (down 2.8%) than for Whites (down 0.5%).

People of color are hit hardest by job losses

People of color are more likely to end up in low wage service sector jobs and confront practical obstacles to employment such as living far from job centers. These forces contribute to the troubling numbers coming out in the latest economic reports.

Our analysis of Census and BLS data reveal people of color have been the most severely affected by job losses, freezing up their purchasing power and slowing the economic engine for the country as a whole. The condition of Black workers in Mississippi highlights this national trend. Mississippi Communities hardest-hit by rising unemployment are also struggling with health care, because a lost job often means lost health insurance.

• CSI’s Recession Impact Index shows Mississippi is one of the hardest-hit states in the country.


• Unemployment among Black Mississippians is skyrocketing.


• Poverty is alarmingly high for Black children.


• Rates of health insurance coverage continue to be lowest for people of color.

Stimulus is working, but can and should do more to help the hardest-hit

Stimulus has helped the economy. It is also supposed to help hardest -hit communities the most. Recent statistics suggest prompt action must be taken by federal, state, and local governments to ensure stimulus spending priorities, or any “Stimulus 2.0” fulfill that promise.

• Target the hardest-hit in any second round of stimulus


• Reporting precise locations for all Recovery Act-funded projects


• Track specific information (such as demographics and geography) about employed individuals

Click here for the press release.