In Which Majority-Minority State Are Blacks Doing The Best? California, New Mexico, Texas or Hawaii?

June 22, 2015  |  

By 2044, experts say the United States will become a “majority-minority” nation — the share of Whites will dip down to 49.7 percent. Currently, four states model this theory: California, Hawaii, New Mexico, and Texas. And it’s Hawaii, according to Forbes, where Black Americans are doing the best financially.

According to the Supplemental Poverty Measure (SPM) rate, which analyzed American wellness from 2011 to 2013, the national poverty rate sits at 15.9 percent: Whites have an average SPM rate of 10.7 percent while Blacks have an average SPM rate of 24.7 percent.

Focusing on the majority-minority states, the SPM rate for California, Hawaii, and New Mexico is above the national average at 23.4 percent, 18.4 percent, and 16 percent, respectively.

The steep costs of housing, especially in Hawaii and California, drove the poverty rate right up, Forbes said.

Texas is the only one that pulled a 15.9 percent poverty rating, right at the national average:

“Texas is the only majority-minority state where America’s four largest racial or ethnic groups all enjoy a Supplemental Poverty rate that’s below the national average [of their own racial cohort],” Forbes said.

As aforementioned, the national poverty rate for Blacks hovers at around a quarter of the population. In Texas, that number dips down to 19.9 percent. The Latino national SPM is 26 percent, but slumps to 22.7 percent in Texas. For Asians, their national SPM is 16.4 percent, but falls to 14.1 percent in the Lone Star state.

Still, zooming in on Blacks, Texas isn’t the best state for African-Americans financially, according to Forbes. It’s Hawaii.

The Aloha state has the lowest SPM rate for Blacks, out of the four majority-minority states, at 17.9 percent. This is 6.8 percentage points lower than the Black national average.

Forbes said that it is important to examine the poverty rate of the four majority-minority states because, with the U.S. on track for Whites to lose its majority status by 2044, it’s useful to analyze California, New Mexico, Hawaii, and Texas for “applicable lessons in governance.”

“The Texas model of governance—low taxes, less regulation, and lawsuit reform—results in more prosperity and less poverty for all,”Forbes concludes.

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