Hi all,

I don't _think_ it's been mentioned yet that redlining
was a big part of the FHA initiatives after WWII.  FHA
loans essentially lifted a lot of white people into
the middle class, but left most people of color out in
the cold, rather like the GI Bill.  (It has been
argued that the main way that large numbers of people
build wealth in a given period is as a result of
government "bonanzas", whether in the shape of the
Homestead Act, the GI Bill, or government-supported
investment opportunities, all of which have, so far,
been geared toward white people and, latterly, middle
class people.)   Additionally, the FHA programs of the
period were biased towards new construction in the
suburbs--that is, the FHA ranked neighborhoods based
on factors like age of buildings as well as by race
and ethnicity.  FHA loans were much less available for
rehabbing old buildings in the city or building on
more expensive land there--it was much harder to
qualify for a loan to fix up a city house than to get
a loan to build one in the suburbs.  

Why?  Fifties suburbanization, lack of understanding
of the awfulness of car culture, powerful
road-building lobbies, belief that cities were hotbeds
of sedition and free love, racist dislike of the
larger populations of people of color who had moved to
cities to work in war industries, and the fact that
the cities had really been decaying since the start of
the Depression and were rather grim to look at.  (and
certainly other factors)

There are a couple of terrific, pop books on these
topics:  Crabgrass Frontier (whose author I forget)
and The Geography of Nowhere, by Somebody Kunstler.  

To jump forward a couple of decades, in the seventies
there was pretty definitely an internal HUD policy of
letting the inner cities deteriorate on the theory
that they were too hard to fix and anyway the middle
classes (read white people) would eventually gentrify
the areas at no cost to the feds.  There was actually
a memo to this effect which was supressed but leaked
out eventually.


I will now return to lurking, hoping that this above
has not been too redundant.

Best, 
Jane Franklin


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