I agree with David S. that redlining is not just a matter of laziness.  
Insurers or 
lenders with a large base of business do not have adequate contact to do an 
in-depth 
analysis of each individual involved in a potential transaction.  Redlining 
creates a 
quick and dirty way of making a decision -- a kind of efficiency.

Of course, the extra cost and other barriers created by this redlining will 
mire the 
people affected deeper into the poverty that caused their statistical ranking 
in the 
first place.

Teachers make similar calculations.  Knowing that a smaller percentage of black 
children in previous years have done poorly, they have low expectations of 
these 
children, ensuring that quite a few of the next generation will do poorly.

In both cases, you have people making a decision on a statistical basis, which 
ensures a certain stability over time to this kind of observation.  Because of 
redlining and teachers' bias, a cycle of poverty will increase.

Like most things in the capitalist system, calculations that make sense on an 
individual basis can be destructive socially.

What I have said here does not take into account the fairly common practice of 
taking 
advantage of people, by discriminating against people who do not have the 
statistical 
characteristics other than race, which could justify the more onerous 
conditions 
associated with redlining.



-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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