’WPC# ¼xō] 9ļĘc{ō×&į„PIą)›že$ ó˜Ž 9ļ#Žųžą ūR®ŪźžõaµĀ…fՄ}*G-FŹה_złÆj ~ņTÅęT¾÷\ö‚Ŗ“¦ö[TĶÆE:š„R*Ō${&‚­2ZĆŗĀß– ²ģ®_Lf~Äń›Ģæj ¾ ‘¬ę„cŚŅR*-뵚zm6øƒ¬Į:ŁxµŠq:LN2N0ØN¢6CīŖŪ¢Ŗķ˜LK†ķG+ųc y.)%;&&—éŖ$²¢cüŁmʽhž†7†‹¾Ožķ«›ųĖ–3¬eHęb£.9L¤ō”øµóv jĖz[ ÆopQēżYo¤äz?ܗYņˆĀ£Ą¾tōŸū})u¤Ž@ī¼ÅæXGŽo”qŠJ}j\«}öaē¼/š.@#Ē60$’—Kō KD0žÖč([i*~“]̧ĘćiLI 6޵ˆ0«z~ ¤Ž”G>LpIź²3–/ņø Kģ“ó½ėŽ’Ļ` °>Ięł±jd¹źIuūI/#|pä­BóŽN\=ŅŲv,ƒmŒ" łŽf ŻYś ƒZ#įŅŁ†•± #ɶUN %Ķ 0:ÓN ^ w43B mDČ[˜HP LaserJet 5ČČ,,,,ČČ0(ÖĆ9 Z‹6Times New Roman RegularX(üœ$””ŌUSUS.,Ōćk5ó Ąr(3ź:i¢×+003|x ’U‹’ĄĄĄ nonblackcolorblindHerrnsteinDineshD'Souzaching$anticonservativefilmmakersŻ ƒüœ!ŻŌUSUS.,ŌŻ  ŻŌ_Ōņ ņą@# # ģąThe€Political€Economy€of€Hope€and€Fearó óˆŠ ° ŠĢą@| | ģąCapitalism€and€the€Black€Condition€in€AmericaˆŠ ˆŲ ŠĢą@ÜÜ"ģąŌ_ŌMarcellusŌ_Ō€AndrewsˆŠ `° ŠĢNew€York€University€Press€(1999)Š 8 ˆ ŠĢA€€€PREFACE€€€€IN€€€THREE€€€€PARTSŠ  ` ŠIŠ ü L  ŠÓ  Óņ ņEconomics€as€a€Razoró óŠ č 8  ŠÓÅÓThis€book€is€one€economist's€meditation€on€the€economic€fortunes€of€black€Americans€in€theŠ Ō$  Štwilight€of€the€Civil€Rights€movement.€The€limits€of€the€Civil€Rights€dream€in€America€are€noŠ Ą  Šlonger€in€doubt.€As€long€as€basic€questions€of€social€justice€remain€in€the€shadows,€genuine€racialŠ ¬ü  Šreconciliation€between€blacks€and€whites€is€not€likely€in€this€country,€despite€the€curious€talkŠ ˜č  Šabout€Ō_ŌcolorblindnessŌ_Ō€that€is€in€vogue€among€conservatives€these€days.€The€movement€towardŠ „Ō  Šracial€equality€has€faltered€because€Americans€are€uncertain€about€whether€they€really€want€toŠ pĄ Šcreate€a€society€that€offers€genuine€equality€of€opportunity€across€color€lines,€much€less€basicŠ \¬ Šsecurity€against€poverty.€The€problem€is€that€social€class€is€a€taboo€subject€among€AmericansŠ H˜ Šsince€it€is€at€odds€with€one€of€our€most€cherished€and€ludicrous€national€myths,€namely,€that€eachŠ 4„ Šindividual€is€solely€responsible€for€his€or€her€good€or€ill€fortune€in€life.€The€condition€of€blackŠ  p Špeople€in€America€is€an€embarrassment€for€those€politicians,€pundits,€preacher^,€and€worriedŠ  \ Šcitizens€who€desperately€want€to€believe€this€lie€because€it€is€all€too€clear€that€past€abuse€andŠ ųH Šcurrent€inequality€can€ruin€innocent€lives,€thereby€mocking€all€those€who€say€that€blacks€areŠ ä4 Špoor,€dysfunctional,€or€intellectual€failures€because€they€have€bad€genes€or€bad€cultures.Š Š  ŠHowever,€the€"black€problem"€in€modern€America€is€complicated€because€there€is€no€simpleŠ ¼  Šconnection€between€color€and€economic€well-being.€The€presence€of€a€thriving€black€middleŠ Øų Šclass€and€a€seemingly€permanent€black€underclass€are€evidence€that€the€Civil€Rights€dream€bothŠ ”ä Šsucceeded€and€failed€in€transforming€American€life.€Black€athletes,€actors,€entertainers,€artists,Š €Š Šand€writers€have€won€wide€acclaim€among€some€segments€of€nonblack€America€at€the€same€timeŠ l¼ Šthat€an€unprecedented€number€of€black€men€(1.7€million€in€1997,€or€approximately€7%€of€theŠ X Ø Šblack€male€population)€fill€the€nation's€prisons€andŠ D!” ŠĢą@ŗŗ*ģą1ˆŠ #l! ŠĢA€Preface€in€Three€PartsŠ ō$D # Šjails.€The€plight€of€poor€black€women€is€used€by€rightist€scribblers€and€political€hustlers€for€funŠ ą%0!$ Šand€profit€as€a€symbol€of€the€feckless€nature€of€the€race€(we€will€have€a€great€deal€to€say€aboutŠ Ģ&"% Šthese€"conservatives"€below).€Politicians€and€thinkers€use€Martin€Luther€King's€words€about€theŠ ø'#& Šcoming€of€a€colorblind€society€to€eliminate€all€forms€of€race-based€affirmative€action€in€collegeŠ ¤(ō#' Šadmissions€and€employment,€at€the€same€time€that€residential€segregation€tightly€links€race€andŠ )ą$( Šeducational€opportunity€and€major€newspapers€tell€grim€stories€of€routine€racial€discrimination€atŠ |*Ģ%) Šmajor€Fortune€500€companies.€In€the€spring€of€1998,€a€black€man€in€Jasper,€Texas,€was€literallyŠ h+ø&* Šdismembered€when€a€trio€of€white€men€tied€him€to€the€back€of€their€truck€and€dragged€him€forŠ T,¤'+ Štwo€miles€across€country€roads,€severing€his€head€from€his€body€and€tearing€the€rest€of€his€bodyŠ @-(, Šinto€seventy-five€pieces.€Blacks€are€still€poorer,€sicker,€less€well€educated,€and€die€younger€thanŠ ° Šwhites,€despite€all€the€talk€of€progress€by€"conservative"€writers.€Blacks€are€deeply€ambivalentŠ œģ Šabout€the€legitimacy€of€the€police€and€courts€in€their€lives,€despite€the€fact€that€they€are€also€farŠ ˆŲ Šmore€likely€to€be€victims€of€crime€than€whites,€because€they€are€subjected€to€all€manner€of€racialŠ tÄ Šabuse€by€the€people€sworn€to€protect€them€from€abuse.€It€is€fair€to€say€that€this€state€of€affairs€isŠ `° Šnot€what€Martin€Luther€King€had€in€mind.Š L œ ŠThe€important€question€for€us€is€not€whether€the€Civil€Rights€movement€ended€in€America,€butŠ 8 ˆ Šhow€economic€forces€have€placed€obstacles€in€the€way€of€the€nation's€journey€toward€racialŠ $ t Šjustice.€It€is€important€to€remember€that€the€Civil€Rights€movement,€like€any€social€movement,Š  ` Šwas€bound€to€fade€away€someday.€Had€genuine€racial€reconciliation€happened€in€America,€theŠ ü L  Š"movement"€would€have€faded€away€as€blacks€and€whites€faced€each€other€as€friends,€neighbors,Š č 8  Šlovers,€business€rivals,€students,€teachers,€and€eventually,€family€members€in€a€post-racial€order.Š Ō$  ŠThe€death€of€color€and€race€as€standards€for€judging€the€worth€of€human€beings€would€have€alsoŠ Ą  Šmeant€the€end€of€any€and€all€forms€of€color€preference€in€school€admissions,€hiring,€promotions,Š ¬ü  Šelections,€and€other€areas€of€public€life.€Of€course,€in€the€dream€world€of€Martin€Luther€King,Š ˜č  Šcolorblind€public€policy€would€simply€follow€the€spread€of€colorblind€ways€of€living€andŠ „Ō  Šworking€in€society.€But€color€is€still€a€central€force€in€American€life,€poisoning€many€of€ourŠ pĄ Šdealings€with€each€other€because€we€cannot€face€the€hideous€legacy€of€American€racism.Š \¬ ŠThis€book€uses€economic€analysis€as€an€intellectual€scalpel€to€conductŠ H˜ ŠĢą@ŗŗ*ģą2ˆŠ  p ŠĢĢA€Preface€in€Three€PartsŠ ä4 Šan€economic€audit€of€the€Civil€Rights€movement€which€shows€that€the€movement€toward€racialŠ Š  Šjustice€in€America€was€assassinated€by€free€markets€and€the€technological€whirlwind€drivingŠ ¼  Šcapitalism€worldwide€rather€than€by€organized€racism€per€se.€Racism€is€still€an€important€andŠ Øų Šdestructive€influence€on€the€economic€fortunes€of€black€people€in€America,€but€it€is€no€longer€theŠ ”ä Šprimary€reason€why€black€people€are€poorer€than€white€people.€Put€bluntly,€black€Americans€areŠ €Š Šgenerally€poorer€than€white€Americans€because€capitalism€and€racism€combine€to€limit€theirŠ l¼ Šaccess€to€education€and€knowledge,€which€in€turn€blocks€their€access€to€good€jobs,€decent€healthŠ X Ø Šcare,€safe€neighborhoods,€and€good€lives.€However,€racism€only€abets€the€more€basic€problem:Š D!” Šblack€people€are€poor€now€because€they€were€so€badly€discriminated€against€by€historicŠ 0"€  ŠAmerican€racism€that€they€were€unprepared€for€the€sea€change€in€the€American€and€worldŠ #l! Šeconomy€that€has€utterly€transformed€our€lives€over€the€past€three€decades.€Black€people€wereŠ $X" Šcompletely€unprepared€for,€and€unable€to€take€advantage€of,€the€shift€in€the€structure€of€theŠ ō$D # ŠAmerican€economy€toward€a€knowledge-€and€technology-driven€system€that€offers€huge€rewardsŠ ą%0!$ Što€brains€over€brawn,€because€they€remain€an€industrial€labor€force€in€a€post-industrial€country.Š Ģ&"% ŠEven€if€every€racist€white€person€in€this€country€had€a€change€of€heart€or€moved€abroad,€mostŠ ø'#& Špoor€black€people€would€be€exactly€where€they€are€right€now€in€the€absence€of€major€changes€inŠ ¤(ō#' Šgovernment€policy€to€address€issues€of€poverty€and€economic€inequality€across€color€lines.Š )ą$( ŠOur€economic€audit€of€American€racial€inequality€will€proceed€in€two€stages.€First,€we€present€aŠ |*Ģ%) Šbrief€but€comprehensive€portrait€of€the€economic€status€of€black€Americans€since€the€mid-1960sŠ h+ø&* Šin€order€to€orient€ourselves€and€establish€pertinent€facts€that€then€guide€our€succeedingŠ T,¤'+ Šdiscussions.€For€example,€most€Americans€know€that€black€Americans€are,€on€average,€poorerŠ @-(, Šthan€white€Americans,€though€surprisingly€few€seem€to€know€that€the€largest€group€of€poorŠ ° Špeople€in€this€country€(in€absolute€terms)€is€non-Hispanic€whites.€In€1996,€a€little€over€36.4Š œģ Šmillion€Americans€lived€in€poverty,€as€defined€by€the€official€poverty€line.€Of€these,€16.46Š ˆŲ Šmillion€were€non-Hispanic€whites€(45.06%€of€the€total€poverty€population),€8.18€million€wereŠ tÄ Šwhite€and€Hispanic€(22.4%€of€the€total),€9.69€were€black€(26.5%€of€the€total),€and€1.45€millionŠ `° Šwere€Asian€(4.06%€of€the€total).€At€the€same€time,€non-Hispanic€whites€were€8.6%€of€the€totalŠ L œ Šwhite€population€in€1996;€poor€blacks€wereŠ 8 ˆ Šą@ŗŗ*ģą3ˆŠ $ t ŠĢĢ28.4%€of€all€blacks€(the€lowest€black€poverty€rate€in€American€history);€poor€Hispanics€(of€allŠ č 8  Šraces)€were€29.4%€of€all€Hispanics;€poor€Asians€were€14.5%€of€all€Asians.€These€data€tell€us€aŠ Ō$  Šnumber€of€important€things€that€get€lost€in€discussions€about€race€in€this€country:Š Ą  Š1.€There€are€a€lot€of€poor€white€people€in€America,€so€many€in€fact€that€one€wonders€how€weŠ ¬ü  Šmanage€to€ignore€them;Š ˜č  Š2.€Though€there€are€more€white€people€than€black€people,€black€people€suffer€higher€povertyŠ „Ō  Šrates€than€white€people,€while€Hispanics€have€higher€poverty€rates€than€blacks;Š pĄ Š3.€The€"model€minority"€myth€tends€to€blind€us€all€to€the€feet€that€Asians€are,€as€a€group,Š \¬ Šsignificantly€poorer€than€whites,€though€not€as€poor€as€blacks€or€Hispanics.Š H˜ ŠThis€sort€of€information€is€very€important,€but€it€can't€tell€you€very€much€in€the€absence€of€anŠ 4„ Šanalysis€of€the€origins€of€inequality€in€a€capitalist€society€and€the€relationship€between€racism€andŠ  p Šfree€markets.€Therefore,€our€second€task€is€to€explore€modem€economic€theory€in€order€to€presentŠ  \ Ša€coherent€analytical€scheme€that€can€tie€the€facts€together€into€a€meaningful€portrait€of€the€linkŠ ųH Šbetween€color€and€economic€well-being€in€America.€This€will€require€us€to€dip€into€pieces€ofŠ ä4 Šeconomic€analysis€{though€without€the€mathematics,€cloudy€jargon€and€bad€prose€that€all€tooŠ Š  Šfrequently€get€in€the€way€of€broad€economic€literacy)€in€order€to€benefit€from€the€considerableŠ ¼  Šinsights€of€economists€in€these€matters.€One€of€the€rewards€of€these€brief€excursions€intoŠ Øų Šeconomic€thinking€will€be€that€we€can€learn€how€not€to€be€fooled€by€economists,€and€especiallyŠ ”ä Šby€popular€writers€who€falsely€(but€profitably)€pose€as€social€thinkers€whose€writing€has€such€aŠ €Š Šterrible€effect€on€public€discussions€on€race.€The€general€public€is€eager€for€simple,€clear€answersŠ l¼ Što€difficult€social€dilemmas€like€the€apparent€link€between€race€and€poverty€just€noted€above.Š X Ø ŠSince€America€is€a€capitalist€country,€a€large€demand€for€answers€to€pressing€social€problems,Š D!” Šbacked€up€by€significant€amounts€of€consumer€spending€on€popular€books,€encourages€writers€ofŠ 0"€  Ševen€doubtful€intellectual€or€moral€legitimacy€to€try€their€hand€at€crafting€simple€answers€toŠ #l! Šcomplex€questions,€for€a€price,€even€if€the€problems€under€review€have€no€simple€answers,€orŠ $X" Šmaybe€no€answers€at€all.€Two€particularly€popular€current€approaches€to€the€problem€of€racialŠ ō$D # Šinequality€in€modern€times€have€filled€this€void,€motivatedŠ ą%0!$ ŠĢą@ŗŗ*ģą4ˆŠ ø'#& ŠĢA€Preface€in€Three€PartsŠ )ą$( Šby€the€possibility€of€profit.€The€first€notion€is€that€black€people€are€an€intellectually€inferiorŠ |*Ģ%) Šsubspecies€that€is€short€of€brain€power€for€biological€reasons.€This€rather€old,€and€franklyŠ h+ø&* Šembarrassingly€shallow€explanation€has€recently€been€peddled€by€Charles€Murray€and€the€lateŠ T,¤'+ ŠRichard€Herrnstein€in€their€notorious€tome€The€Bell€Curve,€which€is€sure€to€become€knownŠ @-(, Šamong€future€generations€as€a€landmark€contribution€to€American€racist€literature.€The€secondŠ ° Šoffering€in€the€simple-but-neat€explanation€of€racial€inequality,€and€especially€black€poverty,€isŠ œģ ŠDinesh€D'Souza's€long€and€cheeky€book€The€End€of€Racism,€which€manages€to€snarl€at€blackŠ ˆŲ Špeople€as€the€worthless€spawn€of€a€morally€and€intellectually€defective€"culture,"€while€piouslyŠ tÄ Šinsisting€that€the€author€is€an€objective,€colorblind€truth€sayer€whose€love€of€America€requiresŠ `° Šstraight€talk€about€THOSE€people.Š L œ ŠEconomic€analysis€is€the€perfect€tool€for€breaking€these€fables€apart,€thereby€exposing€the€logicalŠ 8 ˆ Šflaws€and€leaps€into€the€lunar€side€of€some€right-wing€racist€subculture€that€hold€theseŠ $ t Š"arguments"€together.€These€books€should€be€deep€embarrassments€to€their€publisher€(though€theŠ  ` Š"ka-ching"€of€the€cash€register€can€apparently€assuage€guilt€over€peddling€this€sort€of€antiblackŠ ü L  Šfilth)€and€are€further€proof€that€there€is€not€much€relationship€between€the€intellectual€merits€ofŠ č 8  Šan€argument€and€its€popularity.€Sadly,€we€must€consider€the€arguments€of€these€volumes€in€someŠ Ō$  Šdetail€because€one€or€another€variant€of€each€is€popular€with€the€public,€the€politicians,€and€theŠ Ą  Šmedia.Š ¬ü  ŠSimple-minded€arguments€about€race€and€inequality€crowd€out€more€complex€analyses,€therebyŠ ˜č  Šrelieving€the€public€of€the€need€to€think€deeply€about€hard€things,€or€worse,€face€up€to€theŠ „Ō  Špossibility€that€the€social€system€we€cherish€is€basically€unfair€to€poor€people€and€black€people€inŠ pĄ Šways€that€cannot€be€wished€away€or€painlessly€changed.€Yet,€complex€arguments€are€usuallyŠ \¬ Šrather€boring€to€attend€to,€with€the€result€that€they€rarely€get€much€of€a€hearing€even€if€they€areŠ H˜ Šusually€right.€One€of€our€primary€tasks€is€to€replace€racist€screeds€like€The€Bell€Curve€and€TheŠ 4„ ŠEnd€of€Racism€with€sound€economic€arguments€that€are€relatively€simple€to€understand€and€yetŠ  p Šserious€enough€to€encompass€divergent€points€of€view.€However,€the€reader€should€know€thatŠ  \ Šthis€essay€will€not€end€with€easy€or€happy€prescriptions€about€how€black€people€are€the€saintlyŠ ųH Švictims€of€evil€white€people€in€bad€capitalist€America.€Instead,€we€will€see€why€the€capitalistŠ ä4 Šrules€of€the€game€inŠ Š  ŠĢą@ŗŗ*ģą5ˆŠ Øų ŠĢĢA€Preface€in€Three€PansŠ l¼ ŠAmerica€have€necessarily€compounded€the€suffering€of€so€many€blacks€while€offering€otherŠ X Ø Šblacks€more€opportunities€than€they€have€ever€had.€This€is€not€an€encyclopedic€review€ofŠ D!” Šeconomists'€writings€about€race.€A€number€of€journal€articles,€textbooks,€and€treatises€give€aŠ 0"€  Šgood€account€of€the€diversity€of€perspectives€among€economists€on€these€matters.€Instead,€thisŠ #l! Šbook€draws€on€the€work€of€economists€and€other€social€thinkers€to€provide€a€coherent€andŠ $X" Šintellectually€respectable€account€of€the€relationship€between€color€and€economic€well-being€toŠ ō$D # Šan€intelligent,€curious^€but€perhaps€economically€naive€reader.€Our€goal€is€to€paint€anŠ ą%0!$ Šintellectually€defensibleš"šand€decidedly€anticonservativeš"š€picture€of€the€complicated€tiesŠ Ģ&"% Šbetween€race€and€economic€well-being€in€late€twentieth-century€America,€Very€little€of€theŠ ø'#& Šsubstance€of€the€essay€will€be€new€to€economists€(though€the€mathematical€models€of€theŠ ¤(ō#' Šlong-term€consequences€of€racial€discrimination€for€permanent€inequality€across€color€lines€afterŠ )ą$( Šapartheid€will€be€interesting€to€theoretically€minded€readers€who€doubt€some€of€the€argumentsŠ |*Ģ%) Šmade€in€chapter€2).€Still,€I€hope€that€the€analysis€will€command€some€respect€and€assent€fromŠ h+ø&* Šother€economists,€though€I€know€it€will€make€some€people€very€angry.€Nonetheless,€the€primaryŠ T,¤'+ Šaudience€for€this€book€is€the€confused€man€or€woman€who€still€thinks€that€reason€and€argumentŠ @-(, Šcan€help€us€escape€the€dangerous€place€we€seem€to€have€drifted€into€before€we€declare€war€onŠ ° Šeach€other.Š œģ ŠĢņ ņą@ö ö ģąConservative€and€Anti-conservativeó óˆŠ tÄ ŠĢThe€term€"anti-conservative"€calls€for€some€explanation,€in€part€because€of€the€considerableŠ L œ Šambiguity€and€elasticity€of€the€word€"conservative"€in€American€political€discourse.€The€use€ofŠ 8 ˆ Šthe€term€"conservative,"€without€modifiers,€refers€to€a€set€of€commitments€to€private€property,Š $ t Šfree€markets,€minimal€state€regulation€in€economic€affairs,€and€a€skeptical€outlook€about€theŠ  ` Šlegitimacy€and€desirability€of€public€action€to€offset€the€economic€inequalities€associated€withŠ ü L  Šfree€markets,€social€custom,€or€a€history€of€racial€hostility€and€abuse.€This€stance,€which€is€mostŠ č 8  Šsuccinctly€described€in€Milton€Friedman's€classic€statement€of€libertarian€capitalist€principles€inŠ Ō$  ŠCapitalism€and€Freedom,€is€deeply€suspicious€of€the€idea€of€social€justice,€in€part€because€ofŠ Ą  Šdoubts€about€the€very€idea€of€"equality"€as€well€as€worries€about€the€possibility€thatŠ ¬ü  ŠĢą@ŗŗ*ģą6ˆŠ „Ō  ŠĢA€Preface€in€Three€PartsŠ \¬ Šthe€centralization€of€power€in€the€name€of€collective€action€to€promote€fairness€and€socialŠ H˜ Šdecency€must€result€in€the€diminution€or€even€destruction€of€individual€liberty.€This€stance€has€anŠ 4„ Šold€and€venerable€history€dating€back€at€least€to€the€writings€of€John€Stuart€Mill€whose€OnŠ  p ŠLiberty€and€Principles€of€Political€Economy€are€landmark€contributions€to€political€and€moralŠ  \ Šphilosophy€as€well€as€economics.€These€principles€are€called€"conservative"€here€only€becauseŠ ųH ŠAmericans€refer€to€them€as€such,€even€though€logic€and€history€would€eschew€such€intellectualŠ ä4 Šand€verbal€sloppiness.Š Š  ŠIn€turn,€this€book€is€anti-conservative€in€the€narrow€sense€that€it€is€inspired€by€a€commitment€toŠ ¼  Šsearch€for€viable€approaches€to€promote€economic€and€social€equality€in€the€context€of€a€marketŠ Øų Šeconomy.€Specifically,€an€underlying€theme€of€the€book,€which€is€fully€explored€in€the€lastŠ ”ä Šchapter,€is€that€conservative€economic€and€social€policy€in€the€United€States€has€had€a€destructiveŠ €Š Šeffect€on€the€economic€well-being€of€blacks,€particularly€poor€blacks,€precisely€because€itsŠ l¼ Šcommitment€to€free€market€capitalism€in€an€American€context€necessarily€accepts€the€tendencyŠ X Ø Šfor€markets€to€cater€to€the€segregationist€demands€of€the€white€majority.€Further,€conservativeŠ D!” Špolicy€has€partially€dismantled€the€welfare€state€at€a€time€of€rapid€economic€change€that€has€leftŠ 0"€  Šlarge€numbers€of€low-income€people€across€the€color€spectrum,€but€especially€black€people,€withŠ #l! Šlittle€hope€of€achieving€a€middle-class€life€in€a€technology-driven€world.€The€net€result€ofŠ $X" Šconservative€approaches€has€been€the€emergence€of€a€new€color€class€system€on€the€basis€of€freeŠ ō$D # Šmarket€principles€that€locks€millions€of€black€people€into€a€cycle€of€poverty,€violence,€andŠ ą%0!$ Šdespair.€This€system€works€because€the€white€suburban€majority€uses€its€buying€power€toŠ Ģ&"% Šseparate€itself€from€blacks,€and€its€voting€power€to€restrict€the€extent€to€which€government€policyŠ ø'#& Šcan€be€used€to€promote€genuine€equal€opportunity€and€poverty€relief,€particularly€in€matters€ofŠ ¤(ō#' Šeducation,€health€care,€housing,€and€income€support€for€the€poor.€Conservative€free€marketŠ )ą$( Švisions€must€ratify€this€outcome€so€long€as€lightly€regulated€capitalism€is€seen€as€the€bestŠ |*Ģ%) Šguarantee€of€economic€progress.Š h+ø&* ŠIt€is€important€for€the€reader€to€remember€that€there€is€nothing€inherently€racist€aboutŠ T,¤'+ Šconservative€principles,€despite€the€tendency€for€contemporary€political€argument€to€conflate€raceŠ @-(, Šhatred€and€pro-market€economics.€Classical€liberals€or€"conservatives"€value€individualŠ ° Šą@ŗŗ*ģą7ˆŠ œģ ŠĢA€Preface€in€Three€PartsŠ tÄ Šliberty€above€all€else.€Private€property€and€free€markets€are€valuable€for€classical€liberals€becauseŠ `° Šthese€institutions€secure€maximum€individual€autonomy€from€all€other€institutions€that€mightŠ L œ Šseek€to€restrict€freedom€of€thought€and€action.€The€only€legitimate€infringements€on€individualŠ 8 ˆ Šliberty€for€classical€liberals€are€those€regulations€and€institutions€to€protect€the€nation'sŠ $ t Šboundaries€by€an€adequate€national€defense€and€the€protection€of€private€property€(includingŠ  ` Šopposition€to€slavery)€through€a€stable€system€of€law,€including€police€and€courts.€ClassicalŠ ü L  Šliberals€view€all€other€projects€of€government€with€suspicion€(which€does€not€mean€that€theseŠ č 8  Šprojectsš"šschools,€health€care,€and€even€redistributionš"šare€automatically€wrong€by€classicalŠ Ō$  Šliberal€lights)€to€the€extent€that€they€require€collective€action€that€centralizes€power€in€the€handsŠ Ą  Šof€the€State.€John€Gray's€summary€of€classical€liberal€thinking€in€his€small€but€powerful€volume,Š ¬ü  ŠLiberalism,€demonstrates€thatŠ ˜č  ŠThe€early€classical€liberals€were€concerned€primarily,€almost€exclusively,€with€coercive€orŠ „Ō  Šprescriptive€governmental€involvement€in€the€economy.€They€attacked€tariffs€and€regulationsŠ pĄ Šwhich€imposed€legal€constraints€on€economic€activity,€and€for€the€most€part€they€were€content€ifŠ \¬ Šsuch€constraints€were€removed.€They€did€not,€in€other€words,€demand€a€complete€withdrawal€ofŠ H˜ Šgovernment€from€economic€life.€This€is€not€an€inconsistent€position€once€it€is€understood€thatŠ 4„ Šgovernment€activity€may€take€coercive€or€non-coercive€forms.€...€A€government€activity€may€beŠ  p Šnon-authoritative,€and€so€permissible,€ifš"šas€with€governmental€support€for€scientificŠ  \ Šresearchš"šit€imposes€no€coercive€burdens€on€private€initiatives€in€the€areas€in€which€it€operates.€.Š ųH Š.€.€On€this€interpretation€of€laissez€faire,€governmental€activity€may€encompass€any€manner€ofŠ ä4 Šservice€functionsš"š€even€including€a€welfare€stateš"šprovided€these€functions€be€conducted€in€aŠ Š  Šnon-coercive€fashion.1Š ¼  ŠThis€should€make€it€clear€that€conservatives€must€be€fierce€opponents€of€any€form€of€organizedŠ Øų Šracism,€especially€apartheid,€but€also€forms€of€racial€hierarchy€and€domination€that€involve€theŠ ”ä Šsubordination€of€individuals€to€group€action€or€group€identity.Š €Š ŠThe€tendency€for€some€Americans€to€equate€"conservative"€with€"racist"€comes€from€twoŠ l¼ Šsources.€First,€many€people€who€fervently€believe€in€the€idea€of€race€and€racial€hierarchy€alsoŠ X Ø Šbelieve€in€pieces€of€the€classical€liberal€agenda,€though€there€is€nothing€within€classicalŠ D!” Šą@ŗŗ*ģą8ˆŠ 0"€  ŠĢA€Preface€in€Three€TartsŠ $X" Šliberal€thought€to€support€the€idea€that€race€or€color€or€religion€should€matter€in€our€dealings€withŠ ō$D # Šeach€other.€Hence,€many€men€and€women€who€oppose€government€initiatives€to€promoteŠ ą%0!$ Šequality€on€"conservative"€grounds€are€frequently€also€racists.€This€conflation€is€unfortunate,€inŠ Ģ&"% Špart€because€it€limits€our€political€imaginations€and€undermines€the€possibility€of€clear€politicalŠ ø'#& Šthought.€We€would€do€better€to€call€people€who€simultaneously€hold€racist€and€classical€liberalŠ ¤(ō#' Šviews€racist-conservatives€or€white€nationalist€conservatives,€or€simply€racist€hypocrites.Š )ą$( ŠSecond,€many€nonracist-conservatives€are€willing€to€live€in€a€society€with€wide€disparities€inŠ |*Ģ%) Šincome,€wealth,€and€life€chances€across€class€and€color€lines.€This€means€that€manyŠ h+ø&* Šconservatives€are€also€willing€to€accommodate€themselves€to€the€primary€legacy€of€historicalŠ T,¤'+ Šracism€in€the€United€Statesš"šsystematically€unequal€life€chances€and€living€standards€betweenŠ @-(, Šblacks€and€Native€Americans€on€the€one€side€and€whites€on€the€other.€There€is€no€good€reasonŠ ° Šfor€referring€to€conservatives€with€a€high€tolerance€for€economic€and€social€inequality€as€racists,Š œģ Šno€matter€how€obnoxious€or€vicious€one€might€find€their€preferences€to€be.€Many€of€us€on€theŠ ˆŲ ŠLeft€have€a€bad€habit€of€lumping€all€conservatives€together,€thereby€obscuring€importantŠ tÄ Šdistinctions€between€these€people.€This€failure€to€make€distinctions€is,€in€its€own€way,€a€failure€ofŠ `° Šnerve€precisely€because€it€reflects€a€refusal€to€see€the€world€as€a€complex€place€which€defiesŠ L œ Šsimple€categories.Š 8 ˆ ŠFinally,€the€reader€should€know€that€the€anti-conservative€stance€of€the€author€does€not€mean€thatŠ $ t Šarguments€by€serious€conservative€economists,€philosophers,€sociologists,€and€legal€scholars€onŠ  ` Šrace€in€American€life€are€automatically€exempted€from€consideration.€Indeed,€one€of€the€purposesŠ ü L  Šof€this€book€is€to€undermine€simple-minded€ideological€posturing€that€gets€in€the€way€of€seriousŠ č 8  Šthinking€about€race€and€economics.Š Ō$  ŠĢÓ  Óņ ņA€Note€on€the€Vocabulary€of€Coloró óŠ ¬ü  ŠÓkÓOne€more€point€about€language€is€in€order.€Recent€immigration€from€Asia€and€Latin€America€hasŠ ˜č  Šaltered€the€link€between€color€and€prosperity€in€America.€America€has€never€been€a€two-tonedŠ „Ō  Šsociety,€despite€the€obsessive€talk€about€the€"crisis€in€black€and€white."€One€of€the€mostŠ pĄ ŠĢą@ŗŗ*ģą9ˆŠ H˜ ŠĢA€Preface€in€Three€PartsŠ  p Šimportant€developments€in€American€life€has€been€the€gradual€emergence€of€a€vast€new€body€ofŠ  \ Šknowledge€created€by€scholars,€writers,€and€artists€that€explores€the€ways€that€the€struggles€ofŠ ųH ŠAsian,€Latino,€and€Native€American€men€and€women€have€molded€the€politics€and€culture€of€theŠ ä4 ŠUnited€States.€Historians,€sociologists,€legal€scholars,€literary€critics,€and€scholars€in€otherŠ Š  Šdisciplines€are€writing€men€and€women€of€Asian€and€Hispanic€descent€into€the€nation's€historyŠ ¼  Šand€public€culture,€thereby€overthrowing€the€shameful€but€all€too€comfortable€black/€whiteŠ Øų Šhegemony€over€racial€discourse.€American€science,€arts€and€letters,€music,€and€cinema€as€well€asŠ ”ä Šcuisine€are€being€transformed€by€writers,€artists,€scientists,€musicians,€filmmakers,€and€chefsŠ €Š Šwhose€work€is€inspired€by€sensibilities€whose€insights€and€accents€are€from€different€shores€thatŠ l¼ Šcannot€be€traced€to€the€sick€and€sad€dance€in€black€and€white€that€has€warped€our€public€cultureŠ X Ø Šand€private€dealings.€These€unfamiliar€voices€among€intellectuals€and€artists€pose€difficultŠ D!” Šchallenges€for€citizens€and€politicians€all€too€ready€to€slip€into€the€comfortable€grooves€of€racialŠ 0"€  Šanimosity€that,€curiously,€offer€an€odd€sort€of€security€by€providing€a€predictable€structure€toŠ #l! Šconventional€thinking€about€color€in€America.Š $X" ŠLatino€and€Asian€immigration€have,€in€different€ways,€shown€the€tacit€agreement€between€blacksŠ ō$D # Šand€whites€about€the€contours€of€racial€dialogue€and€the€substance€of€racial€controversy€to€be€aŠ ą%0!$ Šfraud.€For€instance,€the€term€"Latino"€hides€a€powerful€truth:€Latinos€are€a€multiracial,Š Ģ&"% Šmulti-ethnic,€mixed€race€"group"€that€is€largely€defined€by€language,€not€color€or€culture.€TheŠ ø'#& Šattempt€to€collapse€Mexican,€Cuban,€Dominican,€Puerto€Rican,€Brazilian,€Nicaraguan,€andŠ ¤(ō#' ŠPanamanian€immigrants€and€their€children€into€a€single€category€is€ridiculous.€Similarly,€the€termŠ )ą$( Š"Asian"€is€a€bureaucratic€dodge€that€barely€improves€on€the€racist€label€"Oriental"€that€AmericansŠ |*Ģ%) Šhave€long€used€to€lump€together€people€as€diverseš"šand€in€many€ways€bitterly€opposedš"šasŠ h+ø&* ŠChinese,€Japanese,€Koreans,€Filipinos,€Thai,€and€Vietnamese.€This€labeling€process€is€surelyŠ T,¤'+ Šanother€example€of€the€ways€in€which€black/€white€conflict€has€tried€to€squeeze€the€experience€ofŠ @-(, Šothers€into€familiar€and€ill-suited€grooves.€The€labels€"black"€or€"African€American"€are€part€ofŠ ° Šthe€residue€of€an€especially€brutal€form€of€slavery€that€intentionally€wiped€away€ethnicity€andŠ œģ Šlanguage€in€order€to€reduce€the€diverse€groups€of€people€who€formed€the€human€cargo€of€theŠ ˆŲ Štrans-AtlanticŠ tÄ Šą@ˆˆ)ģą10ˆŠ `° ŠĢA€Preface€in€Three€PartsŠ 8 ˆ Šslave€trade€to€a€human€mass€defined€solely€by€their€color,€just€as€"white"€has€been€used€to€signifyŠ $ t Ša€human€state€consistent€with€freedom,€selfhood,€and€human€possibility.Š  ` ŠThe€gradual€emergence€of€"Latinos"€and€"Asians"€as€visible€and€assertive€minority€groups€willŠ ü L  Šforce€Americans€to€face€a€basic€fact€about€"race"€and€"racial"€conflict:€the€discriminatoryŠ č 8  Šbehavior€of€the€white€majority€toward€"Others"€defines€the€nature€of€majority-minority€strife.€InŠ Ō$  Štime,€the€traditional,€color-based€conflict€pioneered€by€whites€and€blacks,€with€its€obsessiveŠ Ą  Šconcern€for€racial€purity€in€private€and€intimate€life,€will€probably€merge€with€a€"creole"€form€ofŠ ¬ü  Šracialism€that€is€common€throughout€the€Caribbean€and€Latin€America.€In€this€new,Š ˜č  Š"Ō_ŌmulticulturalŌ_Ō"€America,€the€link€between€color€and€well-being€will€be€reflected€in€the€racialŠ „Ō  Šcustoms€and€sexual€taboos€of€the€white€majority€about€love€and€marriage€across€the€color€line.Š pĄ ŠDark€skin€and€poverty€will€remain€linked€because€families€are€formed€on€the€basis€of€class€asŠ \¬ Šwell€as€color.€Nonetheless,€the€superficial€changes€in€the€particular€hues€arranged€in€theŠ H˜ ŠAmerican€color€wheel,€brought€on€perhaps€by€the€emergence€of€a€"mixed€race"€middle€class,€willŠ 4„ Šonly€testify€to€the€flexibility€of€the€"racial"€system€to€absorb€new€peoples€and€ideas€whileŠ  p Šmaintaining€the€connection€between€color€and€well-being.Š  \ ŠThis€work€focuses€on€the€complicated€and€bitter€relationship€between€blacks€and€whites€in€theŠ ųH Šlast€years€of€the€twentieth€century.€However,€this€focus€on€blacks,€and€to€a€lesser€extent€Latinos,Š ä4 Šis€not€meant€to€suggest€that€black€economic€deprivation€vis-a-vis€whites€is€the€only€form€of€racialŠ Š  Šinequality€in€this€country.€The€central€thesis€of€this€book€is€that€despised€racial€minorities,€in€thisŠ ¼  Šcase€blacks€and€Latinos,€find€themselves€in€a€new€kind€of€racial€system€where€the€free€marketŠ Øų Šconspires€with€populism€to€create€powerful€barriers€to€minority€economic€and€socialŠ ”ä Šdevelopment.€This€new€type€of€racial€system,€which€is€the€successor€to€the€old€apartheid€system,Š €Š Šhas€emerged€in€response€to€the€demands€of€an€economically€powerful€racialŠ l¼ Šmajorityš"šwhitesš"šfor€social€distance€from€blacks€and€Latinos€in€a€modern,€technology-drivenŠ X Ø Šworld€economy.€However,€the€particular€racial€identities€of€the€powerful€and€weak€social€groupsŠ D!” Šis€not€very€important,€except,€of€course,€to€the€men€and€women€who€are€suffering€in€these€newŠ 0"€  Šcircumstances.€What€matters€is€that€the€United€States€is€in€the€midst€of€a€momentous€socialŠ #l! Šchange€where€a€color-coded€class€system€is€emerging€without€the€helpŠ $X" Šą0  ąą ° ąą@ˆˆ)ģ(#(#ą11ˆŠ ō$D # ŠĢA€Preface€in€Three€PartsŠ Ģ&"% Šof€formal€apartheid,€on€the€basis€of€the€capitalist€rules€of€the€economic€game.€Please€do€not€putŠ ø'#& Štoo€much€stock€in€the€vocabulary€of€color€used€in€this€work.€Anyone,€including€the€white€poor,Š ¤(ō#' Šwho€can€be€designated€as€Other,€and€whose€social€identity€and€life€chances€can€be€shaped€by€theŠ )ą$( Šwhims€and€petty€hatreds€of€others,€is€a€victim€of€the€new€order.Š |*Ģ%) ŠĢ.€.€.€.Š T,¤'+ ŠŠ @-(, Šą@ˆˆ)ģą12ˆŠ ° ŠĢĢĢĢ