By: Charlotte Landon
In 1933, the United States government created a new way to mandate segregation: redlining. This was a practice started by federal housing agencies to provide housing to white, middle class families during the Great Depression. These federal housing agencies believed that if minorities, specifically Black families, bought houses in or near white suburbs, the value of the houses in these neighborhoods would decline. Therefore, their loans would be at risk. As a result, maps of metropolitan areas were color-coded based on where it was “safe” to insure mortgages. Predominantly Black neighborhoods were colored red to indicate that these neighborhoods were at high risk of defaulting on loans, hence the term “redlining”.
Despite the fact that Black families could afford homes in white neighborhoods, and were even willing to pay more for these homes, they were denied from buying them. This practice was started in the 30s and continued into the late 60s, before becoming illegal. But the effects are still apparent today. Because they couldn’t buy homes, Black Americans couldn’t build equity. And the way most middle-class families acquire their wealth is through home equity. So today, Black wealth is about 5% of white wealth, despite the fact that Black incomes are about 60% of white incomes. Real estate app Redfin predicts that Black families, on average, have lost $212,000 over the past 40 years because of redlining.
But redlining didn’t just impact the wealth gap; it also increased the education gap. Metropolitan areas have been segregated for decades because of redlining, trapping minorities in poor neighborhoods. And because funding for public schools is so local, these neighborhoods can’t properly fund their schools. According to the U.S. Department of Education, high-poverty districts spend 15.6% less per student than low poverty districts. Children who have no choice but to attend these schools don’t receive the same opportunities or education of those who attend well-funded public schools. And in the future, because of their lack of education, will have less work opportunities.
And as a result of redlining, minorities are stuck in a cycle of poverty. Forced into neighborhoods as far back as the 1930s, minorities were unable to buy homes and amass wealth. Those who live in these neighborhoods are now unable to obtain the education they need, as schools in these areas are so underfunded. And so, they have access to less work in the future.
Sources:
Brooks, K. (2020, June 12). Redlining’s legacy: Maps are gone, but the problem hasn’t disappeared. Retrieved July 27, 2020, from https://www.cbsnews.com/news/redlining-what-is-history-mike-bloomberg-comments/
Gross, T. (2017, May 03). A ‘Forgotten History’ Of How The U.S. Government Segregated America. Retrieved July 27, 2020, from https://www.npr.org/2017/05/03/526655831/a-forgotten-history-of-how-the-u-s-government-segregated-america
Jan, T. (2018, March 28). Analysis | Redlining was banned 50 years ago. It’s still hurting minorities today. Retrieved July 27, 2020, from https://www.washingtonpost.com/news/wonk/wp/2018/03/28/redlining-was-banned-50-years-ago-its-still-hurting-minorities-today/
Semuels, A. (2016, August 25). Good School, Rich School; Bad School, Poor School. Retrieved July 27, 2020, from https://www.theatlantic.com/business/archive/2016/08/property-taxes-and-unequal-schools/497333/
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