This article by the fine economist, Patrick Mason, may be useful for this
discussion of reparations.

Michael Yates



>   ------------------------------------------------------------------------
>
> Subject: [BRC-NEWS] Affirmative Action: Moving Beyond the Myths
> Date: Thu, 10 Feb 2000 03:52:52 -0500
> From: Patrick L Mason <[EMAIL PROTECTED]>
> To: [EMAIL PROTECTED]
>
> February 6, 2000
>
> Affirmative Action: Moving Beyond the Myths
>
> by Patrick L. Mason, Ph.D. <[EMAIL PROTECTED]>,
>    Department of Economics, Florida State University
>
> The current discussion in America and in Florida on racial
> inequality, affirmative action, and a host of associated
> issues is often clouded with half-truths, deliberate
> misinformation, and irrelevant questions. To the extent
> that public or private organizations have an effective
> affirmative action program, the program is designed as a
> partial offset to current and on-going discrimination. For
> example, current discrimination in the labor market costs
> African Americans 15 percent of earnings relative to whites.
> This discrimination does not occur because of different pay
> for the same work, so much as it occurs because of access to
> different work for persons of the same ability. That is to
> say, there are differences in access to employment
> information, hiring, training, promotion, and layoffs.
>
> The 15 percent penalty suffered by African Americans does
> not include the impact of discrimination that takes place
> in so-called pre-labor market activities that influence
> earnings. For example, access to persons who control
> resources and information often depends on what neighborhood
> one lives in, what church one attends, what club one belongs
> to, or other affiliational relations. Nor does the 15
> percent labor market penalty suffered by African Americans
> take into account discrimination in housing, education, and
> access to credit. Finally, significant discriminatory
> treatment exists in the distribution of public resources.
> One notes that African Americans have never had their
> interests adequately represented in state or federal
> governing bodies. African Americans are strongly
> underrepresented as legislators, judges, and decision-making
> officials in Florida and across America. Clearly, the claim
> that discrimination does not exist within important
> institutions and processes within American society is
> without merit.
>
> A second false claim is that there is nothing we can or
> should do about past discrimination. Most of today's
> conservatives are willing to admit that discrimination
> "existed in the past." Nevertheless, they claim that those
> who were the victims of such discrimination should simply
> get over it. Move on. Moving on requires dealing with a
> social justice issue that is nowhere on the current public
> policy agenda. Past racism created tremendous racial wealth
> inequality. A recent economic study published by University
> of Michigan economists showed that in 1994, 30 percent of
> African American households had zero or negative net worth,
> compared to only 8 percent of white families. The median
> wealth of African American families was $10,329, while the
> median for white American households was $76,519. Thus, the
> median white family had a net worth near the 84th percentile
> of the black wealth distribution ($79,048). Yet, a family
> would have required net worth of at least $310,081 in order
> to enter the white wealth elite (those at or above the 84th
> percentile). Finally, the median black family places at just
> the 22nd percentile of the white wealth distribution
> ($10,539). Slavery and Jim Crow are the causes of this great
> racial divide in wealth. Even if racial discrimination were
> to completely disappear from every aspect of American
> society today, the current differences in wealth (which were
> caused by past racism) would cause racial inequality to
> persist for all time. Until we take seriously the issue of
> redistributing wealth, racial inequality and the attending
> racial conflict will always be with us. It is unjust in the
> highest to say to African Americans that although "past"
> white privilege in the access to public and private
> resources created a great racial gulf in the distribution of
> wealth, any and all claims for compensatory justice by
> African Americans are unwarranted.
>
> A third false claim is that affirmative action has
> discriminated against whites, especially white males. This
> is a shameful claim. I am unaware of any study in the top
> 100 professional economics journals that purports to show
> discrimination against whites. Granted, in a society with
> more than 270 million people there may be specific cases of
> discrimination against individual whites. But, there exists
> no evidence that even remotely suggests that a particular
> group of whites have been the victims of discrimination due
> to affirmative action efforts.
>
> A fourth false claim is that affirmative action requires
> quotas. Nothing could be further from the truth. Affirmative
> action represents a minimal (and often anemic) policy
> response to the persistent and totalizing racism (and
> sexism) of American society. So-called affirmative action
> policies were developed as a token response to the pressures
> of the African American liberation struggles of 1945-1973.
> Over time, the affirmative action umbrella was expanded to
> include Latinos, Asian Americans, Native Americans, and
> women. Anti-discrimination laws make it illegal for
> universities to admit students or for employers to hire,
> promote, train, or pay workers solely on the basis of race,
> ethnicity, or gender. Also, in the absence of business
> necessity, anti-discrimination laws forbid decisions or
> rules that have a disparate impact by race, ethnicity, or
> gender. There is no corporate or governmental affirmation
> action policy that says race or gender is the sole criteria
> for inclusion in the pool of potential employees, for
> hiring, promoting or training new employees, or for college
> entrance. Affirmative action plans do often contain goals,
> but a goal is not a quota. For example, I may have a goal of
> accumulating $10 million and retiring from work in 10 years.
> I may or may not achieve this goal; however, intelligent
> goal setting requires information gathering and analysis,
> development of a detailed strategy and plan of action with a
> reasonable timetable to evaluate progress, and sustained
> discussion with the persons who will assist in implementing
> the plan. Accordingly, the very process of attempting to
> establish reasonable goals not only gives me an objective
> measuring rod for evaluating success but the process also
> gives me crucial information on what I must do in order to
> succeed.
>
> Affirmative action policies have become prevalent because
> all but the most irrational employers and universities
> realize that anti-discrimination laws are not sufficient
> to create equality of opportunity, let alone equality of
> well-being. Truly successful affirmation action policies may
> benefit the average white male earner because such policies
> create more open institutions and they increase productivity.
>
> Affirmative action policies typically include the following:
> (1) programs to broaden search procedures during hiring and
> admission; (2) programs to broaden the criteria of hiring,
> admission, promotion, training, etc.; (3) programs to
> broaden objectives for hiring, admission, promotion, etc.;
> and, (4) programs to promote racial, ethnic, or gender
> diversity in the workplace or academic environment.
>
> For jobs that do not require a college degree, 35-40 percent
> of new hires obtained their jobs through informal referral
> mechanisms, for example, referrals from current employees
> and acquaintances of employer. Over half of employees obtain
> their jobs through informal referees. For jobs that require a
> college degree, that is, where the most intense discrimination
> exists and where the resistance to affirmative action has
> been most vehement, informal referral mechanisms and
> interpersonal job networks are even more important in the
> hiring process. Broadening search procedures may increase
> the pool of women and racial/ethnic minority candidates.
>
> A fifth false claim is that there is a single criterion for
> determining "the best" employee or "the most able" student.
> It is also usually asserted that this single criterion is
> race- and gender- neutral. Truthfully, there is seldom a
> uni-dimensional criterion that provides an unassailable
> measure of either current ability or future productivity.
> For example, standardized test scores do not measure
> ability equally well across racial groups though such scores
> may measure "ability" or "achievement" equally well among
> individuals within a particular social group. Typically,
> standardized tests measure African American ability less
> well than they measure the ability of whites. So, broadening
> hiring and admissions criteria to include a greater set of
> attributes that are positively associated with academic
> success or workplace productivity may increase the hiring
> and promotion of individuals from traditionally excluded
> groups. Professional economics journals have published a
> large collection of studies on affirmative action. A primary
> conclusion of these studies is that affirmative action does
> not lower productivity.
>
> Of course, the very definition of "success" can also
> influence the extent of racial/ethnic and gender exclusivity
> of jobs and universities. For example, an all male, all
> white, single religion, homogeneous socioeconomic status
> university could certainly produce high quality graduates.
> However, a coed, multi-racial/multi-ethnic, multi-religious,
> heterogeneous socioeconomic status student body and faculty
> can produce research and graduates of equally high quality
> who are also able to fill a more varied set of leadership
> positions in American society. Diversity may be valuable
> for its own sake. America is a multi-lingual, multi-racial,
> multi-religious, and multi-cultural country. This has always
> been the case. Many today seemed determined to return to the
> ignominious past when the multi-dimensionality of American
> society was virulently suppressed.
>
> False claim number 6 says that affirmative action bestows
> undeserved gains on racial/ethnic minorities and women and
> thereby undermines the credibility of racial/ethnic
> minorities and women. This myth posits that the individual
> beneficiaries of affirmative action who have obtained high
> profile positions cannot take pride in their individual
> accomplishments. It is claimed that the affirmative action
> beneficiary will always wonder if she/he achieved the job
> based on merit or the existence of an affirmative action
> program that lowered traditional standards in order to
> hire an African American, a woman, or a Latino, or other
> minority. Moreover, the argument goes, whites will not
> respect such a person because they also know that she/he
> did not accomplish her/his position based on merit. Again,
> affirmative action does not mandate hiring anyone, most
> especially it does not require hiring or promoting
> unqualified individuals or admitting unqualified students.
> I am however compelled to point out that if undeserved
> privilege lowers self esteem then both racism and sexism --
> which tends to shower undeserved privilege upon whites and
> men, respectively -- would have collapsed centuries ago
> under the force of their own weight.
>
> A final myth states that affirmative action is unnecessary.
> It is claimed that left to its own devices, a competitive
> market will eliminate discrimination in economic life;
> racial/gender discrimination will remain only in non-market
> social relations or market activity where competitive forces
> have not been given their full power. Both economic history
> and economic theory of capitalist economies have been very
> unkind to this perspective. First, there is no theory of
> discrimination based on a recognizably capitalist economy
> that sustains the notion that competitive forces are
> sufficient to eliminate discriminatory behavior. Second,
> 135 years of post-slavery economic history of the actually
> existing American economy has made it very clear that even
> if slowly evolving market forces can eliminate discrimination,
> such forces cannot do so within the lifetime of the average
> person. Laissez-faire market solutions to massive racial/ethnic
> and gender inequities equal justice delayed and justice denied.
>
> Affirmative action is okay. But, it is only a baby step in
> the long march required to achieve social justice. Slavery,
> Jim Crow, and continuing racism in the labor market, the
> credit market, the housing market, the educational process,
> and access to governmental resources have lead many
> thoughtful persons to conclude that a fundamental
> transformation of American society should not be a notion
> that is considered beyond the boundaries of enlightened
> public discussion. Yet, there is an unspoken and unyielding
> truth that limits public and private programs or actions to
> forcefully challenge the persistence of racism. The truth is
> this: every honest attempt to eliminate white privilege will
> be called "reverse racism." That is to say, we have returned
> to a point in Florida and in American society that the
> presumptive privileges of whiteness are a binding constraint
> on social justice. The mere allegation that a particular
> racial justice policy or program might hurt any sub-group of
> whites has become sufficient grounds for claiming that the
> program or policy is inherently unfair.
>
> For the moment then social injustice is on the upswing.
> Nevertheless, my faith leads me to believe that there is a
> critical mass of Americans with a passion for social justice
> and I have no doubt we will eventually construct a society
> where social injustice and racial inequality are conspicuous
> by their absence.
>
> -30-
>
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