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In: Economics

Describe the role of the National Origins Act in leading to issues such redlining and blockbusting?...

Describe the role of the National Origins Act in leading to issues such redlining and blockbusting?

Please provide full details and context as well as include terms from geography.

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SOLUTION

ROLE OF NATIONAL ORIGINS ACT- RED-LINING AND BLOCKB USTING

RED-LINING

In the United states, redlining is the systematic denial of various services by federal government agencies , local governments as well as the private sector either directly or through the selective raising of prices. Neighborhoods with high proportion of minority residents are more likely to be red-lined than other neighborhoods with similar household incomes, housing age and type, and other determinents of risk, but different racial composition. While the best known examples of red-lining have involved denial of financial services such as banking or insurance, other services such as health care or even super-markets have been denied to residents. And also, geographically, the term red-lining is used to describe the discriminatory practice of fencing off areas where banks would avoid investments based on community demographics. During the heyday of red-lining, the areas most frequently discriminated against were black inner city neighborhoods.

BLOCK-BUSTING

Block-busting also carried additional consequences beyond the immediate neighborhood. As more blacks moved in an area, an equal proportion of whites moved out, thereby stimulating demand for additional white- only housing in other areas of the city or in suburbs. Although block-busting emerged at the beginning of the 20th century, the practice was so pervasive in the decades immediately following world war ll. It was ostensibly outlawed with the passage of the Civil rights act of 1968. It is a business process of U.S real estate agents and building developers to convince white property owners to sell their house at low prices, which they do by promoting fear in those house owners that racial minorities will soon be moving into the neighborhood. Block- busting became possible after the legistative and judicial dismantling of legally protected racially segregated real estate practises after World war ll. The belief was substantiated by both racism and legislation. In 1934, The National housing act was signed into the law.


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