Question

In: Economics

How does redlining lead to economic inequalities? How does it lead to educational inequalities? Why do...

How does redlining lead to economic inequalities? How does it lead to educational

inequalities? Why do the effects of redlining continue even after redlining was made illegal?

What types of measures should the government take to try to deal with the inequalities that

have resulted from redlining?

Solutions

Expert Solution

Redlining is discriminatory practice of fencing off areas where banks would avoid investments based on community demographics. In redlining, there is systematic denial of various services by government and private sector organization either directly or indirectly by selective raising in prices. Redlining lead to economic inequalities involving denial of financial services like banking and insurance. Health care and supermarkets have been also denied to specific residents which are minorities most of the time. Redlining cause racial segregation which cause economic inequality.

Redlining also lead to educational inequalities as it denies financial loans to students of specific segregation. Which means there are less resources and less chances for these students to get proper education. Some communities get disadvantaged and oppressed. Redlining leads ton major differences in educational success and efficiency of these individuals who are redlined.

Even after the redlining is made illegal it's effects are continue because people are not ready to give it away. They have mindset of suppression minors via these practices which indicates their dominance over all sectors. And there are not specified conditions which elaborate redlining in all possible ways and conditions. The major people have this tendency of redlining which they have observed and adopt from society.

The government should have to take following measures to deal with inequalities that have caused by redlining,

1. Government should have to promote public transport as a means for low income communities to access jobs and services.

2. They should have to increase employment.

3. They should have to provide extra social services to economically back word classes of society, which will provide them more chances and they will also get fair chance in this competitive world.

I hope this is helpful, thank you.


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