Answer the following question from the pdf. Prior to reading this section, had you considered the effects of slavery and subsequent continued discrimination on the ability of (a) Blacks a

Differences in Black/White Accumulation of Wealth: Effects of Slavery and Generations of Discrimination Many researchers in various disciplines (e.g., sociology, economics, and finance) have investi-gated differences between Blacks and Whites inaccumulation of wealth. Some suggest that these differences are primarily due to differences in inheritance, rather than differences in saving or spending habits.14For the first 250 years of their existence in what is now the United States, Blacks were property rather than owning prop-erty. For decades after the end of slavery, Blacks were still legally denied the right to own property by various laws across the United States. Whereas Whites had property and assets to pass on to heirs, Blacks generally did not.15Systematic and legal discrimination in employ-ment and earnings exacerbated these disparities for one hundred more years, until passage of the Civil Rights Act in 1964, which prohibited race-based discrimination in employment and helped narrow the White/Black earnings gap to some extent. “Put simply, long after legalized discrimination and segregation ceased, their intergenerational impacts persist.”16Not only was there little or no inheritance to pass on due to slavery and its aftermath, Blacks’ wages still suffer effects of discrimination, which limits their ability to acquire and, thus, pass on wealth. Black/White differences in wealth have also been partially attributed to discrimination in access to credit, which results in Blacks beingless likely to be homeowners or to start their own businesses, both of which contribute strongly to accumulation of wealth.17In an analysis of access to business loans, Ando found that Blacks were significantly less likely to obtain credit than were Whites, Asians, and Latinos. After controlling for differences that might have explained Blacks’ lower acceptance rates, Ando still found significant differences.18Similardisparities in mortgage loan approvals and rates for comparably creditworthy Blacks and Whites also exist.19As with employment dis-crimination, it appears that Blacks with marginal. qualifications are rejected or charged higher interest rates, while Whites with marginal quali-fications are given the benefit of the doubt.20About 72% of non-Hispanic Whites and 42%of Blacks owned their own homes in 2014.21Inthe period of 1940 to 1960, while White (male)veterans capitalized on education, employment, and housing benefits after their service, Black veterans were systematically and purposefully denied such benefits even though they had earned them.22The Federal Housing Authority believed in racial segregation of neighborhoods, publicly promoted segregation, and often denied loans to Blacks. Renting instead of owning also contributed to Blacks having less property to leave to subsequent generations; obviously, renters do not have homes to leave heirs. For Blacks who were able to purchase homes, residential segregation and steering by realtors contributed to continued stratification.23Evi-dence of residential segregation and steering continues to be documented.24Homes in pre-dominantly Black neighborhoods are worthless and appreciate more slowly than homes in neighborhoods that are not predominantly Black. In addition, school systems tend to be worse, opportunities for employment are less, and services are lower in such neighborhoods, which also contributes to persistent, enduring gaps in income and opportunities for wealth.

 

SAMPLE ANSWER

Prior to reading this section, had you considered the effects of slavery and subsequent continued discrimination on the ability of (a) Blacks and (b) Whites to inherit and earn wealth, savings, and property?

Introduction

Slavery has a long, complicated history in the United States. It was abolished in 1865, but its legacy lives on today in the form of discrimination and socioeconomic inequality. In this section we’ll explore some of these effects as well as their impact on wealth inequality between Black Americans and White Americans

Slavery

Slaves were property, not people. They could not own property or earn money for themselves or their families. Slaves had no legal recourse if they were treated unfairly by their owners, so it was difficult for them to save any money at all.

For example, if a slave was injured on the plantation and needed medical care, there was no way for him/her to pay for the treatment without being punished by the plantation owner (who would then keep all of his/her wages).

The Emancipation Proclamation

The Emancipation Proclamation was a document issued by President Abraham Lincoln on September 22, 1862, during the American Civil War. It declared that all slaves in Confederate-held territory were free and set them free by January 1, 1863.

The Emancipation Proclamation did not free any of the approximately four million slaves who were in Union-controlled areas of the Confederacy (such as Virginia) at that time; those remained under some level of control until they could be moved out or freed with compensation to their owners.

The Freedmen’s Bureau

The Freedmen’s Bureau was a federal agency that provided relief, education, and support to former slaves in the aftermath of the Civil War. It helped freedmen obtain medical care and food. The Freedmen’s Bureau also assisted them in finding work or enrolling in schools.

Reconstruction and the 13th, 14th and 15th Amendments

The 13th amendment abolished slavery, but did not address its effects. After the Civil War, the 14th Amendment guaranteed equal rights under the law to all Americans regardless of race or ethnicity. It also provided that no state could deprive any person within its jurisdiction of life, liberty or property without due process; this provision was used by many activists in support of civil rights movements such as those led by Martin Luther King Jr., which fought against discrimination based on skin color and race-based segregation laws.

The 15th Amendment granted black men between 18 years old and 30 years old equal voting rights (rather than just citizenship) in 1865; this amendment was ratified three years after President Lincoln signed it into law during his second term as president (1865-1869).

Jim Crow

Jim Crow Laws were state and local laws that enforced racial segregation in the Southern United States. They were enacted between 1876 and 1965. The laws were enacted after the Reconstruction period, which ended in 1877.

The Jim Crow Laws required segregation of public facilities such as transportation, restaurants and restrooms; they also prohibited interracial marriage with some exceptions (such as if one spouse was a slave). These laws created separate but equal rules for black people under law—although there were far more whites than blacks during this time period so this would have been impossible without violence or intimidation on both sides (which occurred frequently).

The Civil Rights Movement

The Civil Rights Movement was a series of events that occurred in the United States during the 1950s and 1960s to fight racial discrimination against African Americans. It was one of many efforts by activists to end slavery and segregation, but it was also part of a larger social change that helped bring about an end to Jim Crow laws.

The movement began with protests against segregation at interstate buses, lunch counters and other public places. These protests led to sit-ins (when people would sit on their seats in restaurants), boycotts (when customers refused to spend money with businesses), marches through downtown streets, demonstrations against police brutality and lynchings of black men accused or convicted of raping white women; voter registration drives; organizing for social equality among all races; freedom songs sung by singers like Mahalia Jackson (“Move On Up A Little Higher”), Ray Charles (“We’ve Got To Live Together”) etc.; legal action such as suits filed by NAACP lawyers seeking court orders requiring schools desegregating peacefully without violence from white students who tried violently resisting integration efforts such as beating up black students walking into class together after school hours ended

Affirmative Action Bans and Voter ID Laws

In our current political climate, it’s easy to get lost in the debate over whether or not affirmative action bans and voter ID laws are discriminatory. But before we jump into that discussion, let’s take a look at some of the ways these types of laws impact those who have been historically marginalized.

• Affirmative Action Bans – These policies prevent certain groups from being able to inherit or earn wealth, savings, and property through inheritance or investment vehicles such as trusts (or other legal mechanisms). For example: if you have black ancestors who owned slaves then your family would have been denied access to this type of financial security because it was illegal for black people at that time period; likewise if someone had been born under apartheid in South Africa then they wouldn’t be able to inherit from relatives who had passed away because there weren’t any laws allowing this kind of thing until 1994 when Nelson Mandela became president after he was released from prison after 27 years!

Understanding slavery, its legacy and its effects on opportunities for people of color are important to understand when looking at the wealth gap between Black and White Americans.

• Slavery is a legal system that allowed one person to own another.

• Slavery is a form of discrimination.

• Slavery was also a form of oppression, exploitation and violence against people who were perceived as being inferior or subhuman.

Conclusion

Understanding slavery, its legacy and its effects on opportunities for people of color are important to understand when looking at the wealth gap between Black and White Americans.