Is Racism Enabled by Capitalism, or the State? | The Libertarian Institute \ stacker news ~econ

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Is Racism Enabled by Capitalism, or the State? | The Libertarian Institute libertarianinstitute.org/articles/is-racism-enabled-by-capitalism-or-the-state/

316 sats \ 34 comments \ @Undisciplined 28 Jan econ

John Weeks discusses Racism and Capitalism in his latest article.

"The libertarian frame of reference is confronted by the fact that people believe in the state. They believe in its necessity, its inevitability, and its righteousness. At worst, the state is a black box of potential benevolence. At best it is a “shining city upon a hill,” delivering peace and justice and also lower grocery prices. When people perceive injustice, they are programmed to trace it anywhere but the blood-soaked marble steps of state malevolence."

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51 sats \ 3 replies \ @SimpleStacker 28 Jan

Racism expresses itself through both capitalism and the state. But I believe that racism is more likely to become entrenched through state mechanisms than through capitalist mechanisms. In markets unfettered by the state (other than protection of natural rights), racism should be self-correcting, as non-racist enterprises will fare better than racist enterprises and self-interest should lead people to abandon their racist tendencies. State mechanisms allow negative and inefficient behaviors to persist for much longer than the markets will.

98 sats \ 1 reply \ @Undisciplined OP 28 Jan

I think the important point is that markets push back on the attitude itself, as there are economic rewards for not being racist.

We don't have to be so utopian as to think markets would have immediately bankrupted whites-only businesses in the Jim Crow South.

29 sats \ 0 replies \ @SimpleStacker 28 Jan

of course, no one is saying it would be immediate. Moreover, a crucial piece of it is that the state is not doing anything to advantage one group over another, and similarly, the state is allowing people of all backgrounds to start businesses on equal footing, to migrate, etc.

42 sats \ 0 replies \ @itsMoro 28 Jan

yes, well said i agree. capitalism actually has the function to deincentivize racism. but the State...

102 sats \ 2 replies \ @kepford 28 Jan

Neither.

48 sats \ 1 reply \ @Undisciplined OP 28 Jan

Amplified? Entrenched? Some other word?

There's more positive reinforcement of tribalism through politics and more negative reinforcement via the market.

100 sats \ 0 replies \ @kepford 28 Jan

I think racism is too narrow. Tribalism yes.

27 sats \ 24 replies \ @Rothbardian_fanatic 28 Jan

The state it is! Only the state can enforce that sort of garbage with their monopoly on forces in their territory. Capitalists would be FAFO by losing their business because market forces would come to bear on the companies’ profitability and their future ability to recruit good prospects. Always the entrepreneurs want to make more money and they will avoid anything that endangers that quest, including racism or, as noted, tribalism.

20 sats \ 23 replies \ @Undisciplined OP 28 Jan

That reasoning only holds when there's no consumer demand for racism. Whites-only restaurants and stores could potentially be perfectly viable, if that's what enough patrons want.

I think it's more in non-customer-facing businesses that the more standard economic logic comes into play, about losing out on profits by turning away better workers.

25 sats \ 22 replies \ @Rothbardian_fanatic 28 Jan

Yes, potentially marginally viable because they would be avoiding a fair number of potential customers. They could be much more profitable with all potential customers.

20 sats \ 21 replies \ @Undisciplined OP 28 Jan

That depends how racist the majority population is and how relatively wealthy they are. It's very easy to cook up examples where more customers are alienated by integrating than are gained by it.

37 sats \ 20 replies \ @Rothbardian_fanatic 28 Jan

How racist do you think the population is? Do they actually give a hoot? Racists can always avoid situations that are displeasing to them.

20 sats \ 19 replies \ @Undisciplined OP 28 Jan

I'm just taking this as a hypothetical question.

The market has some corrective mechanisms against racist behavior, but they don't apply universally.

Of course, in similarly racist societies, the one with the larger state will likely have more racist outcomes.

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23 sats \ 1 reply \ @kepford 28 Jan

When people perceive injustice, they are programmed to trace it anywhere but the blood-soaked marble steps of state malevolence

Very true

73 sats \ 0 replies \ @Undisciplined OP 28 Jan

I thought you, in particular, would like that line.