Racial Regional US Edit1

7/30/2019 Racial Regional US Edit1

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Are the Racial and RegionalDisparities in America a

Consequence of Slavery?


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Outline

Introduction

Historical Context Racial Disparities

Regional Disparities Conclusion


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Introduction

By the start of the twentieth century, the South is thepoorest region in America. Within the South, African

Americans were the poorest.

Economic changes seen in the South were similar toexperiences of other countries when slaves were

emancipated.

In the 1890s a significant number of laws/judgements werepassed at State and Federal level that increased racial

disparities.

Given the significant number of African Americans living inthe South, it meant a life of poverty.


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Historical Context

Events that exacerbated the disparities in America: Separate, but equal ruling in 1894 - meant poor

schooling and precluded growth in human capital.

Jim Crow Laws After the Civil War, African American wealth was steadily

growing but remained unequal with whites.

Agriculture remained a significant part of the Southseconomy. Given the lack of education afforded to AfricanAmericans, they mostly went into sharecropping schemesand only a 25% owned land in 1890.


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Migration

Migration is a key part of the African Americanstory.

WWI - Significant migration to the North. This led to greater urbanisation of African

Americans.

There was still discrimination in the North. As African Americans moved North they

became swing voters.


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Argument

The Souths over-dependence on export staples createdsignificant disparities in America.

The discriminatory practices in the South meant thatnot only were African Americans treated as secondclass citizens but also held back the South economically.

The lack of education opportunities afforded to bothAfrican Americans and whites meant that it could not

easily replicate the North.

Racial disparities were a consequence of the ideologyused to justify slavery.


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Emancipation

Emancipation Proclamation 1863 Freed 3.1 million slaves, and 50,000

immediately

Preceded by emancipation in Northern states,as early as 1777

Freed slaves extremely poor per capita wealthof $1 Low levels of human capital


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Wealth of Ex-Slaves

Tax and Census data forSouthern States

Rapidly increasing levels of

black wealth in several states

Was wealth growth andconvergence as strong assuggested?

Black wealth still well belowwhite wealth


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Causes of wealth disparity

Illiteracy Increases cost of information andinhibits income growth

High land values Assessment ratios

White ratios 73% of Black ratios Product of discrimination


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Education

1896-1954 Separate-but-equal policy

A = f(M, X, E)

Comparison of white and black literacy rates

20 percentage point gap in 1920

7 percentage point gap in 1940

Poor performance of black schools, but also legacy of slavery

Poor income and education levels of parents

Only 27% of literacy gap due to separate-but-equal


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Credit

Instalment vs. Merchant credit Bureau of Labour Statistics survey

14,000 non-farm families surveyed Black families use far more instalment credit than

merchant

Not due to wealth disparities Black families prevented from accessing informal

credit due to social factors


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Conclusion

Racial disparities remained in America after theemancipation of slaves. This can be attributed to thecontinuation of the belief that African Americans

were inferior citizens

In the North, African Americans experienced de factodiscrimination that prevented them from progressing.

The high density of African Americans in the Souththat were uneducated as a result of slavery meantthat significant regional and racial disparities emergedas a result of slavery.

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