Review of "The Color Of Money: Black Banks and the Racial Wealth Gap," by Mehrsa Baradaran
Review of The Color Of Money: Black Banks and the Racial Wealth Gap, by Mehrsa Baradaran ISBN 9780674237476 Five out of five stars The long-term consequences of racism It has been approximately fifty years since federal laws were passed making discrimination in housing and financial transactions illegal. Yet, the racial wealth gap persists. One of the most amazing and explanatory data points I have ever heard is about the consequences of the 2008 financial meltdown on black people versus white people. As a consequence of the meltdown, black people lost approximately 53% of their wealth while white people lost a more modest level of roughly 17%. This was primarily due to black people having a higher percentage of their assets in their home than white people. It is also due to predatory lending practices by companies that perform actions such as payday loans, where short-term loans are made at very high rates of interest. Baradaran traces the history of...