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Persistent Racial Disparity, Wealth and the Economic Surplus as the Fund for Reparations in the United States

Kellin Stanfield

Journal of Economic Issues, 2011, vol. 45, issue 2, 343-352

Abstract: Wealth disparity is a critical factor in the perpetuation of blackwhite disparity in the United States. Intergenerational wealth transfers are the major determinant of household wealth formation. A program of reparations would acknowledge past and continued injustice, redress such injustices, and provide closure. Radical institutional analysis benefits this policy discussion in at least three areas: explaining the re-creation of discrimination; indicating the role of wealth disparity; and identifying the funding source for reparations. For centuries the economic surplus has enhanced white wealth relative to black wealth. A program of reparations suggests directing the surplus toward funding black-white equality.

Date: 2011
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DOI: 10.2753/JEI0021-3624450211

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