Social, Political And Economic Implications Of Money

2132 Words9 Pages
Throughout the course of this semester, we have examined the role of money in our society and have been introduced to scholars and economists that have offered rationale for the social, political and economic implications of money. One overwhelming theme that has lingered throughout most of the readings and lectures is the idea of inequality, particularly within the scope of the American economy. While other economies such as China or India are labor-based economies, I have found that America’s Capitalist economy is fueled by multiple facets racial inequality. The moral argument against racial inequality under an economic lens is simple yet, expected; when we deny opportunities for people of color in the same way we have them established…show more content…
Black men are being denied the chance of a full life with all of the rights; privileges and opportunities of white men and similarly, the families/communities from which they come from are also at a significant disadvantage. A National Bureau of Research study found that Black families between 2004-2008 were 54% more likely to be charged higher on their mortgage rates than white families. This fact alone drives two main issues I will explore in this paper: the implications of socioeconomics and how inequality drives the American economy through the lens of mortgage lending. One theorist I will use to explore these ideas of inequality is John Maynard Keynes. Keynes argued that capitalism is “a mere congery of possessors and pursuers” (Keynes 60) and he also asserted that “economic output is only based on the aggregate demand”. Between 2004-2008, when Black families were getting charged higher interest rates on their homes than white families with similar incomes, large banks were pocketing millions of extra dollars from these families as many of the rates today would have been considered “sub-prime rates”. This predatory act placed against people of color encouraged classism and as a result led to negative socioeconomic outcomes moreover, the notion of “white
Open Document