Civil Rights Act of 1968 - Redlining

Redlining

Redlining is related to steering because it is denying financial support and services to neighborhoods based on race, ethnicity, or economic status. Rather than subtly steering individual families towards certain areas or only giving them information on certain racial areas, redlining was a blatant but legally tolerated criteria for financial institutions to decide where to invest. Originating in the New Deal, this procedure was a protocol for deciding where federal, state and city funds would go for financial services. Affluent middle and upper middle class white areas were outlined in green on a map, meaning that financial services were clear to be rendered and these areas were desirable for investment. Racial areas, specifically African-American neighborhoods, were outlined in red, meaning they were undesirable and poor, not to mention racially mixed. These maps were used by banking institutions to construct guidelines for lending money. As a consequence, many of these redlined areas, which were also typically located in urban environments as whites tended to move out to the suburbs of America, experienced deterioration on a rapid scale. Since these areas have been neglected and redlined and cannot receive funds from banks to revitalize, they cannot attract businesses, which perpetuates the cycle of poverty. The poverty often leads to crime, and neighborhoods become further neglected because they continue to be unattractive to outside investment, and continue to be redlined by banks. Thus private banks and financial institutions as well as the U.S. government are accused of being responsible for these practices in several instances, which before the Fair Housing Act were widespread and blatant throughout the U.S. Redlining is still practiced today on a more subtle level. Instead of having official maps circulated to institutions, which is illegal, the public domain may tend to ignore poor neighborhoods by denying basic public services.

Read more about this topic:  Civil Rights Act Of 1968

Other articles related to "redlining":

Institutional Discrimination In The United States Housing Market - Federal Housing Administration - Systematic Redlining
... The invention of redlining is often credited to the Home Owners Loan Corporation (HOLC), which designed a rating system for neighborhoods ... Due to redlining, minority and black neighborhoods receive less economic assistance than other neighborhoods in terms of loans and mortgage money as economically equal ...
Redline (disambiguation)
... Redline may also refer to Redline, a dietary supplement produced by Vital Pharmaceuticals Redlining, the practice of discrimination by denying or increasing the cost of services, such as banking or insurance ...
Equilibrium Credit Rationing - Stiglitz and Weiss - Redlining
... Redlining is a different situation, as it is not the result of adverse selection ... In fact, the bank can perfectly distinguish between the different types of buyers according to some criterion ...
Redlining - Liquorlining
... a community, that can be considered to be a form of "reverse redlining." The term "liquorlining" is sometimes used to describe high densities of liquor stores in low income ... However, unlike redlining, this is usually not illegal ...