B.  Why does racism persist? Who benefits?

Because whiteness confers benefits on its “owners,” whites are “invested” in the perpetuation of the system of racial hierarchy.  Eliminating racism would erode whites’ privileged access to many material and non-material benefits.  These benefits help explain the RESISTANCE of some whites to eliminating racial privileges and the tacit acceptance of the status quo by other whites who simply do nothing, thereby continuing to reap rewards of whiteness.       At the same time, there are costs of racism even to the white beneficiaries. These costs, along with the simple moral arguments, provide grounds for creating solidarity against racism. The exercise below looks at the benefits and costs of racism for different groups.

As we noted in the last session, none of the forms of hierarchy that structure our economy can be examined in isolation from the others.  Applying that insight to our discussion of whiteness entails that we acknowledge that the benefits of whiteness are not shared equally by all whites.  Some returns to whiteness are enjoyed ONLY by white business owners, others accrue largely to white workers; some benefits flow only to white MALE workers.

ACTIVITY: RACISM – WHO BENEFITS? WHAT ARE THE COSTS?

There will be overlap in costs and benefits which are noted below in italics.

WHITE CAPITALISTS - BENEFITS

1. Used to justify "primitive accumulation" (theft of land and resources from Native Americans and Mexicans; plunder of resources from today's third world; slavery; imperialism)
2. Divide and Conquer:

-Divisions among workers weakens their ability to take collective action to raise wages, improve working conditions, workplace rights and push for re-distributive policies such as progressive taxation, ending corporate welfare, etc.

-Racism deflects white workers' attention from struggle with business owners to struggles with people of color (e.g. Vincent Chen, a Chinese-American was murdered by unemployed autoworkers who thought that he was Japanese.)

-Lack of unity between workers of color and white workers means that one group is willing to work as strikebreakers when the other group is on strike.

3. Provides low-paid, super-exploitable labor forces of color (including prison labor; "workfare" moms; contract workers from other countries; illegal immigrant labor)
4. Makes perpetual maintenance of a reserve army politically viable (those groups most likely to suffer from unemployment are least politically empowered)
5. "Accommodates" white workers to the capitalist system -- "buys them off" by assuring them that at least they are better off than workers of color (historian David Roediger argues that the status and privileges conferred by whiteness played a role in accommodating white workers to alienating and exploitative class relationships)
6. Can charge higher prices and interest rates in communities of color.
7. Provides markets for low-quality and unsafe goods
8. Provides neighborhoods (countries) in which to export harmful goods (e.g. cigarettes), dump toxic waste, and locate unsafe workplaces.
9. Used to justify slashing social programs (like AFDC) that people perceive disproportionately benefit POC
10. Less competition for sales and contracts (fewer successful minority-owned businesses; less competition from third world producers; privileged access to good contracts)

WHITE CAPITALISTS - COSTS

1.   Restricted pool of workers – talented workers are excluded because of race.

2. Worker unrest/disruption over discrimination in pay, working conditions, etc.
3. Legal costs of discrimination/harassment suits.
4. Bad press if discriminatory practices are exposed. Possibility of consumer backlash.

WHITE WORKING CLASS - BENEFITS

As we stated before, racism is NOT solely an ECONOMIC phenomenon (neither CAUSED solely by economic forces, nor manifested in economic arenas).  Historian David Roediger adopts the term "wages of whiteness" from WEB DuBois.  DuBois wrote of white workers that even when they received a low wage for their labor services they were compensated for their whiteness by a PUBLIC and PSYCHOLOGICAL WAGE of WHITENESS.[6]

1. Access to jobs (less unemployment and underemployment than workers of color) and better jobs (better pay, more upward mobility, more job security, higher status, more on the job training, more desirable job assignments) 
2. Easier and cheaper access to credit.
3. Access to better housing (whites have better access to good housing and easier access to housing in neighborhoods where jobs can be found)
4. Access to better education (under funded schools in minority neighborhoods; racist teachers and educational materials; discrimination in school admissions and scholarships)
5. Privileged access to government social welfare programs (e.g. mortgage interest deductions; welfare, social security; minimum wage)
6. Provides low paid workers for domestic positions such as nannies, housekeepers.
7. Access to cleaner air and water, more desirable social spaces (environmental racism)
8. Having the features society promotes as "beautiful" (straight hair; blonde; blue eyes) (all whites benefit)
9. Lower likelihood of being harassed by police (e.g. arrested for "driving while black", stopped on highways, prosecuted, convicted) (poor whites benefit less)
10. Superior stereotypes: smarter, more able, more responsible, law abiding (poor whites benefit less)
11. Political clout (more likely to be elected, appointed to office) (poor whites benefit less)
12. Access to land (via Homestead Act)

WHITE WORKING CLASS – COSTS

1. Divided workers ? weaker bargaining power ? lower wages, poorer working conditions, etc.
2. Divided working class ? working class, white and people of color, have less political clout for progressive policies or reform/revolution.
3. The health of the US economy (productivity, competitiveness, etc.) is hurt when businesses don't hire productive and talented workers of color (or don't hire them for upper-level jobs). (everybody affected)
4. The US economy suffers when racial tensions in the workplace lower productivity (everybody affected)
5. US society (economy) loses potential inventions, innovations and creative output that would result from providing individuals of color greater opportunities to develop their talents. (everybody affected)
6. Maintaining such extreme economic inequality in the US requires lots of spending on guards, policing, incarceration, etc. (everybody affected) 
7. Lower quality of life. Corrosive effect of racial hatred and the accompanying social ills (poverty, crime and violence, etc.) (everybody affected)
8. Whites limit their range of friends and the richness of their social networks, sacrificing the opportunity to learn from the experiences of people of color (all whites affected)

PEOPLE OF COLOR – COSTS

1. Poverty, unemployment, labor segmentation, poor & unsafe working conditions
2. Housing – poor quality, ghettoization, lack of mobility, discrimination in housing market, poor transportation, access to good jobs, services.
3. Education – poor quality, under funding, discrimination in admissions.
4. Violence/harassment – racial, police, high rate of crime.
5. Unfair treatment by criminal justice system
6. Healthcare – poor quality, poor access.
7. Psychological impact of second-class citizen status. Negative stereotypes: intelligence, honesty, and abilities automatically in question. Assumption that you're only in college because you are an athlete or only have the job due to affirmative action.
8. Union exclusion (historically and today)
9. Wealth gap
10. Economic, social, psychological legacy of history of slavery, genocide, theft of land and other property, discrimination,
11. Dumping e.g. hazardous wastes. Targeted marketing, e.g. drugs, alchohol
12. Lack of availability of desired consumer products (hair care products, band aids, greeting cards white faces on them, children's books, TV shows and movies with positive images of members of your racial/ethnic group)
13. Higher prices for cars, food
14. Lack of access to credit, or predatory lending.