Capitalism: a Factory of Racism
- Mira C
- Jun 28, 2020
- 3 min read
Systemic racism and capitalism are inextricably connected. As said by Ibram X. Kendi, author and founder of the Anti-Racist Research and Policy Center at American University, “the origins of racism cannot be separated from the origins of capitalism...the life of capitalism cannot be separated from the life of racism.” “Racial capitalism” is extremely prevalent in America and it is a systemic process that derives social and economic value from an individual’s racial identity. The reason that this is so detrimental to society is that it commodifies people of color and cultivates race-on-race resentment. The United States has a horrific historical and ongoing capitalistic exploitation of black Americans in particular. Capitalism thrives on racism and this dynamic exists because the foundations of the American economy originated from the use of slave labor. Without the economic exploitation of racial minorities, who still disproportionately occupy low-income jobs, America’s economy cannot support itself.

The institutions of this country were written by slave owners, who molded America’s legal and socioeconomic systems specifically to protect their wealth, which had accumulated from their horrifically racist practices. Capitalism was never designed to work for every American, only members of the top percentage that are generally void of disadvantages such as race and gender.
Considering that the US’s institutions and foundations deliberately suppress black success, African-Americans do not benefit from capitalism and when they do, they are “beating the system,” rising above every obstacle that we consciously place against them. Thus, a black person who manages to become successful in America is a rare case in the midst of atrocious levels of poverty inflicted on black communities. Capitalism impoverishes black Americans and consequently places an entire racial community at a severe societal and economic disadvantage.
The system inflicts severe psychological pressures on those who do not benefit from the potential grandeur and copious wealth. Capitalism’s inherent stress, anxiety, and insecurity push to the background normal patterns of social conduct. When living in an environment of extreme poverty, the struggle to survive is perpetual and naturally feeds into crime. Criminality and poverty descend into a cycle as it becomes nearly impossible to obtain a job with a criminal record. Unemployment leads to poverty, which in turn leads to crime once again. Poor economics and the lack of resources are common denominators of crime in black communities, but society’s deep-rooted racism refuses to acknowledge black crime as a repercussion of capitalism. Instead, the perpetrators’ race becomes the incriminating factor, further contributing to racism. In order to regulate crime, police officers are stationed disproportionally in black communities and fear of blackness is instilled in police officers to a lethal degree.
Racism within the criminal justice system often magnifies minor offenses by black people to detrimental criminal convictions, again feeding into unemployment, poverty, and crime. The lack of financial resources in black communities leads black defendants unable to afford expensive (but often necessary) legal assistance. They then rely on public defenders who are often incapable of adequately proving the defendant’s innocence or reducing the sentence.

In order to combat institutionalized racism, we need to dismantle the economic system that supports it. Crime rates and poverty are nearly direct results of capitalism because it creates a massive wealth disparity. Socialism, or at least democratic socialism, will mend the economy that afflicts African-Americans by providing adequate access to housing, food, and education, thus lowering the rates of crime and disassembling the school-to-prison pipeline. Unlike capitalism, socialism does not depend on an opulent upper class’s manipulation of a struggling lower class to function. It will not eliminate individuals’ racist mindsets and opinions, but an economy that does not immediately push blacks and Hispanics to the margins of society will certainly begin to abolish racism at the systemic level.
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