Negative Effects Of Segregation On The Economy

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Segregation is often a term overlooked by many in recent years, but still can have a detrimental effect on a country’s economy. Segregation often leads to poverty, which in turn, also has a negative effect on the economy, leading to a disadvantage in countries, particularly the United States and South Africa. Racial segregation is apparent in the United States and affects many cities, depending on the number of segments there are within a particular city. The effects of segregation cannot lie in the hands of one person, rather all the people that make an economy. In 1944, Gunnar Myrdal refers to racial segregation as “a basic term that has its influence in an indirect and impersonal way” (Massey, 1993). The following examples are how “simple increases in the rate of minority poverty leads to socioeconomic character of communities, which in turn leads to disadvantages caused by racial segregation” (Douglas, 1990). …show more content…

With racial segregation, there are many components that lead to a disadvantage with our economy, such as poor job opportunities, such as the disadvantage of not having social media to hear about new job postings, economic events that cause a shift in the business industry, and poverty that affects more than 10% of our nation alone. Racial segregation leads to poverty, which has a detrimental effect on our United States economy. Until we realize that some are at a disadvantage when it comes to new opportunities, we will always be a nation that consists of high poverty levels. In 2014, our poverty levels were high due to the “prolonged economic recession with 15%--roughly 46.7 million individuals--living below the poverty line. From 2000 to 2014, there has been an 11% increase in poverty levels in the United States alone

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