Source: Ludwig von Mises Institute
by Wanjiru Njoya
“Economists who worry about wealth disparities between racial groups are preoccupied with addressing the causes of racial inequality. They all have different theories and explanations about the causes of racial wealth gaps, but the prevailing assumption is that some form of unfairness must be driving it. The key form of unfairness thought to produce disparities in racial outcomes is discrimination. Discrimination may be direct or indirect. According to critical race theories, it includes things like legacies of oppression, systemic racism, and even unconscious bias. The general idea is that government can fix these manifestations of discrimination—by banning or penalizing them—thereby reducing or eliminating the racial attainment gap. Those who assume economic disparities are caused by racial discrimination rely on what Robert Nozick termed ‘normative sociology,’ where any narrative can be used to derive one’s preferred causal explanations.” (08/04/26)
https://mises.org/mises-wire/problems-causation-race-and-discrimination