“Make the color line costly.” – Philip Payton Jr.
Exactly. And in a free market, not doing business with someone simply because they are of a different ethnicity is very costly. Such a state of mind restricts human capital, regular capital, diminishes business opportunity, and puts one at a competitive disadvantage. This is the case in a FREE market.
But in a managed market, a crony market, prejudices and biases are too often indulged by the people in government. Slavery was big government. Jim Crowe was big government. Segregation generally has been big government. Government makes inefficient and counter-productive racism more economically viable because it often insulates racism. This has been the case in this country and around the world.
It’s not the market, and free enterprise, or “capitalism” that facilitates racism. More often than not it is the STATE that does this.