|
 Originally Posted by Poopadoop
How do they get punished? I just explained that they get rewarded because their customers are racist too. And if they don't get punished, the rest of your argument falls down; the problem doesn't correct itself.
To begin, we have to think in terms of aggregates. The majority of racist employers live in regions where they would lose their livelihoods if they were perceived as running a racist company. By this alone, we would find that the vast majority of them would not act on their racism in hiring, and the small handful of holdouts would go out on their bankrupted shields.
A small minority live in places where there is enough of a niche for racism that they could survive (or perhaps grow business) by being viewed as racist. However, this quantity is much smaller than people think. Regardless, let's imagine a scenario in some backwater where racism sells and a racist company gets more sales than before it was viewed as racist.
In this case, the region would have increased emigration from the negatively affected (both labor and capital) as well as decreased immigration (also both labor and capital). While it would have some immigration favoring the racism, because most people do not favor racism and because many who do would not pay much of a cost to favor it, the net would be emigration. Our racist company would lose some because of this but let's assume that it gains by net due to even bigger sales increase from the local racist customers than its increased costs from the capital/labor flight. However, the racist patrons of the company would lose out since most of them would be more negatively affected by the capital/labor flight. The region would experience a reduction in both aggregate demand and aggregate supply (big recession coming), and as long as it kept on its racist path, it would become a shitpot. Then our grandchildren, decades from now, would be talking about how the last ardent racists died in a shitpot that nobody outside that shitpot cared about.
On the macro, humans do not tolerate blatant racism. Because of this, on the macro, racism doesn't sell, and on the macro, what doesn't sell doesn't survive. That is, at least when you have free market capitalism.
 Originally Posted by Poopadoop
Maybe being forced to hire the 'wrong' color hurts them both somewhat but tough shit.
Growth happens on the margins. One regulation that adds one small "tough shit" to the economy negatively affects those on the relevant margins. This type of thing manifests in big ways because of large quantities and snowballing effects. For example, universities being "forced to hire the 'wrong' color" is associated with a statistically significant increase in blacks being misplaced in educational institutions and flunking out of schools above their level instead of being top of class at less rigorous schools. It is reasonable to think that this one tiny "tough shit" policy has turned what would have otherwise been very prosperous lives on average into much less ones.
 Originally Posted by Poopadoop
I agree. But there are also people who will take an economic hit for the sake of maintaining their racist views.
This does more to eradicate racism than forcing the person to hire people he doesn't want to. Allowing those people to enact their racist policy punishes their racist behavior (and rewards the non-racist). Forcing them to not enact a racist policy does not punish their racist behavior (and doesn't reward the non-racist).
|