What role did the government play in shaping housing and wealth?
The American government provided low-interest loans to returning veterans and other white Americans after World War II. This created a boom in home ownership and helped suburbanize America, but blacks were excluded from participating. At this same time, the government was building high-rise public housing for minorities in inner cities. The segregation in America between a largely dark inner city and a largely white suburban community is not something that just magically happened from market forces. It is part and parcel government policy. When the government instituted rental housing in inner cities, in the form of public housing projects, for poor minorities, and then developed home ownership in low-cost, suburban communities for low-income whites, where you could put almost nothing down, they created this incredible wealth gap. What does housing have to do with wealth? Where one’s family lives in America is not just a matter of taste and preference. It has important consequences for
