Why The Free Market Doesn’t Prevent Racism

In economics textbooks there is a simple story told about racism. It explains how the free market punishes prejudice of any kind and instead builds an environment where all people compete equally regardless of their background. The explanation is simple – any business that refused to serve certain customers would earn less profit than a more tolerant rival. If you refuse to hire the most competent job applicant due to their race, gender, sexuality etc then they will work for your competitors or set up their own business and undercut you. Continue reading “Why The Free Market Doesn’t Prevent Racism”

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