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Hardcover
Published January 1, 1955
In the transition from a private to a welfare economy, private housing operations were now being implemented by public power, public credit, and public subsidy. And there was the danger that the prejudices of the private market would not only be adopted and supported by the government but be backed by its coercive power. From 1935 to 1950, in fact, prejudice and public power were already well advanced toward an alliance which was challenging the fundamental values of the American system.
In the name of such public purposes as defense contracts, housing betterment, encouragement of infant as well as senile industries, economic pump-priming during depressions, slums, protection of savings, home-ownership encouragement, and a growing list of other high-sounding goals, we are stumbling blindly in several directions, one of which is a subsidies-to-business economy. In the name of social reform the government is called upon also to loan to business at low rates, to socialize business losses when necessary, to remove risk from private enterprise by federal insurance. In the process, these protected enterprises insist, of course, upon the same immunity from regulation they enjoyed before they drew upon the government purse and the government's powers. [258]
Thus, resting on the premise that the right to property and to equality were no longer parallel natural rights but conflicting rights to be resolved in favor of property, race antagonism had begun to recruit the crucial and powerful instruments of political control. Administrators and legislatures were sanctioning encroachments upon the human being's right to live where he chose. The closed city had begun to loom on the American horizon… Would private biases now be incorporated into the public ethic of America, causing the first major break in the American democratic structure and the first official reduction of the great American ideal?
Thus, in the case of the migrant Mexican, and to some extent other migrants, we have a unique kind of internal colonialism. The native laborer works hard for pitiful wages, suffers the social inferiority of a native in the eyes of his master and the community, and lives under the subhuman conditions so often characteristic of native colonial life. The difference between the traditional and the new colonialism is that our colonial natives are kept with us within distance when we want them--and then driven out of the community when no longer needed. They go back to .the "colony" at the season's end, often under armed guard. In this novel system, a dual standard of capitalist morality has been constructed. We have on the one hand a minimum wage, a 40-hour week, social security, and a living standard that rates among the highest in the world. On the other hand we tolerate conditions as primitive as any that existed under feudalism. [55]
Overcrowding of land and within buildings is greater. Although 5 per cent of white families were extremely overcrowded in 1950, the figure for nonwhites was 18 per cent.11 (In Chicago Negroes lived 90,000 to the square mile, while whites in neighboring apartments were only 20,000 to the square mile.) While the proportion of overcrowding decreased for whites between 1940 and 1950, it increased by more than 11 per cent for nonwhites. [75]
With the new nonwhite in-migrations, however, an element of compulsion began to characterize the slum-ghetto. The element of choice narrowed and five kinds of compulsions now kept minorities in their place-physical, structural, social, economic, and legal.
Physical compulsion implied the use of force--bombs, arson, threats, or mobs.
Structural controls meant walls, fences, dead-end streets, closed cities.
Social controls included the snub at the grocery, refusal to accept the family in the community or club, and segregation in the schools and public facilities.
Economic compulsions represented the use of pressures by private owners to keep the minority in its place-racial covenants, refusal to make mortgage loans, and "codes of ethics" among realtors to keep the minority out.
Legalized compulsions involved the use of the powers of government to control movements of minorities-condemnation powers, pressures by officials of the FHA, removal of tenants through urban redevelopment, slum clearance, and the use of various administrative devices summarized later. [77]
One of the common threads that bound the suburbanites together was not culture or tradition, or civic pride or national welfare. It was neighborhood dignity. The magazines told them so repeatedly and so did the realtors, the neighborhood associations, and even the government housing officials. Suburban groups had a sanctuary to protect. They knew that blight of any kind has an eroding quality that engulfs whole neighborhoods and might affect their investments. Neighborhood dignity became synonymous with neighborhood homogeneity, while neighborhood homogeneity gave rise to a concerted effort to keep out the "wrong people" and the "foreign element."
Millions of homes in thousands of neighborhoods were now all patterned upon the placement into isolated areas of people of a common stamp. It led to a division of these neighborhoods into those of the elite and the unwanted. It created sensitive communities that in the long run were economically and socially unworkable. It subordinated intelligence to race, religion, income, color, or social status. It enjoined the children of one section from mixing with those of another. It created thousands of homogeneous islands which were homogeneous only in their fears and were more foreign to the American tradition than the outsiders they sought to exclude. Finally, it won a place in the national political scene by developing a large bloc of voters who saw their interest threatened by the espousal of democratic precepts of equality of opportunity and of equal right to shelter. [149]
The prospective buyer might be a bootlegger who would cause considerable annoyance to his neighbors, a madame who had a number of Call Girls on her string, a gangster, who wants a screen for his activities by living in a better neighborhood, a colored man of means who was giving his children a college education and thought they were entitled to live among whites .... No matter what the motive or character of the would-be purchaser, if the deal would instigate a form of blight, then certainly the well-meaning broker must work against its consummation.16
The FHA underwriting manuals not only adopted the phraseology of "inharmonious races and classes," but advocated racial restrictions, physical barriers, racial covenants, and racial zoning as methods of excluding certain racial and national groups. Pigpens and unwelcome races were classed as equally objectionable. 29
What began as private prejudice was thus converted into public policy, approved by public agencies, enforced by the full panoply of public power and backed by public credit.
1. Absence of Mortgage Money - These mortgage-lenders were conditioned by the same attitudes on the racial issue as were the realtors and home-builders. Their mortgage officers read the same texts, swallowed the same myths.
2. Demands for Exorbitant Profits - The fact that mortgages cannot be had through regular channels even when insured by FHA has had a depressing effect on the minority housing market.
3. Land Acquisition Problems - The difficulty is not land shortage as such but land shortage for minority housing. [177]
4. Inability to Obtain Fire Insurance - When the Negro builds in an “approved area,” he usually gets insurance. When he ventures where he is not wanted, his house may be burned before he is even enclosed. … [178] With arson and vandalism rampant, some insurance companies have learned not to venture, for they have been burned too often. [hahahahahahahaha]
5. Imposition of Sanctions (ie for violating covenants or restrictions)
6. The Club - Builders continue to exhibit an interest in refining exclusion practices, for they have found it a paying device. One of the most popular forms is the "neighborhood club." Prospects not acceptable in the club are not eligible as home-buyers.