November 21, 2018

“American Apartheid” by Design



 “American Apartheid” by Design

A Review

Richard Rothstein, The Color of Law: A Forgotten History of How Our Government Segregated America. (Liveright/Norton: 2017).

By Charles Brover


The liberal civil rights movement focused on tearing down the legal scaffolding of the system of Jim Crow segregation. The Supreme Court’s 1954 Brown v. Board of Education decision held out the promise of school integration, although it took action by brave young black students and their parents to even begin to translate this into reality. After freedom rides, lunch counter sit-ins, voter registration drives, marching while drenched by fire hoses and set upon by sheriffs’ dogs, braving murderous KKK nightriders and church bombers, the Civil Rights Act of 1964, the Voting Rights Act of 1965 and the Fair Housing Act of 1968 were passed. Then, suddenly, The Movement stopped.

While Southern racists (Dixiecrats and Republicans) continued “massive resistance” to the demolition of de jure segregation – the legal kind, enforced by government actions – everyone from the U.S. Supreme Court to Martin Luther King Jr., liberals and conservatives alike, in both parties of American capitalism agreed that de facto segregation was off-limits, or at least had to be left for another day. Residential segregation with its devastating racist consequences was said to be the result of an accumulation of millions upon millions of private choices by both whites and African Americans. So today schools are more segregated than ever, North and South, as the limited protections of the civil rights and voting rights laws are being systematically gutted.

A legalist understanding of segregation shaped the limited legislative aims of the liberal civil rights movement. Richard Rothstein’s Color of Law (2017) explodes the myth that the extreme, segregated residential landscape we all live in today developed because people just like to live in neighborhoods with people who are of the same race. He conclusively proves that segregation, particularly housing segregation, is in fact de jure – that is, state-sponsored, encouraged, and legally sanctioned. Rothstein subtitles his book, “a forgotten history of how our government segregated America.” It is not a hidden history because the evidence has always been in plain sight. The book could be subtitled, “a politically-induced case of deliberate historical racial amnesia.”

Rothstein’s objective is to bring his fellow liberals out of their color-blind coma. In the process he has done all of us a service by bringing together the evidence in one popularly written and well-researched eye-opener that challenges the entrenched myth of de facto segregation. The Color of Law is divided into thematic chapters that tell the story of the American version of apartheid in vivid detail and documentary history. Even if you think you know that racism in the U.S. can never be overestimated, the Color of Law will still surprise and infuriate with its careful narrative of the racist program to permanently segregate the country. But while laying out key elements of the structural foundation of black oppression in the U.S., The Color of Law fails to go to their root in the system of racist American capitalism. Thus Rothstein is unable to offer a real answer to the social pathology he so powerfully chronicles.

Housing Foundation

In the United States in 2016 there were 2.3 million  evictions. That's 6,300 a day, four every minute.
 Why now? Why is the history of residential segregation receiving increased attention? When the housing bubble burst in 2008 it led to massive foreclosures, loss of equity, and a deep recession. Besides The Color of Law, there is a growing body of literature on the causes and effects of segregated neighborhoods, towns and cities. Matthew Desmond’s Pulitzer Prize-winning book, Evicted: Poverty and Profit in the American City (2016), looks closely at people experiencing the poverty-inducing effects of the eviction system in Milwaukee. Desmond notes that “fewer and fewer families can afford to put a roof over their head.” Working people are facing a housing crisis as a greater portion of household income must be devoted to the skyrocketing cost of housing. And the official estimates vastly undercount the homeless, leaving out those crammed into apartments of relatives and friends. In New York City, where the official count of the homeless in January 2018 was 77,000, the NYC Department of Education reported that more than 10% of the city’s public school students (114,659 out of 1.1 million) lived in temporary housing last year (New York Times, 16 October).

Moreover, wherever reformers look to make social change, they bump up against residential segregation. Public policy and academic studies on poverty have mainly focused on jobs along with welfare, mass incarceration, parenting and education. Desmond argues that “something fundamental is missing. We have failed to fully appreciate how deeply housing is implicated in the creation of poverty.”  Michael Greenberg documents the failure of Mayor de Blasio’s housing program in New York City in “Tenants Under Siege” (New York Review of Books, 12 April 2017), while Ben Austen traces the wretched rise and fall of the Cabrini-Green projects in Chicago (High Risers [2018]). 

Ghettoization contributes decisively to police violence and mass incarceration, to racial disparities in health outcomes and life expectancy, labor market opportunities and intergenerational wealth accumulation. Blacks earn 60 percent of white income, but possess only 10 percent of white wealth. That wide disparity is due largely to the wealth established in home ownership equity over time from which African Americans have been systematically excluded. Increased equity in government-subsidized suburban housing continues to be the primary vehicle for wealth accumulation for the 80 percent of the country who don’t own stocks and bonds. They use the equity in their homes to send their children to college, make further investments, take vacations, and pass on the accumulated wealth to their children. Thus the government-subsidized American apartheid that locked out African Americans stamped inequality onto future generations.

Rothstein explains that as an educational policy columnist for the New York Times, he came to this subject through his research on education. He came to understand that the stubborn racial “achievement gap” could not be closed so long as black school children were forced to grow up in the toxic conditions of underserved, overcrowded, and often dangerous ghettos. The CSEW wrestled with the fact of residential segregation in its article, “A Marxist Program to Fight for Integrated Quality Public Education” (Marxism & Education No. 5, Summer 2018).

It is not a new insight that the structures of black oppression and racist ideology are rooted in residential segregation and the compaction of African Americans into ghettos. In their book, American Apartheid: Segregation and the Making of the Underclass (1993), Douglass Massey and Nancy Denton emphasized “the special role that residential segregation plays in enabling all other forms of racial oppression”:
“Residential segregation is the institutional apparatus that supports other racially discriminatory processes and binds them together into a coherent and uniquely effective system of racial subordination. Until the black ghetto is dismantled as a basic institution of American urban life, progress ameliorating racial inequality in other arenas will be slow, fitful, and incomplete.” (p. 8)
Massey and Denton draw attention to their title, “American Apartheid,” and note that “Although America’s apartheid may not be rooted in the legal structures of its South African relative, it is no less effective in perpetrating racial inequality…. As in South Africa residential segregation provides a firm basis for a broader system of racial injustice.” The enforced isolation “ – whether African townships or American ghettos – forces blacks to live under extraordinary harsh conditions and to endure a social world where poverty is endemic, infrastructure is inadequate, education is lacking, families are fragmented, and crime and violence are rampant.” Ghettoization means that the cops maintain a militarized occupation of black neighborhoods where cop violence is endemic and “stop and frisk” policies target particularly black youth.

To his credit, Rothstein, a Distinguished Fellow at the Democratic Party-line Economic Policy Institute think tank, consciously disdains liberals’ anodyne verbal euphemisms to describe the savage realities of U.S. racism. He is not embarrassed to say “ghetto” rather than “inner city.” “Ghetto” is appropriate when the state has deliberately concentrated a minority and created barriers to escape. He notes that if and when those same geographical areas become gentrified they are no longer referred to as “inner cities.” He doesn’t refer to “people of color” when he writes about how black people have been singled out for oppression. Nor does he talk of “diversity” when the issue is racial integration. In all of these choices, Rothstein recognizes the exceptional U.S. history of chattel slavery and its legacy that has relegated African Americans to a color caste at the bottom of U.S. society. His task is to explain how conscious racist housing policy has been one the central mechanisms that maintains this racial caste system in America. Rothstein writes often in the name of an imagined, classless collective American “we.” But he is clear that the government is responsible for the mess:
“We have created a caste system in this country, with African Americans kept exploited and geographically separate by racially explicit government policies. Although most of these policies are off the books, they have never been remedied and their effects endure.”

FHA: New Deal’s Racist Deal

Rothstein demonstrates that the ghetto was purposely designed, and maintained by the state in collusion with banks, insurance companies, the real estate industry, and of course your local racist white citizens’ neighborhood improvement association. “Our system of official segregation was not the result of a single law that consigned African Americans to designated neighborhoods,” Rothstein declares. “It was a nationwide project of the federal government in the twentieth century, designed and implemented by its most liberal leaders.” That The Color of Law indicts “its most liberal leaders” is its most useful political function. Rothstein punctures the bubble of the sainted Franklin D. Roosevelt savior myth by carefully delineating the central role of New Deal liberals in constructing this American apartheid.

During the Depression, policies designed to foster homeownership were promoted as an alternative to the demand for decent and affordable public housing.  The National Housing Act, passed in 1934, established racial segregation nationwide as part of the Roosevelt/Democratic Party’s “New Deal.” The newly created Federal Housing Administration (FHA) was the driving force of state-sponsored segregation. It appraised property and approved loans. The FHA and the Home Owners’ Loan Corporation (HOLC) changed the usual practice for home loans from short-term, high-interest, high down payment mortgages by providing backing for long-term, low down payment, fully amortized loans. Its influential Underwriting Manual guided the work. The Manual decreed that the racial and social identities of neighborhoods be maintained by restricting eligibility for mortgages and rental availability.

The FHA’s Manual could not have been clearer: “If a neighborhood is to retain stability it is necessary that properties continue to be occupied by the same social and racial classes.” As housing policy expert Charles Abrams famously noted, in terms of racial implications, early editions of the Agency Underwriting Manual “read like a Chapter of Hitler's Nuremberg Laws” (quoted by Amanda Tillotson in De Paul Journal for Social Justice, Summer 2014) The Manual explained that the appraiser must be alert to protect against “adverse influences” such as “infiltration of inharmonious racial or nationality groups.”

The FHA discouraged banks from providing loans in urban areas and gave high ratings to new construction in suburban areas where highways separated black and white housing. The Housing Administration was particularly active in promoting school segregation, warning that if children “attend school where the majority or a considerable number of the pupils represent a far lower level of society or an incompatible racial element, the neighborhood under consideration will prove far less stable and desirable than if this condition did not exist” (68-69). They actually wrote and distributed this racist junk. It was not hidden.

The Color of Law documents the outsize role that public housing played in the racial segregation of the country. The FDR administration responded to the WWII housing shortage with the first public housing for non-war-related civilians. Far from the association of public housing for the poor prevalent today, this public housing was meant for those who could afford to pay prevailing rents. With their rabidly racist Southern, Dixiecrat base, Democrats assured that segregation determined the design of the program. Public housing either excluded African Americans entirely or the buildings were strictly segregated. In this design the FHA followed the well-established racist pattern of other New Deal projects. In the heart of the Depression, the Tennessee Valley Authority (TVA) created a village in its Norris headquarters for whites only. Blacks were housed in shoddy barracks miles away. Similarly, the Civilian Conservation Corps (CCC) that provided some jobs for unemployed youth was segregated across the country with black youth sheltered in more distant camps. Even the project to restore the Gettysburg battlefield housed the young black workers in a segregated camp 20 miles away.

The Public Works Administration (PWA) was the chief agency that carried out the New Deal’s segregationist polices for public housing. Established in 1933, the PWA was supposed to meet the challenge of the housing crisis and provide construction jobs. The PWA was managed by Interior Secretary Harold Ickes, a noted New Deal liberal who had been president of the Chicago NAACP. Although it allowed for African Americans to acquire public housing, the PWA policy established strict racial segregation. The PWA designated 25 of its 47 projects as whites-only, 16 as blacks-only, and 6 projects were segregated by building. Perhaps most ruinously and historically consequential, the PWA, while claiming the racist excuse that they were adhering to the “neighborhood composition rule,” actually created segregated neighborhoods where there was no previous pattern of segregation. They would designate integrated working class and immigrant neighborhoods either black or white and then institute public housing construction to justify their designation.
Sign outside site of Sojourner Truth public housing
project in Detroit, 1943.

Rothstein closely traces the New Deal destruction of integrated neighborhoods in Cleveland and Atlanta. In Atlanta the PWA project bulldozed the “Flats” – an integrated neighborhood that was about one-third African American. They designated the new Techwood neighborhood as whites-only; black families were evicted and forced to crowd into existing black neighborhoods. Rothstein concludes that “a result of the government program, therefore, was the increased population density that turned African American neighborhoods into slums” (22). He notes that similar PWA government-sponsored slum creation took place in St. Louis, Indianapolis, Detroit, Toledo, and New York.

The PWA was replaced in 1937 by the U.S. Housing Authority (USHA) tasked with subsidizing local agencies to build housing. The USHA continued the PWA practice of claiming to “respect” the racial makeup of existing neighborhoods while plowing under integrated neighborhoods to create segregated ones. The manual of the USHA stated that “The aim of the [local housing] authority should be the preservation … of community social structures.” Of course, segregated neighborhoods existed before the New Deal racist housing policies and projects went into effect, but as Rothstein concludes, “the federal government’s housing rules pushed these cities into a more rigid segregation than otherwise would have existed” (p. 24).

Redlining, Zoning, and Race Terror

A city street map illustrates the cover of The Color of Law that shows certain residential areas outlined in various colors. This is, of course, an example of one of the infamous maps developed by the FHA in conjunction with the government’s HOLC and local real estate boards whose national “code of ethics” prohibited sales to black families in white neighborhoods. The FHA set the strict underwriting standards for loans, and HOLC created the color-coded maps for every metropolitan area in the country. The maps designated four areas in terms of supposed credit worthiness. The maps colored in green neighborhoods populated by well-off Protestants as the highest grade and were deemed safest for loans and rental payment; at the bottom of the scale, black neighborhoods were deemed most risky and colored red. Hence “redlining” (p. 64). Banks used the redlining maps to deny loans to African Americans, and local real estate agents used the maps to steer clients to the “right” neighborhoods.
Official segregation by order of the U.S. government. Home Owners' Loan Corporation map of Los Angeles, 1939. Residential areas in red had significant African American, Latino and Asian populations were deemed least desirable (hence "redlining"), making it extremely difficult if not impossible to obtain mortgage loans. Central L.A. dismayed the appraisers because of its "heterogeneous" population and "sprinkling of subversive racial elements." The Watts neighborhood (D61), then populated by a mixture of various European immigrants, blacks and Japanese became entirely black. The largely Mexican American San Gabriel Valley Wash was described as populated by "goats, rabbits, and dark skinned babies," with many "peon Mexicans" who "constitute[ed] a distinctly subversive racial influence" (KCET, "Segregation in the City of Angeles," [14 November 2017]).

Much of Rothstein’s book tracks the history of the invidious collusion among government, real estate industry, insurance companies, banks, local homeowners associations, and the IRS to maintain and expand segregation. The Color of Law indicts the use of local zoning laws that excluded apartment buildings that could have offered affordable housing. FHA and local governments promoted restrictive covenants on deeded property that explicitly banned African Americans. Excluded from government-subsidized home ownership, many blacks resorted to “on contract” sales schemes that set up purchasers to lose their homes if they missed even one payment. Rothstein also includes harrowing examples of the block-busting racist real estate hustlers who scared white homeowners into selling cheap with stories of black invasions followed by precipitous drop in home values.

Race terrorists threatened and attacked black families that dared to move to a white neighborhood. Rothstein describes an incident in 1957 at a home in Levittown, Long Island where a mob of hundreds pelted the home of a black family with rocks. The family under siege asked for police protection. The rock throwing continued for months and the Confederate flag of racism flew next door along with scrawled KKK symbols. The cops stood by and watched. Rothstein asks: “Does the failure of police to protect [black families under assault] constitute government-sponsored de jure segregation? … Were the African American families’ constitutional rights violated…? (p. 142). Of course their rights were violated. That is standard operating procedure. Seeing this situation through Rothstein’s limited and legalist lens distorts the structural role of the cops in capitalist society and the mission of the state – its courts, cops, prisons, and military – to maintain the racist status quo.

In response to the civil rights movement, and particularly to the widespread ghetto eruptions in the 1960’s, Congress passed the Fair Housing Act in 1968, but by then the damage was done. The pattern of racial segregation was entrenched and self-perpetuating in nearly every metropolitan area in the country: white suburbs ringed black ghettos. Now middle class professionals are moving back to cities in a process of gentrification; they are inflating real estate prices and forcing black and less well-off residents into more deeply segregated and run-down neighborhoods and deepening the crisis of homelessness.
White mob protested outside home of first black family to move into Levittown, Pennsylvania, August 1957.  (Sam Myers/Associated Press)

Racist real estate practices did not end with the passing of civil rights and fair housing legislation. The racist real estate grifter now occupying the White House is a good example. Along with his father who was arrested as part of a 1927 Klan march in Queens, son Donald ran the Trump real estate business that was well known in Brooklyn and Queens for promoting white-only developments. One such 1800-unit Beach Haven complex in South Brooklyn, opposite Coney Island, housed legendary folk singer, Woody Guthrie, who composed a song titled, Old Man Trump, that begins:
“I suppose that Old Man Trump knows just how much racial hate he stirred up in that bloodpot of human hearts when he drawed that color line here at his Beach Haven family project.”

“Beach Haven is Trump’s Tower / Where no black folks come to roam.” 
An investigation by the city’s Human Rights Commission testers found that Trump real estate offered rental housing immediately to white applicants and told black applicants that nothing was available. Trump employees said that they had been instructed to mark applications from blacks with the letter “C” for “colored.” The city shut down rentals at the Trump complex, and the Justice Department filed suit for housing discrimination against father and son in 1973. The son, then 27, guided by his mentor, anti-Communist witch hunter, Roy Cohn, fought the charge for years in court, eventually reaching a settlement to buy ads in local newspapers promising that his company would not discriminate. (Washington Post, 5 August 2017

Suburbs So White

The Donald and father Fred Trump on the roof of one of the Brooklyn apartment houses they own, 1973. (Photo: Barton Silverman/New York Times)

The definitive suburbanization of America after World War II changed the residential landscape of the country. At the end of the war Americans lived mainly in cities and a majority rented rather than owning homes. At the start of WWII only 13% of the population lived in suburbs. Geographers Richard Harris and Robert Lewis conclude that, “prewar suburbs were as socially diverse as the cities they surrounded” (Oxford Research Encyclopedia). By 1960, more than a third of the population lived in overwhelmingly white suburbs, and by the 1990s more than half. The massive wave of government-sponsored segregated suburbanization created the tapestry of white suburbs, inner-city black ghettos and Latino barrios, plus the heavily black, inner-ring suburbs we see today. The government in collusion with the banks and real estate lobby made housing more available to white middle-class and working-class homebuyers, but purposely denied such opportunity to African Americans.

The government homeownership campaign was in part a response to the severe housing shortage for returning veterans; however, politically it was a strategic offensive in the anti-Soviet Cold War meant to encourage anti-communism in the working class. The housing campaign looked back to the period around World War I and the Federal Home Loan Bank Act. Then capitalists were concerned about the popularity of the Bolshevik Revolution and growing radicalism among workers. They feared that limited access to home ownership might mean that a majority would have little attachment to the institution of private property. They sought to develop a bricks-and-mortar interest in capitalism. At the end of WWII they were able to implement that agenda on a national scale.

If the capitalist class was worried about radical unionism during after the first imperialist war, they faced an even greater explosion of worker militancy after the second imperialist war represented by the post-war strike wave. During the war, rank-and-file union workers were frustrated by the “no-strike” deals made by their official leaders in the name of war-time patriotism. “No-strike” labor discipline was most severe in unions led by the Communist Party as part its Stalinist-directed, patriotic class collaboration. Although many workers defied these deals with “quickie” strikes and impressive wildcats strikes to fight for their own interests, they harbored a reservoir of pent-up demands. So with the end of WWII, rank and file pressure fueled the greatest union-led strike wave in U.S. history.

In September 1945 the number of days lost to strikes doubled, then doubled again in October. Two hundred thousand coal miners went out, 70,000 Midwest truckers, 40,000 machinists in the Bay Area. Detroit was the center of war production and became a center of worker militancy. Before the ink was dry on Japanese surrender documents, the United Auto Workers demanded a 30 percent wage increase. By November, 225,000 auto workers were on strike. And that was just the beginning of the great strike wave. On 15 January 1946, 174,000 electrical workers struck. The next day, 93,000 meatpackers walked out. On January 21, 750,000 steel workers struck, the largest strike in United States history (Jeremy Brecher, “The War and Post-War Strike Wave,” Chapter Six of Strike! (rev. ed., 2014]).

By the time the strike wave had finally rolled over the country in 1946, nearly five million workers were involved: steel, auto, mines, rail, coal, maritime, tobacco, oil, meatpacking, electrical, and many other labor sectors as well as non-industrial workers including teachers, municipal and utilities workers. The coal and electrical workers caused a nation-wide brownout and a national rail strike brought commerce to a near collapse. The U.S. Bureau of Labor Statistics called the first six months of 1946, “the most concentrated period of labor-management strife in the country's history.” But despite the enormous power exercised by labor, absent revolutionary leadership, the unions did not combine to struggle for a nationwide general strike. So they were open to counter-attack.

President Truman and Congress took up arms against the roiling sea of labor mobilization. Truman was furious. He drafted a message to Congress in 1946 that actually called for hanging union leaders:
“Every single one of the strikers and their demagogue leaders have been living in luxury. Now I want you who are my comrades in arms to come with me and eliminate the [John L.] Lewises [Mine Workers], the [Alexander] Whitneys [rail workers], the [Alvanley] Johnstons [locomotive engineers], the Communist [Harry] Bridges [ILWU] and the Russian Senators and Representatives. Let's put transportation and production back to work, hang a few traitors and make our own country safe for democracy.”
They called out the Navy to break the oil workers strike, the Army to break the rail strike and the miners strike, but the miners stayed out. In 1947 Congress passed the Taft-Hartley Act sharply restricting labor power and independence.

Along with intensified anti-labor repression, the government subsidy for white, suburban homeownership was not only a strategy to head off demands for publicly funded housing but also a concession meant to derail labor militancy. Having all your equity tied up in a 30-year mortgage that you likely won’t pay off until retirement is a powerful incentive not to go on strike, as you could risk all by missing payments. By 1948 most housing in the U.S. was being constructed with Federal Housing Administration financing. FHA financing was essential in the construction of the gigantic Levittown project, for instance. Without FHA approval of plans, developers such as William Levitt would not be able to raise capital for their projects. The FHA would not approve any plans that did not include a commitment to refuse to sell to African Americans. The deed would also contain a restriction to prohibit resale to blacks or even renting to black families. The FHA would not even approve plans for developments where black families lived nearby because of fear it could lead to integration. The result was that all-white Levittown-type developments sprung up all over the U.S. as part of the racist suburbanization of America.

Truman proposed new public housing in 1949 to try to ameliorate the continuing post-WWII housing shortage. The Republicans in Congress responded with a legislative strategy to lop off support for the bill from the Southern Dixiecrats. They proposed a “poison pill” amendment to the housing bill that would require new housing projects not be segregated. So in 1949 Democrats campaigned nationwide for segregated public housing. Led by liberal “lions” Hubert Humphrey and Paul Douglass of Illinois they roared their support for segregated housing to get their bill passed with segregationist support. Many African Americans, and the NAACP supported the Republican amendment because they foresaw the dangers of a new round of expanded segregated housing and what it would mean for the future. So on the Senate floor Douglass addressed “my Negro friends,” saying that “I am ready to appeal to history and to time that it is in the best interests of the Negro race that we carry through the housing as planned rather than put in the bill an amendment which will inevitably defeat it” (p. 31).

The verdict of history is in and has declared liberal segregation guilty as charged. As a result of the 1949 legislation African Americans were driven into high-rise ghetto projects isolated from employment opportunities and social services and plagued by racist cops. Funds from the 1949 housing act were used to build Cabrini Green and Robert Taylor projects in Chicago, the Rosen Homes in Philadelphia, the Van Dyke Houses in New York, and many more. Public housing rapidly became housing for African Americans with all the disastrous social and economic consequences for future generations. The New Dealers saw this strategy of appeasing their segregationist base as an easy way to get the votes for increased public housing. But it also represents the conscious design that permitted capitalism to maintain blacks as a color caste far into the future.

The historical amnesia and deception practiced by New Deal segregationists extends to the current batch of self-proclaimed Democratic Socialists. When these Democratic Party politicians are queried about what they mean by socialism, they invariably claim the mantle of the New Deal. “That’s all we mean. Honest.” While glorifying New Deal public initiatives, they never mention the damage done to African Americans by the segregationist policies of the New Deal. Along with the closely linked mass incarceration, those policies that led to ghettoization have done the most racial harm since slavery and Jim Crow. One of the results of state-designed American apartheid is the near complete social separation of black and white Americans. Integrated working-class neighborhoods would have encouraged integrated struggle for better public schools, recreation, transportation and other services. Racist propaganda has a more difficult time taking hold when people actually know each other and struggle together. Racism and segregation cripple the united working-class struggle that alone can break the back of the structure of racism.

Making New Ghettos

One of the recurring themes of Color of Law is the account of how the government created segregated neighborhoods where they didn’t previously exist. Rothstein begins his book in the San Francisco area because there were so few African Americans there when WWII industries started up, and therefore there was no pre-existing pattern of racial segregation to follow. As war workers flooded into Richmond, to find jobs in the Bay Area’s shipbuilding yards and Ford assembly lines, its population quadrupled between 1940 and 1945. Richmond’s black population went from 270 to more than 14,000.

Faced with the acute housing shortage for war workers, the federal government built housing that was explicitly and officially segregated – housing for black workers shoddily constructed along the railroad lines and meant to be temporary; permanent housing for whites constructed inland. The cops and housing authority enforced strict social separation including for recreational activities, movie screenings, USO activities, Travelers Aid services, and even children’s Scout troops. The housing authorities explained the purpose of the policy of segregation as “keeping social harmony or balance in the whole community,” – and, of course, that “Negroes from the South would rather be by themselves” (p. 6).

Black workers at Ford assembly plant in Richmond, California,  in 1948 worked together with white workers, but were barred  from living in white neighborhoods. (From The Color of Law)

Ford had set up its Richmond plant in 1931. In 1953, Ford closed its Richmond plant and moved 50 miles south to rural Milpitas outside of San Jose. Although the UAW had struck a deal with Ford that included guaranteed transfer for its 250 black workers, only the white workers were able to secure government-backed loans for home construction in the area of the new plant. So although the black and white workers were generally in identical economic circumstances, the black workers were stuck in Richmond when Ford moved to the suburbs. Black auto workers had to choose between giving up relatively good industrial jobs, moving to the segregated neighborhoods of San Jose, or enduring a long, onerous commute.

As industrial jobs moved to the suburbs, the government made available low interest, low down payment loans to remodel and subdivide, but only to white prospective homeowners. The federal government arranged for bank loans to construct a new suburb, Rollingswood, with the requirement that none of the homes would be sold to African Americans. Black workers were left in the dilapidated housing at the Richmond rail yards while white workers moved to government subsidized suburbs like Rollingswood and later Milpitas. White veterans could obtain low-interest, no-down-payment mortgages backed by the FHA and Veterans Administration (VA), but the government demanded that mortgage insurance include an openly stated prohibition against sales to African Americans. As white families moved to the suburbs, Richmond became a predominantly black city.

The government was a roadblock even to attempts to create new integrated developments. Rothstein tells the story of the failed attempt to construct an integrated cooperative housing development at the end of WWII. The group included author Wallace Stegner, then a teacher at Stanford University in Palo Alto. Of the 150 co-op members, three were black. The co-op purchased land but was unable to secure financing or obtain construction mortgages without government approval, and the FHA would not insure any cooperative that included black families. The board of the cooperative tried to appease government officials by instituting a racial quota. The government rejected even this racist capitulation, and the coop board resigned. In 1950 the cooperative-owned land was sold to a developer whose FHA agreement specified that no properties be sold to African Americans. The all-white development was called, “Ladera,” and still adjoins the Stanford campus (p. 12).

Rothstein poses the proposition: If this rigid racial segregation took hold in the liberal San Francisco area where firm patterns of segregation had yet not taken root, it could happen anywhere in the U.S. Indeed it has, whether following the segregation patterns established during the Great Migration in places like Cleveland and Chicago or by creating new ghettoes. One of the important themes in Color of Law, is the lengths to which the government has gone to destroy existing racially integrated working-class neighborhoods to create segregated ones. There were once many integrated lower-income residential areas in inner cities because workers needed to be in walking distance to the factories and workplaces. Government planners destroyed such neighborhoods in Atlanta, Boston, Cleveland and elsewhere to build segregated housing. In the 60s some of these projects of “slum clearance” were dubbed “urban renewal,” and so the saying developed among residents that “urban renewal means Negro removal.”

As industries left the cities for the suburbs, the government subsidized and embraced suburbanization of whites that left blacks compacted in ghettos. In the post-WWII era, politicians and the real estate lobby combined to supercharge the idea of homeownership to head off demands for more affordable and public housing. The policies they enacted made homeownership more available for midle- and upper-income white homebuyers, but left out minorities and lower-income working people. These policies continue to have profound effects on inequality. If this was the American Dream of homeownership, it was a dream purposefully put out of reach of African Americans. This was the process that shaped what nearly every metropolitan area of U.S. now looks like: Black ghettos and their inner-ring satellites surrounded by white suburbs.

Suburbs for African Americans?

By the time blacks were allowed to move into the suburbs, the patterns of segregated housing were well set. Rothstein notes that the process of ghettoization continues to this day. Exploding rents in cities, and a continuing process of gentrification continues to drive black families from their homes. Displaced families seek housing in less-expensive and often less-stable and more densely concentrated neighborhoods nearby; those who have amassed some savings move to the inner-ring of mainly black neighborhoods nearest the city; the most desperate are driven into homelessness. All of this had led to increased segregation and homelessness.

Despite all the obstacles to homeownership, growing numbers of minority families gained a toehold in postwar suburbia, but this did not fundamentally change the character of racial segregation in America. Between 1940 and 1960, the number of black suburbanites increased by 1 million, amounting to 2.5 million by 1960 – approximately 5% of the total suburban population. In addition, over nine million African Americans moved to the suburbs between 1960 and 2000 – more than the numbers who moved north in the Great Migration around World War I. Existing white suburbs fiercely resisted integration. Most of these new African American suburbanites settled near existing minority communities forming contiguous urban/suburban majority black areas, such as Prince Georges County in Maryland bordering Southeast Washington, D.C. Or the belt of African American/Latino villages in southwestern Nassau County on Long Island (New York).

The movement of blacks into segregated suburbs reflected regional variations. In the South, where African Americans had lived on the metropolitan fringes for decades, developers erected “Negro expansion areas” that did not disrupt existing patterns of segregation. Developments such as Collier Heights in west Atlanta, Washington Shores near Orlando, for instance, became suburbs for a growing black middle class. Outside the South new suburban municipalities limited construction for minority families, so African Americans tried to find housing in older, mainly black city and suburban neighborhoods such as Evanston, Illinois, Pasadena, California, and Mount Vernon, New York. And they sought housing on the suburban borders of black city neighborhoods. 

Irvington, New Jersey is typical of the pattern of majority black suburbs surrounding Northern cities. A little over three square miles in area and originally a farming community named, Camptown, as in Stephen Foster’s “Camptown Races,” the renamed, Irvington, became one of the most densely populated towns in the state. By the time the building boom ended in the 1930s it had consumed every farm and field. Wave after wave of European immigrants moved in during the first half of the 20th Century. Until 1965 Irvington was almost exclusively white. The Newark riots of July 1967 and the racist ideology of “white flight” hastened an exodus of white families from Irvington and looser federal housing restrictions brought black families to the suburb, many of them moving just a few blocks from Newark to Irvington. By 1980 the town was nearly 40% black, by 1990 it was 70% black.

Although the civil rights movement had overcome many of the de jure Jim Crow housing restrictions, the middle-class black beneficiaries of the movement nevertheless were pushed into segregated suburban neighborhoods. In these suburbs as well as in the cities, residents faced school segregation, redlining, racist zoning, and inadequate services. Despite the mass mobilizations and limited legal victories of the civil rights movement metropolitan America remained geographically separate and unequal.

Subprime Suburbs

In the post-WWII United States, both Republicans and Democrats rejected public housing in favor of the capitalist fantasy of homeownership as a solution to poverty. In that project, the partner parties of American capitalism followed the well-established ideology of the powerful “real estate lobby” – developers, landlords and banks – that had always denounced public housing as un-American. They succeeded in razing public housing ambitions and limiting its access to only the very poor. In the 1990s, and 2000s they dismantled the existing regulatory regime, as deficient as it was, and opened up a banking free-fire zone for exploitation of prospective homebuyers. The consequences were catastrophic. Lenders aggressively targeted low-income minority home seekers with predatory “financial products” that extracted what little wealth they held. The tepid regulatory changes enacted in the wake of the 2008 crash were too little, too late.

Black families who had gained a tenuous foothold in homeownership in the inner-ring suburbs after the passing of the Fair Housing Act of 1968, had their financial legs knocked out from under them by the foreclosure epidemic after the capitalist banking crisis of 2008. “Reverse redlining” had targeted black borrowers for the sub-prime mortgage scam run by banks and abetted by federal “regulators.” Federally “regulated” banks appealed to African Americans with “teaser mortgage rates” in what Wells Fargo called “ghetto loans.” Of course, the Federal Reserve could have banned this practice of predatory loans. Predatory lenders pushed African Americans and working people into mortgages that were easy to get into, but nearly impossible to repay, often in distressed neighborhoods where there was little chance for equity gain. The inevitable bust of this manufactured bubble wiped out hopes of wealth accumulation through home equity for many African Americans. Rothstein points out that racism was often the determining factor in the subprime swindle:
“Among homeowners who had refinanced in 2000 as the subprime bubble was expanding, lower-income African Americans were more than twice as likely as lower income whites to have subprime loans, and higher income African Americans were about three times as likely as higher income whites to have subprime loans.” (pp. 110-111)
By 2006 African Americans took out subprime mortgages at three times the rate of white borrowers, and higher-income blacks at four times that rate.  Even the U.S. Justice Department in 2010 admitted that the “more segregated a community of color is, the more likely it is that homeownership will face foreclosure because the lenders who peddled the most toxic loans targeted those communities” (quoted by Rothstein on pp. 111-112). Foreclosures were sudden and devastating in traditional and newly established black neighborhoods. In the settlement with Countrywide (later a subsidiary of Bank of America), HUD Secretary Donovan remarked that from “Jamaica, Queens, New York to Oakland, California, strong middle class African American neighborhoods saw nearly two decades of gains reversed in a matter of not years – but months” (p. 112).

Increased segregation in the aftermath of the foreclosure scourge continues to this day. African American homeownership rates fell precipitously, as they no longer qualified for conventional mortgages. The “on-contract” loan system of the 1960s has returned with its high interest rates and onerous conditions that can cause eviction with a single missed payment.


Engels on The Housing Question

The Marxist tradition on housing was elaborated by Engels in 1872-3 in a polemical debate against the influence in Germany of French utopian libertarian and anarchist, Pierre-Joseph Proudhon. Although a critic of the idea of private property (“property is theft”), Proudhon advocated that workers should own their own homes. He saw this as a solution to the housing crisis that developed with the expansion of industry as workers flooded into the cities. In his booklet, The Housing Question, the 1877 republication of his earlier articles in the German social democrats’ magazine Der Volksstaat, Engels declared that “The essence of both the big bourgeois and petty-bourgeois solutions of the ‘housing question’ is that the worker should own his own dwelling.” Engels goes on to show that this idea is not merely utopian, but reactionary as it looks back to the pre-industrial domestic-based hand loom economy.

Proudhon argued that the landlord stood in relation to the proletariat as the capitalist to the worker. Engels disagreed, explaining that the landlord was not exploiting the workers in the way that the factory owner profited from the worker’s unpaid labor. Whereas the worker confronted the owner of the means of production as a seller of labor power, the worker confronted the landlord as a buyer. In this sense the landlord was much like a shopkeeper rather than the factory owner. In short, the program of home ownership is not a working-class social policy, it is a bourgeois policy designed to trap working people in the machinations of the private property system under conditions where without sufficient capital they stand to lose all, as happened to millions in the 2007-08 economic crisis. But in the U.S., the systematic state-designed denial of home ownership to African Americans is decisive in the creation of the ghetto and the U.S. racial caste system. It has isolated black workers from their class brothers and sisters. American apartheid fosters racism within the working class, thus weakening the united struggle of all workers against capital.

And Now What?

The Color of Law is sharp in its condemnation of the government’s role in designing this “American apartheid.” The book is strong in its presentation of the shameful history of Democratic Party liberals and the racist consequences of its policies that endure to this day. It is an important and sometimes stirring book … until we come to the what-is-to-be-done part. Discussing fixes to residential segregation Rothstein goes all limp and watery. He tinkers around the edges of the problem. In this failure to offer viable solutions to urgent social problems his book is like others written recently by liberal authors: Michelle Alexander’s New Jim Crow on racist mass incarceration and Diane Ravitch’s books that skewer the corporate “reform” movement in education (See “Three “R’s”: Ravitch, Research and Revolution,” CSEW Newsletter No. 4). The problems they lay out are so deeply rooted in the development of U.S. capitalism that an honest reader cannot imagine solid resolutions of the problems this side of a thoroughgoing social revolution. But these liberal reformers are committed to Democratic Party politics, so they cannot implicate the capitalist system as the economic source of the problems they describe.

After a recent (September 6) lecture on the subject of his book to a packed auditorium at John Jay College, Rothstein was peppered with questions from students and teachers about what they should do about residential segregation. Rothstein mentioned reforming zoning laws, the mortgage tax deduction and limitations gentrification while allowing that “Section Eight” vouchers and tax credit schemes have actually deepened racial segregation. Finally, Rothstein called for “a new civil rights movement.” But The Color of Law underscores one of the signal failures of the old civil rights movement – its limited fight against only legal segregation and its failure to address the structural racism at the core of the oppression of African Americans.

It is exactly the legalism at the center of Rothstein’s argument that represents a fruitless course of action. The failure to address capitalism’s relentless system of profit-seeking and inherent racism is inherent in the liberal worldview. It means that even the most well-meaning “progressive” policy analysts and brutally honest muckrakers can “speak truth to power” all they want, and it will change nothing fundamental, for it is the power of capital that is at the core of racial oppression in this country founded on chattel slavery, whose heritage continues to this day.

Consistent with the strategy of the liberal civil rights movement, Rothstein looks at the history of residential segregation through a legal lens. He shows that the government engaged in unconstitutional behavior in the creation of the racialized residential landscape. He demonstrates that government sponsorship of racial segregation constitutes a violation of the Thirteenth and Fourteenth Amendments that abolished slavery at the end of the Civil War and supposedly guaranteed equal treatment under the law for all citizens. Therefore, he contends that the government can be held legally responsible to remedy the effects of its unconstitutional behavior. Under the Republican redliner Donald Trump? Or the likes of the Clintons, whose policies slashed public housing and gave rise to the subprime mortgages? But Rothstein’s own presentation of history undermines his legalistic premise.

Residential segregation is so deeply rooted in the American economy and social life that the courts would never mandate effective remedies. And even if such a case did make it to the highest court, the justices would hardly indict the entire racist system of capitalism reflected in segregated housing patterns. Think about how the Supreme Court responded when it was presented with the incontrovertible evidence that the death penalty was racist in its implementation if not intent. The justices said that they couldn’t take such evidence into account without condemning the entire criminal justice system as racist and illegitimate. Yes, indeed. Although every metropolitan area has been segregated as a result of government policy, the Supreme Court has refused to recognize that the supposedly de facto segregation is not accidental. Rothstein cites the consequential case in 1974 that was brought to integrate schools in Detroit by including nearby suburbs. The court decreed that residential segregation was “not caused by government activity,” and nixed the plan.

Historically the U.S. Supreme Court is a profoundly conservative institution, as is becoming clear in the Trump era to even the most starry-eyed liberals. The liberal civil rights movement saw the Supreme Court as a useful partner in the struggle for racial equality. Partial and temporary victories in the courts were possible because the U.S. ruling class did not want to carry the burden of official legal segregation on its books in its face-off with the Soviet Union, particularly in Africa. So liberals got the idea that the Supreme Court was an engine for racial justice. But even many of the partial victories of that movement like the 1954 Brown vs. Board of Education decision have been rendered largely moot by the re-segregation of schools. Embedded in the capitalist development of U.S. society, the patterns of residential racial segregation cannot be dismantled like segregated drinking fountains.

When the civil rights movement came north to protest for fair housing in 1966 they brought with them their illusions in the capitalist courts. There protesters were confronted with the actual economic and social realities of capitalist society. Although Martin Luther King has been often credited with leading the 1966 march for fair housing in Cicero, one of the white enclaves just west of Chicago, he actually made a deal with Chicago mayor Daley to call off the march. The Cicero march was led by activists from CORE and others. King’s deal spelled the end of the liberal civil rights movement as it was beaten back by brick-throwing racist mobs. King himself was struck by a brick in an earlier protest that year in Marquette Park.

Without the mobilized power of the organized workers movement in a labor/civil rights struggle for affordable housing, the legalist strategy constrained by Democratic Party politics reached a dead end on the streets of Marquette Park and Cicero, where white racist mobs did the dirty work of the capitalists. It was a devastating defeat and defined the limitation of the liberal movement and its reliance on the courts. Rothstein’s proposal for a “new civil rights movement” bound by legalist strategies and liberal politics cannot succeed, particularly in this period of capitalist decline and economic crisis.

The civil rights movement, constrained as it was by Democratic Party politics could not have gone beyond a contest against de jure segregation. It would have taken more powerful social forces to confront and dismantle the structural racism that is woven tightly into the history of U.S. capitalism. The small propaganda group, the Spartacist League, revolutionary Trotskyists at the time, called for revolutionary integration and a labor-civil rights axis to put the struggle for black equality on a class-struggle basis. (See “Black and Red: Class-Struggle Road to Negro Freedom,” Spartacist special supplement, May-June 1967, reprinted in the Internationalist Group Class Readings, What Strategy for Black Liberation? Trotskyism vs. Black Nationalism). This heritage is carried forward today by the Internationalist Group and is part of the theoretical underpinning of Class Struggle Education Workers).

In fact, the labor movement was instrumental in achieving the legal victories of the liberal civil rights movement. But when the struggle for black equality reached the point that required a movement that could go beyond the the segregation laws, the Democratic Party-loyal labor bureaucrats stopped cold. They were not going to confront the racist capitalist system. To begin to meet the racist oppression of African Americans, for instance, a class-struggle leadership of the unions would have led a powerful integrated organizing drive in the South. Yet the CIO’s 1946-49 “Operation Dixie,” which spurred a parallel campaign by the more conservative AFL, was defeated because it failed to frontally take on Jim Crow segregation laws. Had the labor leadership done so, that would have been a significant gain for labor and a milestone in the struggle for black equality.

American exceptionalism – chattel slavery and its legacy of radical social and economic racial inequality – continues to be expressed as mass incarceration, police violence and educational apartheid. Successful opposition requires integrated class struggle led by a multi-racial revolutionary workers party that fights against the racist oppression inherent in U.S. capitalist society. And that includes housing. In the early 1930s Depression, the Communist Party that had lurched left temporarily led militant anti-eviction demonstrations that brought thousands to the homes of evicted families to confront the marshals. They occupied the evicted family’s furniture so it could not be removed. Although the number of evictions in the depth of the Depression was only a small fraction of the number of evictions today, community resistance was fierce. When three Bronx families were evicted in 1932, the New York Times observed of the protest: “Probably because of the cold, the crowd numbered only 1,000” (see Desmond, Evicted).

The failure of the civil rights movement to affect the oppression of African Americans north of the Mason-Dixon line spurred the rise of the Black Panther Party, which was destroyed by murderous government repression. The frustration in the Northern ghettos exploded in a series of black upheavals (called “riots” in the bourgeois media), put down by military force, leaving devastated neighborhoods that have never been rebuilt. Poverty programs were legislated to siphon off discontent. And the language was changed. Calls for black power were replaced by deceptive talk of “black empowerment”; instead of integration, the goal was proclaimed as “diversity,” instead of equality they talk of “equity.” There was opportunity for an expanded black middle class, but only crumbs – if that – and mass incarceration for the millions of black poor.  

The fight to end American apartheid must be part of the struggle for black liberation through socialist revolution. That requires a break with both capitalist parties and the programmatic construction of a revolutionary multi-racial workers party that will lead the struggle for a workers government as it fights on every front against racial oppression. With some 18.5 million habitable housing units sitting vacant in the U.S. as of 2015, most due to foreclosures, while an estimated 3.5 million people are homeless, a victorious revolutionary workers government would expropriate and redistribute the existing stock of unoccupied housing with a disposition to compensate sectors of the population that have suffered from historic exclusions, while “repurposing” palatial estates for recreational purposes. This is different than the call for “reparations” (as if the ongoing legacy of centuries of racial oppression could be compensated by a check) or other “remedies” under capitalism. As a workers state moves forward toward socialism, the contradictions and tensions between rural and urban economies will be ameliorated. Socialist city planners will design and build environmentally sustainable and architecturally wondrous living spaces for creative work and recreation that will at last undo the history of apartheid racism and allow people to associate freely in a classless egalitarian society. ■



No Place Like Homeowner Ideology

In Richard Rothstein’s dialogue with the audience at John Jay College on September 6, it was evident that many of the students experienced his thesis of government-designed racial segregation as “breaking news.” Rothstein was not surprised. Although this history has been hidden in plain sight, the students would not have learned this essential lesson in school.

As an educational journalist and researcher, Rothstein is particularly interested in the ideological underpinning of the historical amnesia he has chronicled in Color of Law. So he surveyed high school text books to demonstrate the omission of this history. He offered the students the example of one of the most commonly used high school textbooks: The Americans: Reconstruction to the 21st Century, a thousand-page tome written and edited by well-known and respected historians and educators. The 2012 edition reserves just one paragraph on residential segregation and contains this passive voice sentence: “African Americans found themselves forced into segregated neighborhoods” (p. 199). Nothing about who and what policies did the forcing. It is as if black people woke up one morning, looked around, and said, “Wow! Look at this, all my neighbors are black. Wonder how that happened?” Rothstein’s research on school textbooks shows that the same historical amnesia is promoted by all of the major educational publishers.

The suppression of the history of the conscious design of American apartheid is part of the homeowner ideology that dominates much of American thinking at the intersection of race and private property. The country’s racial residential landscape must be made to seem as natural as the “amber waves of grain” and “purple mountains’ majesty.” But this ideology has been carefully constructed.

Although the racial landscape of American apartheid was largely constructed by New Deal planners as an alternative to decent public housing, federal promotion of home ownership began earlier as an anti-communist crusade against working class regard for the Bolshevik Revolution. In 1917 the U.S. Department of Labor launched a PR campaign called, “Own Your Own Home.” They passed out, “We Own Our Own Home” buttons to school children, sponsored lectures and distributed posters. The aim of the propaganda campaign was to inoculate American workers against the dangerous idea that private property could be expropriated for the benefit of all. As one organization of realtors put it at the time, "socialism and communism do not take root in the ranks of those who have their feet firmly embeddeded in the soil of America through homeownership" (Vincent Cannato, "A home of One's Own," National Affairs, Spring 2010).

The fact of American apartheid is buttressed by the ideology of home ownership and capitalist devotion to private property. Home ownership is a chief god in the worship of the American Dream. It is credited with personal success, financial stability, middle-class respectability and moral virtue. Home ownership in the U.S. is viewed as the proper environment for raising children, a requirement for safety and evidence of good citizenship. Of course, if homeownership actually bestowed such benefits, West Virginia would be the most prosperous and stable state in the country as it has the highest rate of home ownership since 1980. George W. Bush’s “ownership society” followed a similar campaign promise by Clinton. Bush promoted a particularly saccharine version of the anthem. Here is an excerpt from the transcript of his speech in 2004 to the National Association of Home Builders:
“For millions of our citizens, the American Dream starts with owning a home. (Applause.) Home ownership gives people a sense of pride and independence and confidence for the future. When you work hard, like you've done, and there are good policies coming out of our nation's capital we're creating a home – an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property. (Applause.)”
The aim of this ideology is to sell the idea that all workers can own their own homes. Of course, this marketing fantasy came to a bitter end in 2008 with the financial bust. Predatory lending schemes led working people, particularly black working people into a cavern of debt where they lost their homes and what little wealth they had managed to accumulate over generations.

Some cultural historians note that this ideology has deep roots in U.S. history and the development of capitalism. De Tocqueville observed: “In no country in the world is the love of property more active and more anxious than in the United States.” (Democracy in America). The Constitution excluded from the vote not only slaves, indentured servants, women, and Native Americans, but also anyone who was not an owner of property. The famous line in the Declaration of Independence about, “the pursuit of happiness” was originally, “the pursuit of property.” In the arguments between land-value represented by slave-owner Jefferson and the money-values of Franklin, Jefferson’s fantasy vision of a democracy guided by yeoman farmers won out, at least temporarily. Although they disagreed with Jefferson about many things, Hamilton and Adams agreed that only property owners should be allowed suffrage. Faced with threats of rebellion by the destitute landless everywhere among them, the “founders” did not trust anyone who was not a property owner.

By the late 19th Century, even before the time of the government’s push for the suburbanization of white America, the idolization of the detached single-family home with enough land to separate from neighbors had a tight grip on the American imagination. Walt Whitman, the voice of America’s collective unconscious, captured the dream and the yearning: “A man is not a whole and complete man unless he owns a house and the ground it stands on.” It was an idealized version of the Anglo-Saxon country cottage. The dreamy image is captured perfectly by Charlie Chaplain in Modern Times, as the little proletarian visualizes his sweet, white picket-fenced house as an escape from the dark satanic mills of industrialization.

Homeowner ideology supported the FHA government hostility to dense urban housing. Its racist purpose was sustained by that dream of the idealized single-family, detached home away from the city. The role of ideology is to render invisible the real economic and social forces that the capitalist state facilitated and which continue to maintain a racist housing pattern. So self-satisfied homeowners believe that their homeownership was achieved by virtue of hard work, an ethos of thrift and correct life choices, unlike “those people” who do not own their own homes. They gloss over the fact that of the 73 million owner-occupied homes in the U.S., almost two-thirds (46 million) were encumbered by mortgages or equity loans and could be “repossessed” (Urban Institute, How Much House Do Americans Really Own [2016]). Who really owns those homes are the banks and other lenders, as millions realized after the 2008 crash.  

Contemporary homeowners don’t think much about the role of government in facilitating segregated residential housing. And they don’t talk about the mortgage tax deduction they receive at the expense of renters, a tax break that artificially inflates home prices and is an obstacle to prospective first-time buyers. The mortgage deduction is a substantial government subsidy that largely benefits upper middle-class and wealthy homeowners. In 2012, it withheld $68.2 billion in taxes. Only 3 percent went to households earning under $50,000 a year, while 77 percent went to households earning more than $100,000 a year.

The suburbanization of America is also deadly for the environment in terms of relative carbon footprint and transportation patterns, as it is based on mass automobile ownership. But even self-described environmentalists seem unaware (“unwoke”?) as they blithely drive from their suburban and exurban homes to take their clothes to the organic dry cleaner.

The ideology of home ownership is instrumental in shaping the American dream of independence as it conceals the actual racist history of housing in the U.S. Although we cannot expect any time soon that high school textbooks will acknowledge the decisive role of government in designing American Apartheid, Richard Rothstein’s Color of Law contributes mightily to our understanding of that history and helps to lift the veil of that insidious ideology.


Class Struggle Education Workers (CSEW) is part of the fight for a revitalization and transformation of the labor movement into an instrument for the emancipation of the working class and the oppressed See the CSEW program here.