Does Prejudice Make You Less Smart?
Scientific research now suggests that prejudice or bias make actually it harder for workers to make quality decisions at the office. Experiments conducted with brain-imaging equipment at Dartmouth College found some prejudiced workers became mentally drained as they tried to manage their biases. After a brief chat with an African American, some white test subjects who exhibited bias could no longer perform well on tests of cognitive abilities.
"Just having a prejudice makes you stupider," John Gabrieli, a professor of psychology at
Stanford University, told the Boston Globe in Nov. 2003. "It is really interesting."
"I think people are getting caught in this trap where they are trying not to do the wrong thing, rather than trying to act natural," Jennifer A. Richeson, an assistant professor of psychological and brain sciences at Dartmouth College, told the Globe. "Somehow we have to get past this awkward phase."
As the unfolding crisis in the mortgage industry continues to swallow up stock market profits, this research ought to scare the heck out of profit-conscious investors on Wall Street. Sub prime mortgages have been tearing away the financial foundation from communities of color for years. In the most extensive study of its kind, the Center for Responsible Lending found that African-Americans and Latinos are commonly almost a third more likely to get a pricy loan than white borrowers with the same credit scores. The study examined 50,000 sub prime loans.
So, a fair-minded person might ask: What role did racial bias play in the current mortgage meltdown, and how much is it going to cost us? The NAACP wants an answer. It has filed suit in Los Angeles federal court against 14 of the country’s largest lenders, alleging systematic, institutionalized racism in sub-prime home mortgage lending. Organization officials said that African American homeowners who received sub-prime mortgage loans from these lenders were more than 30 percent more likely to be issued a higher rate loan than Caucasian borrowers with the same qualifications.
The mortgage meltdown - the layoffs, the credit crunch,the abandoned properties and declining home values - provide an expensive lesson. There comes a point where white Americans will begin to lose money as a result of racial discrimination.
Gary Becker, a respected economist and Nobel Prize winner, addressed this in his 1992 Nobel Lecture."When the majority is very large compared to the minority - in the United
States whites are nine times as numerous and have much more human and
physical capital per capita than blacks - market discrimination by the
majority hardly lowers their incomes, but may greatly reduce the incomes of
the minority,"Becker said. " However, when minority members are a sizable fraction of the total, discrimination by the majority injures them as well."
In other words, bias against others may now come with a very expensive price tag. As the demographics shift, the bias tax will only get larger.
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