Economic Inequality + Policies

What is the difference between wealth and income?

Wealth is accumulated assets over time (often generational), while income is money earned currently.

What is the racial wealth gap?

The large difference in accumulated wealth between white families and minority families due to historical inequalities.

What is the poverty line?

A government-set income threshold used to determine who is considered poor.

Why are unemployment rates often misleading?

They only count people actively looking for work, excluding discouraged workers.

What is environmental racism?

The placement of hazardous industries in minority communities, exposing them to more health risks.

What was the eugenics movement?

A movement promoting “genetic purity,” often through controlling reproduction and targeting marginalized groups.

What did the 1913 Alien Land Law do?

Prevented many Asian immigrants from owning land.

What are subprime loans?

High-risk, high-cost loans often given disproportionately to minority borrowers.

What is redlining?

The practice of denying loans to people in minority neighborhoods by labeling those areas as “risky.”

What is the feminization of poverty?

The trend where women, especially single mothers, are more likely to live in poverty.

What does it mean that “poverty is patterned”?

Poverty is not random—it is shaped by systemic factors like race, education, and employment.

Who are the working poor?

People who are employed but still live below the poverty line.

 How does white privilege affect social programs?

Programs are stigmatized when associated with minorities but seen as neutral when benefiting whites.

How did early U.S. welfare programs create inequality?

They excluded many Black and Latino workers from benefits like Social Security.

What was the GI Bill and how did it contribute to inequality?

It helped veterans build wealth (education, housing), but Black veterans were often excluded, widening the racial wealth gap.

 Why does the U.S. have healthcare inequality?

National healthcare efforts were limited to maintain segregated hospitals.

How were women of color targeted in population control policies?

Through forced or coerced sterilization

What is affirmative action?

Policies designed to increase opportunities for minorities and women due to past discrimination.

Who introduced and expanded affirmative action?

Introduced by John F. Kennedy (1961), expanded by Lyndon B. Johnson (1965).

How did Richard Nixon change affirmative action?

Added “goals and timetables” (not quotas) to increase diversity.

What is residential segregation?

The separation of neighborhoods based on race

What are sundown towns?

Places that excluded minorities through threats or violence.

How did post-WWII housing policies create inequality?

White families received loans and built wealth, while minorities were excluded.

How does redlining still affect society today?

It contributes to ongoing wealth gaps and segregated neighborhoods.

Why is wealth more important than income for inequality?

Wealth is passed down, creating long-term advantages or disadvantages.

How do policies like the GI Bill show structural racism?

They appear neutral but were applied in discriminatory ways.

How do economic policies connect to crime and criminal justice?

Poverty and inequality increase vulnerability to crime and system involvement.