Economic Consequences of Racial Discrimination

For Becker: Capitalists make lower profits, white workers make higher wages (a “white skin privilege”), non-white workers make lower wages.

For Reich: Capitalists make higher profits, most workers (all but some in skilled trades) have lower wages, but non-whites wages are the lowest. No “white skin privilege.”

Moral Consequences of Racial Discrimination

For Kant, the economic details don’t have much effect on the morality of racial discrimination. For Utilitarianism, however, we have:

Utilitarianism + Reich implies: Racial discrimination hurts almost all people, and is therefore wrong. If people understand this, they should find it easier to oppose discrimination.

Utilitarianism + Becker implies: Racial discrimination hurts capitalists, but benefits white workers, who would have to renounce a “white skin privilege” if discrimination is ended. Utilitarians might conclude that discrimination is morally permissible.