Essay on Redlining as a Major Deterrence of the American Dream

As evidenced in the Declaration of Independence, the American Dream signifies hope and empowers people to be whatever they see fit. The Dream has always emphasized that all people, irrespective of gender, race, and ethnicity, are equal and are endowed with the unalienable right to stay alive, be liberal, and pursue happiness. The belief provides people with a purpose and motivates them to be better and strive towards their goals, own wealth, buy homes, and be happy, irrespective of who they are. Despite the declaration, informal discrimination and segregation have been part of US history since time immemorial. Redlining, formally introduced in 1934 under the National Housing Act, made it impossible for people of color, especially African Americans, to buy homes in certain neighborhoods (Coates, 2014). American communities with people of color, especially African Americans, could have been far better without such discriminatory practices, and a guarantee of non-repetition is necessary as a reparation towards making the American Dream a reality.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Understanding the background of redlining is vital in gaining insight into how it prevented African Americans from owning homes and wealth and being part of the holistic American Dream. Redlining, a formal form of discrimination and segregation that denied mortgages to people of color, was enforced legally through the National Housing Act of 1934 as enacted by The Federal Housing Administration (FHA) (Coates, 2014). The Act allowed white house or home buyers to provide less money towards their down payment and a lower interest rate on mortgages. Contrarily, it made it impossible for people of color to access mortgages and other loans due to the fear that they were not creditworthy (Coates, 2014). FHA marked Black areas with a (D) rating and highlighted that area in red on a map. That labialization made appraisers aware of black areas and their ineligibility for insurance through FHA. White areas were considered "in demand', leaving that area heightened in green and marked with an (A) on the same map.

The creation of the FHA's program allowed for economic growth, especially in white communities but caused great depression among the black communities. Blacks were "Locked out of the greatest mass-based opportunity for wealth accumulation in American history" (Coates, 2014, p.5). Blacks were not permitted to receive mortgages through FHA and accumulate equity like the whites. Coats agreed that Blacks were not accumulating wealth like the whites; instead, they accumulated debt. Their debt came from an agreement to buy a house on contract without any of the riches, but all the consequences and responsibilities. Blacks were left with left no funds. Finally, 30 years later, redlining ended, but it was too late. The effects of the policy embedded itself within the future of black Americans.

Despite taking place numerous decades ago, the impacts of redlining are still evident among Black Americans. Impressions such as "You ain't shit[VE1] . You not no good. The only thing you are worth is working for us. You will never own anything. You not going to get an education. We are sending your ass to the penitentiary" (Coates, 2014, p.21) have always chocked the American Dream and are still part of the modern society and cause havoc on the minds of African Americans. Consequently, there are still more white people in the suburbs than African Americans, which is attributable to the redlining experiences (Coates, 2014). Segregation is an ongoing practice given the fact that the majority of African Americans are still living in areas that are considered flawed. Redlining restricted buying and building, which prevented economic growth, leaving those areas impoverished. African Americans who live in certain areas are not allowed access to schools with a well-rounded education system, good teachers, and space because of their zip code. ( another way of redlining). They are now left with schools in preexposure redlining areas that are overcrowded, increasing exposure to health hazards. Perennial segregation and discrimination have accustomed African Americans to impoverished lifestyles generating a clear line of difference between them and the whites.

Undoubtedly, black lives in America would be different had redlining never happened. Black would be in a better financial situation. Most of them could have been owing to better homes and businesses. The request for Reparations is always up discussion. HR49, a bill that organizes the Commission to Study and Develops Reparation Proposals for African Americans, is already underway (Coates, 2014). The Commission shall review slavery and discrimination and suggest suitable solutions. However, the development of the Commission has received less attention. In 1968, Ross and Byers filed a lawsuit against the government to hold it accountable for the crime committed against the African American society and to call for a reparation (Coates, 2014). Nonetheless, the fruits of such efforts are yet to be attained.

Conclusion

In conclusion, the National Housing Act revamped the growth of White communities and created the redlining program, which greatly stifled the economic growth and development of people of color, especially those in African American society. The people of color were left out in America's greatest opportunity for growth and are still struggling to close the economic gap. Today redlining still emerges in many forms. The hope of reparation is still possible, and maybe one day African Americans will have a chance to enjoy the American Dream. For now, the reparation to hold on is the guarantee that redlining will not happen again in the exact form as it happened decades ago.

Reference

Coates, T. N. (2014). The case for reparations. The Atlantic, 313(5), 54-71. https://www.addisonlibrary.org/sites/default/files/July%20Readings-%20Reparations.pdf