The U.S.’s mortgage interest deduction policy is a key example of how some universal policies actually worsen inequality. Property owners—who are disproportionately white men—end up saving the most money. And people who cannot afford a down payment—who are disproportionately people of color—don’t get any benefits at all. This creates strange, backwards effects, like massive tax breaks for landlords (but not for the tenants who are actually paying off the landlords’ mortgages). In contrast, down payment assistance for redlining victims would
decrease racial inequity by channeling resources to the people who need them. For McGhee and the authors of
From Here to Equality, reparations is not a vague principle or hope: it’s a concrete economic policy plan. It involves correcting for the massive historical transfer of wealth from Black to white people (due to slavery, Jim Crow, redlining, the financial crisis, and so on) by transferring some of this wealth back to Black people.