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De Omnibus Dubitandum - Lux Veritas

Thursday, September 19, 2013

More Harm from “Disparate Impact” Regulations

by Hans Bader on September 18, 2013

Earlier, we wrote about the Obama administration’s attempt to inject a race-conscious “disparate impact” provision into colorblind anti-discrimination laws like the Fair Housing Act, and how that could lead to risky, race-conscious lending, bad loans, and future bank failures, mortgage meltdowns, and financial crises. Now, Ohio University economics professor Richard Vedder highlights an additional area where disparate-impact rules may be having a negative impact: higher education. (“Disparate impact” is a term in anti-discrimination law for when a neutral policy happens to affect minorities more than whites. One example is a standardized test that whites pass at a higher rate than some minority group, even though test scores are calculated the same way for members of all races. Some civil-rights laws contain language authorizing “disparate-impact” claims, but others do not, and are phrased in colorblind terms.)
Vedder and others like George Leef of the Pope Center for Higher Education Policy believe the disparate-impact concept is fueling the college-tuition bubble and artificial competition for unnecessary paper credentials. At Minding the Campus, Vedder notes that disparate-impact regulations in the employment setting…..To Read More…..
My Take - It fascinates me that this continues. The Community Reinvestment Act was directly responsible for the housing bubble and subsequent collapse that caused the current worldwide economic mess, which also exposed just how fragile the world's economic systems really are. So now they want to push the same insanity that was disastrous again and expand the same fallacious thinking into other areas. Is there anyone out there that thinks this is insane except me. And this thinking originates from the graduates from some of the elite edifices of higher education! Clearly; elite higher education is over rated, yet the system is rigged to force employers to hire college graduates. 
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