Unappreciated Tax on the Poor

Walter E. Williams | Jan 06, 2016

A few years ago, BET had a commentary titled "Where Are the Grocery Stores in Black Neighborhoods?" One wonders whether anyone thinks that the absence of supermarkets in predominantly black neighborhoods means that white merchants do not like dollars coming out of black hands. Racial discrimination cannot explain the absence of supermarkets in black communities. Compare the operation of a supermarket in a low-crime neighborhood with that of one in a high-crime neighborhood.

You will see differences in how they operate. Supermarkets in low-crime neighborhoods often have merchandise on display near entrances. They may have merchandise left unattended outside the store, such as plants and gardening material. Often these items are left out overnight. Supermarket managers' profit maximizing objective is to maximize merchandise turnover per square foot of leased space. The economic significance of being able to have merchandise located at entrances and outside is the supermarket manager can use all of the space he leases......White people and police officers cannot fix this or other problems of the black community. If blacks do not fix them, they will not be fixed, at least in a pleasing way. 

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