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Ep. 255 The Economics of Discrimination

Bob Murphy Show

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Why Would a Bank Want to Be Unfair to Black People?

"It's sort of an article of faith in these conversations that the big banks and the credit rating agencies would benefit from being unfair to black people," he says. In general, why would a bank want to? "If what you want is to maximize the rate of return on your money ... I'm saying it does not at all benefit the shareholder if the bank is engaging in discriminatory lending policies."

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