Evolutionary Economics,Rational Expectations,and Monetary Policy

Wealth disparity is a critical factor in the perpetuation of blackwhite disparity in the United States. Intergenerational wealth transfers are the major determinant of household wealth formation. A program of reparations would acknowledge past and continued injustice, redress such injustices, and provide closure. Radical institutional analysis benefits this policy discussion in at least three areas: explaining the re-creation of discrimination; indicating the role of wealth disparity; and identifying the funding source for reparations. For centuries the economic surplus has enhanced white wealth relative to black wealth. A program of reparations suggests directing the surplus toward funding black-white equality.