Who covers the cost of reparations?
Reparations for Slavery: Who Should Foot the Bill?
The call for reparations for slavery is gaining momentum. Progressive Democrats have made it a central part of their 2020 platform, and a House resolution to study the idea has garnered nearly 200 cosponsors. State and local governments are also exploring ways to compensate their black residents for the injustices of the past. From Boston to St. Paul, cities are establishing task forces to address this issue.
However, amidst the renewed debate on reparations, one crucial question remains largely overlooked: Who will bear the financial burden of this endeavor? As I argue in a recent report for the Manhattan Institute, this question poses a significant challenge for reparations advocates. It turns out that a substantial portion of Americans, estimated to be around 70 percent, are descendants of immigrants who arrived in the United States after the Civil War. This includes many wealthy individuals, including recent immigrant billionaires and high-earning ethnic groups like Jewish Americans. Holding them responsible for slavery, from which they derived limited or no benefit, presents a complex dilemma for the reparations movement.
The scale of reparations adds to the complexity. Proponents estimate that the cost of addressing the harms of slavery could reach trillions of dollars. However, traditional sources of funding, such as colleges and businesses, fall short. The only plausible option is the U.S. government and, consequently, the American taxpayer. But should all taxpayers be equally responsible? Many Americans cannot trace their lineage back to slaveholders or the era of legal slavery. It seems unfair to burden these individuals with the financial obligations of reparations.
It is important to recognize that a significant portion of the American population consists of nonblack descendants of post-Civil War immigrants. The two major waves of immigration in U.S. history occurred after 1865, adding millions of people to the country. If we simulate a scenario where there was no immigration after the war, we find that the nonblack population today would be significantly smaller. This means that there are millions of Americans, including Hispanic, Asian, and white individuals, whose ancestors arrived after slavery ended and did not benefit as much from it. Paradoxically, many of these individuals are among the wealthiest, making them the most likely targets for taxation to fund reparations.
Some argue that these descendants still benefited from the legacy of slavery or subsequent discrimination against black people. While there may be some truth to this, it is clear that their benefit was not as substantial. Taxing them equally seems unjust. For instance, it would be unfair to hold a newly arrived immigrant from Vietnam equally responsible for slavery as a sixth-generation descendant of slaveholders.
This issue highlights a deeper problem with reparations and other redistributive policies aimed at addressing historical disadvantages. As America becomes increasingly diverse, arguments based on long-gone injustices lose their effectiveness. The Supreme Court’s recent ruling on race-based affirmative action in college admissions reflects this changing landscape. What was once a policy to rectify the disadvantages faced by a small black minority is now seen as disadvantaging another minority group, Asians. This shift in dynamics would not have been possible without the significant growth of the Asian population.
As the debate on reparations continues, opponents can leverage the “who pays” problem as a powerful counterargument. As America becomes more diverse, this issue will only become more pronounced. It is crucial to consider the complexities and implications of reparations as we navigate the path towards a more just society.
Charles Fain Lehman is a fellow at the Manhattan Institute, contributing editor of City Journal, and a 2023-24 Robert Novak Journalism Fellow.
How can the estimated smaller population of nonblack descendants impact the fairness of holding individuals accountable for the actions of their ancestors in the post-Civil War era?
Can estimate that the current population of nonblack descendants of post-Civil War immigrants would be significantly smaller. Therefore, it would be unfair to hold these individuals accountable for the actions of their ancestors who arrived in the United States in a post-slavery era.
Furthermore, the issue of who should bear the financial burden of reparations becomes even more complex when considering the fact that not all black Americans are descendants of slaves. Many black Americans are first- or second-generation immigrants who did not experience the historical injustices of slavery. It would be unjust to expect these individuals to contribute to reparations for something they were not directly affected by.
Another challenge arises when determining how to calculate the amount of reparations owed. Should it be based on an individual’s wealth, income, or some other criteria? There is no clear answer to this, and any method chosen is likely to face criticism and scrutiny.
Additionally, there is the question of how reparations should be distributed. Should they be given directly to descendants of slaves, or should they be invested in communities and institutions that have been disproportionately affected by the legacy of slavery? Determining the fair and effective distribution of reparations will be an immense challenge.
Ultimately, the issue of reparations for slavery is a complex one, both morally and practically. While there is a valid argument for compensating the descendants of slaves for the injustices they endured, determining who should bear the financial burden presents significant challenges. It is important to approach this issue with careful consideration, taking into account the diverse backgrounds and circumstances of all Americans. Any solution must strive for fairness, inclusivity, and meaningful redress while avoiding burdening individuals who have no direct historical connection to the injustices of slavery.
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