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NewEconomicThinking
NewEconomicThinking·December 1, 2021

The Enduring Economic and Social Legacy of Racial Restrictive Covenants and Forms of Address

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Summary

This podcast episode, featuring economist and lawyer Richard Brooks, delves into the insidious and persistent impact of racial restrictive covenants on property ownership and the broader economy, even decades after their legal unenforceability. Brooks traces the history of racial zoning, starting with Baltimore in 1910, which mandated selling property only to individuals of a designated race, a practice later deemed unconstitutional by the Supreme Court in 1917 as impermissible state action under the 14th Amendment. However, the court's subsequent quiet period allowed private contractual agreements—restrictive covenants—to proliferate, which prohibited selling or leasing property to specific races, nationalities, or religions. These private agreements, initially used against Chinese immigrants in California, became widespread across the U.S.

The landmark 1948 case, Shelley v. Kramer, ruled that while private individuals could enter such agreements, their enforcement by courts constituted state action and was therefore unconstitutional, effectively overturning racial restrictive covenants. Despite this, Brooks highlights that lawyers continued to include these covenants in deeds, and their impact persisted. He cites a 1969 Department of Justice cease and desist letter to title companies, instructing them to stop reporting these unenforceable covenants, indicating their continued presence and influence. Brooks explains how the "publicity" of these covenants, revealed through title searches, acts as a signal to economic actors like banks. Even in a hypothetical scenario where all racial animus has vanished, a bank might anticipate "white flight" and subsequent falling property values if a person of a previously restricted race moves into a neighborhood, leading to reduced lending or denial of loans. This demonstrates how historical legal instruments, through their public record, continue to coordinate economic expectations and perpetuate systemic inequalities, even without explicit discriminatory intent.

Brooks then extends this concept of "titles" and their coordinating function from property to persons, introducing the idea of "forms of address." He argues that titles like "Professor," "Mr.," or "Madam," and associated styles, announce expectations of entitlements and obligations in social interactions, much like property titles. He identifies three functions of address: constitutive (defining who you are in a moment), regulative (dictating how you should behave), and correlative (coordinating behaviors and expectations among all parties). This leads to his "first law of address," which posits that the announced address calls forth its own enforcement without needing external state machinery, demonstrating a powerful, self-executing social coordination mechanism.

Finally, Brooks provides a compelling historical analysis of the term "boy" when used to refer to Black men in the American South. He reveals that in ancient Greece, Roman antiquity, and early modern England, "boy" was a common reference for a slave, predating its use for young males. In the post-Civil War U.S., as the term "slave" declined, "boy" saw a dramatic increase in usage, particularly in the South. Brooks argues that this usage was not primarily to infantilize but to evoke the historical expectations of entitlements and obligations associated with slavery, thereby subtly perpetuating a subordinate status. This deep dive into the etymology and social function of a seemingly innocuous term powerfully illustrates how language, like property covenants, can carry millennia-old legacies of systemic oppression, shaping perceptions and interactions in profound and often unconscious ways.