Africans were commodities during chattel capitalism, producing that was appropriated by Whites. This was instrumental discrimination: racially differential treatment because it was profitable. Chattel capitalism was ended by government policy, during the US civil war. White control of Black citizenship was the core element of structural racism during servitude capitalism. Instrumental discrimination included convict leasing, debt peonage, sharecropping, and the chain gang: policies that held down black wages and wealth accumulation, reduced public expenditure on services to the African American community, and public infrastructure that transferred wealth from Blacks to Whites. Lynching was used to enforce racial identity norms. Labor market discrimination increased during the Nadir, even as Blacks closed the skills gap with Whites. Black self-help was also expressed in The Great Migration and Urbanization (1914–1965). African American self-help, President Roosevelt’s New Deal, World War II era changes in federal hiring and the utilization of Black troops, and President Johnson’s Great Society gave rise to racialized managerial capitalism. Thereafter, exclusion is expressed as differential socioeconomic opportunities due to racial wealth disparity and identity norms governing access to resources, especially managerial power, along with relatively greater injustice in the criminal legal system and greater exposure to hate crimes.

Structural racism arose with European exploration, enslavement and colonization of Africans, triangular trade, and the historical development of capitalism as a world system. Structural racism consists of public policies and institutional practices with persistently racially disparate outcomes, cultural representations that continuously encourage invidious comparisons across racial groups, and norms of social interactions that encourage the reproduction of racialized social identities. Structural racism then is distinct from personal racial prejudice, that is, racially biased decisions, and from personal racial bigotry, that is, racially hostile actions or values based on irrational opposition towards those perceived as different. Structural racism allows “privileges associated with ‘Whiteness’ and disadvantages associated with ‘color’ to endure and adapt over time. … (Aspen Institute, 2004).” In addition to the formation of racial identity as a social norm, wealth inequality, involuntary unemployment, and the exploitation of labor are economic mechanisms that create the conditions for permanent structural racism. Racial differences in wealth, initially created by chattel and servitude capitalisms, reproduce racial disparities in economic, political, and social outcomes. These disparities embed a disproportionately large fraction of Whites in positions of power and authority within hiring institutions.