Rugh, J. S., & Massey, D. S. (2010).Racial segregation and the American foreclosure crisis.American Sociological Review, 75(5), 629-651.
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Theory or question addressed: The main aim of Rugh and Massey was to demonstrate the manner in which race became a determining factor when it came to the people who were negatively affected by the foreclosure crisis of 2008-2010. The foreclosures were characterized by financial institutions; primarily banks repossessed the houses of those who were unable to pay up the mortgages for the houses they were purchasing. This then suggests that there was systematic racial discrimination being used by those charged with the responsibility of repossessing houses.
2. The hypothesis postulated by the researcher argues that despite monetary position and credit worthiness being the parameters being the conventional guidelines for the application of foreclosures by banks during the financial crisis, The racial composition of neighborhoods as well as that of individuals drawn from minority racial groups predicted the severity with which people’s homes were repossessed by banks.
The formal hypothesis therefore was as follows: “There exists a direct relationship between the racial composition of neighborhoods and the manner in which foreclosures took place during the financial meltdown of 2008-2010 in the United States”.3. Methodology: Rugh and Massey primarily made use of secondary sources of literature for their research work and subsequent preparation of this document. This is because the hypothesis itself indicates that the research was conducted based on the results of the foreclosure measures taken by the banks. They also made use of news articles as well as demographic data, all of which had been observed and recorded by other parties thus making them secondary data. The analysis of these and side by side comparisons to establish a trend and pattern was the main modus operandi that facilitated the preparation of this research work. The demographic data that was used in this context was that which showed the racial composition of neighborhoods.
- Conclusions: Based on the analysis of the various variables relevant to the hypothesis, it was found that despite the intention of banks to focus on financial matters even at the point of repossession of houses, there was a clear breach of this in as far as the races of those targeted goes. This is because it emerges that demographic data detailing residential areas in the United States would have easily been used to predict the manner in which foreclosure was being applied. Basically the chances of people’s homes being foreclosed was heightened if they were drawn from the African American, Hispanic or Asian community.
- Relevance to current issue: This issue is extremely relevant to today’s world because the United States of America has a history of racial segregation that was institutionalized. Though this was officially done away with through legislation, there are always reports of discrimination still being rife. The main difference today is that there are three mainstream minority groups unlike the past when this was mainly composed of the African-Americans. If this is to be hypothetically treated as a program of social change, it is necessary to carry out reviews on a regular basis so as to evaluate the progress being made. The foreclosure crisis was carried out on a large scale and it carried with it matters of welfare and socio-economic matters thus making it an ideal event in recent history to investigate.
References
Rugh, J. S., & Massey, D. S. (2010).Racial segregation and the American foreclosure crisis.American Sociological Review, 75(5), 629-651.
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