Seeing Covid-19 Through a Subprime Crisis lens: How Structural and Institutional Racism Have Shaped 21st-Century Crises in the U.K. and the U.S.

Abstract

This special issue aims to use historical examples to gain insight into the socio-economic impact of, and possibilities of recovery from, the Covid-19 pandemic for Black communities. We approach this question by comparing the impact of the pandemic on Black Britons in the United Kingdom with that of the 2008 subprime crisis on Black Americans. We find that, in both cases, a pattern of racially asymmetric losses and race-neutral policy responses that have systematically ignored the disparate losses borne by Black and racial/ethnic minority communities. Both patterns are manifestations of these countries' institutional racism. Relying on insights from stratification economics and using the concept of "racial formation" introduced by Harold Baron in 1985, we show how these nations' historical relationships to slavery and imperialism have led to different structures of racial control. Our review of U.K. government policy includes a critique of the March 2021 report of the U.K. Commission on Race and Ethnic Disparities.