Home
/
RELIGION & LIBERTY ONLINE
/
The Economics of Profiling
The Economics of Profiling
Jan 30, 2026 9:59 PM

I ran across this video yesterday (courtesy of ESA), which I thought presented some interesting challenges and issues:

The video was presented on Upworthy as an example of something “all white people could do to make the world a better place,” that is, use their white privilege to address injustices.

A number of economists, including Milton Friedman and Thomas Sowell, have written about the power of the market economy to e racism and discrimination, to put people into relationships on the basis of economic decision-making rather than skin color. As Friedman contended,

the preserves of discrimination in any society are the areas that are most monopolistic in character, whereas discrimination against groups of particular color or religion is least in those areas where there is the greatest freedom petition.

But as a conversation I had with some others about the video also illustrates, there are times when (at least in the short run interests of the firm), something like profiling can seem to make some economic sense. The successful passing of one bad check can really hurt a store’s margins. Practically speaking the stores often take plete loss.

Let’s say that hypothetically the vast majority of those who attempt to pass bad checks at a particular establishment are from a particular ethnic group. Is it ever legitimate to subject customers from that ethnic group to greater scrutiny? Or should there simply be a blanket policy to ask for two pieces of ID and flip through the bad check book anytime someone cashes a check? As one person put it, it “makes no sense to allow people to write checks and not use a mon sense in who is handing you the check. You absolutely have to profile.” But is that really true?

There are a few other issues worth exploring related to the video. It’s not obvious to me that apart from the relationship this woman had with her relative that intervention from a third party would always be ed. Couldn’t the use of “white privilege” to intervene also be seen as patronizing, at least in some instances?

The insight of children is instructive, and the fact that this woman’s young daughter realized that her mother was being treated differently should be taken seriously. She saw, she felt intuitively, that something unjust was happening. Truth es out of the mouths of babes.

It’s easy to blame the cashier and her racism for perpetrating an injustice. Not to say that she is blameless, but this situation is a bit plex than that, I think.

For instance, I think it is rather likely that the checker was acting on store policy and direction from management to initiate extra security procedures for “suspicious” checks. Perhaps there was some specific direction about what types of people should be deemed suspicious, perhaps not. In the latter case, it was simply left to the cashier’s rather questionable, and certainly amateur, judgment.

We can also pretty safely assume that this supermarket had been victimized by check fraud in the past, and thus had implemented some measures, however imperfect, for mitigating their losses. Certainly, then, at some level, the criminals who had passed bad checks are to blame for the situation. This illustrates the social nature of sin, such that our actions have consequences that can extend much further than we imagine. In large part because people were passing bad checks, this woman was subject to greater scrutiny.

There are lots of actions that could be taken to make sure something like this wouldn’t happen again. The woman could stop using checks, which are seemingly a relatively unreliable method of payment pared with cash or credit/debit. The store could stop accepting checks altogether as a method of payment.

But certainly something Friedman would point out is that this store presumably doesn’t have a monopoly on food. The woman could simply choose to shop at a store that doesn’t practice profiling like this. As Friedman might contend, the resulting economic cost of profiling in a market setting, where people can freely choose which establishments to patronize, might be such that those firms that profile or discriminate in other ways are placed at petitive disadvantage.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Justice Scalia Echoes Lord Acton’s Warning on Corrupting Power
Reading through Scalia Dissents: Writings of the Supreme Court’s Wittiest, Most Outspoken Justice, I came across this gem: “No government official is ‘tempted’ to place restraints upon his own freedom of action, which is why Lord Acton did not say ‘Power tends to purify.'” ments from Justice Scalia emerged from Planned Parenthood of Southeastern Pennsylvania v. Casey (1992). A fuller context to his words gives added meaning to the threat to liberty and the rule of law from activist courts:...
Audio: Sirico on Law and Virtue
Rev. Robert A. Sirico speaks at the 2013 Law Day Celebration May 1st was Law Day across America, and here in Grand Rapids, the Acton Institute joined the Catholic Lawyers Association of West Michigan to sponsor a Law Day Celebration at the St. Cecilia Music Center. The chosen theme for Law Day this year was “Realizing the Dream: Equality for All,” and responsibility for delivering a keynote address on that theme fell to Acton President Rev. Robert A. Sirico, who...
Choice in Schools or Choice in Education?
While school choice is helpful, what we really need in the U.S., says Stephen Davies, is a revolution in the delivery of education that gives us “education choice.” ...
Obama Administration Finally Recognizes Bible Publisher is a ‘Religious Employer’
After apparently recognizing the absurdity of arguing that a Bible publisher is not a “religious employer,” the Obama administration has dropped its appeal in the case of Tyndale House Publishers v. Sebelius. “For the government to say that a Bible publisher isn’t religious is outrageous, and now the Obama administration has had to retreat in court,” said Matt Bowman senior counsel for Alliance Defending Freedom, who represented Tyndale in the case. Following the government’s request, the U.S. Court of Appeals...
Idle Young Americans: Are We Becoming Europe?
If you’re a young American adult (the 25-to-34 age range), and you have a good job, count yourself blessed. Most of your peers aren’t so lucky. The New York Times reports that “[o]ver the last 12 years, the United States has gone from having the highest share of employed 25- to 34-year-olds among large, wealthy economies to having among the lowest.” Of course, young Europeans have been dealing with this for years. Greece, Spain and Portugal have unemployment rates between...
R&L Preview: Peter Schweizer on our Cronyist Culture
After being sentenced to federal prison in 2001 for racketeering, Louisiana’s former governor Edwin Edwards, long famous for his corruption and political antics, humorously quipped, “I will be a model prisoner as I have been a model citizen.” In his 1983 campaign for governor against incumbent David Treen, Edwards bellowed, “If we don’t get Dave Treen out of office, there won’t be anything left to steal.” The kind of illegal corruption once flaunted by Edwards is on the decline. There...
Is Belief in the Second Coming of Christ Bad for Creation?
Do you believe that Jesus will return to Earth someday? Then you probably don’t care about environmental devastation and the catastrophic loss of life of future generations. That’s the absurd conclusion drawn in an academic paper published in the latest issue of Political Research Quarterly. In their article, “End-Times Theology, the Shadow of the Future, and Public Resistance to Addressing Global Climate Change,” David C. Barker of the University of Pittsburgh and David H. Bearce of the University of Colorado...
Silicon Valley Misfits: Human Flourishing In California
Silicon Valley certainly has a reputation for innovation and risk. But Christianity? Businesses designed not only to innovate but to pursuing business as an “intimate” adventure with God? That seems unlikely. Christianity Today tells the story of several entrepreneurs in Silicon Valley who are grounded in faith, but are shrewd business people. Take, for example, Sonny Vu. The banker is dressed in northern California business attire—tailored suit, no tie, a nice watch peeking out from beneath his sleeve. Vu is...
Samuel Gregg: The Incredible Shrinking Monsieur Hollande
At The American Spectator, Acton Research Director Samuel Gregg looks at France’s embattled Socialist president, François Hollande, as the first anniversary of his term in office approaches. As Hollande’s approval ratings hit new lows, “Mr. Normal,” Gregg writes, is starting to look like “Mr. Irrelevant.” What’s more, he adds, “two of the biggest problems that have corroded Hollande’s credibility: his apparent inability to address France’s economic difficulties; and a growing awareness throughout France that la grande nation is slipping into...
Generosity vs. Zero-Sum Thinking in the Workplace
When discussing economics, we frequently encounter the zero-sum fallacy: the notion that the economic pie is fixed, that there is always a winner and a loser, and that, for someone to grow rich, another must e poor. Yet in a market wherein rule of law, contracts, and property rights are properly established, the pie will surely grow. We are not static balls of flesh fortably in a static universe. We are spiritual beings made in the image of a creative...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved