This is an interesting example of taste-based discrimination vs statistical discrimination. To see whether instances of discrimination represent mere prejudice or rational decision-making, one can simply ask: could you make money by not engaging in that discrimination? As Alan Greenspan discovered in hiring women in the '60s, and Harvey in the 1880s, the answer in their eras was: yes. So it was taste-based discrimination / sexism.
In line with the above poster's observation, Singapore Airlines has profited from this "taste-based discrimination." They're constantly one of the highest-rated airlines. Yet despite taste-based discrimination employed by Asian airlines such as EVA, SIA, and ANA, I would much rather fly on an Asian carrier than on American-based airline for the same money. Interestingly enough, EVA via Evergreen and ANA via Intercontinental also collaborate in hospitality programs.
Make any money, or the same money? Also is statistical discrimination better than taste-based?
A racist restaurant-owner might, for example, live in a fairly racist town and decide that not hiring Black people or even not allowing Black customers would increase the amount of money he makes, since in this racist town White people might not like to mingle.
So he could still make money in this scenario, just a lot less of it.
Would you consider that statistical discrimination?
I believe that lots of business owners used this very rationalization in the Southern United States, in bygone eras.
Yes, it is. It leads to fewer costs and more efficiency. Jobs need to be matched with the best candidates at the least overhead, and statistical discrimination is important here. Can highschool dropouts be great programmers? Of course, but if you need a programmer, you're better off interviewing the people with CS degrees before the dropouts...
> Would you consider that statistical discrimination?
Yes. If you want to use black people as an example, you can note that a lot of the disparity in arrest and crime rates are directly traceable to them committing more crimes due to factors like being poorer and less educated etc (http://slatestarcodex.com/2014/11/25/race-and-justice-much-m...). Once you adjust for these factors, a lot of the 'racism' goes away. Or consider the infamous example of 'women make 85 cents for every dollar men make'...
> I believe that lots of business owners used this very rationalization in the Southern United States, in bygone eras.
And they were right. Their job was to run their business as best as they could. If they decided they wanted to become a anti-racism activist and incur thousands or millions of dollars of losses, that is their right, just as it was their right to not engage in expensive activism and destroy their business, and just as it is your right to not sign a check for $100,000 to the NAACP and mail it off right this instant. I suspect you are exercising this right, so I hope you will not blame them too harshly for exercising their rights too.
Very libertarian viewpoint considering the current atmosphere of knee-jerk liberalism.
I do concede that government oversight is sometimes necessary to protect society from unscrupulous businesses willing to hurt people for money, but in general, the "market" will correct a capitalist mistake.