Home
/
RELIGION & LIBERTY ONLINE
/
The Economics of Profiling
The Economics of Profiling
Mar 17, 2026 8:41 AM

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
The Power of the Dog is everything that is wrong with Hollywood
Determined to destroy the Western, masculinity, and every shred of self-respect, this 12x-Oscar-nominated film from Jane Campion finally catches up to its own conceits, but far too late. Read More… My long series on Oscar movies ing to an end with angry words about Hollywood. To summarize, I liked Wes Anderson, loved Paul Thomas Anderson, was amused by Ridley Scott, disappointed by Steven Spielberg, and disgusted by Guillermo Del Toro. Of course, this is of no importance to the artists...
When intellectual giants collide: Mateo Liberatore vs. Blessed Antonio Rosmini
The 225th birthday of Blessed Antonio Rosmini is a good time to remember that heated debate on the intersection of faith and reason, philosophy and the Word of God, is to be encouraged. You you never know what light will be shed—or when a saint is in the making. Read More… Christian philosophy and morality were far from my intellectual radar during the 1970s when I decided to focus on economic studies. At the time I was captivated by the...
A Dark Knight of the soul
The Batman is more than just another reboot of the now-all-too-familiar tale of crime and punishment. The film asks deep questions that linger long after you leave the theater. Read More… The Batman plunges us straight into the middle of a crisis of faith. Gone is Bale’s confident and charismatic playboy. Robert Pattinson’s Batman hasn’t slept for a week. He journals, sulks, and obsesses over details. A Goth in Gotham—a concept that sounds like it shouldn’t work, but does. The...
Heroes who deserved attention during Black History Month
The history of black Americans abounds with extraordinary characters worthy of emulation—even during Black History Month. Read More… Another Black History Month e and gone, and the country has heard, once again, a great deal about the likes of Rosa Parks, Harriet Tubman, and Martin Luther King Jr. These American heroes are rightfully celebrated, but there are many stories that have gone un- or under-told, stories of courageous Americans of color who overcame tremendous barriers to plish extraordinary things. Three...
The Incarnation: The basis for a free and virtuous society
The material and the spiritual were never meant to be opposed to each other, which is why we at Acton work to realize spiritual benefits in the context of the hustle and bustle of the material world. Read More… In the Genesis account of creation, we read that God “looked at all he had made and found it very good.” Today’s feast, which celebrates the Annunciation to Mary and the Incarnation of the Son of God, reminds us that no...
When Catholic social teaching and neoclassical economics collide
A new book on a “just economy” from a Catholic perspective has more to say about injustices wrought by neoliberalism than it does about crony capitalism and the fraught history of the statist solutions it mends. Read More… Anyone looking for an engaging overview of what modern Catholic social teaching (CST) has to say about economic matters will find it in Anthony Annett’s book Cathonomics: How Catholic Tradition Can Create a More Just Economy. Yet Cathonomics is much more than...
The Irish writer as chronicler of the human condition
On this St. Patrick’s Day, pick up a copy of O’Neill, Synge, or Joyce and retreat to a self-contained world marked by human self-deception and tragic loss, and maybe a laugh or two. Read More… We may live in benighted times, but consider the world of just over a hundred years ago. Recurrent cultural or political shock, and often premature or violent death, was quite familiar to the generation emerging in the early years of the 20th century. It sometimes...
What can we expect from Judge Ketanji Brown Jackson?
Potential appointments to the Supreme Court have taken on an outsized role in determining the fitness of presidential candidates in recent years. The scrutiny potential justices undergo has also e part inquisition, part circus. Nevertheless, their politics matter. Blame Marbury v. Madison. Read More… There is almost no institution in the past 100 years that has more profoundly shaped American public life than the Supreme Court. As a result, position of the Supreme Court has e one of the most...
How do we determine the morality of economic sanctions?
Russia and individual Russians have been hard hit by sanctions imposed by nations around the world, all intended to deter Vladimir Putin from pursuing his illegal war in Ukraine. But what moral principles should guide our decisions about whether to impose sanctions and the form they take? Read More… Are economic sanctions morally permissible? That question has been asked by many people since Russia’s invasion of Ukraine and the imposition of a range of economic sanctions on Russian entities and...
Volodymyr Zelensky is the Servant of the People
In this 2015 starring the ic Zelensky, we witness what is now an absolutely surreal depiction of a man from nowhere thrust into history with the weight of his people’s fate on his shoulders. Imagine such a thing happening in real life. I know I can’t. Read More… Three Ukrainian oligarchs, a shadow Triumvirate as it were, stand on a balcony overlooking a gorgeous town square. An election for president is imminent and they’re tired of wasting millions on backing...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved