Discriminations Impact on Business

Eco110 11 May 2015

David Dishneau and Joyce M. Rosenberg of the Associated Press wrote an article concerning the Baltimore Riots and their subsequent impact on the already suffering Baltimore economy. With 25.2% of people in Baltimore city living below the poverty line (36.5% of children), Baltimore can be viewed as one of the poorest cities in the country (MAP). Children in Baltimore are forced to attend lower performing schools than those in the suburbs and as a result, are inherently placed at an economic disadvantage and subject to an unequal ladder of opportunity from the start. Realizing these variables makes it evident that even before the riots began- which resulted from a case of suspected police brutality which many believe led to the death of Baltimore resident Freddie Gray- residents already felt the weight of a struggling economy, “there were complaints by residents over the quality of food sold in local stores, while (business) owners expressed concerns about crimes (SIC) targeting them and their businesses” (Dishneau & Rosenberg).

The poverty-stricken neighborhood and its already painful economic situation was only exacerbated by the violent rioting that left a CVS- the store many were calling the only place to buy necessities within ten blocks- burned down and nearly 200 small businesses closed for days. Baltimore business owner, Richard Sung Kang, stated, “I don’t know yet,” after being asked whether he would reopen his liquor store and bar, the Oxford Tavern. It is safe to say Kang is not the only business owner considering closing for good. After accounting for the high cost of rebuilding and recognizing that insurance premiums will rise due to claims against already-existing policies, many business owners are finding it difficult, if not impossible, to obtain the funds to make rebuilding possible.

For most, bank loans and private investors would be an option for securing capital to put into rebuilding,...