 [The Federalist] At 88 years old, Thomas Sowell continues to demonstrate why he’s one of the most formidable intellects of the age. In Discrimination and Disparities, released earlier this year, Sowell rebuts common misconceptions regarding socioeconomic differences among individuals, groups, and nations, and demonstrates that disparities are often explained by economics.
For instance, emotionally loaded phrases like "systemic racism" and "exploitation" are frequently used to explain differences between blacks and whites, rich and poor, and even individual nations. But a better understanding of economics refutes these notions.
Sowell begins by noting there are different types of discrimination. Discrimination I he defines as "an ability to discern differences in the qualities of people and things, and choosing accordingly"‐in other words, "making fact-based distinctions." Discrimination II he defines as "treating people negatively, based on arbitrary assumptions or aversions concerning individuals of a particular race or sex, for example"‐in other words, what most people mean today when they talk of "discrimination."
Ideally, Discrimination I‐judging each person individually‐would be universally practiced. Rarely, however, is the ideal "found among human beings in the real world, even among people who espouse that ideal." He gives an example:
If you are walking at night down a lonely street, and see up ahead a shadowy figure in an alley, do you judge that person as an individual or do you cross the street and pass on the other side? The shadowy figure in the alley could turn out to be a kindly neighbor, out walking his dog. But, when making such decisions, a mistake on your part could be costly, up to and including costing you your life.
In short, cost is the relevant factor when determining a course of action. The cost of Discrimination I‐judging the person as an individual‐may be prohibitively high in some cases, as when you approach a shadowy figure in a dark alley. But that does not mean that choosing to cross the street to avoid that shadowy figure is automatically Discrimination II‐arbitrarily expressing antipathy toward a group. 
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