What Economists Really Do: The Economics of Race and Politics

This talk examines the transformative effects of the 1965 Voting Rights Act (VRA) on race relations, political participation, and governance in the United States, drawing on key findings from the literature. The VRA, which removed formal barriers to Black political participation—especially voter registration restrictions—led to increased Black voter turnout and office-holding, particularly in southern counties. Most notably, Black office-holding increased in powerful county commissions that control local public finances. This shift reshaped political representation and public spending, boosting the provision of public goods, such as infrastructure. However, the VRA also triggered a white counter-mobilization, with rising white voter registrations in areas where Black political power was seen as a threat. This reaction temporarily strengthened support for racially conservative political candidates and slowed spending in sectors crucial to Black communities, such as education and public employment. Then, while the VRA expanded access to public goods with broad benefits, spending slowed where Black Americans were the primary beneficiaries.