How did redlining practices historically contribute to community disinvestment and exacerbate inequalities in urban areas?

Redlining was a practice where banks and insurance companies would mark certain neighborhoods, often those with many Black residents or people of color, as high-risk areas. This meant that people living in those areas found it very hard to get loans for homes or businesses. Because these neighborhoods couldn’t get financial support, they suffered from a lack of investment, leading to poor infrastructure, fewer services, and declining property values. For example, if a neighborhood was redlined, the schools might not receive enough funding, leading to lower education quality for the children living there. Over time, this created a cycle of poverty and inequality, making it difficult for these communities to thrive.