How does redlining contribute to racial wealth inequality in the U.S.?

Redlining is a practice where banks and insurance companies deny services to certain neighborhoods, often based on the racial makeup of those areas. This means that families living in these neighborhoods, usually made up of people of color, could not get loans to buy homes or start businesses. Without access to these financial resources, they miss out on building wealth through homeownership and investments, which are important ways to accumulate wealth in the U. S. For example, if a family in a redlined area wanted to buy a house but couldn't get a loan, they would miss the opportunity to increase their wealth as property values rise over time.