How does redlining perpetuate economic inequality in the U.S.?

Redlining is a practice where banks and insurers refuse to provide services to certain neighborhoods, often based on racial or ethnic factors. This means that people living in these areas, usually low-income and minority communities, struggle to get loans for homes or businesses. Without access to these financial resources, families cannot invest in their homes or neighborhoods, leading to a cycle of poverty and lack of opportunity. For example, a family in a redlined area might want to buy a house but cannot secure a mortgage, forcing them to rent in a declining neighborhood instead. As a result, these communities remain disadvantaged, which keeps economic inequality alive across generations.