&gt; Also is statistical discrimination better than taste-based?<p>Yes, it is. It leads to fewer costs and more efficiency. Jobs need to be matched with the best candidates at the least overhead, and statistical discrimination is important here. Can highschool dropouts be great programmers? Of course, but if you need a programmer, you&#x27;re better off interviewing the people with CS degrees before the dropouts...<p>&gt; Would you consider that statistical discrimination?<p>Yes. If you want to use black people as an example, you can note that a lot of the disparity in arrest and crime rates are directly traceable to them committing more crimes due to factors like being poorer and less educated etc (<a href="http:&#x2F;&#x2F;slatestarcodex.com&#x2F;2014&#x2F;11&#x2F;25&#x2F;race-and-justice-much-more-than-you-wanted-to-know&#x2F;" rel="nofollow">http:&#x2F;&#x2F;slatestarcodex.com&#x2F;2014&#x2F;11&#x2F;25&#x2F;race-and-justice-much-m...</a>). Once you adjust for these factors, a lot of the &#x27;racism&#x27; goes away. Or consider the infamous example of &#x27;women make 85 cents for every dollar men make&#x27;...<p>&gt; I believe that lots of business owners used this very rationalization in the Southern United States, in bygone eras.<p>And they were right. Their job was to run their business as best as they could. If they decided they wanted to become a anti-racism activist and incur thousands or millions of dollars of losses, that is their right, just as it was their right to not engage in expensive activism and destroy their business, and just as it is your right to not sign a check for $100,000 to the NAACP and mail it off right this instant. I suspect you are exercising this right, so I hope you will not blame them too harshly for exercising their rights too.