"Whites received more from the New Deal than old-age protection and insurance against the business cycle. Housing subsidies paved the way for a white exodus to the suburbs; federal tax breaks secured union-bargained health and pension benefits and lowered the cost to workers; veterans’ benefits were an avenue of upward mobility for many white men. To assume that government policies benefited only blacks or were color-blind, as many white Americans commonly believe, is like looking at the world with one eye.
Three laws passed by Congress in the mid-1930s were instrumental in generating the pattern of racial stratification that emerged during the New Deal: the Social Security Act, the Wagner Act, and the Federal Housing Act. These laws contributed to the accumulation of wealth in white households, and they did more than any other combination of factors to sow and nurture the seeds of the future urban ghetto and produce a welfare system in which recipients would be disproportionately black. It is commonly assumed that the New Deal was based on broad and inclusive policies. While there is some truth to the claim that Roosevelt’s New Deal was designed, as Jill Quadagno states it, to provide a “floor of protection for the industrial working class,” it was riddled with discrimination. Brokered compromises over New Deal labor and social policies also reinforced racial segregation through social welfare programs, labor policy, and housing policy."
Michael K. Brown et. al, Whitewashing Race: The Myth of a Color-Blind Society (via wretchedoftheearth)