ABSTRACT
The concept of reparations is key to understanding the public policy aspects of the race problem and fundamental to resolving them. Increasingly, economists will find it rewarding to address a wide range of policy issues through this lens. The self evident truth is that whites owe blacks money. This should inform and guide public policy thinking in every race related matter in housing, education, transportation, employment, business assistance, health, criminal justice, and in affirmative action in all its forms. Affirmative action policy—whatever it comes to be called—should have a sunset. That is another key principle: the sunset principle. Compromise solutions to contentious social policies should carry a time limit. Reparations should emphasize investment in education and training, housing, health, and business development. But merely subsidizing underclass subsistence won't work, and should not count as payment on reparations; that's not an investment in development. That is another key principle, the Development Principle.
