Discrimination
If we are going to stick to the dictionary definition of the term "discrimination," there is nothing wrong with it at all. It means merely to choose this over that. We can speak of "discriminating tastes" and regard this as a compliment. [...]
But it is a different matter when it comes to politics. Here is where the word "discrimination" indicates some sin against the civic religion. To be sure, banning blatant discrimination in all government programs makes perfect sense. Government programs are constructed for public access. But forcing people to integrate and avoid discrimination in all private transactions through affirmative action laws is a different matter. Forced integration in private affairs, instead of bringing people together, actually exacerbates the conflicts that many are trying to eliminate.
He takes issue with the government forcing themselves into the private lives of others.
Getting ahead because of special privileges granted by government is the same as falling behind because of arbitrary penalties. Both violate the principles of individual rights and private property ownership.
He notes in a free society, people need to be allowed to make bad decisions, because a free market will rout around them and arrive closer to the truth. If a store owner wants to unwisely discriminate who he lets into his private property, since it's his property, technically he is allowed to do so. But the bad publicity that would follow would probably doom his company.
He also addresses the argument that forced "privileges and special favors are fair compensation" for century-old injustices by explaining that those who must pay are not the guilty parties, which only compounds the problem.
Providing monetary reasons to fit a category, also, unfortunately, encourages individuals to act certain ways they otherwise might not. Another reason government must look only at individuals, not groups.
Government force, illegally and illogically used to stop all discrimination, results in a multiplicity and unintended consequences, altered behavior, and fraud.
Much more in this chapter, do read in full.
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or, as it was once explained to me:
"If the government forces all private store owners to serve everyone, yes, all store owners must serve African Americans. But it also means all African American store owners would be forced to serve every Ku Klux Klan member that walked in, too. We might not want to do that."