AI Overview Sociological and psychological research generally supports a link between economic hardship/perceived resource scarcity and increased prejudice and stereotyping. The Link Between Economic Conditions and Prejudice Resource Competition Theory: Research suggests that when resources (like jobs, housing, and food) are scarce, intergroup competition intensifies, leading to heightened antagonism and prejudice against out-group members (minorities, immigrants, etc.). Economic Downturns Exacerbate Bias: Studies have found that during economic downturns and times of high unemployment, self-reported racial prejudice increases, and racial employment and wage gaps widen. Perceived scarcity has been shown to increase the accessibility of negative stereotypes and lead to more negative evaluations of minorities. Social Class and Prejudice: While the relationship is nuanced, some studies indicate that individuals with lower income and education levels may be more likely to exhibit prejudice due to their own precarious economic situations, especially when they perceive immigrants or minority groups as direct competition for limited resources. Psychological Mechanisms: Economic instability can create a sense of system threat. In response, members of dominant groups may increase stereotyping and discrimination as a way to assert social dominance and justify existing power structures. The Cycle of Poverty and Racism Poverty and racism are deeply intertwined and cyclical. Historical and ongoing systemic racism, such as redlining and educational disparities, has led to a disproportionate share of racial/ethnic minority families living in high-poverty neighborhoods. In turn, poverty itself can contribute to the persistence of racist attitudes and practices, as those in lower socioeconomic brackets may view out-groups as competition.