The tendency toward social breakdown which is inherent in the growth of wealth polarisation, as discussed in section D.9, is also producing a growth in racism in the countries affected. As we have seen, social breakdown leads to the increasingly authoritarian government prompted by the need of the ruling class to contain protest and civil unrest among those at the bottom of the wealth pyramid. In the US those in the lowest economic strata belong mostly to racial minorities, while in several European countries there are growing populations of impoverished minorities from the Third World, often from former colonies. The desire of the more affluent strata to justify their superior economic positions is, as one would expect, causing racially based theories of privilege to become more popular.

That racist feelings are gaining strength in America is evidenced by the increasing political influence of the Far Right, whose thinly disguised racism reflects the darkening vision of a growing segment of the conservative community. Further evidence can be seen in the growth of ultraconservative extremist groups preaching avowedly racist philosophies, such as the Ku Klux Klan, the Aryan Nations, the White Aryan Resistance, and others [see James Ridgeway, Blood in the Face: The Ku Klux Klan, Aryan Nations, Nazi Skinheads, and the Rise of a New White Culture, Thunder's Mouth Press, 1990]. Thus, American Politicians and organisers such as Pat Buchanan, David Duke, and Ralph Metzger have been able to exploit the budding racism of lower- and middle-class white youths, who must compete for increasingly scarce jobs with desperate minorities who are willing to work at very low wages. The expanding popularity of such racist groups in the US is matched by a similar phenomenon in Europe, where xenophobia and a weak economy have propelled extreme right-wing politicians into the limelight on promises to deport foreigners.

Most conservative US politicians have taken pains to distance themselves officially from the Far Right. Yet during the 1992 presidential campaign, mainstream conservative politicians used code words and innuendo ("welfare queens," "quotas," etc.) to convey a thinly veiled racist message. David Duke's candidacy for the governorship of Louisiana in 1991 and for the presidency in 1992, as well as the Republican Convention speeches of Pat Buchanan and Pat Robertson, reflected the increasing influence of the Far Right in American politics. More recently there has been Proposition 187 in California, targeting illegal immigrants.

What easier way is there to divert people's anger than onto scapegoats? Anger about bad housing, no housing, boring work, no work, bad wages and conditions, job insecurity, no future, and so on. Instead of attacking the real causes of these (and other) problems, people are encouraged to direct their anger against people who face the same problems just because they have a different skin colour or come from a different part of the world! Little wonder politicians and their rich backers like to play the racist card — it diverts attention away from them and the system they run (i.e. the real causes of our problems).

Racism, in other words, tries to turn class hatred into race hatred. Little wonder that sections of the ruling elite will turn to it, as and when required. Their class interests (and, often, their personal bigotry) requires them to do so — a divided working class will never challenge their position in society.

Therefore, justifications for racism appear for two reasons. Firstly, to try and justify the existing inequalities within society (for example, the infamous — and highly inaccurate — "Bell Curve" and related works). Secondly, to divide the working class and divert anger about living conditions and social problems away from the ruling elite and their system onto scapegoats in our own class.