Truth in stereotypes

> Those are pretty good points, but I still find it weird that we forbid businesses to use all the information they have available to make business decisions.

Every rule in society can be formulated as a constraint on businesses. Typically, minimum wage prevents companies from making business decisions that would otherwise be profitable. Banning script money as a payment for wages also prevents them from making these decisions. This stems from the fact that the society view the common good as more important than the business interest of some of its members.

In that sense, making decisions based on data is an action like any other, and is subject to common scrutiny.

Let me quote Daniel Kahneman in "Thinking, Fast and Slow"

"The social norm against stereotyping, including the opposition to profiling, has been highly beneficial in creating a more civilized and more equal society. It is useful to remember, however, that neglecting valid stereotypes inevitably results in suboptimal judgments. Resistance to stereotyping is a laudable moral position, but the simplistic idea that the resistance is costless is wrong. The costs are worth paying to achieve a better society, but denying that the costs exist, while satisfying to the soul and politically correct, is not scientifically defensible. Reliance on the affect heuristic is common in politically charged arguments. The positions we favor have no cost and those we oppose have no benefits. We should be able to do better."

–Daniel Kahneman, Nobel laureate, in Thinking, Fast and Slow, chapter 16

> I'm not convinced that statistics can be racist

This really depends on whether you view racism as a moral failing, in which case the answer is "obviously not" or as a type of bug in a social (or social/technical) system, in which case the answer is "of course".

Considering the great amount of statistical research the author has done, it's surprising that he's drawn some dreadful conclusions. He seems to be saying that in the face of incomplete/ambiguous information, people should form judgements on other people on the basis of racial/gender/physical stereotypes.

The problem with stereotypes isn't that they have no basis in reality. The problem with stereotypes is that they are just as inaccurate as they are accurate. The problem with stereotypes is that they stunt the potential of tens/hundreds of millions of people.

Do we really want to live in a world where women are denied managerial/executive jobs, because of stereotypes that they can't control their emotions?

One where African Americans are rejected from job applications, because of whatever derogatory stereotypes people hold against them?

One where Jews are routinely judged as being immoral and obsessed with money?

One where Southerners are socially shunned for being uncultured racist bigots?

One where women refuse to date engineers because they're socially incompetent boring dorks?

One that bans Gays from being teachers because they're likely to be child molesters?

If you're someone who thinks that making life-changing judgements about individuals on the basis of stereotypes is perfectly fine, the early/mid 1900s are right up your alley. Thankfully, most of us have come to recognize how damaging and morally repugnant such a system is. I would hate to be judged and discriminated against on the basis of stereotypes, and hence, I refrain from doing the same to others. Ultimately, that's the courtesy that we as a society have decided we should extend to one another.