Did government bureaucrats micro-managing the economy stop being racist in that time?

> Redlining was made illegal under federal law - i.e. by the government - in the 70s, not least because the private sector had absolutely no interest in doing anything to stop it.

Redlining was invented by the government! The term refers to markings on FHA maps. The FHA massively distorted the mortgage market by insuring mortgages, but refusing to insure mortgages in Black neighborhoods. That made such mortgages vastly riskier for private sector lenders.

I disagree. The racism was a manifestation of the problems critics of the New Deal have with it: when you put government bureaucrats in charge of building things and running the economy, they inject their own biases and shortsightedness into the projects. We wouldn’t be building overtly racially segregated public housing today, but our bureaucrats still have plenty of biases to inject into their projects. (Listen to the podcast “Nice White Parents” for a good primer on how things like special language programs in schools become a way for wealthy, liberal, white parents to secure special resources in public schools for their kids specifically. Those are the same people that would be in charge of these New Deal 2.0 programs. E.g. you spend money for transit, and you have college educated white people spend billions building heavy rail through neighborhoods low income people can’t afford to live in, instead of shoring up the bus systems the overwhelming number of needy people actually use.)

The New Deal isn’t the only precedent we have. Look around at the world: everyone is doing basically the same thing we are. Bailing out airlines, providing increased unemployment benefits or payroll protection funds, etc. Instead of big, centrally planned projects, you inject money into the economy in a broad-based way with minimal bureaucratic discretion.