Final answer:
Racial functionalism suggests that racism serves the interests of dominant groups and has persisted due to the functions it provides, such as creating in-group solidarity by ostracizing others. This concept is part of a broader understanding of systemic racism, which is problematic as it justifies inequalities.
Step-by-step explanation:
Tyson's statement that racism benefits upper-class whites who exploit black laborers by paying them less, and simultaneously serves the psychological interests of white working-class individuals who feel the need to perceive themselves as superior to others, refers to a concept known as racial functionalism. Racial functionalism can be problematic, as it suggests that racism and discrimination have served an important function in societies where such inequalities have persisted. Systemic and institutional racism can be understood as part of a larger framework of social stratification that includes classism and sexism, and it is a system where certain individuals or groups are advanced at the expense of others based on racial prejudices.
Anthropologists define racism as the use of race to establish a social hierarchy and system of power. Furthermore, from the functionalist perspective, racism can strengthen bonds between in-groups by ostracizing out-group members, although this view is controversial, as it raises moral questions about the justification of discrimination. Historical examples include the justification of slavery in the antebellum South and the defusion of class tensions among white southerners through a shared belief in white supremacy.