Final answer:
Understanding racism solely as individual prejudice ignores the systemic and institutional aspects that contribute to racial disparities. Racism involves a complex system of power, historical context, and societal practices that benefit some racial groups while disadvantaging others.
Step-by-step explanation:
A person who understands racism as simply the personal prejudices of "racist" people is operating under the fallacy that racism is just about individual attitudes and overlooks systemic and structural components. This understanding misses the broader and more complex realities of racism, which includes systemic racism, structural racism, cultural racism, and colorism. Racism involves not only interpersonal prejudice but also the unequal power dynamics and institutional policies that perpetuate discrimination and inequality.
Systemic racism is the embedding of such prejudices within the systems and structures of society, which can result in the unequal distribution of resources, power, and opportunities. It goes beyond individual actions to a framework that systematically disadvantages certain racial groups over others, through policies and practices that are often built into societal institutions like the legal system, education, housing, and the job market.
Racism is not just a matter of personal belief in superiority or actions based on prejudice; it's a complex intersection of power, historical legacies, cultural narratives, and institutional practices that together create and maintain racial hierarchies and disparities. As such, when people of color exercise prejudice, it often lacks the systemic backing that transforms personal prejudice into wide-reaching racial oppression.