0. You seem to have ignored "the more free and open an economy is." which recognizes both that there are degrees "more free and open" and that these are factors that help it go away. The south to some extent lacked them.
1. In the south, racism was going away. Maybe not as fast as people would like, but it was going away.
2. Much of the racism in the south was perpetrated by governments, not by businesses.
3. The south was, after the civil war, subjugated to the will of the north in a form of (probably racist) enslavement of the entire region. The avoiding of this subjugation is why many free blacks in the south fought on the side of the confederacy during the civil war. (while its notable that the north enslaved people via conscription to fight on their side in the civil war.)
At any rate, I wouldn't call the south after the civil war until the 1960s a completely free and open economy.
4. These authoritarian civil rights laws perpetuated racism, they didn't end it. In a way they codified racism by saying "black people can't compete on their own in the market place" which is a racist perspective.
1. In the south, racism was going away. Maybe not as fast as people would like, but it was going away.
2. Much of the racism in the south was perpetrated by governments, not by businesses.
3. The south was, after the civil war, subjugated to the will of the north in a form of (probably racist) enslavement of the entire region. The avoiding of this subjugation is why many free blacks in the south fought on the side of the confederacy during the civil war. (while its notable that the north enslaved people via conscription to fight on their side in the civil war.)
At any rate, I wouldn't call the south after the civil war until the 1960s a completely free and open economy.
4. These authoritarian civil rights laws perpetuated racism, they didn't end it. In a way they codified racism by saying "black people can't compete on their own in the market place" which is a racist perspective.