Correlation and causation differ quite a bit, and its pretty common knowledge to know the difference, because supposedly the misunderstanding can lead to many blanket statements that are simply untrue. And yes, this does happen for many minor things, but also for major ones too. In fact the misunderstanding of these concepts can be the root of many stereotypes.
The article "A Biological Reality" tackles this problem, specifically bringing up the example of the stereotype that "'Black people are better at basketball'". This conclusion could be made by someone by basing their evidence on the fact that black basketball players seem to dominate the professional scene. However, as stated in the article, the easy and inexpensive game in the inner city, was very popular with African American youth. The perceived causation in a certain correlation is the reason stereotypes are created.
For example, one that hits closer to home, is the "All Asians are smart" stereotype. Now sure, it could be taken as a complement, but all stereotypes are inherently problematic in some way, as there is no difference in these characteristics based simply on the way we look. The correlation that people may observe (if it even exists), could be chalked up to cultural differences, household values, etc. As the article states "Race does not exist on a genetic level," there is always likely a different reason for our differences and a lack of understanding that could be harmful.
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