Socially discriminated conditions are prevailing in almost all the outskirts of New York where racial discrimination is at its peak. Segregation prevailing in schools, churches and prisons is the chief factor interpreted to be responsible for miserable conditions of poor children and widespread racism and exploitation is the root cause of distress and a feeling of being ignored in the minds of black children (Kozol 1997:104). All this contribute to worsen their performance as students and they also remain unable to perform good if they by chance get an opportunity to become professionals. To remove the discrepancy between white and black it is strongly needed to launch huge educational campaigns both at the level of schools and churches. Schools and Churches are the institutes that are responsible for sound moral values of a nation but in these areas these institutions are not playing an effective role as the segregation in schools is far more than the prisons. To control all the above discussed issues the view points of neo-liberalism and racism needs to be redefined as soon as possible so that social justice can be restored in the nation.