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In my opinion, racism is the bigger problem, and it leads to terrorism.
There are several reasons of this.
I) Racism can belittle people; (ii) the victims can lose their confidence; (iii) There is less productivity; (iv) It can affect mental health, and there is scientific evidence about this. A study has shown that young college students who faced racism were experiencing a range of psychological psoblems including low self-esteem, depression, anger, guilt, anxiety, and loneliness. They also had physiological issues such as abnormal heart rate and headaches; they felt tired and had no energy to work. They were also afraid of being attacked and has less sense of security. Thus, racism is literally causing great physical and psychological damage.
Terrorism, on the other hand, emerge from racism, in most, if not all cases.