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Originally stemming from fear of Communism (ie the red-scare),it means you were suspected of being involved in Communism, and were put on a list with other such people, though most had done nothing wrong. Being on this list prevented you from doing lots of everyday things. More recently associated with Seinfeld, when Elaine got herself, and then her boyfriend, blacklisted at the best delivery Chinese Food place around. They refused to deliver to the people "on their list."
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