Connect with us

STM Blog

Beyond the backlash: What evidence shows about the economic impact of DEI

Published

on

Last Updated on July 30, 2025 by Rod Washington

file 20250523 56 neazpe.jpg?ixlib=rb 4.1
DEI has a long history. Nora Carol Photography via Getty Images
Rodney Coates, Miami University Few issues in the U.S. today are as controversial as diversity, equity and inclusion – commonly referred to as DEI. Although the term didn’t come into common usage until the 21st century, DEI is best understood as the latest stage in a long American project. Its egalitarian principles are seen in America’s founding documents, and its roots lie in landmark 20th-century efforts such as the 1964 Civil Rights Act and affirmative action policies, as well as movements for racial justice, gender equity, disability rights, veterans and immigrants. These movements sought to expand who gets to participate in economic, educational and civic life. DEI programs, in many ways, are their legacy. Critics argue that DEI is antidemocratic, that it fosters ideological conformity and that it leads to discriminatory initiatives, which they say disadvantage white people and undermine meritocracy. Those defending DEI argue just the opposite: that it encourages critical thinking and promotes democracy − and that attacks on DEI amount to a retreat from long-standing civil rights law. Yet missing from much of the debate is a crucial question: What are the tangible costs and benefits of DEI? Who benefits, who doesn’t, and what are the broader effects on society and the economy? As a sociologist, I believe any productive conversation about DEI should be rooted in evidence, not ideology. So let’s look at the research.

Who gains from DEI?

In the corporate world, DEI initiatives are intended to promote diversity, and research consistently shows that diversity is good for business. Companies with more diverse teams tend to perform better across several key metrics, including revenue, profitability and worker satisfaction. Businesses with diverse workforces also have an edge in innovation, recruitment and competitiveness, research shows. The general trend holds for many types of diversity, including age, race and ethnicity, and gender. A focus on diversity can also offer profit opportunities for businesses seeking new markets. Two-thirds of American consumers consider diversity when making their shopping choices, a 2021 survey found. So-called “inclusive consumers” tend to be female, younger and more ethnically and racially diverse. Ignoring their values can be costly: When Target backed away from its DEI efforts, the resulting backlash contributed to a sales decline. But DEI goes beyond corporate policy. At its core, it’s about expanding access to opportunities for groups historically excluded from full participation in American life. From this broader perspective, many 20th-century reforms can be seen as part of the DEI arc. Consider higher education. Many elite U.S. universities refused to admit women until well into the 1960s and 1970s. Columbia, the last Ivy League university to go co-ed, started admitting women in 1982. Since the advent of affirmative action, women haven’t just closed the gender gap in higher education – they outpace men in college completion across all racial groups. DEI policies have particularly benefited women, especially white women, by expanding workforce access.
Many Ivy League universities didn’t admit women until surprisingly recently.
Similarly, the push to desegregate American universities was followed by an explosion in the number of Black college students – a number that has increased by 125% since the 1970s, twice the national rate. With college gates open to more people than ever, overall enrollment at U.S. colleges has quadrupled since 1965. While there are many reasons for this, expanding opportunity no doubt plays a role. And a better-educated population has had significant implications for productivity and economic growth. The 1965 Immigration Act also exemplifies DEI’s impact. It abolished racial and national quotas, enabling the immigration of more diverse populations, including from Asia, Africa, southern and eastern Europe and Latin America. Many of these immigrants were highly educated, and their presence has boosted U.S. productivity and innovation. Ultimately, the U.S. economy is more profitable and productive as a result of immigrants.

What does DEI cost?

While DEI generates returns for many businesses and institutions, it does come with costs. In 2020, corporate America spent an estimated US$7.5 billion on DEI programs. And in 2023, the federal government spent more than $100 million on DEI, including $38.7 million by the Department of Health and Human Services and another $86.5 million by the Department of Defense. The government will no doubt be spending less on DEI in 2025. One of President Donald Trump’s first acts in his second term was to sign an executive order banning DEI practices in federal agencies – one of several anti-DEI executive orders currently facing legal challenges. More than 30 states have also introduced or enacted bills to limit or entirely restrict DEI in recent years. Central to many of these policies is the belief that diversity lowers standards, replacing meritocracy with mediocrity. But a large body of research disputes this claim. For example, a 2023 McKinsey & Company report found that companies with higher levels of gender and ethnic diversity will likely financially outperform those with the least diversity by at least 39%. Similarly, concerns that DEI in science and technology education leads to lowering standards aren’t backed up by scholarship. Instead, scholars are increasingly pointing out that disparities in performance are linked to built-in biases in courses themselves. That said, legal concerns about DEI are rising. The Equal Employment Opportunity Commission and Department of Justice have recently warned employers that some DEI programs may violate Title VII of the Civil Rights Act of 1964. Anecdotal evidence suggests that reverse discrimination claims, particularly from white men, are increasing, and legal experts expect the Supreme Court to lower the burden of proof needed by complainants for such cases. The issue remains legally unsettled. But while the cases work their way through the courts, women and people of color will continue to shoulder much of the unpaid volunteer work that powers corporate DEI initiatives. This pattern raises important equity concerns within DEI itself.

What lies ahead for DEI?

People’s fears of DEI are partly rooted in demographic anxiety. Since the U.S. Census Bureau projected in 2008 that non-Hispanic white people would become a minority in the U.S by the year 2042, nationwide news coverage has amplified white fears of displacement. Research indicates many white men experience this change as a crisis of identity and masculinity, particularly amid economic shifts such as the decline of blue-collar work. This perception aligns with research showing that white Americans are more likely to believe DEI policies disadvantage white men than white women. At the same time, in spite of DEI initiatives, women and people of color are most likely to be underemployed and living in poverty regardless of how much education they attain. The gender wage gap remains stark: In 2023, women working full time earned a median weekly salary of $1,005 compared with $1,202 for men − just 83.6% of what men earned. Over a 40-year career, that adds up to hundreds of thousands of dollars in lost earnings. For Black and Latina women, the disparities are even worse, with one source estimating lifetime losses at $976,800 and $1.2 million, respectively. Racism, too, carries an economic toll. A 2020 analysis from Citi found that systemic racism has cost the U.S. economy $16 trillion since 2000. The same analysis found that addressing these disparities could have boosted Black wages by $2.7 trillion, added up to $113 billion in lifetime earnings through higher college enrollment, and generated $13 trillion in business revenue, creating 6.1 million jobs annually. In a moment of backlash and uncertainty, I believe DEI remains a vital if imperfect tool in the American experiment of inclusion. Rather than abandon it, the challenge now, from my perspective, is how to refine it: grounding efforts not in slogans or fear, but in fairness and evidence.The Conversation Rodney Coates, Professor of Critical Race and Ethnic Studies, Miami University This article is republished from The Conversation under a Creative Commons license. Read the original article.

Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Community

PG&E Donates $1 Million to Local Food Banks to Help Feed Families

PG&E donates $1 million to local food banks across Northern and Central California—equivalent to about 3 million meals—supporting 38 food banks serving 47 counties.

Published

on

 PG&E donates $1 million to local food banks across Northern and Central California—enough for about 3 million meals—supporting 38 food banks serving 47 counties.

Just in time for the holidays, Pacific Gas and Electric Company (PG&E) announced a $1 million donation to local food banks across Northern and Central California—support aimed at meeting a surge in demand as more families and seniors struggle to put food on the table. According to PG&E, the contribution is expected to provide the equivalent of roughly 3 million meals and will support 38 food banks serving 47 counties within PG&E’s service territory.

A third major food-bank contribution since September

The $1 million gift marks the third food-bank-focused contribution since September from PG&E or The PG&E Corporation Foundation (the PG&E Foundation). Combined, those efforts bring PG&E’s total community food support in 2025 to $2.37 million. PG&E emphasized that the funding for these charitable contributions comes from PG&E shareholders—not customers.

Food banks facing record-breaking demand

Food banks across California are reporting pressure levels not seen since the pandemic. Officials with the California Association of Food Banks say demand has reached record highs, driven in part by an unexpected surge during the federal government shutdown this fall. “California food banks experienced an unexpected surge with the [federal government] shutdown this fall. So, we reached out for help on their behalf and PG&E responded,” said Stacia Levenfeld, Chief Executive Officer of the California Association of Food Banks. “Their $1 million gift to food banks throughout Northern and Central California will have a meaningful impact on the lives of millions of people this holiday season and help food banks continue their critical work in our communities.” PG&E leaders framed the donation as an extension of a longstanding partnership with food bank networks. “We are grateful to help local food banks fulfill their mission during this time of increasing demand, especially as more families and seniors are struggling through the holiday season,” said Carla Peterman, Executive Vice President, Corporate Affairs, PG&E Corporation and Chair of The PG&E Corporation Foundation Board. “Our longstanding partnership with the California Association of Food Banks supports the safety net that is our local food banks.”

Where the 2025 food support has gone

PG&E outlined additional contributions made earlier in the year:
  • September: The PG&E Foundation awarded $1.12 million to support local food banks, tribal food banks, and senior meal programs.
  • November: The PG&E Foundation donated $250,000 to the California Association of Food Banks’ Emergency Response Fund.

Equity-focused grant distribution

The California Association of Food Banks notes that while California produces nearly half of the nation’s fruits and vegetables, more than one in five residents still don’t know where their next meal will come from. Food insecurity rates are even higher in many communities of color. PG&E said grant amounts awarded to local organizations will account for county poverty and unemployment levels, using a formula from the California Department of Social Services. The goal: promote equity by directing more support to counties with higher need.

About the PG&E Corporation Foundation and PG&E

The PG&E Corporation Foundation is an independent 501(c)(3) nonprofit organization, separate from PG&E and sponsored by PG&E Corporation. PG&E is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. More information is available at pge.com and pge.com/news.

Why this matters

As food banks brace for sustained demand beyond the holiday season, large-scale donations like PG&E’s can help stabilize local supply—especially when distributed with an equity lens that targets the counties facing the steepest economic pressures. For families, seniors, and individuals navigating rising costs, the impact is immediate: more meals available now, and stronger community support systems heading into the new year. Community links:
High Demand Marks “Veggies for Veterans” Event Amid SNAP Delays
Link: https://stmdailynews.com/high-demand-marks-veggies-for-veterans-event-amid-snap-delays/

Author


Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

Blog

The Empty Promise: Lynwood’s Lost Downtown Dream

In the 1970s, Lynwood, CA, dreamed of a downtown mall anchored by Montgomery Ward. Decades later, the empty lots told a story of ambition, delay, and renewal.

Published

on

In the 1970s, Lynwood, CA, dreamed of a downtown mall anchored by Montgomery Ward. Decades later, the empty lots told a story of ambition, delay, and renewal.

Artistic Image: R Washington and AI

In the early 1970s, Lynwood, California, dreamed big.

City leaders envisioned a new, modern downtown — a sprawling shopping and auto mall that would bring jobs, shoppers, and a sense of pride back to this small but growing city in the southeast corner of Los Angeles County. At the heart of the plan stood a gleaming new Montgomery Ward department store, which opened around 1973 and promised to anchor a larger commercial center that never fully came.

But for those of us who grew up in Lynwood during that time, the promise never quite materialized.

Instead, we remember acres of empty lots, chain-link fences, and faded “Coming Soon” signs that sat for decades — silent witnesses to a dream deferred.

The Vision That Stalled

In 1973, Lynwood’s Redevelopment Agency launched what it called Project Area A — an ambitious plan to clear and rebuild much of the city’s downtown core. Small businesses and homes were bought out, land was assembled, and the city floated bonds to support new construction.

For a brief moment, it looked as if the plan might work. Montgomery Ward opened its doors, serving as a retail beacon for the area. Yet the rest of the mall — the shops, restaurants, and auto dealerships — never came.

By the mid-1970s, much of downtown had been bulldozed, but little replaced it. And by the time Ward closed its Lynwood location in 1986, the vast lots surrounding it had become symbols of frustration and unfulfilled potential.

What Happened?

Some longtime residents whispered about corruption or backroom deals — the kind of speculation that grows when visible progress stalls.

But newspaper archives and redevelopment records tell a more complex story.

Lynwood’s plans collided with a series of hard realities:

The construction of the Century Freeway (I-105) disrupted neighborhoods and depressed land values. Environmental cleanup and ownership disputes slowed development. Economic shifts in retail — as malls in nearby Downey, South Gate, and Paramount attracted anchor stores — drained the local market. And later, political infighting among city officials made sustained redevelopment almost impossible.

Advertisement
Get More From A Face Cleanser And Spa-like Massage

To this day, there’s no public record of proven corruption directly tied to the 1970s mall plan. What did exist was a tangle of bureaucracy, economic change, and missed opportunity — a perfect storm that left Lynwood’s heart half-built and half-forgotten.

Growing Up Among the Vacant Lots

For those of us who were kids in Lynwood during that era, the story is more personal.

We remember the sight of the Montgomery Ward building — modern and hopeful at first, then shuttered and fading by the mid-1980s.

We remember riding bikes past the empty dirt fields that were supposed to become shopping plazas. And we remember the quiet frustration of adults who had believed the city’s promises.

Those empty blocks became our playgrounds — but they also became symbols of the gap between what Lynwood was and what it wanted to be.

A New Chapter: Plaza México and Beyond

By the late 1990s and early 2000s, the dream finally resurfaced in a new form.

Developers transformed the long-idle site into Plaza México, a vibrant commercial and cultural hub that celebrates Mexican and Latin American heritage.

It took nearly 30 years for Lynwood’s downtown to come alive again.

The result is beautiful — but it’s also bittersweet for those who remember how long the land sat empty, and how many local businesses and residents were displaced in pursuit of a dream that took a generation to fulfill.

Advertisement
Get More From A Face Cleanser And Spa-like Massage

Looking Back

The story of Lynwood’s lost mall isn’t just about urban planning.

It’s about hope, change, and resilience. It’s about how a community tried to reinvent itself — and how the children who grew up watching that effort still carry its memory.

Sometimes, when I drive through that stretch of Imperial Highway and Long Beach Boulevard, I still imagine what might have been: the bustling mall that never was, and the voices of a neighborhood caught between ambition and uncertainty.

📚 Further Reading

  • Montgomery Ward will close its Lynwood store. (Jan 3 1986) — Los Angeles Times. 

    Read it here

  • Montgomery Ward Won’t Confirm Deal: Lynwood Council Says Retailer to Stay Open. (Jan 16 1986) — Los Angeles Times. 

    Read it here

  • “Las Plazas of South LA” — academic paper by J.N. Leal (2012), discussing retail and redevelopment challenges in the region including Lynwood. 

    Read the PDF

  • Proposed Lynwood Development Draws Support and Criticism. (2007) — Los Angeles Sentinel. 

    Read it here

  • Wikipedia page: Lynwood, California — overview of the city including mention of Plaza México redevelopment. 

    Read it here

Dive into “The Knowledge,” where curiosity meets clarity. This playlist, in collaboration with STMDailyNews.com, is designed for viewers who value historical accuracy and insightful learning. Our short videos, ranging from 30 seconds to a minute and a half, make complex subjects easy to grasp in no time. Covering everything from historical events to contemporary processes and entertainment, “The Knowledge” bridges the past with the present. In a world where information is abundant yet often misused, our series aims to guide you through the noise, preserving vital knowledge and truths that shape our lives today. Perfect for curious minds eager to discover the ‘why’ and ‘how’ of everything around us. Subscribe and join in as we explore the facts that matter.  https://stmdailynews.com/the-knowledge/

 

Advertisement
Get More From A Face Cleanser And Spa-like Massage
View recent photos

Unlock fun facts & lost history—get The Knowledge in your inbox!

We don’t spam! Read our privacy policy for more info.


Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

Entertainment

The dystopian Pottersville in ‘It’s a Wonderful Life’ is starting to feel less like fiction

A fresh look at It’s a Wonderful Life through the film’s darkest detour—Pottersville—and why its greed, corruption, and desensitization to cruelty feels uncomfortably familiar in America today.

Published

on

file 20251209 56 ruqe19.png?ixlib=rb 4.1
To many Americans, George Bailey’s dystopian nightmare is disquietingly familiar. Paramount

The dystopian Pottersville in ‘It’s a Wonderful Life’ is starting to feel less like fiction

Nora Gilbert, University of North Texas Along with millions of others, I’ll soon be taking 2 hours and 10 minutes out of my busy holiday schedule to sit down and watch a movie I’ve seen countless times before: Frank Capra’sIt’s a Wonderful Life,” which tells the story of a man’s existential crisis one Christmas Eve in the fictional town of Bedford Falls. There are lots of reasons why this eight-decade-old film still resonates, from its nostalgic pleasures to its cultural critiques. But when I watch it this year, the sequence where Bedford Falls transforms into the dark and dystopian “Pottersville” will resonate the most. In the film, protagonist George Bailey, who’s played by Jimmy Stewart, is on the brink of suicide. He seems to have achieved the hallmarks of the American dream: He’s taken over his father’s loan business, married the love of his life and fathered four excessively adorable children. But George feels stifled and beaten down. His Uncle Billy has misplaced US$8,000 of the company’s money, and the town’s resident tyrant, Mr. Potter, is using the mishap to try to ruin George, who’s his last remaining business competitor. An angel named Clarence is tasked with pulling George back from the brink. To stop him from attempting suicide, Clarence decides to show George what life would have been like if he’d never been born. In this alternate reality, Bedford Falls is called Pottersville, a place Mr. Potter runs as a ruthless banker and slumlord.
Movie still of young man walking through a dark, snowy town and passing by a bright sign reading 'Pottersville.'
Pottersville, the dark, dystopian version of Bedford Falls, is a place characterized by vice and moral decay. Paramount
Having previously written about “It’s a Wonderful Life” in my book on literary and film censorship, I can’t help but see parallels between Pottersville and the U.S. today. Think about it: In Pottersville, one man hoards all the financial profits and political power. In Pottersville, greed, corruption and cynicism reign supreme. In Pottersville, hard-working immigrants like Giuseppe Martini who were able to build a life and run a business in Bedford Falls have vanished. In Pottersville, homeless addicts like Mr. Gower and nonconformist “pixies” like Clarence are scorned and ostracized, then booted out of the local watering hole. In Pottersville, cops arrest people like Violet Bick while they’re at work and haul them away, kicking and screaming.
Black-and-white movie still of a young women being dragged away by the police as a worried young man looks on.
Violet Bick gets dragged away by the Pottersville police as George looks on. Paramount
But what horrifies George the most about Pottersville is how desensitized the people living in it seem to be to its harshness and cruelty – how they treat him like he’s the crazy, deranged one for wanting and expecting things to be different and better. This is what the current political moment feels like to me. There are days when the latest headlines feel so jarringly unprecedented that I find myself thinking, “Can this be happening? Can this be real?” If you think these comparisons are a bit of a stretch, consider when “It’s a Wonderful Life” was made, and the frame of mind Capra was in when he made it.

Frank Capra, anti-fascist

In 1946, Capra was just returning to Hollywood filmmaking after serving for four years in the U.S. Army, where the Office of War Information had tasked him with producing a series of documentary films about World War II and the lead-up to it. Even though Capra hadn’t been on the front lines, he’d been immersed in the sounds and images of war for years on end, and he had become acutely familiar with Germany, Italy and Japan’s respective rises to fascism.
Young man posing and smiling while wearing a military uniform.
Frank Capra served in the U.S. Army during World War II. Keystone/Hulton Archive via Getty Images
When deciding on his first postwar film, Capra recalled in his autobiography that he specifically “knew one thing – it would not be about war.” Instead, he chose to adapt a short story by Philip Van Doren Stern, “The Greatest Gift,” that Stern had originally sent to friends and family as a Christmas card in 1943. Stern’s story is certainly not about war. But it’s not exactly about Christmas, either. As Stern writes in his opening lines:
“The little town straggling up the hill was bright with colored Christmas lights. But George Pratt did not see them. He was leaning over the railing of the iron bridge, staring down moodily at the black water.”
The protagonist contemplates suicide because he’s “sick of everything” in the small-town “mudhole” he’s stuck in – until, that is, a “strange little man” gives him the chance to see what life would be like if he’d never been born. It was Capra and his team of screenwriters who added the sinister Henry F. Potter to Stern’s short, simple tale. The Potter subplot encapsulates the film’s most trenchant, still-resonant themes: the unfairness of socioeconomic injustices; the pervasiveness of corporate and political corruption; the threat of monopolized power; the need for affordable housing. These themes had, of course, run through many of Capra’s prewar films as well: “Mr. Deeds Goes to Town,” “You Can’t Take It with You,” “Meet John Doe” and “Mr. Smith Goes to Washington,” the last of which also starred Jimmy Stewart. But they take on a different kind of weight in “It’s a Wonderful Life” – a weight that’s especially visible on the weathered face of Stewart, who himself had just returned from a harrowing four-year tour of duty as a bomber pilot in Europe. The idealistic vigor with which Stewart had fought crooked politicians and oligarchs as Mr. Smith is replaced by the bitterness, exhaustion, frustration and desperation with which he battles against Mr. Potter as George Bailey.
Black-and-white movie still of a distraught man with snow on his jacket.
George Bailey feels helpless in the face of corruption and cruelty. Paramount

Life after Pottersville

By the time George has begged and pleaded his way out of Pottersville, the lost $8,000 is no longer top of mind. He’s mainly just relieved to find Bedford Falls as he had left it, warts and all. And yet, the Bedford Falls that George returns to isn’t quite the same as the one he left behind. In this Bedford Falls, the community rallies together to figure out a way to recoup George’s missing money. Their pre-digital version of a GoFundMe page saves George from what he’d feared most: bankruptcy, scandal and prison. And even though his wife, Mary, tries to attribute this sudden wave of collectivist, activist energy to some sort of divine intervention – “George, it’s a miracle; it’s a miracle!” – Uncle Billy points out that it really came about through more earthly organizing means: “Mary did it, George; Mary did it! She told some people you were in trouble, and they scattered all over town collecting money!”
A group of smiling people dump a large basket of cash on a desk.
The residents of Bedford Falls come together to save George from financial ruin. Paramount
But the question of whether George actually wins his battle against Potter is a murky one. While the typical Capra protagonist triumphs by defeating vice and exposing subterfuge, George never even realizes that Potter is the one who got hold of his money and tried to ruin his life. Potter is never held accountable for his crimes. On the other hand, George is able to learn, from his time in Pottersville, what a crucial role he plays in his community. George’s victory over Potter, then, lies not in some grand final act of retribution, but in the incremental ways he has stood up to Potter throughout his life: not capitulating to Potter’s bullying or intimidation tactics; speaking truth to power; and running a community-centered business rather than one guided by greed and exploitation. In recent months, there have been similar acts of protest, large and small, in the form of rallies, boycotts, immigrant aid efforts, subscription cancellations, food bank donations and more. That doesn’t mean the U.S. has made it out of Pottersville, however. Each day, more head-spinning headlines appear, whether they’re about masked agents terrorizing immigrant communities, the dismantling of anti-corruption oversights, the consolidation of executive power or the naked display of political grift. Zuzu’s petals are still missing. Clarence still hasn’t gotten his wings. But this holiday season, I’m hoping it will feel helpfully cathartic to go with George Bailey, for the umpteenth time, through the dark abyss of his dystopian nightmare – and come out with him, stronger and wiser, on the other side. Nora Gilbert, Professor of Literary and Film Studies, University of North Texas This article is republished from The Conversation under a Creative Commons license. Read the original article.
Dreambreaker: A Pickleball Story — A Closer Look at the Documentary and Its Uncredited Voice
Link: https://stmdailynews.com/dreambreaker-a-pickleball-story-a-closer-look-at-the-documentary-and-its-uncredited-voice/

Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

Trending