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

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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.

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Urbanism

The Building That Proved Los Angeles Could Go Vertical

Los Angeles once banned skyscrapers, yet City Hall broke the height limit and proved high-rise buildings could be engineered safely in an earthquake zone.

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Last Updated on February 19, 2026 by Daily News Staff

Los Angeles once banned skyscrapers, yet City Hall broke the height limit and proved high-rise buildings could be engineered safely in an earthquake zone.
LA City Hall. Image Credit: TNC Network & Envato

How City Hall Quietly Undermined LA’s Own Height Limits

The Knowledge Series | STM Daily News

For more than half a century, Los Angeles enforced one of the strictest building height limits in the United States. Beginning in 1905, most buildings were capped at 150 feet, shaping a city that grew outward rather than upward.

The goal was clear: avoid the congestion, shadows, and fire dangers associated with dense Eastern cities. Los Angeles sold itself as open, sunlit, and horizontal — a place where growth spread across land, not into the sky.

And yet, in 1928, Los Angeles City Hall rose to 454 feet, towering over the city like a contradiction in concrete.

It wasn’t built to spark a commercial skyscraper boom.
But it ended up proving that Los Angeles could safely build one.


A Rule Designed to Prevent a Manhattan-Style City

The original height restriction was rooted in early 20th-century fears:

  • Limited firefighting capabilities
  • Concerns over blocked sunlight and airflow
  • Anxiety about congestion and overcrowding
  • A strong desire not to resemble New York or Chicago

Los Angeles wanted prosperity — just not vertical density.

The height cap reinforced a development model where:

  • Office districts stayed low-rise
  • Growth moved outward
  • Automobiles became essential
  • Downtown never consolidated into a dense core

This philosophy held firm even as other American cities raced upward.


@stmblog

Los Angeles banned skyscrapers for decades — except one. 🏛️ While most buildings were capped at 150 feet, LA City Hall rose three times higher. This wasn’t a loophole — it was power, symbolism, and city planning shaping the skyline we know today. Why was City Hall the exception? And how did this one decision change Los Angeles forever? 📍 Forgotten LA 🧠 The Knowledge Series 📰 STM Daily News LosAngelesHistory LACityHall ForgottenLA UrbanPlanning CityPlanning LASkyline DidYouKnow HistoryTok TheKnowledge STMDailyNews ♬ original sound – STMDailyNews – STMDailyNews


Why City Hall Was Never Meant to Change the Rules

City Hall was intentionally exempt from the height limit because the law applied primarily to private commercial buildings, not civic monuments.

But city leaders were explicit about one thing:
City Hall was not a precedent.

It was designed to:

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  • Serve as a symbolic seat of government
  • Stand alone as a civic landmark
  • Represent stability, authority, and modern governance
  • Avoid competing with private office buildings

In effect, Los Angeles wanted a skyline icon — without a skyline.


Innovation Hidden in Plain Sight

What made City Hall truly significant wasn’t just its height — it was how it was built.

At a time when seismic science was still developing, City Hall incorporated advanced structural ideas for its era:

  • A steel-frame skeleton designed for flexibility
  • Reinforced concrete shear walls for lateral strength
  • A tapered tower to reduce wind and seismic stress
  • Thick structural cores that distributed force instead of resisting it rigidly

These choices weren’t about aesthetics — they were about survival.


The Earthquake That Changed the Conversation

In 1933, the Long Beach earthquake struck Southern California, causing widespread damage and reshaping building codes statewide.

Los Angeles City Hall survived with minimal structural damage.

This moment quietly reshaped the debate:

  • A tall building had endured a major earthquake
  • Structural engineering had proven effective
  • Height alone was no longer the enemy — poor design was

City Hall didn’t just survive — it validated a new approach to vertical construction in seismic regions.


Proof Without Permission

Despite this success, Los Angeles did not rush to repeal its height limits.

Cultural resistance to density remained strong, and developers continued to build outward rather than upward. But the technical argument had already been settled.

City Hall stood as living proof that:

  • High-rise buildings could be engineered safely in Los Angeles
  • Earthquakes were a challenge, not a barrier
  • Fire, structural, and seismic risks could be managed

The height restriction was no longer about safety — it was about philosophy.


The Ironic Legacy

When Los Angeles finally lifted its height limit in 1957, the city did not suddenly erupt into skyscrapers. The habit of building outward was already deeply entrenched.

The result:

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  • A skyline that arrived decades late
  • Uneven density across the region
  • Multiple business centers instead of one core
  • Housing and transit challenges baked into the city’s growth pattern

City Hall never triggered a skyscraper boom — but it quietly made one possible.


Why This Still Matters

Today, Los Angeles continues to wrestle with:

  • Housing shortages
  • Transit-oriented development debates
  • Height and zoning battles near rail corridors
  • Resistance to density in a growing city

These debates didn’t begin recently.

They trace back to a single contradiction: a city that banned tall buildings — while proving they could be built safely all along.

Los Angeles City Hall wasn’t just a monument.
It was a test case — and it passed.

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The Long Track Back

Why Downtown Los Angeles Feels Small Compared to Other Cities

Downtown Los Angeles often feels “small” compared to other U.S. cities, but that’s only part of the story. With some of the tallest buildings west of the Mississippi and skyline clusters spread across the region, LA’s downtown reflects the city’s unique polycentric identity—one that, if combined, could form a true mega downtown.

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Last Updated on February 18, 2026 by Daily News Staff

Downtown Los Angeles

Panorama of Los Angeles from Mount Hollywood – California, United States

When people think of major American cities, they often imagine a bustling, concentrated downtown core filled with skyscrapers. New York has Manhattan, Chicago has the Loop, San Francisco has its Financial District. Los Angeles, by contrast, often leaves visitors surprised: “Is this really downtown?”

The answer is yes—and no.

Downtown LA in Context

Compared to other major cities, Downtown Los Angeles (DTLA) is relatively small as a central business district. For much of the 20th century, strict height restrictions capped most buildings under 150 feet, while cities like Chicago and New York were erecting early skyscrapers. LA’s skyline didn’t really begin to climb until the late 1960s.

But history alone doesn’t explain why DTLA feels different. The real story lies in how Los Angeles grew: not as one unified city center, but as a collection of many hubs.

Downtown Los Angeles

Downtown Los Angeles

A Polycentric City

Los Angeles is famously decentralized. Hollywood developed around the film industry. Century City rose on former studio land as a business hub. Burbank became a studio and aerospace center. Long Beach grew around the port. The Wilshire Corridor filled with office towers and condos.

Unlike other cities where downtown is the place for work, culture, and finance, Los Angeles spread its energy outward. Freeways and car culture made it easy for businesses and residents to operate outside of downtown. The result is a polycentric metropolis, with multiple “downtowns” rather than one dominant core.

A Resident’s Perspective

As someone who lived in Los Angeles for 28 years, I see DTLA differently. While some outsiders describe it as “small,” the reality is that Downtown Los Angeles is still significant. It has some of the tallest buildings west of the Mississippi River, including the Wilshire Grand Center and the U.S. Bank Tower. Over the last two decades, adaptive reuse projects have transformed old office buildings into lofts, while developments like LA Live, Crypto.com Arena, and the Broad Museum have revitalized the area.

In other words, DTLA is large enough—it just plays a different role than downtowns in other American cities.

Downtown Los Angeles

View of Westwood, Century City, Beverly Hills, and the Wilshire Corridor.

The “Mega Downtown” That Isn’t

A friend once put it to me with a bit of imagination: “If you could magically pick up all of LA’s skyline clusters—Downtown, Century City, Hollywood, the Wilshire Corridor—and drop them together in one spot, you’d have a mega downtown.”

He’s right. Los Angeles doesn’t lack tall buildings or urban energy—it just spreads them out over a vast area, reflecting the city’s unique history, geography, and culture.

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A Downtown That Fits Its City

So, is Downtown LA “small”? Compared to Manhattan or Chicago’s Loop, yes. But judged on its own terms, DTLA is a vibrant hub within a much larger, decentralized metropolis. It’s a downtown that reflects Los Angeles itself: sprawling, diverse, and impossible to fit neatly into the mold of other American cities.

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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/

 

 

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The Knowledge

How a 22-year-old George Washington learned how to lead, from a series of mistakes in the Pennsylvania wilderness

This Presidents Day, I’ve been thinking about George Washington − not at his finest hour, but possibly at his worst.

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How a 22-year-old George Washington learned how to lead, from a series of mistakes in the Pennsylvania wilderness
A young George Washington was thrust into the dense, contested wilderness of the Ohio River Valley as a land surveyor for real estate development companies in Virginia. Henry Hintermeister/Public domain via Wikimedia Commons

Christopher Magra, University of Tennessee

This Presidents Day, I’ve been thinking about George Washington − not at his finest hour, but possibly at his worst.

In 1754, a 22-year-old Washington marched into the wilderness surrounding Pittsburgh with more ambition than sense. He volunteered to travel to the Ohio Valley on a mission to deliver a letter from Robert Dinwiddie, governor of Virginia, to the commander of French troops in the Ohio territory. This military mission sparked an international war, cost him his first command and taught him lessons that would shape the American Revolution.

As a professor of early American history who has written two books on the American Revolution, I’ve learned that Washington’s time spent in the Fort Duquesne area taught him valuable lessons about frontier warfare, international diplomacy and personal resilience.

The mission to expel the French

In 1753, Dinwiddie decided to expel French fur trappers and military forces from the strategic confluence of three mighty waterways that crisscrossed the interior of the continent: the Allegheny, Monongahela and Ohio rivers. This confluence is where downtown Pittsburgh now stands, but at the time it was wilderness.

King George II authorized Dinwiddie to use force, if necessary, to secure lands that Virginia was claiming as its own.

As a major in the Virginia provincial militia, Washington wanted the assignment to deliver Dinwiddie’s demand that the French retreat. He believe the assignment would secure him a British army commission.

Washington received his marching orders on Oct. 31, 1753. He traveled to Fort Le Boeuf in northwestern Pennsylvania and returned a month later with a polite but firm “no” from the French.

A close-up portrait of a young, brunette George Washington.
George Washington held an honorary commission as a major in the British army prior to the French and Indian War. Dea/M. Seemuller/De Agostini collection/Getty Images

Dinwiddie promoted Washington from major to lieutenant colonel and ordered him to return to the Ohio River Valley in April 1754 with 160 men. Washington quickly learned that French forces of about 500 men had already constructed the formidable Fort Duquesne at the forks of the Ohio. It was at this point that he faced his first major test as a military leader. Instead of falling back to gather more substantial reinforcements, he pushed forward. This decision reflected an aggressive, perhaps naive, brand of leadership characterized by a desire for action over caution.

Washington’s initial confidence was high. He famously wrote to his brother that there was “something charming” in the sound of whistling bullets.

The Jumonville affair and an international crisis

Perhaps the most controversial moment of Washington’s early leadership occurred on May 28, 1754, about 40 miles south of Fort Duquesne. Guided by the Seneca leader Tanacharison – known as the “Half King” – and 12 Seneca warriors, Washington and his detachment of 40 militiamen ambushed a party of 35 French Canadian militiamen led by Ensign Joseph Coulon de Jumonville. The Jumonville affair lasted only 15 minutes, but its repercussions were global.

A color illustration showing battle between soldiers in red and blue coats.
The Jumonville affair became the opening battle of the French and Indian War. Interim Archives/Archive Collection/Getty Images

Ten of the French, including Jumonville, were killed. Washington’s inability to control his Native American allies – the Seneca warriors executed Jumonville – exposed a critical gap in his early leadership. He lacked the ability to manage the volatile intercultural alliances necessary for frontier warfare.

Washington also allowed one enemy soldier to escape to warn Fort Duquesne. This skirmish effectively ignited the French and Indian War, and Washington found himself at the center of a burgeoning international crisis.

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Defeat at Fort Necessity

Washington then made the fateful decision to dig in and call for reinforcements instead of retreating in the face of inevitable French retaliation. Reinforcements arrived: 200 Virginia militiamen and 100 British regulars. They brought news from Dinwiddie: congratulations on Washington’s victory and his promotion to colonel.

His inexperience showed in his design of Fort Necessity. He positioned the small, circular palisade in a meadow depression, where surrounding wooded high ground allowed enemy marksmen to fire down with impunity. Worse still, Tanacharison, disillusioned with Washington’s leadership and the British failure to follow through with promised support, had already departed with his warriors weeks earlier. When the French and their Native American allies finally attacked on July 3, heavy rains flooded the shallow trenches, soaking gunpowder and leaving Washington’s men vulnerable inside their poorly designed fortification.

A black and white illustration showing George Washington signing a document.
Washington was outnumbered and outmaneuvered at Fort Necessity. Interim Archives/Archive Collection/Getty Images

The battle of Fort Necessity was a grueling, daylong engagement in the mud and rain. Approximately 700 French and Native American allies surrounded the combined force of 460 Virginian militiamen and British regulars. Despite being outnumbered and outmaneuvered, Washington maintained order among his demoralized troops. When French commander Louis Coulon de Villiers – Jumonville’s brother – offered a truce, Washington faced the most humbling moment of his young life: the necessity of surrender. His decision to capitulate was a pragmatic act of leadership that prioritized the survival of his men over personal honor.

The surrender also included a stinging lesson in the nuances of diplomacy. Because Washington could not read French, he signed a document that used the word “l’assassinat,” which translates to “assassination,” to describe Jumonville’s death. This inadvertent admission that he had ordered the assassination of a French diplomat became propaganda for the French, teaching Washington the vital importance of optics in international relations.

A current photograph of the logs used to construct Fort Necessity as it stands today along the battlefield in Pennsylvania.
A log cabin used to protect the perishable supplies still stands at Fort Necessity today. MyLoupe/Universal Images Group/Getty Images

Lessons that forged a leader

The 1754 campaign ended in a full retreat to Virginia, and Washington resigned his commission shortly thereafter. Yet, this period was essential in transforming Washington from a man seeking personal glory into one who understood the weight of responsibility.

He learned that leadership required more than courage – it demanded understanding of terrain, cultural awareness of allies and enemies, and political acumen. The strategic importance of the Ohio River Valley, a gateway to the continental interior and vast fur-trading networks, made these lessons all the more significant.

Ultimately, the hard lessons Washington learned at the threshold of Fort Duquesne in 1754 provided the foundational experience for his later role as commander in chief of the Continental Army. The decisions he made in Pennsylvania and the Ohio wilderness, including the impulsive attack, the poor choice of defensive ground and the diplomatic oversight, were the very errors he would spend the rest of his military career correcting.

Though he did not capture Fort Duquesne in 1754, the young George Washington left the woods of Pennsylvania with a far more valuable prize: the tempered, resilient spirit of a leader who had learned from his mistakes.

Christopher Magra, Professor of American History, University of Tennessee

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 
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/
 

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