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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.

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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.

[youtube https://www.youtube.com/watch?v=upbMoONPmx8?wmode=transparent&start=0]
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.

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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.

STM Blog

Golden Bird in Compton: When Mom Took a Night Off

Golden Bird in Compton was an occasional Friday or Saturday treat when Mom wanted a break from cooking. A personal look back at its Alondra Boulevard location and the memories that linger.

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Golden Bird: Golden fried chicken in a takeout box with a family gathered around a dinner table in a nostalgic illustration.
An illustration inspired by memories of Golden Bird takeout dinners and weekends when Mom took a break from cooking.

Some childhood meals stay with you for decades. For me, Golden Bird fried chicken in Compton is one of them.

Growing up in the Los Angeles area, an occasional Friday or Saturday meant my mom wanted a break from cooking. Those were the nights when takeout became a treat, and Golden Bird was one of the places I remember enjoying most.

The location on East Alondra Boulevard sounds like the one we visited. Researching it brought me to 2600 East Alondra Boulevard, Compton—an address listed in Los Angeles County records under Golden Bird #1. 

An address can help place a memory on a map. But what I remember most is much simpler: the chicken was delicious, and getting it was a welcome weekend treat.

Part of Our Family’s Takeout Rotation

Golden Bird wasn’t our only chicken stop. Over the years, there was Pioneer, KFC, Church’s, Louisiana Fried Chicken, and later Popeyes. I also remember Jim Dandy from when I was very young, especially its crinkle-cut fries.

Each name brings back a different memory. Golden Bird brings me back to Compton and those evenings when my mother could take some time off from preparing dinner.

As a kid, I thought about enjoying the food. Looking back, I also appreciate what those meals meant for her: one less dinner to cook and a chance to take a break.

The History Behind the Address

Golden Bird’s own history describes a family recipe associated with Zelma and a wet batter designed to give the chicken a crisp outside while keeping the meat moist. My own memory is simply that I loved eating it. 

The Alondra Boulevard location also connects to another chapter in Southern California’s fried-chicken history. Vincent Williams opened a Compton Golden Bird franchise in 1983, according to the Los Angeles Times. 

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A later profile described Williams developing his Honey’s Kettle concept in his former Compton franchise location. Honey’s Kettle dates its beginnings on Alondra Boulevard to 2000, and a 2012 restaurant visit documented its original location at 2600 East Alondra Boulevard. Those accounts point to a connection between the two businesses at that address. 

I haven’t established who operated the restaurant during every year my family visited. But learning about its history adds another layer to a place I remember through its food.

A Weekend Memory Worth Keeping

For me, Golden Bird’s place in the story starts with family. It was an occasional treat, a meal I enjoyed, and a Friday or Saturday when Mom could let someone else handle the cooking.

Decades later, that is still a good reason to remember a neighborhood restaurant.

Editor’s note: Golden Bird is still serving fried chicken in South Los Angeles at 8300 South Western Avenue, at West 83rd Street. For those of us who remember it as a weekend family treat, it’s good to know the Golden Bird name remains part of LA’s food scene. Order pickup and delivery

Did you eat at the Golden Bird on Alondra Boulevard—or another Golden Bird location? Share your memories and favorite orders in the comments.

Explore more food stories in STM Daily News’ Food & Drink section⁠.

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Santa Monica Pier Sign Heads to Las Vegas for Historic Restoration

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For generations, the Santa Monica Pier sign has marked the start of a day at the beach. Now, the familiar blue neon landmark is preparing for a journey of its own.

Santa Monica Pier sign is heading to Las Vegas for restoration during bridge replacement. Find out why it’s leaving and when it will return.
A harbor entrance sign of in Santa Monica Pier California

Santa Monica scheduled removal of the 1941 sign for October 20–22, with shipment to Las Vegas anticipated October 26. The timetable is subject to change, according to the city’s October 19 announcement.

The temporary removal accompanies replacement of the aging bridge connecting Ocean Avenue to the pier. It also creates an opportunity to preserve the historic sign.

https://stmdailynews.com/la-metro-locks-in-vermont-brt-funding-as-world-cup-results-point-toward-2028/

YESCO will restore it at its Las Vegas facility. The company’s experience includes work on the “Welcome to Fabulous Las Vegas” sign.

Crews will repair neon tubing, treat rust, repaint components and address structural needs while retaining historic features. The sign will remain in secure storage during bridge construction.

Once the project is finished, it will return above the new bridge at a slightly greater height for visibility and vehicle clearance. The city’s latest announcement targets project completion by 2028, ahead of the Los Angeles Olympics and Paralympics.

Meanwhile, visitors can photograph a lighted, half-scale replica near Pier Burger.

For anyone who associates that glowing arch with Southern California memories, its absence will be noticeable. The restoration is intended to ensure future generations can make memories beneath it, too.

Source: City of Santa Monica — October 19, 2026 announcement

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Texas Roadhouse Allegations Update: No New Public Findings Located

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STM Blog | Commentary | October 14, 2026

The viral allegations involving Texas Roadhouse and the treatment of Black customers raised an understandably disturbing question: Could diners trust that they were being served safely and respectfully?

Texas Roadhouse calls viral food-tampering allegations a hoax. Our October 14 review found no new public findings. Here’s what remains unverified.

After reviewing available coverage again on October 14, STM Daily News did not locate new verified evidence establishing that the alleged food tampering occurred. We also did not locate a publicly released final report from the outside firm the company said it hired.

The central distinction remains unchanged: the allegations have not been substantiated in the reporting reviewed, while Texas Roadhouse says its investigation points to a hoax. 

What the available reporting says

In August, social media posts alleged that restaurant workers deliberately tampered with food served to Black customers. The claims circulated widely and prompted calls for a boycott. Texas Roadhouse said it had not identified current or former employees connected to the accusations. 

In reporting updated August 26, KTXS noted that the viral post did not identify a particular restaurant location and that there was no verified evidence connecting the claims to a Texas Roadhouse employee.

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The company told the outlet it had found no credible evidence of food tampering. It also said the original Facebook post had been deleted, some users had retracted posts amplifying the claims, and an outside firm had been engaged to investigate the accusations’ source and motives. These details come from August coverage, rather than a new October announcement. 

What remains unresolved publicly

Our latest review did not locate a final outside investigation report that readers could examine. We therefore cannot describe that investigation as complete or independently assess its findings.

The company’s description of the claims as a hoax should continue to be attributed to Texas Roadhouse. Likewise, the allegations should not be repeated as though they describe a confirmed incident.

Not locating a new public report does not establish whether investigative work has continued privately. It means the public information we found does not support a stronger conclusion.

Why careful wording still matters

For Black diners, allegations of racist mistreatment can strike a painful nerve. Everyone deserves to sit down for a meal without worrying that their race could make them a target.

Taking that concern seriously requires credible complaints to be investigated thoroughly. It also requires care before assigning blame to a restaurant, a location, or its workers.

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Social media can spread a warning far beyond its original audience before anyone verifies the underlying claim. Once that happens, a correction or clarification may never reach everyone who saw the accusation.

That makes transparency essential. Restaurants should explain what they have investigated and what they can substantiate. Those sharing accusations should be equally willing to share corrections and acknowledge uncertainty.

For now, the responsible position is to keep the evidence and the allegations separate. If new, verifiable findings become public, they should be assessed on their merits.

Join the conversation: What do you look for before trusting a viral warning about a business? Share your thoughts in the comments, and keep the conversation respectful.

Editor’s note: This is an October 14 status review of previously reported allegations. It does not announce a new investigative finding.

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