Imagine a United States that’s $13 trillion richer, with prosperity reaching every household from coast to coast. It’s possible—but not until America confronts its most corrosive legacy: economic exclusion based on race and gender. Some readers may wonder, “What does this have to do with diversity, equity and inclusion (DEI)?” The answer is everything. Diversity, equity and inclusion are simply a long way of saying “fairness.” And the backlash against fairness isn’t just ideological; it’s putting a huge strain on the American economy. In a capitalist system, “unfairness” has become incredibly costly.
True, America has a long history of unfairness in its laws and treatment of people. There was a time when legal unfairness was so economically profitable—think slavery and Jim Crow—that people ignored its immorality. But those days are over. America’s economic dominance is waning—partly due to self-inflicted wounds of gender and racial biases. With global competition intensifying, America needs every player on the field, each given a fair chance to contribute.
If the power elite was once willing to ignore immorality and unfairness in exchange for profit, what cost is too high—and what profits are large enough—to incentivize them to embrace fairness today? Unfair racial bias has cost our economy more than $50 trillion since 1990. The potential gains from a fairer system are staggering: $5 trillion in additional GDP in a few years and $13 trillion in stock market value. That’s not just money for corporate titans; it’s new wealth reaching 401(k) plans, new jobs and unprecedented upward mobility for millions. As a prudent investor and fiduciary, I’d take that deal in a heartbeat.
The path to upholding fairness
Anti-diversity, equity and inclusion propaganda comes from misguided internal sources and wise external sources. Domestic and foreign powers spread abundant misinformation, especially on social media, because they know Americans are easy prey to race-based hoaxes. Efforts to condemn DEI initiatives—in the realms of higher education, in the corporate sphere and beyond—are meticulously crafted to arouse anti-Black emotions. This exploits the psychological vulnerabilities of non-elite white people—that is, hardworking white families who are not multimillionaires—elevating racial anxieties and fears. DEI is also a tool by which non-elite white people—like a young man from Appalachia who, lacking the social networks of billionaire Ivy League parents, need an equitable shot at upward mobility.
This division strategy may seem effective, but it’s a pyrrhic victory, and all Americans will pay the price for allowing this fractured system to exist. Still, there is hope, and it’s not too late to change course. Here’s the roadmap to strengthen national unity, boost economic power and support democratic values:
We must shatter the barriers that keep talent locked out—whether those barriers are based on race, gender or economic background. Leading research from global financial institutions and consulting firms shows that the U.S. could unleash trillions in new income, wealth and GDP if access to opportunity were made fairer, especially for women and people of color. That is precisely the aim of DEI efforts. Within the corporate world, initiatives could generate over $600 billion in annual profits, up to more than $13 trillion in additional stock market value. This wealth won’t be isolated to corporate leaders—it will show up in the retirement accounts of all Americans. Although some of this new wealth will go to women and people of color, the majority will go to people from all backgrounds, including hardworking white families who have also seen their share of the economic pie shrink.
Choosing truth and reconciliation
How can this be done? When it comes to race, the answer is truth and reconciliation. The Church Commissioners for England provide a model to consider, having led research into the Church of England’s role in the transatlantic slave trade and creating an impact investing fund to support the descendants of those impacted by slavery. Their approach includes market-rate opportunities shaped by Black investors and thought leaders, with benefits extending to all, not just Black communities. American institutions could adopt a similar model by committing capital to institutional investment firms owned and managed by women and people of color.
The American corporate sector must also abandon its passivity and stop enabling the destructive forces it claims to abhor. Among all the stakeholders responsible for America’s success, corporate America has been disappointingly feeble in its leadership. Corporate leaders have the power to rescue DEI from malicious mischaracterization and should step up to communicate its true purpose: fairness. With the extraordinary increase in shareholder value from fairness and engagement, tacit acceptance of anti-DEI attacks runs counter to fiduciary duty.
Unlocking our nation’s economic potential
Rather than continuing to hemorrhage resources on systemic unfairness against women and people of color, American businesses have the power to transform our economy. Imagine the wealth generated if those savings, profits and tax revenues could be redirected to fund better support for veterans, first responders and teachers; increase investments in affordable housing and job mobility; i and foster empathy and care for those inevitably left behind by capitalism.
We must dismantle the anti-DEI movement for the sake of democracy, our economy and the preservation of individual freedom. Now is the time to redefine what DEI truly represents: a tool for fairness that can elevate the economic potential of every American. Let’s work together to build a future that’s not only just but also smarter.
