This is sophistry for social justice ideology masquarading as science:
>>Racial inequality costs the U.S. economy an estimated $16 trillion in lost gross domestic product (GDP) (4), failing to hire job seekers with a criminal history results in an annual loss of $78 billion in U.S. GDP (5), and the persistent gender pay gap restrains the global economy by about $160 trillion (6).
The idea that these inequalities can be addressed, in an economically net-gainful way, by government mandates or simple changes in hiring preferences, is based on the fanciful premise that such inequality is economically irrational and due to discrimination, as opposed to disparites in skills or work hours that justify pay and representation inequality. This premise - that inequality between various demographics in employment is significantly or largely due to discrimination and thus economically irrational - is not only not established, it is heavily counter-indicated against by the evidence.
Policies that reduce inequality in pay or representation, without addressing inequality in skills present or value contributed that are behind the pay or representation inequality, will harm the economy, by mismatching compensation/representation and value provided, and thus causing capital to be allocated in a suboptimal way for the purposes of maximizing total productivity.
>>Racial inequality costs the U.S. economy an estimated $16 trillion in lost gross domestic product (GDP) (4), failing to hire job seekers with a criminal history results in an annual loss of $78 billion in U.S. GDP (5), and the persistent gender pay gap restrains the global economy by about $160 trillion (6).
The idea that these inequalities can be addressed, in an economically net-gainful way, by government mandates or simple changes in hiring preferences, is based on the fanciful premise that such inequality is economically irrational and due to discrimination, as opposed to disparites in skills or work hours that justify pay and representation inequality. This premise - that inequality between various demographics in employment is significantly or largely due to discrimination and thus economically irrational - is not only not established, it is heavily counter-indicated against by the evidence.
Policies that reduce inequality in pay or representation, without addressing inequality in skills present or value contributed that are behind the pay or representation inequality, will harm the economy, by mismatching compensation/representation and value provided, and thus causing capital to be allocated in a suboptimal way for the purposes of maximizing total productivity.