The White House released the “2026 President’s Economic Report” on Monday, April 13, highlighting the significant impact of the widespread adoption of Diversity, Equity, and Inclusion (DEI) policies in the corporate sector over the past 10 years on the United States’ economic productivity. The report estimates that DEI policies have led to a decrease in management efficiency, resulting in approximately $94 billion in economic losses for the U.S. in 2023 alone.
The White House Council of Economic Advisers (CEA) presented in the report that these policies prioritize racial quotas in recruitment and promotion over professional qualifications related to productivity, thus dragging down overall economic output. Data shows that in 2023, DEI policies reduced the United States’ Gross Domestic Product (GDP) by 0.34%, equivalent to about $1,160 in losses per dual-income household.
The report emphasized that this finding is not a denial of the capabilities of minority workers.
“Minority workers or managers themselves do not inherently have lower productivity, the issue lies in promoting underqualified workers too quickly to meet the racial quotas set by DEI,” the report stated.
Furthermore, the report mentioned that there are indeed many qualified minority managers, as before 2017, the percentage of minority managers did not negatively affect productivity.
“DEI has also harmed these qualified minority managers because if they are seen as ‘beneficiaries of DEI policy hires,’ they may face stigmatization,” the report further pointed out.
Since taking office last year, President Trump has been striving to eliminate DEI policies in federal agencies, contractors, and college admission processes. This research is likely to provide more theoretical basis for these actions.
The White House report highlighted that the elimination of discriminatory barriers following the passage of the Civil Rights Act of 1964 allowed workers to be better utilized, and talented minority workers were able to contribute their abilities in the most economically beneficial areas, leading to a substantial increase in productivity.
“The reduction of discrimination has previously boosted the U.S. economy. Unfortunately, the discriminatory practices reintroduced through DEI initiatives have reversed some of those gains,” the report stated.
They found that from 2005 to 2015, the representation of minorities increased by less than 1 percentage point each year. However, from 2015 to 2023, this growth quadrupled compared to the previous period.
The authors believe that DEI policies are the most likely cause of this trend change. They pointed out that in 2015, management consulting firm McKinsey began publishing a series of widely cited studies advocating that companies with higher gender and racial diversity perform better financially.
Subsequently, large companies began setting targets to increase the representation of minorities in senior management positions, and the number of positions related to DEI, such as Chief Diversity Officers (CDOs), saw significant growth, becoming the fastest-growing executive roles.
The report argued that promotions based on identity and prioritizing race over qualifications and contributions would recreate past distortions, ultimately reducing overall output.
By 2015, there was no correlation between minority representation and productivity. However, by 2023, industries that heavily promoted DEI experienced a 2.7% decrease in productivity compared to those that did not prioritize DEI initiatives.
In addition to the economic assessment of DEI policies, this lengthy report also includes other key findings and policy trends.
Another section of the report pointed out that Environment, Social, and Governance (ESG) investment may lead to misallocation of capital, diverting funds away from the most efficient uses, resulting in significant losses for investors and the overall economy.
The report also highlighted that the Build Back Better Act (OBBBA) would be a crucial economic pillar for the Trump administration. Without this act, after the key provisions of Trump’s 2017 Tax Cuts and Jobs Act (TCJA) expire, there would be a $4 trillion tax increase over the next 10 years, real GDP would be about 4% lower than the baseline scenario after four years, and around 6.1 million full-time jobs would be lost.
Conversely, in the first four years of OBBBA implementation, real GDP is expected to increase to 4.6% to 4.9%, equivalent to an average annual growth rate increase of about 1.1% to 1.2%, boosting investment, wages, and household after-tax income. The report also mentioned that combined with other policies, the ratio of U.S. federal debt to GDP could decrease from the current approximately 117% to 94% over 10 years.
The report indicated that having abundant energy resources and technology is crucial for driving high-tech economic growth. The government aims to promote overall economic prosperity in the U.S. by expanding electricity supply, investing in nuclear power industry bases, and liquefied natural gas (LNG) export facilities.
In terms of international trade policy, the government is shifting towards a trade system centered on American workers, industries, and national security, seeking an equitable, fair, and reciprocal trade environment. The government is committed to closing trade loopholes, such as ending de minimis parcel tax exemptions, and encouraging supply chains to shift from competitor countries to more diversified global partners to enhance economic independence.
The White House predicts that with the implementation of policies like deregulation, tax reform, energy investment, and accelerated development of artificial intelligence (AI), the U.S. is poised to achieve an annual average real GDP growth rate of 3.0% over the next 11 years.