by John M. Eger

June 7, 2025

For nearly 60 years, the principles of Diversity, Equity, and Inclusion (DEI)—enshrined in the Civil Rights Act of 1964 and upheld by the Equal Employment Opportunity Commission (EEOC)—have served as vital pillars of opportunity, fairness, and economic advancement in the United States. While enforcement has never been flawless, these ideals have opened doors for millions, expanded the nation’s talent pool, and fueled innovation across every major sector.

Today, however, that foundation is crumbling.

Under the Trump administration, DEI initiatives were systematically defunded, discredited, and dismantled. This rollback hasn’t just continued—it has accelerated. Across federal agencies, Fortune 500 companies, and leading academic institutions—once champions of inclusive progress—public commitments to DEI are quietly disappearing. In their place, we are witnessing a troubling resurgence of bias, exclusion, and cultural hostility.

This regression is not only undermining the fabric of American democracy—it is jeopardizing our economic future.

New research confirms what many have long intuited: cities perceived as most tolerant—across race, religion, gender, ethnicity, ability, and language—are the ones best positioned to attract the creative and innovative workforce that will define the global economy of the future. Yet intolerance is rising once more, threatening to reverse decades of hard-won progress.

Rather than strengthening DEI to meet the demands of a rapidly evolving global economy, we are seeing it cast aside—maligned as divisive or unnecessary. Prominent voices, including, now feuding Elon Musk and former President Donald Trump, have actively sought to discredit DEI, claiming it is outdated or even dangerous.

Nothing could be further from the truth.

In The Rise of the Creative Class, urban theorist Richard Florida identified three core drivers of modern economic success: Talent, Technology, and Tolerance. While talent and technology often dominate the conversation, tolerance—the ability to embrace difference and foster inclusion—is the essential, and now endangered, third pillar.

This is not just a cultural issue. It’s a strategic crisis.

As automation, artificial intelligence, and global competition transform the workforce, our greatest advantages as humans—creativity, empathy, adaptability, collaboration—are forged in diverse, inclusive environments. Without inclusion, innovation cannot thrive.

Some cities recognize this. San Francisco, San Diego, Austin, Seattle, Boston, and Denver are investing in inclusive policies, public spaces, and immigration-friendly practices. These cities are not without flaws—but they are trying. And in doing so, they are attracting the people, ideas, and industries that drive sustainable economic growth.

Others are retreating—rejecting pluralism, narrowing opportunity, and embracing exclusionary worldviews. The consequences are already visible: stagnant economies, declining populations, and brain drain as skilled workers seek opportunity elsewhere.

The rise of AI only raises the stakes. As routine tasks are automated, what will differentiate economies and institutions is their ability to cultivate human potential. As Steve Jobs once said: “Think different.” That mindset isn’t a luxury—it’s a necessity.

The organizations—and cities—that foster inclusive, open-minded thinkers from all backgrounds will shape the future. Those that don’t will fall behind.

And the warning signs are clear. Hate crimes against Jewish, Black, Asian, LGBTQ+, immigrant, and disabled Americans are rising. Even in “progressive” cities, systemic inequities persist. These hostile environments don’t just harm individuals—they deter talent, suppress creativity, and sabotage progress.

This is more than a moral failure. It’s an economic failure.

When people don’t feel safe, respected, or welcomed, they leave. And when they leave, they take their ideas, businesses, skills, and innovation with them. These losses are not just short-term—they’re often irreversible.

We’re no longer competing over natural resources or manufacturing capacity. We’re competing for intellectual capital, cultural vibrancy, and inclusive innovation—the assets of the 21st-century economy.

Cities like San Diego can lead this transformation, if they stay committed to tolerance and inclusion. But those that choose fear over openness, walls over bridges, and exclusion over equity, will not only fall behind—they may never catch up.

The choice before us is urgent and clear:

Embrace tolerance—and thrive.
Reject it—and wither.