Trickle Down DEI – It Works!

Myth: Trickle Down Economics Works

Since the days of  Ronald Reagan, many have promoted the view that if the top does well (big businesses, top earners) that they will generate more business and more wealth that will trickle down to the rest of society.

Trickle-down economics promised that wealth from the top would naturally flow downward, benefiting society broadly—but history has repeatedly disproven this theory, widening the gap between the privileged and everyone else.

Reality: Trickle Down Economics Does Not Work

According to the National Institute of Health, which tracks poverty among other things, “Income inequality increased. The rate of poverty at the end of Reagan’s term was the same as in 1980. Cutbacks in income transfers during the Reagan years helped increase both poverty and inequality.”

The 2017 tax cut reduced corporate income tax rate to 21% (the marginal tax rate was 91% during Eisenhower’s years) and also made changes to pass-through deduction which was skewed in favor of wealthy business owners.

More recently, the Paycheck Protection Program (PPP) loans were intended to give relief to small businesses. However, billions of dollars went to companies owned by wealthy celebrities, including Tom Brady and Khloe Kardashian, and companies that thrived during COVID, like manufacturing and construction firms.

The result of all of this can be shown here in this graphic covering 1983 – 2016. Today, Income inequality is the highest it has been since the Roaring Twenties prior to the Great Depression.

Trickle down economics is a failure.

Myth: DEI Takes from Some, Gives to Others

While DEI is perceived by some as taking opportunities from traditionally advantaged groups, what it actually redistributes is privilege—shifting toward equity by providing historically marginalized groups fairer access to opportunities previously reserved for a privileged few.

Diversity, equity, and inclusion (DEI) have deep historical roots in American society—many foundational DEI policies, practices, and principles are embedded directly into the U.S. Constitution through its amendments, such as those guaranteeing voting rights regardless of race (15th Amendment) and gender (19th Amendment), and equal protection under the law (14th Amendment).

The Nineteenth Amendment gave women right to vote in 1920.  It didn’t take away the right to vote from men. Women fought and died to gain this right, which is facing challenges by “anti-woke” politicians.

In Brown v. Board of Education, the Supreme Court unanimously ruled in 1954 that segregation in public schools as unconstitutional. It didn’t kick white students out of schools, but rather prohibited segregation of students by race and disability. This too is being challenged by the current administration.

President Johnson signed the Civil Rights Act of 1964, outlawing discrimination based on race, color, religion, sex and national origin. It didn’t take away anyone else’s rights. It just protected certain marginalized demographics. However the rights granted will need to once again be defended.

The Developmental Disabilities Assistance and Bill of Rights Act enacted in 1975. Once again, rights were not taken away from anyone but were instead recognized for those with developmental disabilities. This too, is currently under attack.

Americans with Disabilities Act (ADA) is signed into law in 1990 by President George H.W. Bush. This landmark legislation prohibits discrimination against people with disabilities in all areas of public life including jobs, schools, transportation and all public and private places that are open to the general public.

In none of these instances, were the rights of anyone taken away. In reality, affording rights to others has led to improvements for everyone.

Reality: Trickle Down DEI Works for Us All

Let’s dive a little deeper and look at how these various targeted laws and amendments have made life better for everyone.

The American with Disabilities Act created many improvements which have “trickled down” for us all to use.

• Wheelchair ramps are helpful not only for wheelchairs, but also for people using crutches because of a broken leg, people with rolling suitcases and delivery people with small carts.
• Have you hit the “open door” button with your hip because you were carrying a box? Thank the ADA.
• Have you turned on “closed captions” because you couldn’t understand the Scottish, British, Jamaican or other accents on Netflix? Thank the ADA.
• Have you used a curb ramp for your baby stroller, bicycle or roller blades? Thank the ADA.
• Have you used a prayer room to get a little quiet time at work – or to cry because your dog died? Thank the ADA.
• Has your three-story office building been remodeled to add an elevator? Thank the ADA.

The Family Medical Leave Act (FMLA) of 1993 protects leave for:

• The birth of a child or placement of a child with the employee for adoption or foster care,
• The care for a child, spouse or parent who has a serious health condition,
• A serious health condition that makes the employee unable to work, and
• Reasons related to a family member’s service in the military, including:
  • Qualifying exigencies leave – leave for certain reasons related to a family member’s foreign deployment;
  • Military caregivers leave – leave when a family member is a current servicemember or recent veteran with a serious injury or illness.
• Thank the FMLA for the time off for your knee replacement surgery or chemotherapy. In addition, if you are a federal worker, you are protected from employer retaliation. The Department of Government Efficiency (DOGE) may be in violation of this (and many other) laws.

Give Thanks to Diversity, Equity and Inclusion

Keep in mind that the key strength of DEI lies in the inclusion of all people. All colors, abilities, sexual orientations, genders, religions and age. DEI also includes people who were born poor, those born in other countries and those who are underrepresented in a variety of ways.

Not like the brazen giant of Greek fame,

With conquering limbs astride from land to land;

Here at our sea-washed, sunset gates shall stand

A mighty woman with a torch, whose flame

Is the imprisoned lightning, and her name

Mother of Exiles. From her beacon-hand

Glows world-wide welcome; her mild eyes command

The air-bridged harbor that twin cities frame.

“Keep, ancient lands, your storied pomp!” cries she

With silent lips. “Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tost to me,

I lift my lamp beside the golden door!”

Emma Lazarus

November 2, 1883

How to Improve Diversity, Equity and Inclusion in Your Organization

History repeatedly demonstrates that expanding rights and freedoms to marginalized groups does not diminish opportunities for others; rather, it creates environments where everyone thrives. The same principle applies directly to workplaces: when we intentionally remove barriers and expand inclusion for those previously excluded, the entire organization benefits from improved innovation, collaboration, and employee well-being.

Keep in mind that inclusion comes first. Inclusion is an active practice. Equity is the ongoing pursuit of fairness. Diversity naturally emerges when inclusion and equity are genuinely prioritized.

Here is how you can help improve the status quo for everyone:

• Reduce bias in your organization. This means understanding individual bias. It also means removing bias (as much as possible) throughout the talent life cycle – beginning with who you hire.
• Create a culture of accountability. This includes everyone – top to bottom. The top must act as role models. Tie key performance indicators for leadership to improvements in behavior.
• Measure your organization’s culture and include demographics. Unless you measure, you don’t know what you don’t know. Track progress and publish the results.

When inclusion leads, everyone follows. Unlike trickle-down economic policies—which have consistently failed to lift everyone—inclusive workplaces prove that extending rights, protections, and opportunities widely enhances the entire organization. Embracing diversity, practicing equity, and actively including everyone isn’t simply good policy—it’s the pathway to collective success.

Let’s build workplaces where everyone truly has a seat at the table, because to quote the late Paul Wellstone, “We all do better when we all do better.”