February marks Black History Month, a time to honor the legacies, struggles, and triumphs of Black Americans whose contributions have shaped the very foundation of our nation. Yet, as we commemorate this history, we face a sobering paradox: the simultaneous rollback of diversity, equity, and inclusion (DEI) initiatives across public and private sectors.
In a 2016 letter thanking me for speaking out, former President Barack Obama wrote: “Progress doesn’t come easily and it hasn’t always followed a straight line, but I firmly believe that history ultimately moves in the direction of inclusion—not because it is inevitable, but because people like you speak out and hold our country to our highest ideals.”
That reminder is critical: Progress is not linear, and equity, once advanced, is never guaranteed.
Over the past year, we’ve witnessed a coordinated retreat from DEI commitments. Legislative actions in multiple states have restricted race-conscious education and targeted corporate DEI programs, framing equity as a divisive concept rather than an economic imperative. While some companies have resisted, others, wary of political backlash or shifting public sentiment, have quietly scaled back diversity efforts, relegating them from boardroom priorities to peripheral projects.
This trend is not just a moral failure—it’s an economic miscalculation.
Why DEI matters
Equity is not charity. It is not a feel-good initiative or a public relations strategy. Equity is a growth strategy. When we dismantle barriers to opportunity, we unlock human potential and expand economic productivity.
Consider the figure $3.1 trillion. That’s the potential U.S. GDP increase if we closed gender gaps in labor force participation, wages, and leadership, according to my research
Such numbers aren’t just statistics—they represent missed economic opportunities. When we sideline equity, we sideline economic growth.
Nowhere is this issue more urgent than at the intersection of race and gender—specifically for Black breadwinner mothers.
Since 1982, more than 51% of all Black American households with children under the age of 18 have been headed by breadwinner moms. This means Black women are supporting themselves and future generations. Yet, despite their crucial role in economic stability, they are disproportionately affected by pay gaps, workplace bias, and the erosion of DEI initiatives.
- Black women already face a double wage gap, earning just 66 cents for every dollar earned by white, non-Hispanic men. But Black breadwinner moms have the largest gender pay gap of any women in the labor force: 44 cents on the dollar of breadwinner dads.
- Black mothers face higher unemployment rates than white mothers, even when they have the same qualifications. In the wake of the COVID-19 pandemic, Black women lost jobs at a higher rate and have faced slower employment recovery. As of the Jan. 10 jobs report, there are still 246,000 Black women missing from the labor force since the beginning of the pandemic.
- Occupational segregation channels many Black mothers into lower-paying industries with limited access to benefits like paid leave, health care, and retirement savings. These are structural barriers, not personal failings.
- $30,000—that’s the median household income for Black moms who are the sole breadwinners
If we fail to address such disparities, we are actively suppressing economic progress. A society where Black breadwinner moms thrive is a society where the economy thrives.
Civil rights lessons
Black History Month is not just a reflection of the past; it’s a call to action for the present. The civil rights victories of the 1960s were met with fierce resistance, yet they laid the groundwork for the opportunities many have today. History shows us that progress often provokes backlash. What we’re experiencing now—the push to dismantle DEI efforts—is not unprecedented. It’s a predictable pattern when systems of privilege feel threatened.
But here’s the lesson: Progress has never been the passive accumulation of time. It’s the result of deliberate, often uncomfortable, action. The Voting Rights Act didn’t pass because the nation “naturally evolved.” It passed because people organized, protested, risked their lives, and refused to accept the status quo.
DEI framed as divisive
The rollback of DEI initiatives under the guise of “colorblindness” or “meritocracy” ignores the very real structural barriers that persist. It assumes a level playing field where none exists. Consider the racial wealth gap: The median wealth of white families in the U.S. is 10 times that of Black families. This disparity isn’t the result of individual choices but of systemic inequities—redlining, discriminatory lending practices, unequal access to education—that continue to shape economic outcomes today.
Black Americans hold just 4.7% of total U.S. wealth, despite making up 13.6% of the population—an almost 9 percentage point gap. The disparities deepen when factoring in gender: Black women with bachelor’s degrees earn less than white men with some college but no degree, underscoring how race and gender continue to shape economic outcomes.
When we allow DEI to be framed as divisive, we concede the false premise that equity is optional. But equity is not optional. It’s fundamental to democracy and capitalism. Without it, we limit our labor force and undermine global competitiveness.
Implementing DEI
In this climate, the easy choice is to retreat—to quietly deprioritize DEI in the face of legal challenges or political pressure. But leadership isn’t about ease; it’s about courage. Business leaders must step up—not just for moral reasons, but because our economic future depends on it.
Here’s what leaders must do:
- Commit to closing pay gaps: Black women earn 34% less than white men, amounting to nearly $1 million in lost wages over a lifetime. Companies must eliminate pay inequities and enforce transparent salary practices.
- Diversify leadership pipelines: Analyzing data from Pipeline’s research, we found that the promotion gap for Black women is twice that of all women. Black women must be promoted at equitable rates and given the same access to leadership training and sponsorship as their peers.
- Eliminate bias in performance reviews: Pipeline’s analysis of performance review data reveals that one in three reviews contains bias, which in turn doubles the time it takes for women to receive a promotion. Companies must use inclusive, AI-driven, data-backed performance and potential review processes to reduce bias and increase objectivity.
- Ensure paid leave for Black breadwinner moms: Over 51% of Black households with children are led by breadwinner moms, yet more than one-third lack access to paid sick leave. Providing paid caregiver leave is essential.
- Hold executives accountable: DEI initiatives must be measured and tied to executive performance evaluations and compensation—just like any other business metric.
Almost 250 years into the great experiment of American democracy, we must ask ourselves: Will we preserve the light of equity, or will we extinguish it?
The future we build depends on the choices we make today. As a breadwinning mother, gender economist, and advocate for equity by design, I know this: Let’s choose progress. Not because it’s easy, but because it’s an economic necessity.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
Read more:
- One point in the DEI debate everyone can agree on
- Trump’s DOJ can’t rewrite the law on DEI. Here’s why companies shouldn’t back down
- ‘DEI’ might be a blip in history—but the value of diversity and inclusion will persist
- These are the companies standing by their DEI policies despite nationwide pushback
