DOGE's DEI Contract Cancellations Create Massive Economic Losses, New Analysis Reveals

 
WASHINGTON - Feb. 4, 2025 - PRLog -- A new economic analysis by Creative Investment Research reveals that the Department of Government Efficiency's (DOGE) cancellation of 104 diversity, equity, and inclusion (DEI) contracts will result in staggering economic losses ranging from $1.6 trillion to $2.6 trillion annually, far exceeding the reported $1 billion in "savings."

While DOGE, under the leadership of Elon Musk, claims to have reduced government spending, our analysis demonstrates that these cuts will increase social and economic costs through rising employment discrimination, housing inequities, business exclusion, healthcare disparities, and criminal justice failures.

Key Findings
  • Employment Discrimination: Bias in hiring and promotions results in annual losses of $500 billion to $750 billion due to wage suppression and reduced workforce productivity.
  • Housing Discrimination: Redlining and discriminatory lending practices cost the economy $100 billion to $250 billion per year.
  • Minority Business Losses: The exclusion of minority entrepreneurs from federal contracts and capital access limits economic growth by $500 billion to $800 billion annually.
  • Healthcare Disparities: Increased medical costs and lost productivity due to discrimination in healthcare access amount to $300 billion to $500 billion per year.
  • Criminal Justice Inequities: Higher incarceration rates for marginalized groups create economic losses between $200 billion and $300 billion annually.
These fully adjusted costs demonstrate that every $1 billion "saved" by DOGE actually destroys between $1,600 and $2,600 billion in economic value, highlighting the devastating impact of the elimination of DEI programs.

The Broader Economic Context

The dismantling of federal DEI initiatives aligns with Donald Trump's January 20, 2025, executive order, which mandates the termination of DEI and accessibility programs across 25 federal agencies. Several agencies reported over $800 million in "savings" from DEI cuts. However, these savings fail to account for the long-term economic damage caused by institutional discrimination.

"Eliminating DEI programs is not a cost-saving measure—it is a direct assault on economic growth," said William Michael Cunningham, lead analyst of the report. "The data is clear: when minority workers and businesses are excluded, the entire economy suffers."

A Call for Action

Policymakers and business leaders must recognize that DEI programs are economic growth drivers, not liabilities. Investing in equitable policies and inclusive economic opportunities can unlock trillions in GDP gains, fostering sustainable prosperity for all Americans.

For further information, please see https://www.impactinvesting.online/2025/02/loss-generated.... To request a copy of the full report contact: info@creativeinvest.com

About Creative Investment Research

Creative Investment Research (CIR) is one of the most impactful economic analysis firms operating in the US today, recognized for its proven history and track record of driving meaningful change. Specializing in the creation of high financial and social return investment vehicles, CIR designs innovative economic models that empower small businesses and underserved communities, fostering ethical and sustainable growth.

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