Is DEI About to DIE?

Secret Service's Failure to Protect Trump, Didn't-Earn-It (DEI) Hiring, and Woke Capitalism in Retreat?

Secret Service Director Kimberly Cheatle resigned today, just hours ago. From a report by Reuters:

U.S. Secret Service Director Kimberly Cheatle resigned after the agency came under harsh scrutiny for its failure to stop a would-be assassin from wounding former President Donald Trump during a campaign rally, the White House said on Tuesday.

Now, former Director Kimberly Cheatle, has been a staunch advocate for DEI (Diversity, Equity, Inclusion). In fact, shortly after her appointment by Joe Biden in 2022, she made it clear that DEI would be her top priority.

In an interview with CBS, Cheatle pledged to raise the share of women in the Secret Service to 30% by the end of the decade.

Kimberly Cheatle: I'm very conscious, as I sit in this chair now, of making sure that we need to attract diverse candidates and ensure that we are developing and giving opportunities to everybody in our workforce, and particularly women.

This wasn't just empty talk, as you might have seen in the video footage of the attempt on Trump’s life, where at least several female Secret Service agents were in action.

It wasn't a great look for DEI, though. One female agent, for instance, was heard yelling into her intercom, asking, "What are we doing? What are we doing?" right after shots were fired. Another struggled to cover Trump effectively, hindered by her shorter stature. There was also an agent who appeared to freeze in panic, crouching behind Trump and other agents… and then later, that same agent, along with two others, seemed terrified as they stood around Trump's vehicle, struggling to holster her gun.

If you've seen any of this, you don't have to be a security expert to conclude that DEI policies played at least some part in what transpired on July 13 at Trump’s rally in Butler, Pennsylvania.

Regardless, until just hours ago, Kimberly Cheatle appeared unfazed in her determination not to lose her job over a "silly" thing like that. It took ten days of political pressure, frankly embarrassing Congressional hearings, and relentless confrontations in hallways before she stepped down. I guess we shouldn't be too surprised... if you're not hired based on merit, maybe you don't expect to lose your job over a lack of it either.

Is the Tide Turning? 

The attempt on Trump’s life was a (literal) warning shot about the principles of DEI hiring — not just within the upper echelons of state security but throughout the American corporate sector as well.

And perhaps it's just a coincidence, but some are already taking heed…

For instance, last week, tractor maker John Deere (DE) announced they are rolling back various DEI initiatives. This includes stopping support for external, and I quote, "social or cultural awareness parades." They also emphasized that they do not follow "diversity quotas" or "pronoun identification" practices.

Great. But the fact a farm tractor company even adopted DEI in the first place is just baffling. I mean, did you guys actually think that diversity hiring targets and sponsoring LGBTQ+ events were going to somehow impress your core customer base? You know, those salt-of-the-earth folks who work tirelessly from dawn to dusk, with their boots deep in the mud and hands calloused from real, hard labor.

I guess we all know the answer to that. It was never really about the customers but about those sweet, sweet dollars from the likes of BlackRock.

Nevertheless, it’s good to see a major Fortune 500 company take a step back from this nonsense. This incidentally followed a decision last month by farm chain retailer Tractor Supply (TSCO) to axe all DEI goals and positions.

But it’s not just tractor makers and sellers.

Advanced Micro Devices (AMD), Motorola (MSI), and Regions Financial (RF) are among a dozen companies that have removed diversity criteria from executive bonus plans this year.

Last year, Google (GOOGL) and Meta (META) scaled back their DEI programs and reduced staff as part of broader restructuring and layoffs at both companies. Other companies, including Zoom (ZM), Snap (SNAP), Tesla (TSLA), DoorDash (DASH), Lyft (LYFT), Home Depot (HD), and Wayfair (W), have also reduced the size of their DEI teams.

We also know that DEI-related job postings declined by over 40% in 2022 compared to the preceding year.

So, is DEI about to DIE?

Not really.

While some major companies are backing away from the concept, the process won't be instantaneous. BlackRock and other deep-pocketed vanguards of woke capitalism still control the voting power in our 401ks, giving them the ability to foist DEI on all Fortune 500 companies. Alongside that, you've also got a ton of diversity-focused initiatives and consulting companies still pushing for these things because they make a lot of money from advising on them.

None of these actors are going away overnight… certainly not on their own volition, as they are too invested in pushing woke capitalism, both financially and otherwise. But the tide IS turning.

Regards,

Lau Vegys