🏖️ Happy Friday! Today we consider a puzzling question: If diversity is good for businesses — and the public doesn't mind — why are so many companies running away from it?
- Plus: The case for more bankruptcies, and Trump skepticism at the grocery store.
⏰ We'll be off Monday but back in your inboxes Tuesday!
All in 1,040 words, a 4-minute read.
A majority of Americans across nearly all demographic groups said DEI initiatives have made no impact on their personal careers, according to a newly released Harris Poll/Axios Vibes survey.
Why it matters: Republican lawmakers and activists have vilified DEI, a term for diversity, equity and inclusion policies used by employers. Companies have responded by rolling back programs.
- Yet Americans — and businesses — have a generally positive to at least indifferent view on the subject.
- On balance, most demographic groups were more likely to say DEI benefited their career than hindered it.
Zoom out: The current enmity for DEI was on display this week in the congressional hearings for President-elect Trump's Cabinet nominees.
- DEI is "race essentialism," Sen. Eric Schmitt (R-Mo.) said. "I think the American people have spoken loudly and clearly about this."
- Trump's opposition to anything DEI-related is well known.
By the numbers: While 41% of those surveyed said they support efforts to roll back diversity initiatives, the majority — nearly six in 10 — either oppose those efforts or are unsure about them.
- 57% said DEI initiatives have had no impact on their career, while 16% explicitly said it's hindered them.
- 39% of Democrats said they've benefited from DEI, compared to 26% of Republicans.
- At least half of all demographic groups — including people of different races, ethnicities and sexual orientations — said DEI had no impact on their careers.
- 51% of respondents said DEI is primarily a symbolic gesture, while the rest said it is essential for equality.
The bottom line: There is a big disconnect between political rhetoric and reality.
If capitalism without bankruptcy is like Christianity without hell, as former astronaut and Eastern Airlines CEO Frank Borman famously put it, then the U.S. over the past decade or so has been a joyous church indeed.
Why it matters: We're now beginning to see signs that the days of very few bankruptcies might be coming to an end, thanks in large part to the Fed.
By the numbers: Bankruptcy filings by companies with assets or liabilities greater than $2 million if they're public (or $10 million if they're private) rose to 694 in 2024. That's up 9% from 2023 and up a whopping 87% from a record low of 372 in 2022, per S&P Global.
- Overall, business bankruptcies in U.S. courts rose to 22,762 in 2024, up 33% from 2023 and up 73% from 2022.
- Those numbers are less precise than they seem, since the default setting on most bankruptcy-filing software is "consumer" rather than "business" and many business filers don't check that box.
- Meanwhile, many large corporate bankruptcies involve simultaneous filings from hundreds of subsidiaries, which can result in the numbers being exaggerated.
The bottom line: When rates rise, they bite harder. But an economy with more bite isn't always a bad thing.
Most Americans have little to no confidence that Trump can lower the price of groceries and other basic necessities in his second White House term.
Why it matters: It's a fundamental disconnect of the early Trump 2.0 presidency — his victory caused a surge in consumer confidence, but consumers are skeptical he can actually solve their biggest concerns.
By the numbers: A new AP-NORC poll of 1,147 adults conducted Jan. 9 to 13 asked how confident people were Trump could address various issues.
- 61% said they were only "slightly" or "not at all" confident that he could lower the cost of food and groceries this year.
- That uncertainty rose to 64% for housing costs and 65% for health care costs.
The intrigue: Trump campaigned aggressively on inflation and specifically promised to lower grocery prices.
- Since winning, he's changed his message, acknowledging it's hard to lower a price that's already gone up.