It’s time we restore veritas to my alma mater
By Bill Ackman, January 3, 2024
In light of today’s news, I thought I would try to take a step back and provide perspective on what this is really all about.
I first became concerned about Harvard when 34 student organizations, early on the morning of October 8—before Israel had taken any military actions in Gaza—came out publicly in support of Hamas, a globally recognized terrorist organization, holding Israel “solely responsible” for Hamas’ barbaric and heinous acts.
How could this be? I wondered.
When I saw then-president Claudine Gay’s initial statement about the massacre, it provided more context (!) for the student groups’ statement of support for terrorism. The protests began as pro-Palestine and then became anti-Israel.
Shortly thereafter, antisemitism exploded on campus as protesters who violated Harvard’s own codes of conduct were emboldened by the lack of enforcement of Harvard’s rules, and kept testing the limits on how aggressive, intimidating, and disruptive they could be to Jewish and Israeli students, and the student body at large. Sadly, antisemitism remains a simmering source of hate even at our best universities among a subset of students.
A few weeks later, I went up to campus to see things with my own eyes, and listen and learn from students and faculty. I met with 15 or so members of the faculty and a few hundred students in small and large settings, and a clearer picture began to emerge.
I ultimately concluded that antisemitism was not the core of the problem. It was simply a troubling warning sign—it was the “canary in the coal mine”—despite how destructive it was in impacting student life and learning on campus.
I came to learn that the root cause of antisemitism at Harvard was an ideology that had been promulgated on campus, an oppressor/oppressed framework, that provided the intellectual bulwark behind the protests, helping to generate anti-Israel and anti-Jewish hate speech and harassment.
Then I did more research. The more I learned, the more concerned I became, and the more ignorant I realized I had been about DEI, a powerful movement that has not only pervaded Harvard but the educational system at large. I came to understand that diversity, equity, and inclusion was not what I had naively thought these words meant.
I have always believed that diversity is an important feature of a successful organization, but by diversity I mean diversity in its broadest form: diversity of viewpoints, politics, ethnicity, race, age, religion, experience, socioeconomic background, sexual identity, gender, one’s upbringing, and more.
What I learned, however, was that DEI was not about diversity in its purest form. Rather, DEI was a political advocacy movement on behalf of certain groups that are deemed oppressed under DEI’s own methodology.
Under DEI, one’s degree of oppression is determined based upon where one resides on a so-called intersectional pyramid of oppression where whites, Jews, and Asians are deemed oppressors, and a subset of people of color, LGBTQ people, and/or women are deemed to be oppressed. Under this ideology which is the philosophical underpinning of DEI as advanced by Ibram X. Kendi and others, one is either an anti-racist or a racist. There is no such thing as being “not racist.”
Under DEI’s ideology, any policy, program, educational system, economic system, grading system, admission policy (and even climate change, due its disparate impact on geographies and the people that live there), etc., that leads to unequal outcomes among people of different skin colors is deemed racist.
As a result, according to DEI, capitalism is racist, Advanced Placement exams are racist, IQ tests are racist, corporations are racist—in other words, any merit-based program, system, or organization that has or generates outcomes for different races that are at variance with the proportion these different races represent in the population at large is by definition racist under DEI’s ideology.
In order to be deemed anti-racist, one must personally take action to reverse any unequal outcomes in society. The DEI movement, which has permeated many universities, corporations, and state, local, and federal governments, is designed to be the anti-racist engine to transform society from its currently structurally racist state to an anti-racist one.
After the death of George Floyd, the already-burgeoning DEI movement took off without any real challenge to its problematic ideology. Why, you might ask, was there so little pushback? The answer is that anyone who dared to raise a question that challenged DEI was deemed a racist, a label that could severely impact one’s employment, social status, reputation, and more. Being called a racist got people canceled, so those concerned about DEI and its societal and legal implications had no choice but to keep quiet in this new climate of fear.
The techniques that DEI has used to squelch the opposition are found in the Red Scares and McCarthyism of decades past. If you challenge DEI, “justice” will be swift, and you may find yourself unemployed, shunned by colleagues, canceled, and/or you will otherwise put your career and acceptance in society at risk.
The DEI movement has also taken control of speech. Certain speech is no longer permitted. So-called “microaggressions” are treated like hate speech. “Trigger warnings” are required to protect students. “Safe spaces” are necessary to protect students from the trauma inflicted by words that are challenging to the students’ newly acquired worldviews. Campus speakers and faculty with unapproved views are shouted down, shunned, and canceled.
These speech codes have led to self-censorship by students and faculty of views privately held, but no longer shared. There is no commitment to free expression at Harvard other than for DEI-approved views. This has led to the quashing of conservative and other viewpoints from the Harvard campus and faculty, and contributed to Harvard’s having the lowest free speech ranking of 248 universities assessed by the Foundation for Individual Rights and Expression.
When one examines DEI and its ideological heritage, it does not take long to understand that the movement is inherently inconsistent with basic American values. Our country, since its founding, has been about creating and building a democracy with equality of opportunity for all. Millions of people have left behind socialism and communism to come to America to start again, as they have seen the destruction leveled by an equality of outcome society.
The E for “equity” in DEI is about equality of outcome, not equality of opportunity.
DEI is racist because reverse racism is racism, even if it is against white people (and it is remarkable that I even need to point this out). Racism against white people has become considered acceptable by many not to be racism, or alternatively, it is deemed acceptable racism. While this is, of course, absurd, it has become the prevailing view in many universities around the country.
You can say things about white people today in universities, in business, or otherwise, that if you switched the word white to black, the consequences to you would be costly and severe.
To state what should otherwise be self-evident, whether or not a statement is racist should not depend upon whether the target of the racism is a group who currently represents a majority or minority of the country or those who have a lighter or darker skin color. Racism against whites is as reprehensible as it is against groups with darker skin colors.
Martin Luther King Jr.’s most famous words are instructive:
“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.”
But here we are in 2024, being asked and in some cases required to use skin color to affect outcomes in admissions (recently deemed illegal by the Supreme Court), in business (likely illegal yet it happens nonetheless), and in government (also I believe in most cases to be illegal, except apparently in government contracting), rather than the content of one’s character. As such, a meritocracy is anathema to the DEI movement. DEI is inherently a racist and illegal movement in its implementation even if it purports to work on behalf of the so-called oppressed.
And DEI’s definition of oppressed is fundamentally flawed.
I have always believed that the most fortunate should help the least fortunate, and that our system should be designed in such a way to maximize the size of the overall pie so that it will enable us to provide an economic system that can offer quality of life, education, housing, and healthcare for all.
America is a rich country and we have made massive progress over the decades toward achieving this goal, but we obviously have much more work to do. Steps taken on the path to socialism—another word for an equality of outcome system—will reverse this progress and ultimately impoverish us all. We have seen this movie many times.
Having a darker skin color, a less common sexual identity, and/or being a woman doesn’t make one necessarily oppressed or even disadvantaged. While slavery remains a permanent stain on our country’s history—a fact that is used by DEI to label white people as oppressors—it doesn’t therefore hold that all white people, generations after the abolishment of slavery, should be held responsible for its evils. Similarly, the fact that Columbus discovered America doesn’t make all modern-day Italians colonialists.
An ideology that portrays a bicameral world of oppressors and the oppressed based principally on race or sexual identity is a fundamentally racist ideology that will likely lead to more racism rather than less. A system where one obtains advantages by virtue of one’s skin color is a racist system, and one that will generate resentment and anger among the disadvantaged who will direct their anger at the favored groups.
The country has seen burgeoning resentment and anger grow materially over the last few years, and the DEI movement is an important contributor to our growing divisiveness. Resentment is one of the most important drivers of racism. And it is the lack of equity (i.e, fairness) in how DEI operates that contributes to this resentment.
I was accused of being a racist by the president of the NAACP among others when I posted on X (formerly Twitter) that I had learned that the Harvard president search process excluded candidates that did not meet the DEI criteria. I didn’t say that former president Gay was hired because she was a black woman. I simply said that I had heard that the search process by its design excluded a large percentage of potential candidates due to the DEI limitations. My statement was not a racist one. It was simply the empirical truth about the Harvard search process that led to Gay’s hiring.
When former president Gay was hired, I knew little about her, but I was instinctually happy for Harvard and the black community. Every minority community likes to see their representatives recognized in important leadership positions, and it is therefore an important moment for celebration. I, too, celebrated this achievement. I am inspired and moved by others’ success, and I thought of Gay’s hiring at the pinnacle leadership position at perhaps our most important and iconic university as an important and significant milestone for the black community.
I have spent the majority of my life advocating on behalf of and supporting members of disadvantaged communities, including by investing several hundreds of millions of dollars of philanthropic assets to help communities in need with economic development, sensible criminal justice reform, poverty reduction, healthcare, education, workforce housing, charter schools, and more.
I have done the same at Pershing Square Capital Management when, for example, we completed one of the largest IPOs ever with the substantive assistance of a number of minority-owned, women-owned, and veteran-owned investment banks. Prior to the Pershing Square Tontine, Ltd. IPO, it was standard practice for big corporations occasionally to name a few minority-owned banks in their equity and bond offerings, have these banks do no work and sell only a de minimis amount of stock or bonds, and allocate to them only 1 percent or less of the underwriting fees so that the issuers could virtue signal that they were helping minority communities.
In our IPO, we invited the smaller banks into the deal from the beginning of the process so they could add real value. As a result, the Tontine IPO was one of the largest and most successful IPOs in history, with $12 billion of demand for a $4 billion deal by the second day of the IPO, when we closed the books. The small banks earned their 20 percent share of the fees for delivering real and substantive value and for selling their share of the stock.
Compare this approach to the traditional one, where the small banks do effectively nothing to earn their fees—they aren’t given that opportunity—yet they get a cut of the deal, albeit a tiny one. The traditional approach does not create value for anyone. It creates only resentment, and an uncomfortable feeling from the small banks who get a tiny piece of the deal in a particularly bad form of affirmative action.
While I don’t think our approach to working with the smaller banks has yet achieved the significant traction it deserves, it will hopefully happen eventually as the smaller banks build their competencies and continue to earn their fees, and other issuers see the merit of this approach. We are going to need assistance with a large IPO soon, so we are looking forward to working with our favored smaller banks.
I have always believed in giving disadvantaged groups a helping hand. I signed the Giving Pledge for this reason. My life plan by the time I was 18 was to be successful and then return the favor to those less fortunate. This always seemed to be the right thing to do, in particular, for someone as fortunate as I am.
All of the above said, it is one thing to give disadvantaged people the opportunities and resources so that they can help themselves. It is another to select a candidate for admission or for a leadership role when they are not qualified to serve in that role.
This appears to have been the case with former president Gay’s selection. She did not possess the leadership skills to serve as Harvard’s president, putting aside any questions about her academic credentials. This became apparent shortly after October 7, but there were many signs before then when she was dean of the faculty.
The result was a disaster for Harvard and for Claudine Gay.
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Read the rest of Bill’s great piece at the FREE PRESS HERE.