New research from the National Endowment for the Arts shows what many intuitively understand: cities like San Diego that are tolerant of diversity are the ones most likely to attract the creative and innovative workforce that will define the future.
And yet, just as we face a new era of economic transformation driven by artificial intelligence, automation, and global interdependence, we are witnessing a troubling resurgence of intolerance — religious, racial, ethnic, gender and linguistic discrimination and prejudice. This backlash not only tears at the fabric of our democracy — it also threatens our collective economic future.
Rather than doubling down on diversity, equity and inclusion to prepare for the demands of a rapidly evolving economy, we are instead seeing a rollback of the very principles that DEI efforts were designed to protect. Decades of progress are at risk. Even more troubling, some of the most influential voices in business and politics — most notably Elon Musk and President Trump — are actively working to discredit and dismantle DEI frameworks, dismissing them as unnecessary, divisive, or even dangerous.
Nothing could be further from the truth.
Urban theorist Richard Florida identified three key drivers of success in the modern economy: talent, technology, and tolerance. While the first two often dominate the conversation, the third — tolerance — is the bedrock of a thriving, inclusive, and innovative society. Yet it is the very element most under siege.
For nearly 60 years, DEI principles — anchored in the Civil Rights Act of 1964 and enforced through institutions like the Equal Employment Opportunity Commission — have served as guiding lights for expanding opportunity, increasing fairness, and unlocking innovation. These principles opened doors for millions, widened the talent pool, and enriched major sectors of the economy.
Now, that foundation is beginning to crack.
Under the Trump administration, DEI initiatives are systematically defunded, discredited and dismantled. That rollback has continued, often quietly, under the radar. Across federal agencies, major corporations, and academic institutions — once heralded as leaders of DEI —public commitment is vanishing. In its place? A growing embrace of bias, exclusion, and cultural hostility.
This is not just a cultural regression. It is an economic crisis in the making.
We are standing at a crossroads. In a global economy where machines can perform more and more of the tasks once handled by humans, success will increasingly hinge not on routine labor, but on creativity, collaboration, cultural fluency, and empathy — uniquely human qualities nurtured by diverse, inclusive environments.
Simply put: without equity, without diversity, without inclusion, innovation dies.
Cities that will thrive in the 21st century are those that understand this reality. Cities like San Francisco, San Diego, Austin, Seattle, Boston, and Denver are investing in openness and diversity. They are welcoming immigrants, supporting inclusive public spaces, and fostering dialogue across communities. They are not perfect — but they are trying, and in doing so, they are attracting the very people, ideas, and industries that drive economic growth.
Meanwhile, other cities are choosing the opposite path — closing doors, rejecting pluralism, and embracing outdated, exclusionary worldviews. The consequences are already visible: declining populations, stagnating innovation, and a brain drain as talented individuals seek more welcoming environments.
The urgency is only increasing with the rise of artificial intelligence. As automation handles more tasks, what will set cities — and companies — apart is their ability to attract and retain those who can think differently. As Steve Jobs famously urged: “Think different.” That mindset is no longer a luxury. It is an economic necessity.
Organizations — and cities — that cultivate independent, inclusive thinkers, regardless of race, gender, religion, ability, orientation or background, will lead the way forward. Those that do not will be left behind.
The signs of growing intolerance are deeply troubling. We’ve seen spikes in hate crimes against Jewish Americans, Black Americans, LGBTQ+ individuals, Asian Americans, immigrants and women. Even in progressive cities, systemic bias and institutional inequality persist. These hostile environments don’t just hurt individuals — they repel talent and suppress creativity.
This is not just a moral failure. It is an economic one.
When people don’t feel safe, valued, or welcomed, they leave. And when they do, they take with them their ideas, their skills, their businesses, and their potential. The damage isn’t just immediate. It can take generations to repair.
We are no longer competing over natural resources or industrial production. We are competing for human potential. For imagination, resilience and ingenuity. Our economy is increasingly built on intangible assets — intellectual capital, cultural vitality, and the ability to adapt and evolve.
Cities like San Diego, if they remain committed to tolerance, equity and openness, can lead this transformation. But those that choose fear over understanding, walls over bridges, exclusion over inclusion, will quickly fall behind — and find it difficult to recover.
The choice before us could not be clearer — or more urgent:
Embrace tolerance — and thrive.
Reject it — and wither.
John Eger is professor emeritus in the School of Journalism and Media Studies at San Diego State University. He previously served as telecommunications advisor to President Gerald R. Ford, legal assistant to FCC Chairman Dean Burch, and Senior Vice President of CBS Worldwide Enterprises.
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