What Is Affirmative Action? Definition, How It Works, and Example
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Updated June 30, 2023
Reviewed by CHARLES POTTERS
What Is Affirmative Action?
Affirmative action refers to a policy aimed at increasing workplace and educational opportunities for people who are underrepresented in various areas of our society. It focuses on demographicswith historically low representation in leadership and professional roles. It is often considered a means of countering discrimination against particular groups.
Businesses and governments commonly implement affirmative action programs by taking individuals’ race, sex, religion, or national origin into account when hiring. It has been widely used in education settings in the United States, particularly in college admissions. However, in the 2023 ruling of Students for Fair Admissions v. Harvard1, the Supreme Court said colleges and universities could no longer take race into consideration as a specific basis for granting admission.
KEY TAKEAWAYS
- Affirmative action seeks to reverse historical trends of discrimination against individuals with certain identities.
- Policies often implement hiring quotas, provide grants and scholarships, and may also deny government funding and contracts to institutions that fail to follow policy guidelines.
- Affirmative action includes assistance for gender representation, people with disabilities, and covered veterans.
- In Students for Fair Admissions v. Harvard, the U.S. Supreme Court held that race-based affirmative action programs in college admissions violate the Equal Protection Clause of the 14th Amendment.
Market Update 6/30
Here is a summary of the key points:
- U.S. index futures are pointing to gains at the open of the final session of Q2 and H1 2022. This indicates stocks may continue their upward trend.
- The major stock indexes – Dow, S&P 500 and Nasdaq – are all up so far this year, driven by hopes that the Fed may slow interest rate hikes and the economy may show signs of recovery.
- Investors will be watching the personal income and spending report due later today, specifically the inflation component known as core PCE. This is a key inflation gauge for the Fed and will provide clues on the trajectory of inflation.
- If core PCE comes in higher than expected, it could raise concerns that the Fed will need to maintain an aggressive stance on rate hikes, weighing on stocks. But a softer reading may support the view that inflation is peaking and the Fed can slow rate hikes, boosting stocks.
In summary, traders are cautiously optimistic at the open but awaiting the key inflation data later today that will provide more direction for stocks. Hope this helps! Let me know if you have any other questions.