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Culture War Roundup for the week of February 6, 2023

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The OP was definitely talking about

all female or all-Latino trading firms.

That ain’t happening without selection pressure. Likewise, the “Progressive half” of retail investors would be leaving money on the table if they opted out of the vast majority of the market.

The OP was definitely talking about "all female or all-Latino trading firms."

OP was talking about undervalued people making their own company. They're all female/minority because that's the reason they're undervalued.

That ain’t happening without selection pressure.

If women are as undervalued as is claimed, the best candidate for a given budget and the cheapest candidate of a given quality will pretty much always be a women. So you don't have commit to only hiring women to end up with all women - it's a natural consequence of optimal behaviour.

Likewise, the “Progressive half” of retail investors would be leaving money on the table if they opted out of the vast majority of the market.

Investors are always opting out of a majority of the market they consider less profitable - profitability just usually isn't as clearly demarcated. The point is that if the claim is true, everyone else is leaving money on the table - so the rational move is to go to the part of the table where the money is lying and pick it up.

Even if you're right, that's a nitpick towards the OP, not a rebuttal. There's still money to be made if you let in the occasional white male who doesn't want more money than he's worth.

The basic principle is plausible. If women only make 50% as much as men for the same job and skill, hire at 51% and clean house. Mission accomplished.

There are just so many confounders!

So when OP asks where are all the all-female firms, I think the answer is “insufficient supply” or “fuzzy wage information” or “labor costs less than capital.” The distributions of male and female cost are too close to make an all-female strategy competitive.