Black, Hispanic, and American Indian MBAs who got their degree six to eight years ago earned exactly as much as their white and Asian peers right after leaving school, according to a Bloomberg survey of 12,700 alumni at more than 100 business schools. In the survey, conducted as part of our annual ranking of full-time MBA programs, both groups said they made a median $105,000 when they graduated.
But by 2015, MBAs who were underrepresented minorities—meaning black, Hispanic, or American Indian—earned $150,000, while white and Asian MBAs made $172,000…The race pay gap is particularly wide at Harvard Business School, where black, Hispanic, and American Indian MBAs started out earning just $5,000 less than their white and Asian classmates. Six to eight years after graduating, that gap widened to $97,800.
This shows that affirmative action can level the playing field when it comes to elite credentials, but it doesn’t level the playing field when it comes to money. This is likely either because Whites and Asians face less workplace discrimination and have more connections than non-Asian minorities, and/or it’s because IQ might predict income, perhaps even among people with equal degrees, and Whites and Asians have higher IQs.
Even though blacks are over 10% of graduates at elite schools, they are typically only 0.25% (sometimes 0.5%) of the 400 richest Americans, with Oprah being the ONLY multibillionaire black in North American history.
And yet Oprah attended only a very humble college in Tennessee. She has no business training and once boasted that she didn’t even know how to read a balance sheet.
I could picture a lot of Ivy League minorities thinking “I’m smarter than Oprah. I’m gona get a degree and be richer than her!”
What they don’t realize is that behind Oprah’s fuzzy persona, is a brain the size of a basketball, which allows her the intelligence to adapt in ways they can’t even imagine, let alone execute.
This might suggest “free market” capitalism is working somewhat like libertarians had hoped. It’s not just about where you went to school, but a Darwinian contest where the biggest brained survive and prosper through real world adaptability, just like they did for 4 million years of human evolution.
Even Barack Obama (who was the editor of the Harvard Law Review) was getting massacred in the polls by Hillary, until the big-brained Oprah stepped in and adapted for him, causing him to win the Democratic nomination and become President: