Social prejudice is bad for the economy

Interesting.

The report "Does Prejudice Prejudice Growth?" by UBS economist Paul Donovan compared data on competitiveness from the World Economic Forum and survey evidence of prejudice from the World Values Study Group.

The report found that there was a strong correlation between social inclusion, competitiveness and economic development, and argued that "prejudice, in whatever form – including racism, sexism, homophobia, religious intolerance – irrationally destroys the value of human capital."

While prejudice is something that rarely features in investment decisions, the destruction of human capital through social prejudice in the 21st Century is at least as significant as that the destruction of physical capital wrought by the Luddites, the anti-technology groups who sabotaged machinery during the industrial revolution, Donovan wrote.