Bill Gates snubs disadvantaged white students and Asians.

On Sept. 16, 1999 Bill Gates, Mr. Microsoft himself, told a stunned nation that he is excluding white children from $1 billion in scholarship funds.

But Gates has "misrepresented the truth". Gates is really only donating 25% to 35% of that amount. See financial calculations, below.

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Nonetheless, it is a shameful thing, even a racist thing, when one of the world's wealthiest men feels a need to intentionally discriminate against disadvantaged white children.

Ward Connerly, the soft-spoken figurehead of several state initiatives ending racial quotas and preferences, said: "We are delighted Mr. Gates is using some of his fortune to help minority students. The last time we checked, though, the fortune amassed by the success of Microsoft was from people of all racial backgrounds - minorities and nonminorities alike."

Connerly continued: "By requiring scholarship recipients to fit a narrow racial profile, the Gates Foundation would discriminate against nonminorities. Why tell an underprivileged white youth that he or she need not apply for one of these scholarships?"

Gates said that the $1 billion racially-discriminatory scholarships (or the more accurate $350 million) will be administered by a racial triumvirate comprised of the United Negro College Fund, the Hispanic Scholarship Fund, and the American Indian College fund. Notably absent from Gates' list of scholarship administrators were organizations dedicated to the benefit of disadvantaged white students (European Americans) and Asian students.

Predictably, the head of the United Negro College Fund, William H. Gray III, virtually chortled with joy when he said that Gates' beneficence will double or triple the number of black, Hispanic and American Indian Ph.D.'s in science, engineering and other fields over the next decade. (Like his benefactor, UNCF's Gray seemed to deliberately omit white and Asian students from his predictions of academic success.)

Bill Gates' message to students thus appears to be two-fold: "(1) Only persons of certain races are deserving of my gift. There are no disadvantaged white kids out there. (2) Race is the most important criterion for determining charity."

Gates tried to put his self-serving spin on the story when he said: "Not too many people in their 40s who are still engaged in a very demanding job give away a substantial portion of their wealth." Unless, of course, they happen to be a filthy rich, anti-competitive monopolist who cut a deal with Clinton's pro-quota Department of Justice: "Let Microsoft (Bill Gates) dominate the software market, and Microsoft will take care of your (Bill Clinton's) pet racial quota programs.

It is no accident that Gates' race-based gift comes on the eve of closing arguments in the huge anti-trust trial the Clinton Justice Department has waged against Microsoft. Closing arguments were to be presented on Tuesday, Sept. 21, and U.S. District Judge Thomas Penfield Jackson may issue a final ruling in the case by the end of 1999.

Microsoft's Financial Interests: The U.S. Dept. of Justice, joined by 19 states, charged Microsoft with using strongarm tactics on its competition in order to retain Microsoft's monopoly stranglehold on the operating systems for personal computers (via the ubiquitous Windows operating software). The Justice Department also charges Microsoft with using various anti-competitive practices to dominate the Internet browser software market, and that Microsoft has illegally restrained trade in this regard.

Recently, during the week of Oct. 11, 1999, Microsoft has retaliated by mounting a major, very well-funded lobbying effort to cut $9 million from Justice's Anti-Trust Division. As they say, its good to be king, or at least Bill Gates. (See link below: Microsoft Urges Funding Slash for Anti-Trust Division)

So, on the one hand we have the Clinton Justice Department beating on poor, beleagured Microsoft for alleged anti-competitive trade practices. Yay for free enterprise!

On the other hand, we have the Clinton Justice Department busily extorting racial and gender hiring and contracting quotas out of companies like, well, Microsoft. Boo for racial quotas!

In that context, $1 billion (actually $350 million) from Bill Gates to Clinton's favorite charity -- racial and gender quotas -- might seem like an under the table deal, or even extortion. But in Bill Clinton's Justice Department it is called "alternative dispute resolution".

One might suppose that it is likely that in the former case -- anti-competitive trade practices -- Gates and Microsoft will get nothing more than a slap on the wrist, because in the latter case Gates has, after all, donated to the Bill Clinton Rainbow Giveaway Program (racial and gender quotas). It has happened numerous times before; many Fortune 500 companies have bought off Clinton's Justice Department in this manner.

Nonetheless, in today's pro-minority, anti-white political climate it is great public relations for both Clinton and Gates, and very bad news for color-blind justice as well as for a free and competitive business environment.

Other major corporations have similarly appeased the Clinton pro-quota Justice Department by strongly supporting racial and gender quotas and preferences. Consider the case of Texaco, Inc.

In late 1996 and early 1997 Texaco paid a whopping $176 million to aggrieved minority employees. Even though it was a civil suit which did not directly involve EEOC or the Justice Department, Texaco's clear motivation was to avoid years of expensive litigation against a hostile federal government (EEOC and Justice) abetted by racial special interests such as the noisy, racially biased coalitions represented by Al Sharpton and Jesse Jackson.

Texaco paid the $176 million even though no court ever ruled that the firm was guilty of racial discrimination.

Additionally, Texaco also paid at least that much again to minority vendors, bond underwriters, and contractors (specifically excluding whites and white-owned businesses), as well as dumping millions more into "minority feel-good causes and charities".

As an added political bonus to Clinton's EEOC and Justice Department, Texaco worked very hard in late 1996 to derail the Houston, Texas initiative to end quotas and preferences in that city.

Thus Texaco acceded to the Clinton EEOC and Justice Department "alternative dispute resolution", just like Bill Gates and Microsoft appear to be doing.

Keep in mind that neither the EEOC nor the Justice Department actually joined the civil suit against Texaco -- these federal quota-enforcement agencies had only to imply a threat to join the suit and they implied they were quite willing to impose additional "remedies" upon Texaco if Texaco did not openly embrace the racial and gender quotas which the Clinton cabinet holds so dear. Texaco, Inc. got the message loud and clear.

Of course, Texaco's mere 1/4 to 1/2 billion dollar atonement is not quite in the same league with Bill Gates' $1 billion! But wait! Texaco actually paid more than Bill and Melinda Gates. How is that so?

In reality, Bill and Melinda Gates are only giving 25% to 35% of the stated amount of $1 billion. Any first year student in Finance and Accounting can demonstrate this.

Financial Calculations: The Gates Foundation is NOT paying $1 billion in 1999 dollars for minority scholarships. Rather, the Gates Foundation is paying $50 million per year for 20 years. That is a very different animal.

Using standard Present Value calculations (Finance and Accounting 101), and assuming that the rate of inflation for the next 20 years to be 8% (or assuming the opportunity cost of investment is 8%, as the finance wonks say), the Present Value, in 1999 dollars, of Gates' 20 years of $50 million-per-year donations from Gates is about a half billion dollars -- without taking into account the tax benefits Gates enjoys for such 'charitable' contributions. (Check with your Finance 101 teacher.)

On top of that, one must take into account the whopping tax deductions Gates gets for these 'charitable' contributions. After tax benefits, the actual dollar cost to Gates of this gift is probably only about 70% of that 1/2 billion dollars, or a mere $350 million or so in 1999 dollars.

Gee, that's only 35% of the amount Bill Gates has publicized. More spin control, eh, Bill? (Return to top of story.)

But make no mistake. A commitment of $350 million in 1999 dollars is not small potatoes. But it is still too bad these funds are being dedicated to racial discrimination against disadvantaged white kids.

More Political Payoffs to Clinton (and Back Scratching of Gates): Also don't forget that Microsoft played a very significant role in attempting to defeat Washington State's Initiative 200 which has outlawed the use of racial and gender quotas in that state. Microsoft was not only a significant financial contributor to fighting against color-blind justice in Washington State, but Bill Gates' thousands of employees in that state were also quite active in getting out the vote against I-200. Thankfully, Gates and his minions failed to defeat Washington's anti-quota ballot initiative.

Even More Spin: Oh, yes, Mr. Bill Gates made a faint attempt to distance Microsoft from his racially-discriminatory, anti-white largesse: Bill Gates named the "charitable foundation" after himself and his young wife, Melinda, calling it the "Bill and Melinda Gates Foundation". Sounds almost humanitarian, doesn't it?

It is also very significant that Mr. Monopoly Dollars Gates has chosen three very hostile, anti-white, anti-Asian minority organizations to administer his $1 billion (or $350 million) scholarship fund. Gates exercised great deliberation in choosing the United Negro College Fund, the Hispanic Scholarship Fund, and the American Indian College Fund. We would guess that means that anyone from any other ancestral background is not deserving of Mr. Gates' educational assistance.

Gates' Gift Violates Civil Rights Law: Since Bill Gates's 'charitable gift' is race-based, a very cogent argument can be made that he and the Bill and Melinda Gates Foundation are in violation of applicable civil rights laws, and that the Gates Foundation's tax-exempt charter should be revoked.

Washington Times columnist Bruce Fein proposes that "... No perception or assertion of discrimination against racial minorities in college admissions (which violates federal civil rights laws) was mentioned. In other words, the race-based $1 billion scholarship program is not a remedial measure to overcome the handicap of past or current racial discrimination."

[Columnist Fein proceeds to compare the Gates 'gift' to the landmark 1981 case of Bob Jones University. In that case, the IRS revoked Bob Jones University’s tax exemption because of its racially discriminatory ban on student interracial marriage. According to Fein's analysis, the IRS ruled, in part that "a [private] school not having a racially nondiscriminatory policy as to students is not ‘charitable’ within ... sections 170 and 501(c)(3)."

Further, in the Bob Jones case, the IRS (quoting Fein’s article directly): "defined nondiscrimination as treating students and applicants of ‘any race’ equally in all respects, including scholarship awards. The Supreme Court upheld the revocation and ‘public policy’ reasoning of the IRS in Bob Jones University vs. United States (1983), declaring that ‘There can be no doubt that racial discrimination in education violates deeply and widely accepted views of elementary justice."

Fein continues in his analysis: "The Clinton administration should be asked whether the Bill and Melinda Gates Foundation will be denied tax exempt status based on the Bob Jones precedent. The financial stakes seem arresting because of [Microsoft's enormous $17 billion in assets]. The Millennium Scholarships seem also at war with a federal civil rights law, section 1981 of Title 42, which prohibits private racial discrimination in the making or enforcement of contracts. Scholarship winners are apparently required to show high academic collegiate performance in exchange for the financial assistance, a form of contract where both sides give consideration for the agreeement. White students who satisfy the scholarship standards but for skin color would seem entitled to damages under section 1981."

Fein continues: "[The Gates scholarship] ... defiles one of our most cherished social aspirations -- equal treatment irrespective of race that should never be compromised but for an urgent and overwhelming cause. Justice Clarence Thomas underscored in a concurrence in Adarand that whatever the intent of the giver, ‘racial paternalism and its unintended consequences can be as poisonous and pernicious as any other form of discrimination.’"

Fein concludes "In sum, fairness, morality, and the law alike all militate in favor of opening the Millennium Scholarships to white disadvantaged students on the same terms available to racial minorities. The clutching deprivations of youth know no skin color." (See also Washington Times 09/21/99, page A18 - no link available.)

Gates Supports Immigrant Labor Over U.S. Labor: In evaluating Bill Gates' and Microsoft's humanitarian intentions, it is important to note that Microsoft is a major advocate of importing "skilled foreign labor under temporary work visas" (known as H1B or H2A in the U.S. Congress) for the explicit purpose of hiring cheaper foreign workers in place of U.S. workers.

Bill Gates, along with most of Silicon Valley, would like Congress (and the U.S. citizens) to believe that the U.S. has an urgent shortage of skilled software engineers which need can only be met by importing non-U.S. workers.

Gates and his allies in Silicon Valley refuse to shoulder the responsibility (and cost) of training U.S. workers to meet this need. Interestingly, and most significantly, these "temporary foreign workers" are universally defined as "minorities" (non-white, or non-European American). Many of these imported "temporary" workers subsequently apply for citizenship to the U.S. Most of them, upon achieving citizenship, unquestioningly and almost universally support racial and ethnic quotas and preferences and oppose race-blind justice in this country.

Thus, it appears that Mr. Bill Gates supports a new "color-based" caste or class system in the U.S. -- as long as that system results in profits for Mr. Bill Gates and Microsoft and as long as that caste system excludes whites or European Americans.

THAT is where Mr. Bill Gates is really coming from.

End Bill Gates Thumbs Nose at White, Asian Students