This is mine as well. Three candidates apply for grad school:
1. White guy. Son of doctors. Applies with 3.81 GPA. Parents paid for school. Grew up in rich suburbs of big city. Slightly higher test scores.
2. White guy. Somewhere in between the #1 and #3 in terms of performance. Middle class background.
3. Black guy. Comes from a single parent mom, factory worker. Dad's in jail. Guy worked 30 hours a week while being a full time student and gets a 3.27 GP. Test scores are 20% lower.
DEI taught me to peel back the onion a bit. The black guy given the same opportunity as #1 or #2, might have performed just as well but perhaps his grades and test scores are lower because he had to work. Had learned less educational skills while in high school as a result of coming from a single-family home. He got less help and poor guidance because mom worked 2nd shift and was gone when he was home from school. The issue is #3 may be starting life from a worse position. DEI just means I give him an interview rather than just defaulting to hiring the guy with highest grades and test scores. #3 deserves a shot. In fact, what he has gone through might bring out some qualities that others haven't developed.
I think this is totally reasonable. But it's not a reflection of reality. The problem is that for every #3, there are an outsized number of white guys from the exact same and worse background and better grades and tests.
I agree that in this scenario, #3 is at least as impressive as #1 (which doesn't sound all that impressive given the background). But that's not the problem...
But how do you handle #3 vs
4. White guy. Grew up in foster care. Never knew his parents. Worked 45 hours a week and then drove an uber while being a full time student, survived cancer, and gets a 3.6 GPS and his test scores are 5% lower than #1.
If you say well in that case I would choose #4, you still end up with disparate impact when you add up your hires on racial grounds. If you say you would still hire 3, then you're clearly simply just operating on a racial hiring/quota basis.
What you posted sounds good, but it's not the real world. Poor white and especially poor Asian kids top the scores of wealthy and upper class blacks and Hispanics.
There's no way to grade on a curve that solves for this. You either have to strictly require racial quotas and lesser qualified applicants, or have to accept disparate impact in some institutions and areas of society. It's an intractable problem and the answer is way harder than this example suggests.