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    Home » ELI STEELE: California is chasing slavery’s ghosts whereas Black college students fall behind | Invesloan.com
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    ELI STEELE: California is chasing slavery’s ghosts whereas Black college students fall behind | Invesloan.com

    October 21, 2026Updated:October 21, 2026
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    Editor’s note: This op-ed is part of a series by Eli Steele exploring White guilt in America and the West. Steele is the director of the newly released documentary essay, “White Guilt.” See the film at WhiteGuiltFilm.com.

    I am a native Californian, and I will never get over the absurdity of seeing California and slavery in the same sentence. I believe I saw it for the first time during the height of the Black Lives Matter unrest. I remembered how I learned in my San Jose elementary school that California entered the Union in 1850 as a free state. Yet here we are again, this time with AB 2599, the Truth in Disclosure Act.

    On September 30, Gov. Gavin Newsom signed the act into law. “This is a bill that requires large companies that operated before 1965 to search their records for ties to slavery going back to 1849 and then we make it public,” Newsom said. “These are insurance policies on enslaved people. Human beings used as collateral, quite literally as collateral for loans.”

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    I first learned about these atrocities as a child, and they made me understand how total the dehumanization of slavery was. This history should be learned, but there is something profoundly different about turning history into a legal obligation, sworn under penalty of perjury. This comes at a time when most California students, including Black students, are underperforming in reading and math. So why does Sacramento want to excavate corporate records from 1849 rather than fix the classrooms today?

    Gavin Newsom speaking at bill signing ceremony.

    California Gov. Gavin Newsom bought his own racial innocence by signing into law the demand that more Black victimization be found. Imagine if Newsom had refused to sign. He would have been blasted as the governor who protected the companies that exploited slaves.  (Justin Sullivan/Getty Images)

    I believe the point of this investigation is not to discover more history, since we have historians for that, but to unearth confessions that can be commodified as grievances. To see why, you have to understand that White guilt is transactional.

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    When I mention White guilt, many people tell me they feel none. Of course they don’t. You cannot feel guilt for what you have not done. But, that is not White guilt. “White guilt doesn’t have anything to do with actual feelings of guilt,” my father, Shelby Steele, author, columnist and Hoover Institution Senior Fellow, says in our new documentary, “White Guilt.” White guilt is the collective guilt that says all Whites must carry the sins of the slave masters and segregationists forever.

    An image from filmmaker Eli Steele's new documentary essay.

    An image from filmmaker Eli Steele’s new documentary essay, ‘White Guilt.’ The film was released on Oct. 6, 2026. The filmmaker’s father Shelby Steele, author, columnist and Hoover Institution Senior Fellow, is pictured above.

    Activists on the Left have leveraged this accusation for power since the 1960s, and it has produced a terror in many whites, the terror of being tied to this racist past. Those Whites, especially liberal Whites, want innocence most of all, the ability to say, “I am not like those racist whites.”

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    Black leaders understood early on, as my father did in the 1960s, that Whites would do anything out of their deep, existential desire for innocence. That is what gives White guilt its transactional nature. 

    My father has said that White guilt is “quite literally the same thing as Black power.” From Jesse Jackson, Al Sharpton to Black Lives Matter, these leaders knew their power was in selling Black victimization. Whites bought innocence with everything from endless programs of dependency to lowered education standards. Both sides of this White guilt — Black power symbiosis get what they want, and that is the trap.

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    In order to keep the lucrative White guilt grift alive, Black leaders have to keep Blacks locked into permanent victimhood, and Whites have to remain condemned as eternally guilty. As America continues to make racial progress, this symbiosis has moved further left, and further into the past, in search of more grievances.

    Our state is busy chasing the ghost of past crimes while ignoring the very crimes of miseducation taking place today.

    It was California’s reparations task force that demanded AB 2599. This new law applies to any company doing business in California that takes in more than $100 million a year worldwide and existed in some form by the end of 1964. 

    Once the legislature funds it, any such company will be legally bound to go through its records, and the records of its parent companies, subsidiaries and predecessors, back to 1849. It must report any findings that the company sold or leased slaves, used them as collateral for loans, or insured them. The first filings are due as early as January 15, 2029, and the records will be kept online indefinitely. Every filing will be a confession made under oath, and every confession becomes one more grievance on the public record, available to the activists for as long as the database exists.

    Author, columnist and Hoover Institution Senior Fellow Shelby Steele.

    Author, columnist and Hoover Institution Senior Fellow Shelby Steele in an image from Eli Steele’s film ‘White Guilt.’ The film was released on Oct. 6, 2026. (Man of Steele Productions)

    Newsom bought his own racial innocence by signing into law the demand that more Black victimization be found. Imagine if Newsom had refused to sign. He would have been blasted as the governor who protected the companies that exploited slaves. 

    Right there is the very terror that White guilt deploys to kill any reasonable objections. And the corporations on the target list will confess to the sins of their predecessors and buy their innocence with statements of regret and funding for programs and initiatives. None of them will risk the stigmatization that comes with fighting a slavery disclosure law.

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    On the same day, Newsom vetoed a bill to exempt reparations payments from state income tax. Where there was no innocence to be gained, he refused to cost his state actual revenue.

    The poster for the new film by Eli Steele, 'White Guilt.'

    The poster for the new film by Eli Steele, ‘White Guilt.’ The film was released on Oct. 6, 2026. (Man of Steele Productions)

    On the other side of the bargain are the sellers, and their product is Black victimization. The author of the bill, Democratic Assemblymember Isaac Bryan, told CalMatters which companies he expects to file. “I’m thinking agriculture. I’m thinking banking, insurance. I’m thinking anything in the financial sector.” Then he said about what comes next. “Once the public has this disclosure and we have a full accounting of the impact, then it’s up to us to decide what that means and what we’re going to do about it.”

    If that last line comes off as a threat, it is because it is. Bryan is telling these companies that once the grievance is documented, lawmakers will set the price of penance. And what this statement also reveals is that this is nothing more than a fishing expedition to find the crime to fuel the White guilt-Black power symbiosis.

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    That is why the left will never let the White guilt — Black power symbiosis die out. Kristin Nimmers, policy and campaign manager for the California Black Power Network, told Fox News Digital that “a single check is not going to holistically repair our communities.” She wants “a harm-based approach, so whoever was harmed should be entitled to that repair.”

    The rest of us are chum in this transaction, Black children most of all. California released its new test scores on October 15. Only 33.7% of Black students met the state standard in English. In math, it was 21.5%. Our state is busy chasing the ghost of past crimes while ignoring the very crimes of miseducation taking place today.

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    But the White guilt-Black power symbiosis never had any interest in doing the hard work of developing young minds into individual talents. Instead, this symbiosis will wait for the companies to report back on the sins of their predecessors, and then its elites will hold up the evidence as yet more proof that California and America are systemically racist. 

    The past will be dragged into the present as if no progress had ever been made, the accusation refreshed and sharpened for another generation. And worst of all, the Black children who needed a state that believed in their future will instead be told that the sins in that database, from 1849, are what has been holding them back all along.

    CLICK HERE TO READ MORE FROM ELI STEELE

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