An adage used as a psychological tool to expose bias.
The key portion is the last word, which used in this context can be interpreted either as a statement of truth (i.e. oranges are orange) or as a pejorative insult (Those shoes are gay). Essentially it will trigger people who are easily triggered. The point of doing this is to show that an inherently unbiased statement is interpreted by the individual to follow their own rationale, often time exposing their bias towards negative interpretation.
Similar to "It's okay to be white".
heilhonkler tweets: "Gay people are gay."
rando tweets: "@Twitter why do you continue to allow homophobic hate speech on your platform? People like this are despicable and should be banned."
*outrage ensues*
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The phrase "gay people are gay" is a self-explanatory tautology, as well as a paradoxical statement. Gay people technically are gay, but at the same time the pejorative use of gay also leads some very sensitive people to conclude the opposite. Hence, it's paradoxical.
Bobo: "gay people are gay"
Kiki: "WTF DID YOU JUST SA— hey wait a minute, that's actually true"
Bobo: "hah, gotee"
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