Help people find jobs by paying it forward (a reprise)

The following post was written eight years ago, but remains relevant today. We often do not realize we have the ability to help people just using our connections and experience.

In my non-paying job, I spend time helping those who help people in need. In particular, I focus my efforts on homeless families, 84% of whom have jobs. Yet, the jobs are insufficient to pay their bills and when a crisis occurs, they end up losing their home. People who are in or near poverty are living paycheck to paycheck, so they are in a perilous situation as well. And, they number over 50,000,000 in the US. In fact, a statistic I have used frequently is 48% of Americans are living paycheck to paycheck. To see more on how fragile these families are, I would encourage you to watch the documentary “American Winter” which I wrote about on March 23, 2013 (and recently reposted).

One of the similarities I have witnessed about homeless families or people in poverty is their network of people they can get help from is either non-existent, exhausted or in a similar predicament. I mention this as when people who are doing pretty well are in need of something, they have a network of people to whom they can reach out. For example, I often am approached by friends, colleagues or family, about assisting someone they know network about a job or field of study. One of the reasons is I have been in business for a long time, so I have many contacts. Yet, the other reason is they know I will try to help. I tell people often I enjoy helping people network. It is my way of paying it forward.

When we think about how we can help people in poverty or in trouble, helping them network or connect to others is a way to pay it forward. I heard Bob Lupton, the author of “Toxic Charity” speak and he noted the church congregations are filled with people who have contacts or know how to merchandise yourself or a business and they could be of service to those who have no such experience or relationships. As an example, the mother of a homeless family was able to gain better employment in a doctor’s office through contact with a church volunteer who was lending the family a hand.

Toward this purpose, let me mention a few things to think about to help people in need find a job or gain a better job to support their family.

1. Help people network – this is the one of the most beneficial things you could do. Just as you would help the son or daughter of a friend, meet with the person in need. Find out what they are looking to do and what skills they have and help them connect with people and opportunities of which you know. When you look at your sphere of influence, it is larger than you might think at first glance.

2. Help people see a broader range of options – in my networking with folks, this comes up often. People may hone in on an industry or type of employer and may not have a good understanding of the various options that exist. After discussing the things in number #1 above, I might suggest have you ever thought about this kind of industry, profession or employer? I know they have more opportunities than good candidates, so you may want to consider these avenues.

3. Help people understand what skills they need to acquire or hone – this advice is dear as well. We are blessed with a wonderful community college system and other curriculums that can help people improve their skills. In fact, if you know people who volunteer their time to teach, then you can help connect them with others. If you want to work in an office, then you will likely need better Word, Excel and Powerpoint skills, e.g. If installing solar panels is a viable job, then you may want to check out Goodwill Industries as they partner with the community college to teach that.

4. Help people present well – an entire post could be devoted to this topic. But, what I would suggest in the networking sessions is to offer some coaching. Maybe you could help look over their resume, maybe you could help coach them to go online to learn more about the companies who they will be interviewing with, help them ask informed questions, etc. Maybe you could guide them to Linked In or other job search avenues.

As many in the job market have surmised, applying for a job online is a necessity, but will not get you many jobs. What will get you the job is people who can help you connect and will vouch for you. The homeless families we help have a support group and have been vetted more so than a person who has not been helped. Plus, they know what being down and out looks like, so once plugged into the right situation they will have a strong level of commitment to their employer. I say this last part because when I network, my name is important. I am vouching for someone, so I want to make sure the connection will be fruitful for both. If I don’t do this, then that same contact will be less inclined to review any resumes I forward. That is why meeting the person is important.

These are steps we each can take to help those in need. In so doing, we can help people find a job or find a better paying job in a growing career. And, if you watch “American Winter” you will see there are people just like you and me in need, some who never thought they would be in this situation. There, but by the grace of God, go I is very apropos. Let’s help pay it forward.

American Winter – what poverty looks like (a reprise from 2013)

The following post was written eight years ago, but unfortunately still applies today. Our situation has been exacerbated by the COVID-19 pandemic, where too many small employers had to close their doors. Some of the observations come from my volunteer work to help homeless working families. If you only have a minute, read the next to last two paragraphs, which speak volumes of why we should help.

There is an excellent documentary on HBO called “American Winter” by Joe Gantz which tracks eight Portland families who are struggling in this economy. Please check it out at www.hbo.com/documentaries/american-winter. This documentary puts a face on poverty and shows what these families are dealing with during the economic crisis. Since I volunteer with an agency that helps homeless families, I can assure you the problems portrayed in Portland are in evidence in North Carolina and elsewhere in the United States. For example, the median family income of the homeless families we help at the agency is $9 per hour. With a living wage in NC of $17.68 for a one adult/ one child family, you can see how people are having a hard time.

These people are living paycheck to paycheck and it takes only one thing to cause them to lose their house. It could be the loss of one job or the cutback on hours worked. Or, it could be a healthcare crisis.  We have people in America who are struggling and even dying because of lack of healthcare. According to The American Journal of Medicine in 2009: 62% of bankruptcies in the US are due to medical costs and 75% of the people whose illnesses caused bankruptcy were not insured or were under insured. This is the key reason we need the Affordable Care Act and for states to permit the expansion of Medicaid to cover them.

Yet, rather than make this about healthcare, I want to focus on why we have people in such crisis. I addressed many of these issues in two companion posts last fall based on Tavis Smiley and Cornel West’s book “The Rich and the Rest of Us.” The first post was written on October 20, 2012 and the second on October 29, 2012. We are not talking enough about our poverty problem in the US. The middle class problem is referenced often, but where did they go? Only a few moved up in ranks, where as the significant majority fell into poverty or near poverty.

As organizations have taken efforts to improve their profit margins dating back to the 1980s, we have seen a continuous downsizing and outsourcing of jobs. Since the early 1980s, the disparity between haves and have-nots became even more pronounced with the trickle down economics which has been proven to be unsuccessful, unless you were viewing it from the higher vantage point. As a result, there were multiple pressures on the middle class, which has led to its decline.  It only got worse when the economy went south. While there has been some repatriation of outsourced manufacturing jobs to the US, they have remained overseas for the most part.

So, if the worker did not stay up to speed with new technologies and, even if he did, there are fewer jobs for those without a college education. And, with the economic crisis, we have seen even having a college education is not enough these days. These unemployed did what they must, so where they could, started getting service jobs in retail, restaurant and hospitality industries. These jobs are near or at minimum wage and make you beholden to the number of hours you are permitted to work. Unfortunately, these jobs perpetuate poverty. You cannot afford healthcare and better food options and can barely afford rent. So, if something happens to your hours or job, you may lose your home.

The homeless families I have worked with work their fannies off. There are some I speak with in churches , who believe these families are homeless because they are less moral or virtuous and that is not it at all. Per Smiley and West’s book, poverty is the absence of money. Nothing more, nothing less. A few national stats to chew on:

– 40% of all homeless families in the US are mothers with children, the fastest growing segment;

– 75% of homeless children never graduate which perpetuates an ongoing cycle of homelessness; and

– 90% of homeless children suffer extreme stress; some worse than PTSD that former military face.

I mention these last two items, as even with all I say to the contrary, some people do not want to help the adults, who these obstinate people feel are totally responsible for their plight or are lazy. They see a chronic homeless panhandler on the street and paint all homeless people with that brush. That is a small, small subset of our homeless problem and, while we should help the chronic homeless people, there is a significant majority of homeless people who work hard, but cannot make it. Yet, I try to sell the concept of helping the kids. They did not sign up for being homeless and if we can help them, we can break the cycle of homelessness, the cost of caretaking is less, we gain a taxpaying citizen and we may be untapping a huge potential. The second place Intel Science Award winner in 2012 was a homeless girl, e.g.

We need to help these folks climb a ladder out of the hole they are in. It will be more beneficial to them and our society. And, we must provide educational paths forward, whether it be getting a GED, community or tech college schooling to learn new or improved skills. There have been some amazing things going in community colleges which can provide some paths forward. And, we need to pay people more. We have to improve the minimum wage to get at least to a living wage for an individual. It needs to be more, but if we can make that statement (making the minimum wage = a living wage) it speaks volumes and will help.

One of our dilemmas as a society is we must have a vibrant middle class to flourish. Unfortunately, the American Dream is a myth for many. We have one of the least upwardly mobile countries in the world. So, unless we make changes to our societal investments, we are destined to have only two economic classes of people. If you do not believe me, please check out my blogging friend Amaya’s website at www.thebrabblerabble.wordpress.com and check out the short video on economic disparity in our country. It is atrocious and unforgivable that this can happen in the US.

This is our collective crisis. Please watch “American Winter” or check out the above posts or Amaya’s. While “American Winter” highlights eight families, let me add a couple of more for you. One of our new Board members who works for a large bank was touring the homeless shelter and she came upon a colleague who was employed by the bank who was homeless. This stunned her that someone who worked at reasonable pay could end up homeless. Many live paycheck to paycheck in our country and it only takes a nudge for some to lose their home.

The other person I want to mention was living in a tent with her parents and younger siblings. Her dad was a construction worker and got some handy man jobs, but neither he nor his wife made enough to prevent losing their home. I highlight this teenager, as she would volunteer at a food bank to help others in need. Let me repeat this for emphasis. This homeless girl would volunteer to help people in poverty working at a food bank. We have helped this family get housed and they are climbing the ladder out of poverty. And, this young lady is now in college.

Let me shout this from the rooftops. Please help me become more vocal. We have a poverty problem in the US. We have a homeless problem in the US. We must help our neighbors and by helping them, we will help ourselves and country. Let’s help them climb these ladders. Let’s give them opportunities to succeed. If we don’t then we all will suffer.

Walking in those other shoes

The old proverb that you don’t know what someone else is going through until you walk around in his or her shoes is routinely and historically pertinent. Yet, one of the challenges we face is we wear those shoes with our own biases and context. In other words, the socks we wear will give those shoes a different feel.

Too often, I read letters to the editor and posted comments or listen to conversation that bias the experience. It is something we must guard against. The same goes when we extrapolate personal or second-hand anecdotes to paint all circumstances with a broad-brush. In other words, the person believes every situation must be this way, as this is what I experienced on one occasion.

As a white man in his sixties, I have a context that is different from an African-American teen male. For the most part, I can go anywhere I want without repercussions. I can walk into a hotel or gathering and go unquestioned. When I am stopped by law enforcement, I am less worried that the next move I make may be my last. An African-American man dressed for church, does not have that same level of trust. And, an African-American teen is in even more in jeopardy if he acts rashly.

I also know I have that white privilege thing. The more common example of white privilege is not overt; it is people who look like me who do not know they benefit from it. It is not the blatant, in your face, white privilege seen on the news by white supremacists. It is the everyday lack of awareness.

It also can spill over into white victimization. This “I am being held down because African-Americans and other minority groups are getting more than a fair break” belief exists and is fed by more strident media and white supremacist groups. It is a way the latter groups recruit to their folds. I experienced this yesterday in a troubling conversation with an old friend. He painted too many woes with the broad brush of this white victimization. I kept thinking “really?”

There is a reason African-Americans and other minority groups feel threatened or feel their rights matter less or not at all. They have been disenfranchised for centuries, sometimes in violent or suppressive ways. We must do our best to guard against this happening, but it is still going on. . People of color are too often the victims of police shootings. It is debilitating and dispiriting. No one deserves to be treated like that.

On the flip side, we must acknowledge that some whites do feel victimized. Life has dealt them some tough hands or fewer opportunities. Yet, it is dwarfed by those who benefit from white privilege. In my opinion, a white person can feel both and not realize it. What concerns me is when these examples are used with a broad brush in an effort to paint over the benefits of white privilege.

With that said, we need to step back and look at why things happen without the lens of biased sources. There often are a multitude of factors that cause things to happen, but race clearly is one of those factors. Poverty is an American problem we must deal with better. Pretending it does not exist won’t make it go away. Limited and limiting opportunities in various communities are a factor. Crime and drug use can fill this void and send a community into a death spiral. Predatory lending or rental practices are an issue. Lack of educational advancement is an issue. Food deserts and hunger are issues. Family size is an issue as poverty is correlated with larger families.

These issues affect people of all colors. They impact urban as well as rural settings. Many may not realize that the largest numbers of American people in poverty are white. The propensity of poverty is higher for non-whites, but I want to make a point that poverty knows no racial boundaries. Fear is used to sell influence and recruit votes. Yet, most issues are complex and blaming other groups is not the answer. It also gets in the way of understanding challenges others may be going through and vice-versa.

I fully recognize my own anecdotes and context have flavored my opinions. In my view, we should acknowledge we have those biases and do our best to look beyond them as well. It will help as we walk around in those other shoes.

What do these folks have in common? (a reprise)

The following post was written almost eight years ago. While more states and cities have increased their minimum wages and the Affordable Car Act helps greatly, this post remains relevant.

The following people have something in common. Please scroll down the series of descriptions and let me know what is common for all of them. The names of have been changed to protect their confidentiality, but the stories are very real.

Anna is working as an office manager working full-time making $8.00 per hour. She has is separated due to a domestic violence situation and has two children.

Hope is working two jobs – one full-time as an Administrative Assistant making $11.75 and the other part-time as an intake specialist at a Human Services agency making $11.00 an hour. She is also separated due to a domestic violence situation and has four children.

Julie is working full-time as a CSR (Customer Service Representative) for a bank making just over $14 an hour. She is unmarried with three children.

Nina is working full-time as a CSR for a utility company making $12.25 an hour. She is unmarried with one child.

Sarina is an assistant manager at a fast food restaurant making $12 an hour. She is unmarried with three kids.

Paul is working full-time on a cleaning crew making $11.00 an hour. He is unmarried with one child.

Carrie and Michael are married with four kids. Michael was laid off and Carrie is working in hospitality at a local hotel making $9.00 an hour.

Felicia is a Certified Nursing Assistant making $9.60 an hour at a hospital. She is unmarried and has one child.

Dedrick is a full-time security guard making $9.25 an hour. He is unmarried with three children.

Cassandra is working two part-time jobs, one as an afterschool teacher assistant making $11.25 per hour and the other as a retail clerk for a discount company making $7.95 per hour. She is unmarried with two children.

Terry is working as a public school teacher assistant making $11.00 an hour. She is unmarried with one child.

I could go on, but let me ask the question. What do these folks have in common? They are all homeless. When I tell people that the homeless people the agency I volunteer with have jobs, these people do not believe me at first. How can they be working and be homeless? It takes some people time for that to sink in. In fact, 84% of the families we help are working. The median wage for those 84% is $9.00 an hour. I purposefully used higher figures to illustrate a point – you can make above the living wage for an individual, but still be homeless if you are a parent. The living wage in my area for an individual is around $10.00 an hour and for a one-parent, one-child family is around $19.00 per hour.

There are five additional things I want to mention that are important to understanding, preventing and climbing out of poverty:

  • Family size is highly correlated with poverty. We must do a better job on family planning and providing birth control means and education. For my evangelical readers, your kids are going to be tempted to have sex. Please do not preach a message of abstinence alone. Teach girls how to say no. Teach boys to treat girls as more than sex objects and that no means no. But, let them know that if they must have a sexual relationship, to use protection.
  • Education is key. While the economic downturn altered this statement with layoffs and downsizings, for the most part, the higher your education, the less likely you are to be homeless. For kids that fall off the track, getting them back in school or on a path to a GED is essential. Fortunately, the community college systems in cities and regions do a pretty good job at getting people educated and developed with new career skills.
  • Healthcare is very important. The absence of healthcare is the key reason for personal bankruptcy in the US and an important reason for homelessness. People cannot afford their employer plan and one of the kids get sick or has an issue. Or, the parent stopped taking his or her medications due to cost and the resulting physical or mental issue causes a problem for the family or on the job. Fully implementing Obamacare will help, but the states who did not expand Medicaid need to do so.
  • Minimum wage needs to at least be the living wage for an individual. The homeless we help work hard, sometimes at more than one job. People like to say that increasing the minimum wage impacts the number of jobs. To be honest, most studies do not support that contention. We need to increase the minimum wage to the living wage for an individual. These jobs perpetuate poverty (please read “Nickeled and Dimed in America” by Barbara Ehrenreich). Short of that, we need to increase it more than it is now and graduate it to a higher level. Yet, the same people who decry people on welfare, also don’t want to pay people for an honest day’s work. If we pay people better and not like an economic slave, then the economy will actually flourish more.
  • Domestic violence is real. About 30% of the people in our program have come out of an abusive relationship. So, the spouse is making due without one of the incomes (for the most part) as well as dealing with a court-ordered spouse to stay away from her and the kids. I have said this before. If you are in an abusive relationship – leave. He will not change – leave. He will move beyond verbal abuse and it will become physical – leave. For the sake of your kids – leave. You can live a more normal life. Domestic violence is about power and control. It is difficult, but please leave.

Our agency is built with a model of helping people climb a ladder out of homelessness. The past fiscal year, 91% of our families were back to self-sufficiency in 21 months.  We provide rental subsidies based on their ability to pay, but they must work with a social worker and meet certain milestones. We also offer Hope Teams to mentor the family and kids. We do not do for them what they can do for themselves, so they must have a savings plan, take classes on Bridges Out of Poverty, and achieve certain milestones.

We all need to better understand our poverty problem in America. We must do better, but it must begin with realizing how it happens and helping people climb ladders out of poverty. We cannot solve this problem by kicking them when they are down and placing ill-founded labels on them as reasons to dismiss them as undeserving. Not only is that cold-hearted, but it is harmful to our economic growth. As Gandhi said it so well, “a society’s greatness is measured in how it takes care of its less fortunate.”

Les Miserables and Social Injustice (a reprise)

The following post was written about eight years ago, but still resonates today. It remains my third most frequented post by readers, but I felt with the concerns of today, it deserved a reprise.

My wife and I have long been fans of the musical Les Miserables, so yesterday we took two of our children to see the recently released movie with Hugh Jackman as the lead character of Jean Valjean. We were not disappointed and enjoyed the movie immensely. Of course, a few people have noted some of its imperfections, yet on the whole, it is a very moving experience and fills in a few details that the play could not.

As an aside, I also enjoyed the dramatic movie made a few years ago with Liam Neeson in the role of Valjean. As for the recent musical version, I would encourage you to see it , whether you have seen the play, early dramatic movie or not. If you have seen the play, you will be even more moved by Anne Hathaway’s Fantine singing how life has killed her dreams. The music is so wonderful, sometimes the everyday tragedy  of social injustice shown in the play is overshadowed. If you have not seen the play, you will also find it enjoyable as did my teenage children.

I wanted my kids to see it for its storytelling and musical beauty, but it was also very good for them to see what poverty and injustice looks like. They have accompanied me on occasion to help with homeless families, but to see it from an omnipotent perspective like this fills in the back story and context for those in need. I mention this as Les Miserables, when translated to English means “The Miserables.” It also is reflective of a world we still live in, even in the United States with over 50,000,000 people in poverty.

There are many stories to be told in Les Miz, but to me there are three main themes of social injustice that resonate today. First, Fantine personifies the lot of many in the movie and in real life here in the US, that many live paycheck to paycheck, especially those in impoverished settings. It won’t give away too much of the story to say Fantine loses her factory job and has to turn to a life of prostitution to provide for her daughter. In the US, 47% of American workers are living paycheck to paycheck. That includes many who are beyond poverty levels, meaning even the lower middle class have just enough money to make ends meet. Those in poverty are living on a wing and a prayer trying to make ends meet, with a significant majority paying more than the needed 30% of their income for housing and utilities to maintain a reasonable standard of living. It should be noted that 40% of all homeless people in the US are mothers with children, the fastest growing segment in the US. To further illustrate this tragedy, of the homeless families the non-profit agency I volunteer with help, 89% are single parent women as head of household.

Second, another social injustice theme is the one between Valjean, an ex-convict who paid dearly for stealing a loaf of a bread and the policeman Javert (Russell Crowe in the movie) who relentlessly chases him for breaking parole. A quick sidebar, Valjean could not get a job with his “scarlet letter” of papers he had to carry with him. However, Valjean repays the kindness and decency afforded him by a priest (played by Colm Wilkinson in the movie who was the original Valjean on the London stage) by doing the right thing and treating others like he wants to be treated. The injustice is the fervent belief by Javert that a thief is always a thief and could not change. What Valjean demonstrates and later tells Javert “you are wrong and always have been wrong.” Valjean, like many, is conflicted with trying to do the right thing and taking advantage of the circumstances to hide from the law. By doing the right thing at great personal sacrifice and cost, he shows Javert you can change. He also learns the priest’s lesson of treating one another with decency and dignity. “There but by the grace of God, go I,” was not said in the movie but lived by Valjean.

Third, and most powerful, is the overwhelming discontentment by those in poverty. There are many more than just Fantine who are exposed to the extreme poverty of the streets. The movie does far more than the play ever could to show the filth and sickness brought about by living in such conditions. If you had a job, it was more about economic slavery, working a tireless, repetitive factory position. You dared not complain or you could be let go or “sacked” per the movie and replaced by another. If you did not have a job, without significant welfare help, people had to beg, borrow and steal. Or, in Fantine’s case, she first sold her possessions, her hair, her teeth and then her body as a prostitute.

Scrolling forward to today’s time, I have written two posts about Tavis Smiley and Cornel West’s book “The Rich and the Rest of Us.” This could have been the title to “Les Miserables.” One of the misconceptions noted in the Smiley/ West book about poverty, is poverty is not due to a lack of moral virtue. It is not defined by people who do not work hard. Poverty is the lack of money, period. The homeless families we help have jobs, sometimes more than one. They work hard trying to make ends meet and do the best they can. In these earlier posts, I have encouraged people to also read “Nickeled and Dimed in America” by Barbara Ehrenreich. She lived the life of minimum wage jobs in America on purpose to see if she could get by. Her major conclusion – minimum wage jobs perpetuate poverty.

If you are earning at that level, you are beholden to a life of eating cheaper poor food, the inability to afford healthcare, jobs where you are on your feet all day which affects your health and a general lack of sleep as you try to be a worker of multiple 15 – 20 hours jobs and being a parent. And, you dare not complain, as someone else can be brought in right behind you. In Les Miserables, this is why the people rebel. They “have-nots” are tired of being taken advantage by the “haves.” This is also a major lament I have with LIbertarians and many Republicans. We need some regulations to keep things fair. Otherwise, employers who tend to chase cheap labor, will always find someone cheaper to use and let you go. We need some laws to keep things fair for the worker. If you want to advocate a true Libertarian life, go read Upton Sinclair’s “The Jungle.” The Robber Barons treated people just like the “haves” do in Les Miserables.

This is all about social injustice. Unlike people who perpetuate stories about welfare queens, etc. painting many with a broad brush of a few, we need to help people in need. I am all for empowering people to succeed. I am all for giving people opportunity to succeed. Yet, they have to climb the ladder of success. There are many who are not given this opportunity and are shunned as undesirables. They are treated with disdain and without any decency. Let’s lift others up and give them a chance to succeed. Like Valjean, let’s be enablers of success for others. I believe in the words “a community’s greatness is measured by how it takes care of its less fortunate.” The less fortunate could also be termed “The Miserables” or in French, “Les Miserables.”

The psychology of wealth can make you less compassionate – a reprise about an interesting study

After being reminded of this study in a comment on my last post, I decided to republish a post from 2013. I found it fascinating reading about the comparative psychology of the haves and have-nots.

This title may seem strange, but it is based on a study completed by the University of California at Berkeley and University of Toronto. The folks who scoff at this title and study authors would also be the ones who would say “what would you expect from a study done in UC-Berkeley.” Yet, the principal author Paul Piff, noted in the LA Times “I regularly hear the Berkeley idiot scientist who’s finding what they expect to find. Let me tell you, we didn’t expect to find this. Our findings apply to both liberals and conservatives. It doesn’t matter who you are. If you’re wealthy, you’re more likely to show these patterns of results.” Piff was interviewed along with Dr. Dacher Keltner on a PBS Newshour story by Paul Solman last month called “Exploring the Psychology of Wealth, ‘Pernicious’ Effects of Economic Inequality” which can be found with this link http://www.pbs.org/newshour/bb/business/jan-june13/makingsense_06-21.html.

The study concluded that people with wealth, whether it was real wealth or created in a game format, showed rather conclusively a higher propensity to have a sense of entitlement to get more than their fair share. It is not saying that every wealthy person would act this way and there are many exceptions, yet there was clear evidence to show a propensity to use their position to cut corners and gain further advantage. It also noted there tended to be a higher degree of compassion and fairness by those with less for others in similar or worse circumstances. In other words, it was harder for those who “have” to walk in the shoes of the “have-nots.”

I observe this often in trying to explain the needs of homeless or impoverished people. No matter how hard I try, there are audiences who can not be dissuaded from their pre-conceived notion that homeless or impoverished people are not deserving of help and that they should just get a job. This is one reason I always emphasize that 84% of the homeless families, an agency I work with helps, have jobs. We are also seeing it manifest in the United States with the increasing divide in wealth between those with and without and the decline in economic class mobility.

But, don’t take my word for it. I would encourage you to click on the link above and judge for yourself. The aforementioned study observed the following in multiple tests:

– At a four-way intersection, drivers of the priciest cars were 4 times more likely to fail to correctly yield the right of way than other drivers;

– In a waiting room with a jar of candy where the participants were all told the candy was being saved for a children’s meeting soon following, the wealthier participants took candy from the jar 2 times more frequently than non-wealthy participants;

– In a dice game to add up the results of dice rolls, with the person with largest dice tally winning $50, the wealthier participants were 4 times more likely to cheat; and

– Similar results were also found on other exercises around reporting of incorrect change to a small financial transaction or getting an incorrect grade on an exam when the participant knew they earned less. The wealthier participants reported the infraction in their favor fewer times.

The study went further to show the results of a weighted Monopoly game. One person would get to roll two dice to the other’s one, the same person would also get $2,000 to the other person’s $1,000 and get to use the car game piece to the other person’s lesser token. What the study observed, the person in the game who had the most money and best opportunity to win, used directive comments that showed a sense of entitlement to their success. When the study flipped the weighting, the person who in real life was less affluent, but who now had the upper hand in the game, would also exhibit some of the same traits of entitlement.

The troubling part of the study, is people with wealth, whether real or contrived, exhibited a sense of entitlement to their wealth. It is the same reason when I wrote a few months ago that Warren Buffett said he was also “lucky” to be as wealthy, it bothered people. He said he worked hard, but he was born a white male in America, which gave him a leg up. By the way, Buffett is definitely one of the exceptions to the rule about compassion.

Yet, there is hope. Dr. Keltner, who heads the Greater Good Science Center at UC-Berkeley noted: “One of the things that wealth and money does is it comes with a set of values, and if you want a deeper ideology, and one of them is, generosity is for suckers and greed is good. But it turns out, there are a lot of new data that show, if you’re generous, and charitable, and altruistic, you will live longer, you will feel more fulfilled, you will feel more expressive of who you are as a person. You probably will feel more control and freedom in your life.”

The above translates to business success, as well. In the highly acclaimed business book by Jim Collins called “Built to Last,” his team indicated that one of the reasons companies are much more successful than even their best competitors is called “Be more than profits.” These companies were terrific community citizens and invested their money and people’s time in needs of the community. As a result, people valued working there and the community was more supportive of the companies, in both good time and bad.

So, the key takeaways from this study to me are (1) do not let what you own define you, (2) do your best to understand what people in need go through – if you have not been there, you really don’t know what it’s like, (3) there is a huge psychic income to helping others and (4) doing the right thing can only be viewed in a good light. You will be on the “side of the angels.” Note, this post relied on several news articles in addition to the PBS Newshour piece mentioned above – LATimes,org, Dailycal.org and Highandernews.org.

Class matters, socio-economic class that is – a revisit to an old post that remains pertinent

The following post was written in 2012, but it still remains pertinent. When I hear people chastise people in poverty for not working their way out, I think of this topic.

When you read this title, there are several interpretations that come to mind. While I am a firm believer in acting in a classy way, treating others like you want to be treated, the “class” I am referring to here is socio-economic class. There is a body of work spawned by research conducted by the New York Times, which led to the publishing of a book under this same title – “Class Matters.” It also led to a revolution of thought and I would encourage you to visit “www.classmatters.org for more information.

In essence, the term class matters refers to the tenet that your socio-economic class is a key factor in your ability to ask questions of those who are trying to serve you. The higher strata of socio-economic class is highly correlated with better education and more confidence. This translates into the greater ability and lesser reluctance to question things. On the converse, those in lower socio-economic classes tend to have lesser education and more self-esteem issues. They have a greater inability and lack of confidence to question those in power or who are trying to serve them.  As a result, those in the lower classes often make poorly informed decisions as they are:

  • too scared to ask questions,
  • feel threatened if they do so,
  • feel they will show their ignorance if they do,
  • do not know the right questions to ask, and/or
  • fall into a trusting mode, whether legitimate or not, that the person serving them knows what they are doing as they are wearing a doctor’s coat or suit and tie.

To illustrate this concept using a real life occurrence, the current housing crisis we are facing has many areas of cause from the lenders to rating agencies to investment managers to developers to buyers. At the heart of the problem, we had too many developers and realtors selling houses to people who could not afford that price of house and mortgage lenders providing mortgages to people who should not have that level of mortgage or who did not fully understand the terms of the loan. The buyers did not understand what a variable mortgage is or, using one of the lender’s terms, what a “pick-a-payment” or flexible payment mortgage entailed. The concept of negative amortization is term that was not well-explained or fully understood. In “House of Cards” a line that resonates with me is lenders were providing money to people who could “fog a mirror.” Then, they packaged up all of these poor risks in collateralized debt obligations (CDOs) and sold them to investors who thought they were buying a less risky product. The rating agencies did not help by stamping these CDOs with a AAA rating.

There are some who firmly believe in the concept of “let the buyer beware.” In their minds, the people who bought these houses and took out these loans should have been more aware “like I would have been.”  As a consequence, they believe the buyers should be held entirely responsible for the housing crisis. This school of thought has some merit, but misses two greater issues. First, if you have ever bought a house, you are asked to sign more papers than in any other transaction. I would wager that an exceedingly high percentage of buyers do not read every word of what they are signing. The legalese is too complex. More often than  not, they will ask the attorneys to explain simply what they are signing. I would also wager that in these transactions people actually sign papers they do not fully understand.

Second, with that context, people in a lower socio-economic class will be even more trusting of those in suits and ties. They would ask even fewer questions and understand even less of what they are signing. When the American Dream is to own a home and people in suits and ties paint a picture that you can afford this home, the buyers believed them more times than they should have. In some cases, the seller put “perfume on a pig” to dress up the sale as best as possible. Individuals were shown monthly payment numbers and did not realize those numbers could dramatically change every two years. In some cases, their income and wealth numbers were inflated to show they could afford a house and mortgage they otherwise would not. The buyers trusted people showing these numbers and signed on the many dotted lines.

Two true stories will embellish these points. The poster child for one extreme end of what happened was a builder based in Atlanta. The CEO and CFO were convicted of criminal and unethical actions they helped perpetuate with home buyers. In essence, the company-realtors representing  new developments did not represent they would make an extra bonus if you bought in this new neighborhood. They did not represent the inspector was being paid off to inflate the price of the house and show no problems existed. They did not represent that the mortgage lender they recommended was affiliated with the developer. So, along comes the buyer who does not know this, does not know to ask these questions and who sees a financial representation that they can afford this house. Even people above the lower socio-economic classes were taken in by this criminal behavior, yet the lower class people did not stand a chance.

The other anecdote took down a bank of which I was shareholder. This bank bought  a mortgage bank who had developed the concept of the “pick-a-payment” mortgage. This flexible payment mortgage concept was geared for a very astute buyer, not the masses of people who bought it. Mortgage people at this bank wondered why the CEO of the acquirer was pushing these mortgages even up to six months before the bank was destined to fail.  A mortgage person for that bank said we are having “pick-a-payment parties” to promote the sale of these mortgages. We are selling these mortgages to people who do not know what they are buying. They do not understand when they do not pay enough, their mortgage principal increases. Like with the above example, the lower socio-economic class buyers did not stand a chance. The people in higher classes suffered as well.

Yet, the class matters concept goes beyond these examples. It happens in everyday life, whether it is visiting the doctor, buying a car or something on credit or being served by the bank on other issues. We have people who will go into debt as they do not know the exposure they are adding with each purchase. In today’s world, there is a dearth of customer service. You have to be the navigator of your own customer service experience. Many people do not realize this as the case and tend to delegate the responsibility to the customer service person. We don’t ask enough questions of doctors seeking alternative treatments or payment plans. We accept the terms of a store credit card without knowing that if we fail to make one of the 30-60-90 day payments, we will pay back interest to the point of sale. We do not understand that we need to pay more than the minimum credit card payment as it will take 30 years to pay off a washer and dryer purchase. We do not ask the question, do I really need yet another credit card? We do not realize we have the power to say “no.”

I tell my children “people want your money, so you need to understand that.” Sometimes, they want it by legitimate means. Sometimes they have enticing commercials which are too good to be true. And, sometimes they will try to steal it from you online or by lying to you in person. You have to guard against this. With this backdrop, someone in a  lower socio-economic class will not ask enough questions to be served. They will take that extra credit card that arrives in the mail. They will sign up for the 30-60-90 day store plan to get a 10% discount not knowing the full ramifications of the transaction. I have also witnessed in helping homeless families, budgeting skills could be improved and asking questions about “must have” purchases are not done often enough. Sometimes these “needs” are actually “wants” and could be postponed. They do not know how to zealously navigate the use of coupons or the best times to buy products. They do not ask for the manager or supervisor when being ill-served.

This week I read a series on the inability of hospitals to uniformly offer reduction or the abatement in cost to those without health insurance and in an impoverished state. Someone wrote in that they successfully navigated payment options from one of the studied hospitals asking why couldn’t others have done that. When I read the letter critical of the people short-changed, the concept of class matters entered into my head. The people in need did not navigate the system as they did not know or have the confidence to ask the right questions. They did not relentlessly pursue options. This is exacerbated by the lack of transparency of the payment system, so it takes a concerted effort to understand what is happening even for people in higher classes. There are other examples in our society where you have to make a concerted effort to understand the details.

In closing, my hope is for more people to understand that class matters in getting proper help and service. We have to make it easier for people to ask questions, search for answers and be better served or, at least avoid being ill-served. It is OK to ask questions. As the teachers often say “the only dumb question is the one not asked.”  Please help others remember that. Offer to go with someone to the doctor to help ask the right questions. Or, encourage people to write their questions down beforehand. Encourage people to not get into credit exposure beyond their means.  Share your wisdom of purchasing or not purchasing items. Sources like Consumer Reports, BBB , Angie’s List,  http://www.cars.com are vital tools, e.g. Yet, I guess the big take away is to not assume people are like you. You may have avoided stepping  in the hole, but you would have asked more questions. Not everyone will. Offer them your help and understanding.

Racial inequality has deteriorated further with COVID-19

In an article in The Charlotte Observer a few days ago by Gene Nichol called “What the pandemic has done to racial inequality in North Carolina,” racial inequality has become even worse. Nichol is a contributing columnist and professor at the University of North Carolina School of Law, with a focus on poverty. The article can be linked to below, but here are a few key paragraphs:

“It doesn’t happen as often as one might wish. But, on occasion, you can still be surprised by what someone says. For example, earlier this month, the Donald Trump-appointed Chair of the Federal Reserve, Jerome Powell, explained to the Senate Banking Committee:

‘Disparate economic outcomes on the basis of race, have been with us for a very long time, they are a long-standing aspect of our economy, and there is a great risk that the pandemic is making them worse. Because the people who are most affected by the job losses are people in relatively low-paying parts of the service industries that happen to skew more to minorities and women, there is a real concern that if we don’t act as quickly as possible to support these people then we’ll leave behind an even more unequal situation. We need to do as much as we can to avoid exacerbating inequality.’

The traditional patterns of racial economic subordination Powell referenced have long dominated every component of life in North Carolina. Today, for example, twice as many African-American Tar Heels live in poverty as whites. The numbers are even worse for Black kids – nearly three times as many are poor as whites.

Racial income disparity is huge. But racial wealth disparity astonishes. Black households, on average, claim less than a tenth of the economic assets of white Tar Heel families. Racial minorities are dramatically more likely, in North Carolina, to be unemployed, uninsured, food insecure, housing insecure, and trapped in low wage work. Such defining disparities have existed throughout the entirety of our state’s history. Radical, systemic, disproportional racial economic impact, as Chairman Powell put it, has ‘been with us for a very long time.’

And then came the tragic, terrifying COVID-19 pandemic. Hundreds of thousands of Tar Heels were cast, anew, into poverty. No Kid Hungry estimates that, this year, one in four Tar Heel children won’t be able to get enough to eat. State food pantries report a 38% increase in demand over recent months. Since March, over half of Black families, and 43% of Latinx households, lost significant employment income sources. Over a third of Latinx renters have been forced to miss monthly payments, jeopardizing their housing. Eighteen percent of all North Carolina adults aged 18-65 are now without any health care coverage whatsoever. Nearly 40 percent of N.C. Latinos now have no medical insurance. As Fed Chair Powell put it, Covid ‘will leave behind an even greater’ landscape of inequality.”

Rather than add my own two cents, I encourage you to re-read the testimony above from Chairman Powell, along with Nichol’s commentary. What is happening in North Carolina is an example of what is going on in other places. People with low income jobs do not have the luxury of working from home, so they must go in or get fired. So, the COVID risks are much greater to a group already at financial risk.

What COVID-19 has done to racial inequality in NC | Charlotte Observer

A Christmas wish – do our part to break down barriers

The following is an edited version of an earlier post that remains relevant today. In the spirit of the Christmas season, it is worth a revisit.

Last night, my wife and I attended one of a series of “talks” around improving racial relations. It is a weekly chat sponsored by a multi-faith group based in our city. In essence, it is facilitated small group and large group discussions on breaking down barriers and listening to others who do not look like you do. It was well done and very meaningful.

To hear stories about small and large examples of racism is very important. To hear about how assumptions can be made and, if not corrected, can be become more concrete in the eyes of the beholder. Children learn lessons whether you want them to or not, even when you try to do the right thing. So, it is imperative to have open conversations about treating people like you want to be treated and listening to comments, so that they can be reinforced or amended.

Yet, it is we adults that need to do better. A few themes we discussed include:

– do not indict a group for the actions of a few;

– recognize that small sleights can be hurtful, as well;

– try to walk in another person’s shoes; understand that a white person has more liberty to go anywhere, while a black man, even when dressed-up, faces more restrictions and risk;

– shine a light on hateful speech or behavior; tolerance must be viewed toward a greater good, so it is OK to be less tolerant of those who use words to demean and diminish;

– speak up and speak out to people who share your skin color, ethnicity, religion or politics who are indicting others who are different just because they don’t look, think or worship as you do;

– be the change you want to see and see people for whom they are; and

– recognize that racial injustice is also the result of a larger poverty issue, which affects people of all colors.

There are many more lessons that were conveyed during the session, but one of my takeaways is this is religion at its finest. Welcoming, including and helping. Let me end with one more tidbit on how religion can help provide solutions and create a welcoming dialogue. Walk the talk. Words are easy. The person who gets up out of his or her chair to help people is admirable.

Jesus said it so well in his Golden Rule. Treat others like you want to be treated. If we do this, we are way ahead in the game. So, welcome, include and help.

Let’s follow the example John Lewis lived

The following is necessarily short, as my local newspaper was kind enough to print it in its “Letters to the Editor” section this morning.

Watching the memorial service for Congressman John Lewis, I noticed the words kind, caring and courageous were used often. A staff member noted he was a great boss with several people working with him for over 10 years (a few over 20).

Lewis embodied the words spoken about him. Civil and nonviolent protest will be his lasting legacy. His example is followed by a significant majority who participate in the multiracial Black Lives Matter protests.

Those few who choose violence may make the news, but they dilute the message. Steadfast resolve is a much greater weapon. It galvanizes people.

Let’s honor Lewis for the person he was and how he conducted himself. Black lives do matter.