By Mahari A. McTier
I recently read a book by John Hope Bryant, Founder and CEO of Operation Hope, titled ‘How The Poor Can Save Capitalism’, and he successfully makes his case that the poor can save capitalism. It was the most unique and radically outside the box analysis of the current state of capitalism. He cleverly made his point in a simplistic way that was not convoluted with economic statistics, academic theory, or philosophical rhetoric. The book is simply practical in its delivery.
The book was about saving America. All of America. Not Black folks or Asians, Latino, or Native American folks. It’s not about white folks. It’s about all of us. The reality is this, whether you are Black, white, red, brown, or yellow, increasingly everyone just wants to see more green – U.S. currency, that is.
I think it’s fair to start by defining poverty according to John Hope Bryant. The HOPE Doctrine on Poverty says that there are three things that define poverty and struggle more than any set of financial numbers ever could: self-confidence, self-esteem, and belief in oneself; role models and environment; aspirations and opportunity. Or lack of these things. It is my opinion that most people don’t decide when they start the journey of life that they want to be poor. The face of poverty is not always who we think. The myth is that only low income people are poor or suffer the consequences of poverty. America has millions of people living with a sense of staggering uncertainty. These aren’t just the poor. I call them the nearly poor, the almost poor, the could be poor, and the temporarily poor. This class of Americans could range from a homeless man on 4th Avenue to a midlevel manager making $50,000 a year. They are one paycheck away from losing everything. They are constantly choosing which bill they will pay this month, or calling Alabama Power to ask if they can put a little on it. America must understand that these people keep our country going.
Statistics show that the bottom 80 percent of the American workforce spends 90 percent of its income, whereas the wealthiest 1 percent spends only 49 percent. Ordinary Americans are the fuel in our tanks, and if Wall Street, banks, and large corporations are going to survive, they need this segment of the economy to become more economically strong and stable. This means that America must expand opportunity through well-paying jobs and small businesses, along with financial inclusion and financial literacy.
There is a group that believes that trickle-down economics is the answer. Trickle-down economics means that if you provide tax breaks and incentives to the top (rich), economic prosperity will flow down to the bottom. It never works the way it is scripted. If I have $100 million and I receive a tax-break that nets me an additional $5 million, what am I going to do? Go to the local Walmart and spend it? No, I am most likely going to pile it on top of my other millions and not put it back into the economy. But when you economically empower and financially educate the bottom of the pyramid you will be building a stronger capitalistic system because they will spend and put it back into the economy. Sounds simple, but trying to get Washington to understand this simple concept is like talking to a brick wall and expecting it to talk back.
The answer sounds simplistic in theory, but there is work that must be done on the parts of everyone for this to work. The wealthy must understand, accept, and implement strategies that will empower the bottom. Even if their motives are selfish, it doesn’t matter, everyone will win. The poor must understand that this system is not about handouts or a transfer of wealth. With this opportunity will come hard work, no-excuses, and a commitment to financial literacy.
(Mahari A. McTier is a Financial Advisor with Tier 1 Advisors, LLC and can be reached at maharimctier.tier1@gmail.com.)
