Capitalism, Part IV

Capitalism is an economic system based on private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property, and the recognition of property rights, voluntary exchange, and wage labor.

The wealthy have an interesting relationship with capitalism.

Placed on a pedestal, they are revered as a true encapsulation of the American dream. Our economic system has benefited them the most and selected them as the victors. Those of us standing below them and in their shadow and are expected to look upon their place in society with a sense of jealously that gives way to determination. If we work really hard, save, invest, and make impossibly wise financial decisions, their success can be ours. We only need to want it bad enough.  

Yet, I have never been wealthy. As I have said before, I have spent my entire life comfortably in the middle class. I do not know how the other half lives. I do not know their worries. I have no way of knowing what runs through their minds on a daily basis. I do not know how much they think of poverty or those occupying the rung of the ladder below them.

Still, I cannot help but wonder if they question our work ethic. Do they believe if we only worked as hard as they did, then we would be blessed in the same manner? Do they think of us as lazy, unskilled, or ill-equipped for true success?

Again, I have no way of knowing. I only have my experiences to guide me. And it is this experience I will use to guide me as I close this series and exploration of capitalism.

Once upon a time, I worked for a permanent supportive housing provider in Los Angeles, California. Our work was focused on housing and providing support services for chronically homeless men and women. My work was specifically focused on raising funds and amplifying our message to potential funders. This often meant providing tours to potential funders, answering their questions about homelessness, and introducing them to our version of a potential solution.

On a typical sunny Los Angeles day, this meant giving a tour to a family of considerable means. As we made our way around the property, we had a lovely conversation. They asked profound questions, were result-oriented, and seemed poised to make a sizeable investment. As we neared the end of the tour, we found ourselves overlooking Skid Row, an area with the highest concentration of homeless men and women in America. As I watched them visually digest the scene before them, a couple of questions immediately sprang to my mind…

Do they realize their privilege?

Are they oblivious to the pain of others?

With a single conversation between them and an accountant, they could move mountains. By stepping outside of their comfort zone and through the meticulously landscaped lawns of Beverly Hills, they could begin to understand the pain of others.

When it was all said and done, they got back in their foreign cars with their security detail and went home. Later, a check arrived. Not big enough to move mountains, but a step in the right direction.

Again, I have no way of knowing what they were thinking. I do not know what questions they were asking themselves. I do not know if they were questioning the very system that put them in their position.

All I know is this… For all its faults, our economic system is the greatest in the world. Yet, it creates winners and losers. It also creates gulfs of understanding between those with means and those without. Only by bravely volunteering to traverse those gulfs can we begin to understand each other. When on the other side, I am fairly confident we will draw conclusions about how the system can do a better job of lifting more boats.

With a four-part series now behind us and thousands of words read, that is all that I am asking.

Be good to each other,

Nathan 

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Capitalism, Part III

Capitalism is an economic system based on private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property, and the recognition of property rights, voluntary exchange, and wage labor.

The middle class has an interesting relationship with capitalism.

Like an overwhelming number of Americans, I have spent my entire life in the middle class. As the son of an electrician and a nurse, my parents owned their own home, drove newer cars, pursued higher education, and ensured we wanted for little. We did not own the biggest house on the block. The cars were used. Our clothes were not name-brand, but we lived a better life than most.

As an adult living in Seattle, I still find myself renting, but drive a new car, I have two degrees, prize quality over quantity, and see an abundance of opportunities before me.

Holding our position on the economic ladder is sometimes a struggle. In this economy, I find myself unemployed and living with family while searching for a job. I am amassing debt, burning through my savings, and hope every day I can stay healthy since I am also uninsured. I know I am one catastrophic event away from true poverty. While my safety net is wide, I also know it is finite. Help and support from others will not last forever.

Below me on the economic ladder is a group of people who are aspiring to be in my position when I get back to some sense of normal. Above me on the economic ladder is a group of people who understand my struggle and, perhaps, once found themselves standing in my shoes.

The middle class is an American success story. It is one of our greatest exports. It is the opportunity that those “huddled masses” standing on our “teeming shores” dream of when they think of this country and all that it can provide. Yet, to belong to the middle class is to live a life where you can feel challenges squeezing you on all sides.

Maintaining is a daily struggle. Advancing every so slightly is the dream. Between here and there is a minefield of catastrophes attempting to blow us off course. To stand in the middle class is to understand this daily reality. We admire the rich and pity the poor. We understand wealth will likely never be a reality, but poverty lurks around every corner. Hard work may not protect us in a system where it can often seem as if the deck is stacked against you.

Yet, no system in the history of human civilization has done more to move people out of poverty. This reality begs a bigger question. Can the same system be used to keep them there? The answer to that question is beyond the scope of this series, but I would like to think so.

Be good to each other,

Nathan 

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Capitalism, Part II

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property, and the recognition of property rights, voluntary exchange, and wage labor.

Capitalism creates classes. It may not select winners and losers, but it does create an environment where some progress and others fall behind.

The poorest (those who are homeless, under-housed, or living below the federal poverty line ) amongst us have an interesting relationship with capitalism. More than any other group, they are sold an idea of the American dream. Despite economic hardship, generational poverty, or the impossibility of succeeding without some form of assistance, they are told to picture white picket fences, two cars in the garage, and life in the suburbs. They are often sold this idea without first acknowledging the systems which keep people in poverty. Before them lies a minefield filled with unaffordable housing, inequitable education, an unfair and unbalanced criminal justice system, denial of work based on criminal history, lack of access to mental health care, racism, sexism, and much more.

Instead, without fully acknowledging the deck stacked against them, we tell them to pull themselves up by their bootstraps. We highlight the few success stories of those who made it out alive without fully understanding our need to reach behind to pull forward the next person forward in need. We do not speak of the countless programs meant to move people out of poverty. We ignore those who tried and failed; chalking it up to some internal character flaw. We mock safety nets meant to protect people and ignore them when they work.

Yet, again, no economic system in human history has done more to pull people out of poverty. Yet, the system creates winners and losers. It is possible for these things to be true at the same time. It can also be true that it does not have to be this way.

We can have an economic system that rewards risk, liberty, determination, and hard work, but at the same time acknowledges the unfair playing field. The treasures of capitalism can be used, without placing a tremendous undue burden of those who have succeeded, to fix the systems which keep people in poverty. We can have a system that rewards and saves. We can have a system that raises all boats in the harbor.

We designed capitalism to work this way and we can design it to fix what ails us. It begins with a choice.

Be good to each other,

Nathan  

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Capitalism, Part I

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property, and the recognition of property rights, voluntary exchange, and wage labor.

This moment in history might be the perfect time to question our economic system. As I write this, I have been consistently looking for work since March. Thanks to a global pandemic and the United States’ improper response, I am having a terrible time finding work. To make matters more perilous, my savings is quickly evaporating while my bills remain constant. I am beginning to rely on credit cards. I also find myself without healthcare. 

I know two things to be true. I am in this situation not because of a lack of trying. I spend hours every day scouring the internet for open jobs. I work my network. I have sat through numerous informational interviews and met with friends/contacts to discuss potential work. Looking for a job has become my job. I also know that I am one of the lucky ones. My partner remains employed. I have some savings and I have a network who would support me if times got really tough. In our current situation, many Americans are not so lucky.

Beyond the fear of financial ruin, I have spent a great deal of time thinking about the system we have created for ourselves. As I move forward in this series, I should make a few things known. I am no economist, but I have had unique economic experiences. I believe in our economic system but question our god-like devotion to it. Finally, I understand this a unique moment in history.

With that said, I will begin this series by posing a series of questions. I will answer them for myself, but I encourage you to do the same.

Is the American dream still a reality?

I think America’s embrace of capitalism has led to one of the greatest national success stories in human history. Capitalism moves more people out of poverty than any alternative. It allows for personal freedom and choice. It also allows for the accumulation of wealth.

On the flip side, capitalism by its very nature creates winners and losers. Capitalism is built upon competition. In this competition, many are freed from the chains of poverty. Yet, as of today, 500,000 people find themselves homeless in America on any given night. Beyond our homelessness epidemic, millions find themselves one missed paycheck or catastrophic event away from homelessness. When there is not enough work, high-paying jobs, or opportunities for educational advancement, this becomes an even bigger challenge.

When I think about these realities, I believe the American dream is still a reality, but it is more expensive than ever before. Salaries have not kept up with the cost of living, America’s cities have become too expensive, and a series of national financial disasters have made it nearly impossible to save. This has hit my generation (millennials) especially hard. So, while the dream may still be alive, it is becoming increasingly difficult to find myself having a life mirroring that of my parents.

Is the American dream still a reality for me?

I am 36-years-old. I am not married but find myself in a committed relationship. I have no children. I am a renter. I have minimum savings. I have a retirement account, some stocks, and an IRA. I will inherit no wealth from my parents.

In the future, I will marry, but I am really unsure about when we will be able to financially move from renting to homeownership. I do not desire fatherhood. While my savings are in danger, I know with proper work I can begin rebuilding it. I have never had any illusions about my parent’s wealth.

When I examine this reality, I see myself redefining the American dream. I want a simple wedding, a memorable honeymoon, a modern home, and a comfortable retirement. Beyond that, I want to travel extensively. I want to collect experiences over things. I want work that is meaningful, purpose-driven, and leaves a legacy. I want to leave the world a better place than I found it. I want to be able to leave some money to charity when I die.

Again, I still see all of this as attainable, but it is becoming more expensive than ever before. I would be lying if I said I was not fearful of fully realizing my dreams and aspirations. This fear can be a motivator, but it can also be heartbreaking.

Do I see picket fences and well-kept lawns?

I am not sure I ever wanted this dream. Growing up in Oklahoma, this seemed like the thing we should be aiming toward. For me, the aspiration of living on the east or west coast was always in the back of my mind. As I grew up, I learned this would mean more expensive housing, but better-paying jobs.

Many of my friends back in Oklahoma own a home. This seemed really important to them and I celebrate the realization of their dream. For me, I knew I wanted to travel, live in several different places, and accumulate experiences. When I compare the stories we tell, I am proud of the life I have lived. My story is not filled with regret because of my current situation or the fact that I have never owned a home.

I think homeownership is in our future, but it is not the most important thing in the world. The pressure I feel when it comes to buying versus renting is internal. I want to make a place my own and feel a need for some permanency.

Do I see a corner office?

Ego aside, I wholeheartedly believe I possess the talent, vision, and passion to lead a nonprofit organization. I also realize the world is filled with countless men who look like me leading organizations. I possess the talent and ambition to lead. In the right circumstance, I would be humbled and proud to lead an organization, but for now, I am trying to make space for leaders who do not look like me to lead. Particularly in the nonprofit sector, we need to build a platform for leaders who better represent the communities we are trying to serve. Perhaps, then we can achieve better outcomes.

Stepping aside flies in the face of my capitalist nature. Our work is often seen as a competition. My fellow employees and those I compete against in job interviews are my competition. I should want to triumph over them. I should want to lead, and I should want all the perks entitled to me. My nature desires those things, but I desire a livable world more. I want us to overcome the challenges of human services, environment, and artistic expression more than I want to earn.

Where is everything I was promised?

Some of my best friends work for Amazon and Microsoft. In their 30’s, they are beginning to command salaries of $100,000 or more. They are getting married, buying homes, and taking multiple trips throughout the year. They are saving for the future and envision a comfortable retirement.

It is hard not to compare myself to them and ask, Where is everything I was promised? I went to school, received a master’s degree, worked hard at my job, and saved what I could. Where are my things others value?

In that question is my answer. We value different outcomes. I could never work at a job where the sole purpose was to increase the bottom line. I have decided to work on behalf of my fellow human beings. That choice comes with sacrifices, but it also fills me with value.

As I step back from the questions rooted in capitalism and this one, in particular, I realize capitalism has not hurt me. American capitalism is far from perfect. It has reached a point where too much wealth is accumulated at the top and far too little reaches those who need it most. It has not allowed government services to expand to meet the growing needs of a changing population. It creates fantastic success stories and heartbreaking tragedies.

Capitalism is a tool for our use. How we hammer the nails before us is our choice. As we move forward in this series, I hope we can deeply explore together how this tool impacts those who comprise the low, middle, and upper classes. In order to properly do that, we first had to inspect ourselves.

Be good to each other,

Nathan 

This website exists because of readers and supporters. If what you just read made you smile, please consider supporting the website with a monthly gift. Your support means everything and proves to the world that original content still matters.

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