Why Acting on Your Economic Privilege Matters
Last week I shared some tools for how to better understand your economic privilege and a few ways to act upon that privilege. At the end of the post I wrote that this week we’d be discussing how to determine what actions make the most sense for you and how to get started on those actions. However, as the week progressed and I worked on that draft it became clear to me that there was a missing link: why you should act on your economic privilege. So, I’m rearranging the posting schedule and moving forward with the why this week.
The United States has an economic disparity problem. Income inequality is higher than in any other G7 country (Canada, Germany, France, Japan, Italy, UK). The wealth gap between the richest and poorest families has more than doubled since 1989 (read that again please), and, compounding this, the redistribution of wealth through taxes and federal spending does very little to shift the income distribution throughout the population.
This isn’t a political issue - it is a humanitarian one. We can have a range of beliefs on the government’s role and correct economic structure for this country and can still agree that the widening wealth gap is problematic. It is problematic because:
It causes health disparities that in turn cause inequalities in access and outcomes (i.e. more disease and more death for those lower on the socioeconomic ladder - just check out the stats on COVID-19 if you’re skeptical).
The current system doesn’t allow for free-will and ownership as it is almost impossible for folks to move up the socioeconomic ladder. This trend goes in direct opposition to one of the core values in the founding and creation of the US: individualism.
The wealth gap is intertwined with environmental disparities that cause physical and mental health issues and contribute to global environmental issues as a whole.
The wealth gap stifles creativity and ingenuity, thus hurting our economy and well-being as a whole. Just think of all the businesses, medical breakthroughs, and inventions that are not being made because folks are unable to get access to capital, time, or other resources to make them reality.
While there are larger, structural forces that could impact the trends in our economic disparity, I believe that it is too big of a problem to wait for those to be put into place (if they ever will be). Instead, we, as individuals, have the power to use the areas of privilege that we have to improve the lives of those around us, and, I hope, that if you are reading this newsletter you agree with me.
Next week we’ll revisit specific action steps you can take and the process for how to decide which make the most sense for you, your values and your lifestyle and money goals.
As always, I’m here for you and your money journey, wherever you may be on that road.
XOXO
