Turner's Perspective

"Real-A-Jeff aka Jeff Turner"

Of course I agree with you about this. Active Rain is the perfect platform to reach out and make a difference. 

As far as how to approach it I have no idea. But I will think about it and come back. Must let my imagination lose on this one. :)

TLW "The Lovely Wife"...We Can Start With Me Featuring This Post In O.O.T.B. :) ROAR!

It's sad to know how big the differences are between people and their situations.  I' m not sure what would help best in shortening the gap between wealth and poverty but you are right, it's important to put our collective heads together and figure something out.

How utterly depressing, though not really shocking.  I agree we could be a positive force for change but I can't help but think that by helping people buy homes in the US is probably helping only the top 10-15%

Very insightful article!  It's refreshing to see a post which puts our world in perspective.  I think we sometimes forget that we are a part of a huge collective...the world and in the whole scheme of things, Americans are remarkably blessed and fortunate.  It was very eye opening and though provoking to review the statistics you shared.  So much for our collective griping!

Lola Audu, CRS GRI

Audu Real Estate

http://laudu.realtownblogs.com

What were the stats in the 1850s. I would think wealth would be more concentrated then than now. I bet our federal government takes more than ever. They waste a lot and actually keep a lot of people poor. We only have to look at the Indians before gaming came along. Numbers in a short period can be deceiving.

Eric, since this is the first truly worldwide look at poverty, I doubt we'll ever be able to answer the question of is it really worse now than it was in 1850. I'm not sure it matters. There was no global economy in the 1850's. Our world is tied together beyond national boundaries in a way it has never been before. The numbers in this study are a snapshot of what is true now. For me, I don't need to see a comparison to any other time to know that the numbers need to change if we're to have a healthy world economy.

As for our government. The waste is immense. I couldn't agree more. I'm just looking for a few ideas and I'm going to try to come with a few of my own. I feel strongly that the minds in this community will have some insight.

 

Lola, thank you. The notion of boundaries as it relates to the economy is long gone. We have to think globally.

Cynthia, TLW, Jessica... lets keep our thinking caps on and see what we come up with.

Hey Jeff, Those truly are some terrible numbers. I'm going to have to come back to this one in the monring.

Bryant... thanks. I know you will.

All... The first things we need are ideas. I'm not looking for an commitments or promises. Just ideas. 

You may all have read that the Nobel Peace Prize this year was given to Muhammad Yunus who pioneered a new category of banking called micro-credit. It was an idea with meager beginnings...  "Working as a young economics professor at Bangladesh's University of Chittagong, Yunus lent the equivalent of U.S. $27 from his own pocket to 42 women in the village of Jobra who had a small business making bamboo furniture. Since then, the bank he founded has made an estimated 5.7 billion dollars in loans to more than six million people in Bangladesh, 96 percent of them women. Anyone can qualify for the loans, which average about U.S. $200." (1)

He also created the village phone program that allows women to acquire phone systems powered by solar chargers. This gives them the ability to act as pay phones in rural areas. The money for the phones is loaned to the women and has a payback rate in excess of 98%.

His ideas empowered the impoverished. But it took thinking contrary to the norm. He did exactly the opposite of traditional banks. "If the banks lent to the rich, I lent to the poor. If banks lent to men, I lent to women. If banks required collateral, my loans were collateral free. If banks required a lot of paperwork, my loans were illiterate friendly. If you had to go to the bank, my bank went to the village." (1)

Whatever the idea is, it's going to seem simple, almost too simple. It's going to seem obvious. We won't know it till we see it. We may not see it. But it's certainly worth a bit of effort.   

 

 

I'm not sure what tangible approach can be taken to make a difference in those sad statistics, but I do know how to make a difference in my little corner of the world; I'm teaching my children to have compassion for those less fortunate than themselves, and to see the world through eyes that look to serve rather than to have. They pack their own toys and clothes to donate to charities, shop for the food bank with me, and help deliver Meals on Wheels. At the risk of sounding hoky or being naiive, I will admit that I truly believe people are ultimately good and giving, and that simply educating people to the sad facts of poverty opens the door to a more compassionate and less selfish future one little person at a time. I have two little people, Jeff has six... you see where I'm going.

-GRF

 

 

Claudia, thank you. I think you are right. One of the things we all can do is impact our family, our neighborhoods and our community. I believe in impacting my little corner of the world. I know my four boys are going to be better men because of the two little girls we've adopted. I'm not going to stop doing the little things I can do to make my children more aware of hunger and poverty and those less fortunate than we are. 

That said, I've seen some great streams of thought come out of comments on this site and feel strongly that if we can begin to throw some ideas on the wall, one of us may hit on something that we look at and say, "wow, that makes complete sense, and it's simple and it's powerful." I've not been on ActiveRain long, but I've seen enough to know it's theoretically possible. So I don't want to limit the discussion. Again, this is not about anyone making a life commitment to do anything, just ideas. All idea, any ideas.

 

Jessica commented earlier... "I agree we could be a positive force for change but I can't help but think that by helping people buy homes in the US is probably helping only the top 10-15%" While this is a devastating number on a worldwide scale, the numbers for America aren't encouraging either. Oprah's show today focused on the poor in America. In 2005, for example, Detroit earned the "poorest city in America" title. 33% live below the poverty line and with the auto jobs leaving, unemployment has reached 15%. And Hurrican Katrina exposed some truths about the differences between the have and the have nots that many would love to ignore.   

 

  

Jeff, I won't take anything away from your stats, but you know some of the things they say about statistics.  I also won't for a second deny the inequitable income and wealth distribution in the world today. 

That said, here's what I say about statistics, they have to be applied appropriately.  Firstly, reading Broker Bryant's recent posts I wonder how many Americans actually have net worth of $2,200 (or anything that is not in the red)?!  Secondly, while I don't like applying the word most of the ways people do, wealth is a "relative" thing.  There are countries in this world (I have lived in one of them) where that kind of dosh lets one live quite well, and nobody there would care to aspire to the income or net asset level required to be in the top 50% of the world, let alone the top 10% (by the way, if everyone was in the top 10% of the world in wealth...it wouldn't be the top 10% anymore would it?!).

Communism in concept seemed great.  This world has never seen true communism (not in modern days that is, in "developed" society).  angel and I recently got back from a dinner at which my life in Russia and the overseas lives and travels of others and those they knew was a core topic.  I didn't have any money (in American terms) when I lived in Russia, but I still felt rich.  All that and the wealthiest people I have known in my lifetime were Russians in Russia (why they cared to make even more money at that point was almost hard to grasp, since they had no philanthropic motives and no way to spend it themselves).  I know you aren't suggesting this, but if we all threw all our money and wealth together in a pot and divided it up evenly, it would cause as many problems as it would solve.  The problem is a societal problem that is not primarily one of wealth.

The bible notes that heaven, even, has ranks and status - what you might parallel to wealth (since there is a passage that talks about storing up treasures in heaven, which translates into that stutus) so unequal "wealth" distribution is not necessarily unequitable by definition.  Living under God as we all do, though, everyone clearly should have the RIGHT to at least a few basic needs, so long as they are willing to work for them according to their abilities - and one of these indeed is shelter...a home.  You posed a question about home ownership helping bridge this gap.  I don't know if it bridges the gap, but I don't know if bridging the gap is the issue, the issue, as you noted just above this response, is that making sure if anyone is living below the poverty line that they are doing so by their own choice (not working, etc.) and NOT because society left them there or put them there wrongly.

It's such a longer response, but I think the single most absent key to a more equitable distribution of wealth and opportunity is education.

Gabriel, your comment is a good one. I respect it and believe that most of it is true. I'm only using the stats to drive a point home. They're big number stats. The kind that are hard to ignore. I realize that we will never rid ourselves of ranks and status. I learned that lesson very simply and at a very young age. I was on a rant, driving in downtown Indianapolis with a good friend, talking about how strange it was to be on the same road and in one area it was poor and another mansions. I wondered why there had to be such inequity. He said something very simple to me that day... "Jeff, someone has to make the McDonald's hamburgers." And I know that is still true. I'm not naive.

I've also been to the kinds of places where $2200 in assets could make a man live like a king. My wife and I almost didn't return from a small Island in Fiji. There are certainly places where you don't need more than $2200 in assets to live. But the one thing this report did not take into account is ability to earn. If I had not been to Guatemala recently to pick up one of my daughters, I might dismiss these numbers. But I've seen the extreme levels of poverty personally and recently. Guatemala is a country overflowing with people living in abject poverty, struggling to survive. The birth mother of our newest daughter made under $300 per year, working full time. Even in Guatemala, that's poor.

I  am not wanting to throw money at a problem. Far from it. I've tried that before. I often have a hard time with these topics. I get all hung up at times.  I get trapped thinking about these things in terms of traditional concepts of "charity." I think to myself... in order to help the poor, it must be a charity. I don't know, maybe you think similarly. I know the cure to poverty is not about giving someone money. 

Grameen Bank, the bank founded by Muhammad Yunnas, was not a charity. He loaned money, very small amounts in US dollars, to the poor to get them out of usurious debt and give them new life. He did not give it to them. He loaned it to them at reasonable, fair rates. He made money doing it. And he educated them in the process.

Bead For Life is another example. They worked with women in Uganda to create jobs. The women make beautiful handcrafted paper beads and turn them into necklaces, bracelets, etc. My wife wears them and has been giving them as gifts. Is it a charity? Yes. It has 501(c)3 status, but it is self sustaining. It runs as a business. All net profits, which average 74% of gross profits, are returned to Unganda through bead purchase and the development projects.

We may not find an idea worth pursuing in the comments of this blog post. But you started a seed of an idea. You said, "I think the single most absent key to a more equitable distribution of wealth and opportunity is education." How do we educate this world population, even our own citizens, on how to accumulate even the beginnings of wealth. Do we divert some of our blogging energy to topics directed at the poor? How would we get the information into their hands? Seeds of ideas. 

Jeff

Thanks for bringing a social issue into perspective.  Awareness is the key!  FYI: A study released earlier this month by the Consumer Federation of America indicates that woman with above average income and credit scores were more likely to obtain sub-prime financing than men with similar profiles. Households headed by woman, particularly women of color, are unable to realize financial security through the traditional path of homeownership. This kind of stuff has got to stop.

Ed Rybczynski

I think back to the saying: "if you want to feed a man for a day, give him a fish; if you want to feed him for life, t each him how to fish"  There is too much giving money, without teaching people how to survive and thrive on their own.  Too many governments want to keep the poor beholden.

Stare-away Jeff - I think that if you break those numbers down and you separate the United States from the rest of the world, you would realize tha the US is not doing bad at all.  In third world countries, like Venezuela, where I am from, it is the norm, and little we can do about it.  The Rich are very rick, and the poor are very poor, with almost a non-existend middle class.  Venezuela's current president has taken land, properties and businesses away from the Rich to give to the poor and these people don't wan to work, don't want to get ahead and love living off others.  I am not stereotyping either.  If you visit the country's Capital, Caracas, you would see all the mountains filled with slums (cardboard and metal homes one on top of the other) with no running water and some with stolen electricity.  It is extremely sad, but any effort that has been made to give these people an opportunity to work and prosper has failed.

Although we can do our part here in AR and in the US - and we SHOULD.  I don't think we would make a huge difference.  Missionaries to me are amazing - traveling the world to help the less fortunate in such a giving and non-selfish way.  I agree with Sharon about teaching - it all begins with education, but also need to teach the willingness to learn. 

I'm with Sharon..and was going to post the same thing...Ines said it all begins with eduction..I think that is so true. I'm appalled at the way some people live...especially here in the United States.

Jeff,

Thanks for the post. I always start out with my first time buyers, by explaining that this not just about buying a home, but about creating wealth for themselves and their family. That it is a business transaction and for some the largest they will ever make. Hopefully, some will see the first purchase as a vehicle by which they can build a real estate empire. The sky is the limit!

Jeff, the banks you mentioned are part of a growing group called micro-lenders, which I have been aware of for about four years now, and some are very successful.  Given the dollar amounts per loan, and keeping interest rates fair, etc. there is clearly no economy of scale that can help them achieve great status as earning institutions, but I love how that and other examples show that philanthropy does not just have to mean giving money away (since sometimes that's the worst thing to do to "help" a situation).  I have worked with a group that has done micro-lending in several Central American countries and has looked at Africa as well, and I do like the impact it makes.  Give a man a fish and he'll eat for a day, teach him how to fish and he'll eat forever. 

I didn't intend to do it, but I just came right back to the point in the last sentence of my first comment here - education, as well as opportunity, are what the impoverished need.  I like the programs here in the US and on state levels (to get back to your point about home ownership as a partial way out of poverty) that allow people to purchase homes with no money down through grants, below-market interest (for their credit scores and assets anyway), etc.  The latter of these are also, like the micro lenders, "for profit" philanthropic ventures - they have to pay for themselves or they don't have the funding to continue.  I love these programs, and often they require the buyers to go through a pre-ownership education course, so as buyers they can be more responsible and capture the value of the opportunity they are given.

Jeff T...  good topic...some good stats and I don't want to sound negative. But Ines brought up a great comment. Many of these people have been given help and education and many don't want it. They prefer to live the easy life of doing nothing. And in this case, either want it for free...for nothing, don't want to work for it, or just want to be who they are and where they are. Just part of my opinion from watching how people live.  Example... I knew one guy, making good money, but spent it in bars .....  lots of it.... frivolous spending on  drinking, traveling, and anything fun. Left his house to be a wreck, after his dad helped him get on his feet. Still didn't have a eatable kitchen after 2 years. Long story short....we can educate, help, and lend hand....but people will do what they want.

Getting back to what we can do?  Go out and build the next mirco chip that would make millions.... win the lottery......  rob a major bank in Switzerland.... etc etc.  

In my previous statement, I wasn't trying to be funny. But if 50% of the world has less than $2,200 in assets, it comes down to saving patterns. Which could be attributed to educating, but many have common sense and know what they are doing. It's called keeping up with the "Jones's"  We spend billions helping 3rd world countries in regards to poverty... lack of food, clothing, shelter, and medicine. Hate to say it, but how about putting half of that money back into the US, for our people?  How about clamping down on food stamps that are abused..?

Overall... I think I am all over the board. But one thing....  the people with the money will usually make more money and live like Kings.... Wealth creates more wealth. How we get there?  Well, in regards to real estate, we can work harder to make more money, so that we are above the average. In all honesty, what else can be done? Not trying to sound selfish. But for myself?  Looking at my business plan for 2007 so I can make even more money and manage it....    

But as a few others... I'll put my thinking cap on. Just my 2 cents for now. 

All, thank you for your input. Ed, Sharon, Rick, Monika, Sharon... my response to Gabriel below will encapsulate your comments as well. (Ines, thank you for your insight on Venezuela. I have been there as well and seen the poverty first hand.) 

Gabriel, the Grameen Bank, for one is very successful. I certainly don't want to debate what great status as an earning institution means, but they have 5 Million micro loans engaged. That's a great deal of impact. This piece on Micro Credit is excellent.

I am glad you came back around to your first point about education, because I couldn't get it out of my head last night in bed. There is a connection between education and what we do each day on ActiveRain. We are educating each other.  I'd love to turn our comments to our collective intellect here on ActiveRain. What vehicles for education can we create that might spur others to greater things? 

Jeff B... thinking cap is all I'm asking for. I think if you read my comment above it will help us focus. You, Gabriel, others have hit the nail on the head... it's not about giving the poor money. That won't lead them to wealth, that will feed them for a day. Let's focus our thinking energy on what we can do right here online, perhaps entire sections of blog posts dedicated to educating the truly poor, then finding a vehicle for getting the information into the hands of organization that can and will train and teach. Just a thought.

I plan to help every American who will cooperate begin to build their financial estate and move into the middle class by getting them into home ownership as soon as possible.  Wealth accumulation begins, IMO, with asset management. 

As for the rest of the world, the religious and political barriers to helping them are simply too difficult for Americans to little more than simply throw money at them. 

I'll watch out for my family, 5 children and their progeny and my buyers and, sorry, until people in the poor countries throw off the shackles that bind them, we really can't make a difference, IMO, of course.

Lenn

Jeff, those number are an eye opener, but anyone who has been outside the US knows that much of the world lives on far less money than then we do here in the US.  When I was in the Philippines in the 70's, the figure that I heard used as the average income per family was just a little over $100 per year.  They lived in grass huts, very little to wear and no shoes.  Amazingly they were some of the happiest people that I have met.

George, I don't disagree. I've seen the same thing myself. The village we were welcomed into in Fiji had some of the happiest people I've ever met. We all know we're not talking about those people. 

Many of the worlds problems revolve around poverty and the impact of poverty and lack of education. No one can say that the millions and millions starving and dying in Africa, for example, are happy. 

Lenn, I plan to do the same. I understand where you are coming from. I'm just not personally willing to only focus on my family and those few people I can physically touch. It's obviously a good place to start, and I applaud you for your contribution.

I love my family, I love America. I just don't think we can begin to impact this problem by focusing on America alone. And I know the harsh reality of world politics and religion create massive barriers. If they didn't, we wouldn't even need to be having this conversation. We can't just focus inside our national boundaries. Those trapped in societal structures and family legacies that bind them to poverty do not have the key. We, who are so blessed, who are so edcuated, who are so wealthy, are presented with the opportunity to help find the key to unlock the shackles. It starts with ideas.  Ideas that can turn into action. (No, I am not wearing rose colored glasses.)

If knowledge is power, and it is, then George and others in this comment string have it right, education is the key.  

 

Jeff... great post.

Education is the key.  My children are grown, so I am not aware of what is being taught in the school systems right now... but that's where it needs to start.  Not in high school, possibly on an elementary level.

Starting the baseline there for continued learning throughout the remainder of their high school years to teach them the importance of saving.... and someday being able to have a home for their family.  In addition to being able to have a home, saving for retirement.  I don't think this is stressed enough in education.  Social Security in NOT a retirement. One would be foolish to depend on it.

For those individuals out of school, perhaps businesses where individuals are employed could form some type of "required" continuing education classes on the importance of saving for a home and retirement.

I think a lot of individuals have not been educated away from thinking that Social Security is retirement.

And I spoke only generally on the US because I don't feel I'm actually worldly enough to speak on other countries, although I have some definite poverty in the US.

Education is a start but there is the need for opportunity, so many don't have access and it is not for lack of trying.  As you rightly stated 1 % owns about 40% of the world's wealth, something is wrong with that picture.  However  I have been fascinated by the micro loan programs especially because women are getting help; when consider  most of the families in poverty are headed by a woman so by assisting these particuliar family heads a difference can be made.  Great post Jeff

Jeff, thank you for bringing up this topic, and asking for solutions! 

In the community we service, there are many many renters.  Some will never become homeowners because they do not have a "homeowner" mentality. (The poor will be with you always).  Many are stuck in a "Section 8" system that says "this is as far as you can go"!  When that attitude is embraced, you will have folks who WILL NOT MOVE because that very small "section" they are receiving has become their limit.  Others have not become inspired to go beyond where they are because of instilled fears, and have resigned to the state they find themselves in.  Then there are others who have dreams and hopes with the faith to go beyond the circumstances they find themselves in.  These are the ones who will make paths for others.

What we must do is have alternatives....FREEING ways for those desiring to cut from these unhealthy growth staunching stigmas.  When this happens enmasse, it will draw many others out!  I FERVENTLY BELIEVE THIS!  Here are a few solutions that DO work:

1)Buy up houses, rehab them for safe habitation.....then rent to ownership.  The incentive for the renter is home ownership once they have been proven responsible....(educating them along the way).  2) Encourage investors to RENT not FLIP!  3)  Appeal to good tenants 4) Appeal to builders of new homes  5)  Work through Realtor Association committees to help further the cause. 6)  Advertise to potential new investors. 7) Work with local neighborhood community groups.  8) Attend local government   meetings & become a VOICE.  9) Encourage your brokerage to devote FREE monthly teachings to those in needy areas.  11) Appeal to sellers to RENT their sitting listings!!!  

There are MANY solutions.  They mainly have to be birthed out through prayer.  A heart that will receive strategies is what is needed.  Active Rain as a community can have a group designated to target this.  We personally have been given a local assignment -a certain city to pray for.  Prayer changes everything!  I am most interested in joining any group assigned to pray that this cause is confronted and defeated. 

Fran... your comments are right on target and certainly highlight specific deficiencies in our own public education system. We simply aren't teaching our youth how to save, how to stay out of debt, how to build wealth. This reminds me of Carole Cohen's recent post, Being Part of the Solution: Helping Your People Learn Good Finance Practices. This is an excellent example of a simple idea in action. 

Jennifer, I think you are correct. Women are the key. Assisting women to become financially independent is critical to solving the problems. Ed commented above, "A study released earlier this month by the Consumer Federation of America indicates that woman with above average income and credit scores were more likely to obtain sub-prime financing than men with similar profiles. Households headed by woman, particularly women of color, are unable to realize financial security through the traditional path of homeownership. This kind of stuff has got to stop." I agree.

Diane, I'm being called to help with lunch for our kids, but I'll be back to comment on your excellent comment. 

Diane,

Excellent, excellent comment! Okay, I'll let Jeff answer you. Just wanted to let you know that those are my thoughts exactly!

Real-A-Jeff aka Jeff Turner...

I am way off topic here. :)

I just finished reading through all of your posts again. Man. You really are an excellent writer.

Your posts are very unique and do not mimic other posts. You know, like when someone posts something and then 10 other people post the same topic.

I truly enjoyed rereading your Blog and the comments that accompany them. I really did. :)

I would like you to spam me every time you post something. I don't let too many people do that to me. But, you are welcome anytime. Your posts are turning into a "must read" category on AR. :)

TLW...ROAR!

Diane, I want to place your list here in a different format for ease of reading, if you don't mind.

1. Buy up houses, rehab them for safe habitation... then rent to ownership.  The incentive for the renter is home ownership once they have been proven responsible... (educating them along the way) .
2. Encourage investors to RENT not FLIP! 
   
3. Appeal to good tenants
   
4. Appeal to builders of new homes 
   
5. Work through Realtor Association committees to help further the cause.
   
6. Advertise to potential new investors.
   
7. Work with local neighborhood community groups. 
   
8. Attend local government meetings & become a VOICE. 
   
9. Encourage your brokerage to devote FREE monthly teachings to those in needy areas. 
   
10. Appeal to sellers to RENT their sitting listings!!!  

Looking down your list I see many areas where this community can assist by turning to our experts in each area to write materials that can assist us in doing any of the 10 things you mention. For example, encouraging your brokerage to devote FREE monthly teachings to those in needy areas will have a great deal more power if a starter curriculum was available to them to utilize. Another example, you write "work with local neighborhood community groups." We can provide the "HOW" part of the equation. The same is true for your suggestion to attend local government meetings and become a VOICE. We will have more power if we present a unified voice that speaks to a common vision within the constraints of each local governance. 

These are ideas that can be encouraged, supported and given power if our collective intelligence is applied.  

TLW... thank you. I'm honored. Truly.

I'd like to add to Diane's list with

11.  Educate and Market to individuals who rent.

(Renting is the biggest waste of $$$ cha-ching I can think of)

Fran, that's a great addition.

1. Buy up houses, rehab them for safe habitation... then rent to ownership.  The incentive for the renter is home ownership once they have been proven responsible... (educating them along the way) .
2. Encourage investors to RENT not FLIP! 
   
3. Appeal to good tenants
   
4. Appeal to builders of new homes 
   
5. Work through Realtor Association committees to help further the cause.
   
6. Advertise to potential new investors.
   
7. Work with local neighborhood community groups. 
   
8. Attend local government meetings & become a VOICE. 
   
9. Encourage your brokerage to devote FREE monthly teachings to those in needy areas. 
   
10. Appeal to sellers to RENT their sitting listings!!!
    
11. Educate and Market to individuas who rent.
    

 

Jeff:  That would be awesome if it "kicked off" that way.....don't leave out the "prayer of agreement" part which is where the source of the power will come from.  If there is no heart for it, it will soon fizzle out. I appreciate the spotlight  you've given to it.  Thank you.

Fran:  My #3 above  does covers your point.  All renters will not become homeowners, but know that the rental market is not entirely a waste of money, it is needed.  According to "America's Rental Housing: Homes for a Diverse Nation," renting is a critical housing option.  Ninety-five percent of Americans rent at some point in their lives.  The rental housing inventory, valued at over $2.7 trillion dollars, is big enough to support both a sizeable high-end market for luxury housing and the vast majority of the nation's lowest-income families. 

Diane, I plan on condensing and turning any and all of the ideas into an actionable list and then seek out those who are willing and able to assist. I think your list is a good start and I also know it is probably too long... but that doesn't matter right now. Right now, it's about ideas, all ideas. I'm still on the hunt. As for prayer, I'm all for it. But as theologian Walter Wink once said, "prayer without action lacks integrity." I'll take both! : )

Jeff  WONDERFUL!  I'm in agreement. Another way of saying it.."FAITH without WORKS is DEAD! "  (The prayer is for directives, leading, wisdom, timing, & favor with those holding all the goodies to help get this going.)

All... I'm going to wait a little bit then, make an attempt at condensing and categorizing some potential actions.

Jeff,

Joanne, Im looking forward to 2007. I did not find ActiveRain until late November and I'm so thankful I did. I'm encouraged by the comments on this post and and hoping a few more voices are added to the mix as well. Thank you!

Wow, you have all come so far since I last checked in.  What a great list.  I will be discussing this with my local realtor association.

I was wondering how many people have negative equity in the US.  I personally know many who are renting and own 10-20K in credit card debt.  That must skew the numbers a bit. 

I also was thinking about people/tribes who owned tribal land.  Was the value of that land taken into account?  Land that on the surface may not be of much value; but who knows what the mining value might be. 

Jeff, I read about the Grameen Bank!  Awesome.  He pretty much soley lent to women because they always paid back.  The idea is now taking off all over the world.  I remember hearing a peice on NPR about pawn shops and thinking that there must be a better way than to charge the exorbanant amount of 'interest' they do. 

Hey Jeff, So sorry I didn't make it back to this post yesterday. I'm actually glad I didn't after taking the time to read all the comments this morning it gave me a little more insight into where everyone is coming from. This is such a difficult topic and finding workable solutions is even more difficult. The issue is so big I have difficulty getting my head around it. So I'm just going to throw some stuff in here that TLW and I currently do and maybe while I'm writing my brain will kick in with a new idea. We'll see.

When we decided to start buying some rental properties a few years back one of the things we wanted to do with them was find renters that needed a little helping hand and work with them by overlooking some credit issues and limiting their dollars out of pocket to get into the properties. WHAT A NIGHTMARE! All of them took advantage of the situation. That's all as in every single one of them. It was really heartbreaking to us. We would bend over backwards to help them, some we even got real jobs for. On other occasions, if they couldn't pay the rent we would let them work it off by doing some small jobs for us. What happened was because we were willing to help they started to depend on it and the attitude was well if I quit my job it won't be a big deal because the Tutas's will just let me work off my rent. These were not isolated instances it happened over and over again. We now have 3 properties sitting empty because I'm hesitant to put a for rent sign in the yard. I don't feel like dealing with it again. So I just keep making mortgage payments on vacant properties. This doesn't count the $12,000 I'm spending on one of our houses because the single mom we were trying help out trashed it on the way out and then had her boyfriend break in and steal all out AC units. But enough of our local, trying to do the right thing.

One the areas of the world that breaks my heart is Africa. It is sinful what is happening in that country and our country chooses to ignore most of it. One of the biggest issues in these 3rd world countries is political unrest and major corruption. But there are ways to get help to them. The one we prefer is WorldVision. WV has been around for decades and they are on the ground in these areas. TLW and I support them heavily. I know, it's just throwing money at an issue BUT they already have the infrastructure and have been doing wonderful things. They are building schools and providing villages with farm animals and other things they can raise and sell for money. There are several other groups and persons that re also doing excellent things. Bill Gates Foundation, Bono to name a couple. When it comes to these 3rd world countries, sometimes the best thing we can do is throw money at it. We just have to make sure we are throwing it in the right direction.  

Well, sorry I didn't get any bright ideas. I will be thinking and praying on this today. In the meantime I will write another check and get it WorldVision as fast as I can. Children are starving TODAY and they need our money. WV is there and they are waiting on your contribution. Thanks

Jessica, I'm having a hard time concentrating on replying to your comment after reading Bryant's comment. I will bet that the number of people in the US that fall in to the 50% who do not have $2200 in assets is much larger than any of us would like to see. 

Bryant, I have an entire thought stream on this.

First, I'm not at all surprised and that makes me angry. I would like to be surprised. Why am I not surprised? In every instance but one, all but one, any time I have decided to lend money to a FRIEND, it has ended very badly. I'm not talking about $20, I'm talking about more than $10,000. There is an entitlement mentality in this country that is a cancer and it reaches across all socio demographic categories.

Second, I am not sure that same entitlement mentality exists all over the world. I read too many stories of women in 3rd world countries, who, given the opportunity, work hard, pay off the loan and make something of their lives. Those stories exist here in the U.S. as well and we've got to find a way to make them more prevalent.

And third, we, as a family are committed to Africa as well. My wife spends everyday thinking about Africa. Her blog is 100% dedicated to raising money for street children in South Africa, so I share your sorrow.

I'm still left thinking that education is one of the keys to breaking this cycle. 

Your stories of abuse of opportunity are so very sad. I've got to go post my Tomato Farmer story just to feel a bit better! 

"Hubba! Bubba! aka Broker Bryant"

Thank you. My goodness what took you so long? SVW. I have been waiting to see how much 'we' should tell people about us and the things we do in our efforts to help others. I was concerned that if I say too much folks would think we were tooting our own horn. :) I appreciate you wrapping this up for me. SVW.

"Real-A-Jeff aka Jeff Turner"

So now you know. We are heavily involved in trying to do our part for this world. World Vision is an excellent place to be donating money. Broker Bryant did not mention that we financially support two of the starving children he spoke of. We hate the idea that there are people on this planet eating 'rock soup' for dinner. As far as our rental homes go we have not figured out how to continue to use our rental homes to help others. BB is right. What a nightmare. Guess who has to deal with that nightmare? Wink. Wink. We tried very hard to use our rentals as a contribution but it backfired. The more we helped these people the worse the situation became. So, yah, we are making mortgage payments on 'tenant free' properties. It is such a shame that some people who are needy take advantage of people like us. It troubles me that I can't help without placing myself in a position where I am enabling someone to be irresponsible. I would like to help and to know that my help pushes some people forward. That just never seems to be the case. Talk about a rock and a hard place. That's where we are with our rentals right now. Hey, after writing all of this I feel like telling a joke just to lighten things up. SVW.

Here are a few links to our tenants stories. I think you will find it interesting. This lady was worthy of two posts. :) And here is another one for a tenant that made dealing with him almost impossible. These are both true stories. :) Enjoy stepping into our world for a few minutes. SVW

TLW...ROAR!

You zipped in behind me. :) TLW...ROAR!

Jeff,

What a great post. It does me good to see so much passion about this. I love all the ideas about what we can do not the government. It is shame that we have allowed ourselves to be worked into such a position where the government gets such huge amounts of money and then waste it on crap we do not need. But with all the special interest influence, I do not see any change in that area so it is up to us to find what we can do. As a home stager, I can committ to helping some lower income families increase their worth by selling their homes for more money. I do not have a number in mind yet but your post has given me the idea to give some staging free of charge as a way of giving back.

I agree about the 'sense of entitlement' so prevelant here in the US. is unlike anywhere else.  There is a screwed up psyche here.  I think media exposure in children and lack strong family influence (lack of extended family support) have a lot to do with it. 

Africa:  I read that in sub-saharan africa actually incomes are the same as they were (in dollar amount) than they were in the 70's.  With inflation this accounts for a DRASTIC reduction in standard of living.

Sadly, since I moved back to the United States four years ago my humanitarian efforts have drastically dimished.  Thanks for the wake up call.

James, doing some staging for free or at a reduced cost in an area of extreme need sounds, on the surface at least, like a great idea. I know some would say you are "casting your pearls before swine," but not me. I think it's worth a try. If you can drive more value in an area that desperately needs it, I can only think that will be positive in so many ways.

Jessica, I really struggle with the entitlement issue. It happens at so many levels that it's hard to pinpoint where to begin. I would love to blame TV, since it's such an easy target, but I'm afraid I have to blame parents and a this overwhelming need I see to coddle and overprotect and give without reason. I understand the desire to give our children more than we have, but in so doing we sometimes miss the fact that our character was built on a foundation that necessarily required that we sometimes go without something we wanted. Meeting needs is one thing, fulfilling every desire is another.  

Education is absolutely the key.  Without it, you could literally redistribute the wealth equally among everyone and it would be back in the same hands as before within a very short period of time. 

Carol, i've heard that said before and I believe it to be truth without exception. I think there are some good ideas buried in all of these comments. Not sure how to make them actionable yet, but I will. I'm convinced this forum has the brain power.

I just put this up as feature in Out Of The Box. I hope that helps slamming home the point of thsi post. TLW...ROAR!

Thanks, TLW... I hope it will. I'm also still holding out for a few more voices to add their weight on the idea front, but I'm looking forward to condensing what we have already. Happy New Year!

SVW...TLW...ROAR!

Hi Jeff, Happy New Years. I was reading my comment, about tenants, that have taken advantage of the situation and wanted to add this. "They have taken advantage of the situation NOT TLW and I" to me that's an important distinction. We have not been tainted by this and will more than likely continue to try and help.  If I have to go through a few tenants, that do these things, to find one that will seize the opportunity and better their lives then it's worth it. 

We can't help everyone but I think we always have to try. A lot of times we read about entitlements and how folks work the system, well this is true, but for every 10 that work the system there is a homeless mother and her children that are helped. I think that one case makes it worth while. There are a lot of desperate people in this world, that need a helping hand, and as hard as it is, we can't let the dead beats distract us from helping the truly needy, if we can. 

Something I haven't seen mentioned in all of this, maybe because it's sort of a "taboo" subject - but what about population?  Are there studies correlating number of children per capita and per capita net worth?  Education is, no doubt, important in this regard, as well, but how to approach it?  I have no workable solution to this aspect of the problem in mind, as yet, but wanted to throw it out there as an important part of the problem. 

 

Bryant... kudos! But anyone who reads your blogs would assume this to be true without you having to say it!

Tricia, good question. I will research that and see what the trends might be.  

Tricia, I've done some research, but there is no one place that addresses your question. I have some anecdotal information, however. Here is a look at four countries total fertility rate, population doubling time and adult illiteracy. This is just four examples, but you can see an anecdotal link between total fertility and illiteracy. Logic tells me the link between this and poverty is strong as well. 

Japan Total Fertility Rate: 1.3 children per woman, population doubling time: 289 years. Adult Illiteracy: 1% male and female. 

United States Total Fertility Rate: 2.0 children per woman, population doubling time: 116 years. Adult Illiteracy:3% male and female.

India Total Fertility Rate: 3.0 children per woman, population doubling time: 36 years. Adult Illiteracy: 32% male, 55% female 

Mali Tital Fertility Rate: 7.0 children per woman, population doubling time 23 years. Adult Illiteracy: 64% male, 84% female.

 

 

Jeff,  I think stable govenments and economic freedom are key.  After that one needs a way to inspire people to get going in the right direction.  It's really tough to break the cycle as long as corrupt governments are in place though.  All I know is that I need to focus on developing myself and my wealth before I can spend too much time on such a huge problem.  The more wealth I create the more I can provide to others and the more I can inspire others to do the same. I do what I can, where I am at the present moment.

Throwing money at the problem isn't going to solve it.  Some how something deep inside every individual must be sparked in a way that drives them forward to a better life.  I think with more people being able to move and travel and experience what's possible, it's just a matter of time before people become empowered to make the changes necessary to solve their own problems.  I'm all for trying to help that happen as soon as possible. 

All... I have posted a follow up to this post.

Harnessing The Power Of The ActiveRain Community: An Idea

 

Wow! Those statistics are staggering.  Thanks for taking the time to share them.

John... if you find time, check out the follow up post above. Thanks!

I don't do world well...got those numbers on a National scale?  Just here to vote you as #1 mostly

ARDELL :: Everyone is with you. See the follow up posts to this one and you can see where my head went with it. (thanks!)

There is a strong correlation between freedom and wealth.  There is also a strong correlation between freedom and income.  The freer people are (defined as low taxes, little welfare, fair courts, stable government, light corruption, free trade, etc), the richer they get.  If people want what we have, they need to do what we did:  overthrow their government and prosper.  Sadly, we have abandoned the idea of freedom, so we will probably see more and more of our people slip into poverty.  Free markets enrich, but big governments impoverish.

I have been working for a long time with various groups, communities etc. on affordable housing.  Unfortunately, every time these task forces, study commitees etc. come up with what has to be done to start to solve these problems, the political arena kills all of the ideas.  There are some great funding program in NH that help moderate and lower income folks buy houses.  I personally volunteer to do seminars 2-3 times a year, and I work with 2 -3 buyers each year to help them realize the dream of homeownership and get out of the rental cycle.  It takes a lot of effort, I am not the richest Realtor(r), but it gives me a real sense of satisfaction.

Joan, what do your seminars concentrate on?

Jeff,

Thank you for the insightful statistics. I heard a statistic that 80% of small businesses are started with equity in personal residences. I think home ownership and small business help lesson the poverty gap.

Jeff, this is very timely, thanks for posting on the eco-all stars group. Wow, 50 percent less than $2,200 in wealth. I guess that explains why the average car price in India is $3,000. Very staggering statisitics

Congressman Elijah Cummings of Maryland just published an article that up to 2 million african americans may be at risk to default on sub-prime loans. One thing that can be done is so many municipalities have legitimate, lower interest mortgage programs. Sadly, few people seem to know about them. Research programs in your area and work with that population. Stabilization of poor areas begins with homeownership by people who can sustain ownership. They'll tend to spend money in their home areas.

I live in N.Va, but do a lot of investing in Baltimore. You're right the poor are getting poorer - not just financially, but in technological literacy. I told Rep Cummings my fear is our inner cities will be completely lost in 20 years. They'll look more like Detroit in Robo Cop than any dream we could have for a better outcome.

Baltimore has been recovering its rough areas for a few years, but there is a long way to go and it will be undone by massive defaults on mortgages.

BUT let's not forget one thing, the corruption that arises in the third world culture of our cities is a huge impediment to real progress and it's not just in upper government. Most of the problem is with people who serve that  population - attorneys, cops, and others. I see "estate" attorneys in Baltimore buying and trading client properties as if they are their own AND those very attorneys are from the communities they are raiding.

Dan... home ownerships is a key. Education around how to save. live within your means and work toward home ownership is a key.

Gary.... very staggering indeed.

Brett... good stuff. It's very disheartening to hear your personal take on Baltimore. This is very troubling to me.  

World Vision..changed mine AND my kids lives. Make your children accountable as well; since my youngest was 9...part of his allowance will go to assist charities/poverty.

Teach them now. Not everyone drives great cars, live in nice homes, and play rep. hockey.

DON'T give them everything they want. DON'T spend a small fortune on them for their birthday and X-mas..rather buy something for them, then together something for an underprivledged child.

STOP the "I need it NOW" epidemic of today's society......do you really NEED it??????????

Give generously, give lovingly.

We keep saying.."the children are our future"...well then let's teach our children well.

The affects are not going to happen overnight...and I LOVE many of the previous suggestions that we can implement to affect today. But this will help decrease the gap of tomorrow.

Idealistic?? What do you think?

 

 

 

Impeach Cheney then Bush!

Terry Haugen - STAGE it RIGHT!

Jeff,

Just sneaking in here to applaud Julias comment. I totally agree.

However, now that I am here, I need to applaud Terry's comment as well:) And I am sure I am in the minority on that one!

Julia...

What a great comment that is. We Sponsor two children through World Vision. Mandla is 10 and Senanelo is 5. We keep their pictures, letters and drawings on our refrigerator.

When our Grand Children come to visit they always look for the latest photo of their siblings. We have taught them that there is a big difference between "Want" and "Need". Every year at Christmas time instead of spending a small fortune on gifts we buy a Farm through World Vision. 

The Grand Children understand all of this and the reasoning behind it. We hope that when they grow up they will in turn teach their Children the difference between "Want" and "Need".

If we don't all ban together and teach our Children these fundamentals our world will never change. The cycle can not be broken until we become pro active within our own families and Communities. Idealistic? I think not.

TLW...ROAR!

TLW:

I really like the idea of buying a farm or even some animals for women and children. Great Link!

For the Canadians, you can be a part of the "Make Poverty History" campaign...

voice your thoughts!

http://www.makepovertyhistory.ca/

The G8 meeting this June in Germany is a great opportunity for the G8 leaders to make actions speak louder than words, and to make poverty history.

"Please ask Prime Minister Stephen Harper to go to the G8 meeting ready to:

• announce a timetable for reaching the 0.7% of GNI aid target by 2015;
  
• ensure full debt cancellation for all countries that need it;
  
• press for trade rules that are just; and
  
• take action to achieve Kyoto greenhouse gas reduction targets and provide funds to help poor countries develop sustainably and adapt to climate change.
  

When the G8 hear our voices, they must act. Raise your voice against poverty by sending an email to Canadian Prime Minister Stephen Harper. We will also let German Chancellor Angela Merkel, who leads the G8 in this crucial year, know that you want the G8 to help make poverty history. "