The call to adventure to address poverty typically comes in one of these four ways:

1. 1. Provide private, limited charity to deserving, needy people as prescribed by my faith.
   2. Mentor someone poor who wants to learn how to not be poor anymore.
   3. Directly hire the poor.
   4. Support any policy that would eliminate subsidies that ultimately enable the poor to stay poor.

What’s wrong with solution No. 4: Dismantling subsidy programs?

Finally, the idea of simply dismantling subsidy programs in an effort to stop enabling people to stay in poverty is promoted as the ultimate quick fix to dependency. Unfortunately, as compelling as this might sound to conservative ears, reducing poverty is more complicated.

Let’s review the key causative factors of poverty that emanate from each of the six major sectors of society—business, government, education, human services, civic and faith, and philanthropy—and what their call to adventure for reducing poverty rates might be.

When I contemplate how well our nation is doing compared to other nations, I look at global metrics that go beyond a simple GDP number. In the Declaration of Independence, the pursuit of happiness is defined as a fundamental right, as long as you don’t do anything illegal or violate the rights of others. Using this fundamental right as the main metric, how is the United States doing?

The Organisation for Economic Co-operation and Development (OECD) is a group of 34-member countries that discusses and develops economic and social policy. OECD members are democratic countries that support free-market economies. Their first World Happiness Report was published in April 2012 in support of the United Nations high level meeting on happiness and well-being. Since then, OECD members have come to see happiness as the proper measure of social progress and effective public policy.

In June 2016, the OECD committed itself “to redefine the growth narrative to put people’s well-being at the center of governments’ efforts.” The six variables for the index are income, healthy life expectancy, having someone to count on in times of trouble, generosity, freedom, and trust, with the latter measured by the absence of corruption in business and government.

In 2007, the United States ranked third on the happiness index for OECD nations. In 2016, it had dropped to 19th (out of the 34 OECD nations) due to an increase in corruption and a decrease in social safety nets. At the top of the happiness index were the Scandinavians for the opposite reasons. George Lakey, author of Viking Economics: How the Scandinavians Got It Right—and How We Can, Too, explains in an easy-to understand manner how the Nordic nations emerged at the top of the Happiness Index, as well as in these other important categories: freedom of the press (measured by Freedom House, the United States ranked 26th); best place to grow old as measured by Global Watch Index; and life satisfaction as measured by OECD.

The OECD also does poverty rate comparisons across the 34 nations. Iceland ranked No. 1 with the lowest poverty rate, followed by Denmark, Czech Republic, Finland, and Norway. In the No. 30 spot was the United States, followed by Israel, Brazil, Costa Rica, and China. I don’t know about your reaction to this list, but my mind jumped off the rails when I read it.

Most people in the United States know, and perhaps take pride in the fact that our GDP is $18.56 trillion, far and above second-ranked China at $11.39 trillion, and third-ranked Japan at $4.73 trillion. Our per capita income ranks fourth, behind Luxembourg, Norway, and Switzerland, according to OECD data. It’s interesting to note that overall GDP does not correlate positively with lower poverty rates or higher happiness indexes.

Being a wealthier nation also does not translate into being safer. According to Nation Master, China is ranked 12th out of 189 nations for highest homicide rates, and the United States is ranked 14th. In other words, you are less likely to be slain in 175 other nations than in the United States.

Wealth disparity is running twice as high and broad in the United States as in any other industrialized nation. The top 5% own more than 90 times the wealth of the median household. In the second-ranking nation, the top 5 % in the Netherlands owns 42 times the wealth of the median household. What is the factor for the happiest place on the globe, Norway? Twelve times. Is there a correlation between a national value of equity and happiness, lower poverty rates, higher productivity?

As Lakey says in book, Viking Economics,

Like most Americans today, Norwegians a century ago didn’t like the results of a wealth gap: the hunger and poverty, the crime, elderly friends warehoused or left in isolation, young people without hope of a good job. Norwegians also didn’t like the attitudes that went with inequality: an inclination toward arrogance among higher-income people and the feeling among lower-income people that they were losers, defeated by the system.

The Nordic model has been promoted by many in the United States who want to see more equity and less poverty. It has been demonized by others who feel strongly about the free-market system and limited government. The polarity between right and left media, politics, and arguments within one’s own family has accelerated as more people find themselves unable to participate in the American Dream.

Learn more: Transformational Leadership: A Framework to End Poverty ~ By Scott C. Miller

To learn more about Scott Miller, please see his website here.

The call to adventure to address poverty typically comes in one of these four ways:

1. 1. Provide private, limited charity to deserving, needy people as prescribed by my faith.
   2. Mentor someone poor who wants to learn how to not be poor anymore.
   3. Directly hire the poor.
   4. Support any policy that would eliminate subsidies that ultimately enable the poor to stay poor.

What’s wrong with solution No. 3: Directly hiring the poor?

Nothing, as long as employers have at least a higher-than-normal poverty IQ. We often hear, I gave them a job, and they didn’t show up on time, in uniform, with a smile, ready to work. They were ungrateful, unreliable, and my business suffered for trying to be helpful. Again, the Drama Triangle is in play. We are giving people what they want and need, but they are blowing it.

There are a couple of new economic realities that make strategy No. 3 something that employers must undertake if they are to sustain and grow their businesses. In the book When the Boomers Bail, my friend and colleague Mark Lautman shows clearly how the massive exodus of aging baby boomers from the workforce now forces employers to mine the talents of their “unqualified workforce” to fill jobs. When there were plenty of job candidates, communities and their employers could manage a consistent level of poverty because there were plenty of others to hire, and the economy could handle the costs of carrying a percent of dependents without much burden on the tax base.

In communities that now suffer from slowing economic development efforts through which they are unable to bring many new jobs to town, there is enormous pressure to increase the number of qualified workers and to reduce the tax burden of dependents in poverty. This forced call to adventure is a great opportunity for communities to finally see that solving poverty is not just a humanitarian effort—it has become an economic development imperative.

Stanford University published a case study about Cascade Engineering, a business in Grand Rapids, Michigan, that found success with an innovative approach to hiring people from welfare. I had the opportunity to visit them and speak with owner Fred Keller about his insights into what it takes to successfully employ, retain, and advance the poor:

1. 1. An accepting organizational culture.
   2. Education, not only of new employees but also of existing employees, about what it means to be in poverty.
   3. A strong system of support for people moving from poverty into careers.

The results? Keller and his company improved their welfare-to-work program results from a 29% retention rate per year to over 90%.

Fred is now one of the investors of our Circles USA chapter in Grand Rapids. He sees the value of building long-term relationships between those who need jobs and those who can support people in finding, keeping, and advancing in those jobs over time.

A final post will walk through the 4th common response to poverty next time.

Learn more: Transformational Leadership: A Framework to End Poverty ~ By Scott C. Miller

To learn more about Scott Miller, please see his website here.

The call to adventure to address poverty typically comes in one of these four ways:

1. 1. Provide private, limited charity to deserving, needy people as prescribed by my faith.
   2. Mentor someone poor who wants to learn how to not be poor anymore.
   3. Directly hire the poor.
   4. Support any policy that would eliminate subsidies that ultimately enable the poor to stay poor.

What’s wrong with solution No. 2: Mentoring the poor?

The problem with the second solution, mentoring the poor, is that it begins with the assumption that people with middle-income and upper-income means and backgrounds know enough about the experience of poverty to tell people in poverty how to effectively address the challenges of being poor in our nation. Nothing could be further from the truth.

People in poverty must inform all the decisions that go into making their own personal plan, as well as the development of community and government programs that are designed to “support the poor.” Without the wisdom of such a partnership, middle-income and upper-income folks fail with spectacular consistency as evidenced by an unchanged poverty rate for decades and decades of well-intentioned government and charity efforts. The result of these failures, unfortunately, is often to simply blame the poor:

“We have great anti-poverty programs; we just need better poor people.”

The first person I ever tried to help out of poverty resisted my first 38 great ideas to fix her. The more enthusiastic I was to find a way to fix her, the less willing she was to invest her time in interacting with me. I wanted her to take my advice and get out of poverty. Our relationship ended immediately and for good reasons. I had a low poverty IQ, unrealistic expectations, no support system to determine how best to be of assistance, and a worldview that she definitely did not share. Life did not look like endless opportunities for the taking to her. It looked hostile, disappointing, and dangerous. Her everyday challenge was one of survival. Mine was a search for more meaning through making a difference to another. I was willing, just sadly uninformed.

Follow-up posts will walk through common responses to poverty 3 and 4…stay tuned for more.

Learn more: Transformational Leadership: A Framework to End Poverty ~ By Scott C. Miller

To learn more about Scott Miller, please see his website here.

The call to adventure to address poverty typically comes in one of these four ways:

1. 1. Provide private, limited charity to deserving, needy people as prescribed by my faith.
   2. Mentor someone poor who wants to learn how to not be poor anymore.
   3. Directly hire the poor.
   4. Support any policy that would eliminate subsidies that ultimately enable the poor to stay poor.

What’s wrong with solution No. 1: Provide private, limited charity to the deserving poor?

Nothing is wrong with charity per se. Expecting that it will solve the long-term problem of someone experiencing poverty is the problem. The major issue with charity is that most people expect it to solve the underlying problem, which typically backfires because of a dynamic identified by Dr. Stephen Karpman as the “Drama Triangle.” My first job in the “anti-poverty” field was to meet with up to 40 people a week who were coming in asking for handout of $50 to $100. In 15-minute interviews, it was impossible to discern whether the financial assistance would help or hinder in the long run. Furthermore, I had no place to refer people so they could address the underlying reasons for being in poverty. It was this experience with charity that eventually led me to the development of Circles USA.

When the call is that of charity, we are compelled to see someone as a “deserving victim” who can be rescued, at least in this moment, with a quick fix of some sort. We do not engage with the complexity of the situation, instead prescribing the fix(es): Let me give you some food, a check, gasoline, or a referral to someone else who can help some more. I might be involved with a program that can help you get a job, repair your car, be a better planner, manage your budget, etc. Our unwillingness and often inability to acknowledge that poverty is complex for both internal and external reasons leads us down a path of disillusionment when our help doesn’t seem to add up to a long-term result. We might begin to harbor feelings of resentment toward the person who refused to be fixed through our “wise counsel” and best intentions.

Persecutor: Appears controlling, critical, angry, authoritative, rigid, and superior.

Rescuer: Needs to be needed. Enables others to remain dependent and gives them permission to fail; rescuing helps rescuers avoid facing their own issues.

Victim: Appears oppressed, helpless, powerless, ashamed—finding it difficult to make decisions or solve problems.

The Drama Triangle addresses individuals’ perceptions as they shift back and forth between roles. The drama persists when it fulfills some unmet need for individuals to continue in conflict in lieu of addressing the real issues, identifying solutions, and taking action.

Books such as Toxic Charity and When Helping Hurts have become popular study group material in faith communities as they examine their own experiences on the Drama Triangle. Circles USA is attractive to faith communities because they see it as a structured and safe program through which to build long-term relationships of mutual respect that begin to address the underlying problems of poverty. We call the participants in Circles USA who are working their way out of poverty Circle Leaders in order to reinforce the idea that they will make their own plans to move out of poverty and tell others how they would like to be supported. It puts the rescuer impulse on its head.

Follow-up posts will walk through common responses to poverty 2, 3, and 4…stay tuned for more.

Learn more: Transformational Leadership: A Framework to End Poverty ~ By Scott C. Miller

To learn more about Scott Miller, please see his website here.