Why are poor people poor?
Hint: It's not just because of "bad decisions" or a poor mindset.
//THREAD//
Hint: It's not just because of "bad decisions" or a poor mindset.
//THREAD//
Too many people assume that poor people are poor because they make bad decisions.
Or, that poor people are:
▫ Uneducated
▫ Unmotivated
▫ Undisciplined
That's too simplistic and ignores the nuance that plagues those in poverty.
Or, that poor people are:
▫ Uneducated
▫ Unmotivated
▫ Undisciplined
That's too simplistic and ignores the nuance that plagues those in poverty.
Things that TRULY impact wealth:
▫ Race
▫ Upbringing
▫ Experiences
▫ Perspectives
▫ Circumstances
Let's look at the stories of Jimmy and Johnny.
Jimmy is a white kid who grew up in suburbia. Upper-middle-class.
Johnny is a black kid who grew up in "the projects".
▫ Race
▫ Upbringing
▫ Experiences
▫ Perspectives
▫ Circumstances
Let's look at the stories of Jimmy and Johnny.
Jimmy is a white kid who grew up in suburbia. Upper-middle-class.
Johnny is a black kid who grew up in "the projects".
Jimmy had loving parents. Stay-at-home mom. Mom and dad were always there.
He was taught to:
▫ Stay out of debt
▫ Get a college degree
▫ Work your ass off to succeed
If he failed, his folks were there to help him get back up.
What about Johnny?
He was taught to:
▫ Stay out of debt
▫ Get a college degree
▫ Work your ass off to succeed
If he failed, his folks were there to help him get back up.
What about Johnny?
Johnny's dad left, leaving his mother (also from a one-parent home) to work and raise her son.
Bad schools. Rough neighborhood.
He learned:
▫ Poverty is a way of life
▫ Fighting is how to stay alive
▫ Education isn't an option
There was nobody around to teach Johnny.
Bad schools. Rough neighborhood.
He learned:
▫ Poverty is a way of life
▫ Fighting is how to stay alive
▫ Education isn't an option
There was nobody around to teach Johnny.
Rough statistic: About 67% of black children are born into single-parent households.
But, this is far from the only problem.
There are lots of "Johnnys" out there, struggling with:
▫ Abuse (physical, mental and psychological)
▫ Neglect
▫ Torture
▫ Poverty
▫ Gangs
But, this is far from the only problem.
There are lots of "Johnnys" out there, struggling with:
▫ Abuse (physical, mental and psychological)
▫ Neglect
▫ Torture
▫ Poverty
▫ Gangs
These struggles affect income, confidence, motivation, and self-esteem.
Race is also a factor.
In 2020, median household income:
Black families: $41,000
White families: $70,000
Why? Education.
Remember Jimmy? He was set up for college.
What about Johnny?
Race is also a factor.
In 2020, median household income:
Black families: $41,000
White families: $70,000
Why? Education.
Remember Jimmy? He was set up for college.
What about Johnny?
Black people make up just 5% of senior manager and VP level jobs.
Only 1% of Fortune 500 CEOs are black.
Education limits opportunities. Black people are promoted less and paid less for the same jobs held by their white counterparts.
What's the moral of this story?
Only 1% of Fortune 500 CEOs are black.
Education limits opportunities. Black people are promoted less and paid less for the same jobs held by their white counterparts.
What's the moral of this story?
Telling somebody who grew up in a rough neighborhood and had to *literally* fight to stay alive that their "poverty mindset" is killing their future doesn't help.
It's like Jimmy telling Johnny to just "man up".
It's downright insulting.
It's like Jimmy telling Johnny to just "man up".
It's downright insulting.
Most of us have NO IDEA how the other half of society lives.
We don't know about their struggles because we find comfort in the insulated cocoon of money, wealth, and opportunities in which many of us live.
Yes, decisions matter. Mindsets matter. Choices matter.
But...
We don't know about their struggles because we find comfort in the insulated cocoon of money, wealth, and opportunities in which many of us live.
Yes, decisions matter. Mindsets matter. Choices matter.
But...
That's not the whole story.
Compassion and empathy work wonders.
Encourage people around you. Give back to your communities however you can.
Don't assume that people who are poorer than you are that way because they don't have your "mindset".
That's willfully ignorant.
Compassion and empathy work wonders.
Encourage people around you. Give back to your communities however you can.
Don't assume that people who are poorer than you are that way because they don't have your "mindset".
That's willfully ignorant.
Note: This thread isn't about giving people a "pass".
It's about understanding the reality of life.
If you don't understand the true causes and impacts of poverty, then you have no business dispensing financial advice.
It's about understanding the reality of life.
If you don't understand the true causes and impacts of poverty, then you have no business dispensing financial advice.
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