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January 11, 2010
Pathways to Prosperity: The Policy Need
Current policies and systems are like a rigged game of "Chutes and Ladders." Society values hard work and determination. For the poor, those who work hard (may) rise to the top step by step. Yet lacking financial capital and social connections, there are few ladders that can help the poor get ahead more swiftly. But there are many chutes that can send them back to the beginning in an instant -- health conditions, a breakdown in transportation or child care, or the sudden loss of a job.
We must change the game -- adding ladders and eliminating chutes so that the probability of continual advancement increases significantly. Rather than lines that define poverty, we must think of a continuum: the prosperity continuum. What is it? How does one access it? How might we add ladders and eliminate chutes? In our view, the prosperity continuum is not an artifact only for the poor but for all Minnesotans. As long as the poor must play by different (more challenging) rules, they will struggle to get ahead. In the meantime, we note that more and more Minnesotans are at economic risk as the probability of chutes -- loss of a job, a health shock, foreclosure -- grows.
The challenge is to answer the "how" question. Think, for example, about subprime mortgages, which were designed by a small group of Wall Street financiers to stretch earnings from the home mortgage industry. If a single product can wreak havoc among the near poor and bring global capital to its knees, surely we can also design mechanisms that have the opposite effect. We must go beyond stating that change is needed to designing practical operating mechanisms, such as clear expectations (e.g. what do we mean by personal responsibility) and incentives and opportunities to act differently. If we don't change what we actually do, then how can the outcomes change?
This work requires a set of trusted community institutions working together and a specific set of civic leadership and participation skills. It has become clear that these skills must be developed at all levels and in all types of institutions.
Next: The policy opportunity
Posted by Annie Levenson-Falk at January 11, 2010 8:15 AM