Recent studies of the Dallas community indicate that between 30 and 39
percent of the population live in "asset poverty."
"Asset poverty" exists when a person or a family doesn't possess
cash reserves adequate to sustain them for 3 months at the current, nationally
defined poverty line. For a family of four that line stands at $23,550 in
annual income. These statistics demonstrate the fragility of our economy
at the street level.
After participating in the
"One Crisis Away" public forum week before last, sponsored by the
Communities Foundation of Texas,
KERA, the
Thompson
Family Foundation and other underwriters, I came away with a familiar
feeling. I've been invited to weigh in, as a panelist on "asset
poverty" more than once. My role is always to report and reflect on
the status of folks
even lower down the economic ladder.
At times my
presence in the middle of these discussions feels like a big disconnect.
With
10% of the Dallas population living at
one half the poverty level (that
is $23,550 divided by 2 for a family of four), my concerns and focus usually
come off being somewhere else. I don't always, actually I seldom provide satisfying answers to the predictable questions.
Of course, I recognize that the economic realities of our entire community
are welded together.
Truly, we're all in this together. It's just that if I am face down at
the very bottom of the economy with virtually no assets, the canons and
proposed solutions that are truly helpful for folks up the ladder don't
really resonant.
After the engaging forum last week I started thinking (normally a really scary
development!).
Maybe what we need is a study of "asset
wealth." The "asset poverty" analysis provided a scorecard
type summary of the reality facing families on the precipice of falling deeper
into poverty.
But, what would "asset wealth" look like when
faced with similar, cataclysmic events?
For the sake of illustrative comparison, how would a family of
four fare who enjoyed a liquid asset base of $1,000,000?
How long could
such a family survive at the poverty line? Some would quickly say that
such a family couldn't survive at all due to past experiences! But, for
the sake of the illustration we seek, how long could an asset rich family
survive at this benchmark?
509.5 months.
Or,
almost 43 years.
These startling numbers set me to thinking, again already! (Sorry!)
What can, could or would wealthy families be able to do to assist their
neighboring families who live in "asset poverty"?
I mean, if I
have nearly 43 years with which to work, couldn't I share a year or two with
families who work hard and play by the rules?
I mean, wouldn't I want to
share from my abundance for the sake of the health and well-being of my entire community?
Especially in view of the almost certain fact that my current position will
allow me to continue earning and adding to my net wealth even if I do nothing but spend the principal of my wealth?
Aren't we in this together?
For certain, asset poor families need to do their part. And, there was
much talk in the forum about the responsibilities of the "asset
poor."
But the scale of our problem leads me to believe systemic forces are at work
here. Asset rich families need to do their part as well, and that means
they need to do more, act more responsibly and support new, scalable
solutions.
Part of that response should involve more aggressive philanthropy.
But a larger, more sustainable part must come from the coordinating
function of public policy reform. This is how a truly free and noble society is intended to work.
There is just no other way to really change this undeniably worsening reality.
