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Social Justice Before Personal Finance

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Martin Luther King Jr Memorial MLK Day
Photo: Ron Cogswell/Flickr

Today feels different.

Perhaps it’s because today we honor a fallen hero of the civil rights movement.

Perhaps it’s because today I watched a new film — Selma — chronicling Martin Luther King’s work in Alabama.

Perhaps it’s because last year we lost so many black and brown minorities to police brutality.

Perhaps it’s because, presently, black and brown minorities represent about 58% of all prisoners, while only being about 25% of the total population.

Rather than writing another article about saving on laundry, coffee, or toilet paper, today I wanted to recognize and remember those who we’ve lost or are currently struggling.

Financial concerns are closely tied to these issues of social justice and multiculturalism. The closer we come to equal opportunities, the more democratic society we’ll have.

That’s worth fighting for, isn’t it?

Free Will Isn’t Real, Until We Do This

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Hammock Good Life Free Will
Photo: Angie Yates/Flickr

Free will: an American value

Free will is defined as, “the power of acting without the constraint of necessity or fate; the ability to act at one’s own discretion.” This concept — along with self-determination and willpower — are at the heart of America’s capitalism and democracy. Fundamentally, it’s the ability to choose actions without restrictions.

Americans tend to hold free will in high regard — whether you live here or not. When the system is working, people are working. When people are working, they should have increased free will. The mainstream message is that if you work hard, choose wisely, and are entrepreneurial, you will surely succeed.

How to envision another’s free will

Unfortunately, free will is a philosophically dense, nightmarish concept to swallow. The aforementioned dictionary definition doesn’t speak to the measurements of “one’s own discretion.”

For instance, what amount of free will does a…

  • North Korean have under a “supreme leader’s” rule have?
  • Child living in a physically and emotionally abusive household have?
  • Minority living in Ferguson, Missouri have?
  • Woman working on Wall Street have?

In each of these disparate examples, an individual has their free will impacted. The North Korean doesn’t have access to the Internet, controversial literature, and cannot speak in critique of their leader. The child living in an abusive household has no money, a small social network, and little experience (if any) experience escaping the oppressive household. The minority living in Ferguson, Missouri might feel coerced or pressured by the current police presence, and suffer from racial stereotypes in the workplace. The woman is in a world that’s eschewed the role of women, and frequently denigrates their intelligence and place in business.

Free will is not universal, but relative

Despite contrary evidence, America continues to trumpet free will as universal and absolute. You have it, and always have it no matter who or where you are — absolutely.

In reality, free will appears to be relative and on a spectrum. This means that the free will I experience day-to-day would differ based on location, if I was a different race, income class, etc. There is no absolute — only more or less.

At times, I’ve criticized the idea of free will because it’s frequently used to explain class and income differences. It can be used to blame people, instead of properly attributing individual and societal variables. The message goes something like this: “If they would just work harder, maybe they’d be more successful.”

Messages manipulate our free will, too

Recently, I wrote about refusing to be a “customer in training.” My argument was that IKEA’s powerful brand recognition and loyalty efforts affected my shopping decisions. Moreover, that being a child, exposed to IKEA’s lifestyle design affected my decisions as an adult.

One of the common complaints I heard from readers was that I was blaming the corporation for my own decisions — that I wasn’t taking responsibility for my actions. Essentially, the critical readers were suggesting that I had free will, and should know better — that I chose to purchase IKEA products (regardless of being exposed as a child). Rather than deny that claim, I hesitate to provide an answer to it, as I don’t have one.

Those in Western society are born with advertising everywhere. We never had the free will to say “no” to ads. We never had the free will to prevent magazines, TV shows, and billboards from advertising us at every waking moment. And now, many businesses (including this one) use advertising to supplement revenue that wouldn’t otherwise be there. I wouldn’t make a dime off my website and the time I spend would never be paid, if there weren’t ads.

Advertising works, too. People buy after seeing external messages. The industry is growing at epic proportions, and it’s hard to find an accurate number for the amount of money spent to advertise to consumers. What we do know is that research suggests people are tremendously affected by emotionally provocative marketing campaigns. Thus, companies will continue to advertise.

Financial free will isn’t real, until we do this…

Today, I urge you to question the concept of financial free will — that some have worked harder than others for wealth. If not for yourself, then for others who might not be as well off.

Recognize free will as relative and on a spectrum

We are born into a society with relative free will — on a spectrum of more or less — and we are targeted via advertisements to spend and/or “choose” one product over another. We are manipulated for dollars — in complete contrast to the ideals of free will.

Notice that successes and/or failures are both individual and societal

Additionally, it doesn’t do us any good to blame one’s failures or successes on pure individual free will, hard work, and entrepreneurism. Instead, we need to properly attribute the societal, cultural, and communal attributes that helped that individual accomplish their goals.

Develop a skepticism towards advertisements and external pressures

This can be tricky to accomplish. Advertisements are everywhere. Fortunately, you can reduce advertising messages by turning off the TV and downloading Internet ad blockers. Those two steps alone will prevent most of the messages from getting through. Remember that nothing truly necessary should need to be advertised. If it’s being advertised, it likely isn’t a necessity like air or tap water.

Provide equal opportunity to others

To truly have a functioning democracy, meritocracy, and informed electorate, a society must have strong health care, education, and living wages for all. As these needs are restricted, so are the dreams for future generations and social/income mobility. By providing these basic living standards, more people will succeed.

Refuse To Be A Customer In Training

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Consumer in training Whole Foods cart

A seed is planted

As a 4 and 5-year-old, I slept comfortably on an IKEA bed frame. Like many of their products, it was probably called a Flickanflack, Dottbland, or some other uniquely random, proper Swedish name.

I remember a drawer that occupied the bottom of the bed frame — so large that I could fit my little self inside it. When the drawer closed, and the world turned off, I felt protected — even if I was a little afraid of the dark. Nothing could find or get me in my enclosed space.

My parents would go to IKEA and drop me off at Småland. This little taste of the Scandinavian language was the play place for children. Parents could browse through the store — even eat lunch — and then come back to pick up their kids.

Lucky for my parents, I actually liked the place and it afforded them some time alone. They could breathe easy, and I could have fun — a win-win (we thought). Unfortunately, something more nefarious was cemented at this young age, and it directly affects how my room looks today.

Companies market to nostalgia, memory

A couple weeks ago, I read an article about cereal marketing. It turns out that marketers know how to manipulate us to feel nostalgic responses — craving feelings from our past that can trigger consumption.

One food and consumer trend analyst suggests that “nostalgia is an important weapon in a marketer’s arsenal.” This effect was recently envisioned in the return of General Mills’ French Toast Crunch cereal.

For Millennials, this cereal brings back memories of childhood and happiness. And the company wants to recreate those emotions and benefit from increased income.

Like the potty, consumerism takes training

Some companies openly display their child-targeted tactics. For instance, Whole Foods, which has a wealth of natural and organic food options, provides tinier shopping carts for children. Attached to these mini-carts is a flag with a message: “Customer in training.”

Subtly, General Mills, IKEA, and Whole Foods (to name three in a sea of companies) display the power of marketing to children. By reaching young minds, ideas can be implanted for later use. Many of their efforts are initially free or nominal.

Swimming in the ball pit, playing video games, and racing around IKEA’s Småland didn’t exactly feel evil. As a child, I wanted that environment; heck, it was more entertaining than what was at home. I welcomed those moments.

The perfect corporate consumer creation

Companies are playing a long game with children’s minds. This training can suddenly be activated at a company’s discretion — making us adult automatons and primed for consumption. It’s the tinge when we walk down the cereal aisle and feel a pull for Captain Crunch, Reese’s Puffs, and Life. These are marketed moments of nostalgia.

Children become inclined to the shapes and designs of IKEA furniture when it’s in their rooms and they’re visiting the fun, comfortable ball pit. And I was just one of the many affected by these tactics.

IKEA Catalog on table

In 2011, IKEA opened their first store in Colorado. As a student in Fort Collins (northern part of Colorado), I made the hajj-like journey to the store only days after its opening day. Again, there was a magnetic force pulling me to visit, purchase, and come back again.

Walking through the doors, there were a flood of emotions, but I couldn’t resist smiling. The smell of cinnamon buns and fresh wood tickled my senses and felt familiar. That familiarity led me to buy a desk, bed frame, side tables, a chair, stool, and many other odds and ends.

Hundreds and hundreds of dollars later, I had become the perfect corporate consumer. IKEA’s tactics had worked, and at the time, I couldn’t even seen the connection. I just felt this unknown gravitational pull.

Preventing childhood brand loyalty

Before I go any further, I’m not sure that most people in Western culture can prevent children developing brand loyalty. Billboards, magazines, TV shows, shops, restaurants, and everything in between serve as powerful anchors for future consumers. Children are psychologically changed by these messages — corporations know this and parents should, too.

The consequence of perfect implantation of these advertisements is that people do not want to relinquish the connection. As a frugal person and advocate of minimalism, I can tell you that I still like IKEA. If someone said I couldn’t shop there any more, I’d be upset. The company’s gigantic, warehouse-like stores are too familiar to imagine letting go of. I’m deeply loyal to the brand.

Nonetheless, in this world of marketing, there are a few things parents certainly can do to raise children that evaluate these external messages.

1. Avoid companies that target children

For many parents and families, this is challenging. Most supermarkets and big-box retailers model the stores to affect children. Cereal aisles are, again, the perfect example. Children’s cereal is placed lower to the ground, features colorful packaging, and fun cartoon characters. Parents can decide to avoid shopping with children when possible and protest companies like Whole Foods that actively recruit consumption in children (i.e., “Customer in training” carts).

2. Be skeptical of “free” offers

There are many samples, courtesy gifts, and free offers for parents and their children. When a child is surrounded by certain products, a connection develops. If there is comfort in these items, those children will likely continue the cycle of consumption for that particular brand (whether they know it or not). IKEA’s play place may be free in price, but their corporate goals are to create return shoppers for decades to come.

3. Talk with children about the messages they receive

Advertisers don’t tend to explain themselves to children. It’s not like kids are provided a consent form that tells them what advertisements can do to them. But the young mind is malleable. What makes children incredible sponges for knowledge also makes them susceptible to untoward marketing behaviors. As parents, guardians, teachers, and leaders, we can share some of the truth and help explain how companies aim to affect our emotions negatively (by manipulating us to feel nostalgia and happiness).

American College Students: In Debt, Distracted, And Doomed

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College Classroom Distracted With Macs

Being a teacher and instructor in college is more challenging than ever. Nervous eyes take glances at iPhones, quickly minimize Facebook apps, and craft rapid text messages. Students are unbridled in their distraction. They look uncomfortable sitting still.

As a college instructor for about 4 years, I’ve become increasingly aware of fellow educators expressing frustration over “lazy” students that multitask. Some educators ban smartphones and iPads during classes. Others call out students that text in class, and ridicule them in front of peers — aiming towards social conformity.

Unfortunately, technology is serving as a scapegoat for something worse. Teachers want to limit these technological forms of distraction to heighten learning for everyone, but this classroom management strategy misses a fundamental problem. Today’s students aredistracted, but their attention problem results from atmospheric student loan debt and poverty.

The American Dream and business of higher education

Built in to our ailing economy and concrete erections is a fundamental dream: hope for a better life. It’s why many emigrate here.

While achieving that success is attained through various methods, college still serves as the number one predictor of middle class life. High school graduates make a median salary of $651. By attaining a bachelor’s degree or higher, individuals make a median salary of $1,108.

BLS Educational Attainment Statistics

For decades, the message has universally been towards greater higher educational attainment. Generations of students, employees, employers have followed this rule — requiring college educations and encouraging people to get at least a bachelor’s degree. Now, about 32% of Americans have college degrees.

Guidance counselors ask high school and college-aged students to envision anything they want to accomplish. Fundamentally, they ask, “What do you desire?” and “What would you like to do if money were no object?”

But money is an object, and we are controlled by its properties — through empowerment or restriction. These questions of freedom tease students with a reality that doesn’t exist.

Student loans restrict, constrict, and destroy choice

Many will graduate with nauseating student loan debt. Heck, there’s $1.2 trillion right now! For class of 2013 college graduates, the average student loan debt was nearly $30,000. With that amount of debt and interest rates that vary from 3.86% to 7.21%, today’s graduates don’t have the freedom that’s espoused and propagated by higher education and mainstream media.

The problem gets compounded as “student tuition now outweighs state funding at public colleges.” Now, state taxes and revenue sources are contributing to even less of the total cost for students. This all flies in the face of socialistic policies in many European countries that have highly progressive, free (tax-supported) higher education.

Americans place the burden on students as young as 17 to make educated decisions that could affect the rest of their lives. Faltering in payments and failing to swiftly pay off the debt can lead to forbearance, default, skyrocketing interest rates on credit cards, and more. Credit scores and future livelihood are at risk.

Educating the desperate, sleep-deprived, and in debt

The interest is already ticking for many before graduation. Students can feel eager to get a job, get paid, and pay off debt. But even before they graduate, they must ask themselves some serious questions:

  • Should I work during college?
  • Should I take more than a normal credit load each semester to finish faster?
  • Should I skip study abroad opportunities that cost more and may extend my time?

Previous generations had the incredible luxury of minuscule tuition rates. Between 1978 and 2013, college tuition and fees grew by an overwhelming 1,225%. Simply put, college cannot be paid for with summer jobs and temporary work.

To the financially disenfranchised, student loans fill the gap for access. But there are still students that work during college. I had two jobs while also a full-time student, and there are many like me.

Then, there are students with disabilities, children, and veterans of foreign wars (to name a few). They are challenged to keep paying utilities, attain an education, and somehow keep a roof over their children’s heads. Again, student loans often serve as a mediator to accessing education — a temporary source of funding to attain a better income and vocational future. But real dreams can subtly disappear from view as financial aid bills take precedent.

Student loans magically appear, as do depressed dreams

Like many of my readers, I’ve worked hard to turn around my financial future. When I was in debt, I felt horrible. I spent money without concern and bought things I couldn’t afford. My debt was the illusion of success.

When I finally stopped to breathe in May 2013, I realized I had dug a hole nearly $40,000 deep. I was embarrassed with what I had done, and who I’d become. I wondered what I could do to reverse this dangerous course. Trust me when I say this is a common problem for many students.

Financial aid usually was deposited into negative balances at universities and then extra amounts were distributed to the individual student’s bank account. Suddenly, bank accounts were flush with thousands of dollars — budgets seemed irrelevant.

Everyone from the in debt to the creditors to general public confuses these loan instruments for real cash. Yes, you can spend student loans however you see fit, but the consequences are punishing. Every dollar is taxed by the current loan interest rate, and is a dollar in the wrong direction: towards poverty.

The problem of poverty in college-age students

Unlike the clarion calls that suggest America is number one, we seem to have created a master plan for educational failure. Research suggests that “poverty, itself, hurts our ability to make decisions about school, finances, and life, imposing a mental burden similar to losing 13 IQ points.”

By saddling our future graduates with nearly $30,000 in average student loan debt and a future of near poverty for many, we are hurting their ability to learn in the process. Lower-income and impoverished populations constantly report lower amounts of sleep, vocational uncertainty, higher stress, and show evidence of hindered decision-making capabilities.

These are the students of today. They are trying to succeed in a cultural landscape that begged them to get educated, punished them for getting that college degree with years of debt payments, and then limited their employment options.

As the dreams fade due to financial concerns, anxiety and distractedness likely increase. The dream of “What’s your purpose?” can quickly be replaced with “Who will hire me?”

We want bright, capable graduates, but we “victim blame” them instead

America is eager to have the best workforce in the world. We are a nation that aims to be a beacon of hope and role model to developing states. And yet, we are breeding and cultivating some of the most in debt, distracted, and impoverished students.

It’s not in the interest of this country, the world, and future progeny to continue this wicked cycle of educational attainment and poverty. It’s not in the interest of creating a bright, educated populace to have them cowering in poverty for doing so. It’s not in the interest of America to impair decision making in finances and education in the process.

As teachers express frustration for their distracted students, they need to fundamentally understand the complex, systemic interplay of student loan debt. This financial instrument is inherently complex and can psychologically impair the most capable students. They might not be able to pay attention because they’re burdened by a future of poverty, student loan debt, and restricted opportunities.

Something needs to change. This system isn’t sustainable. Fortunately, a small light of hope might be on the horizon.

Post by The White House.

President Barack Obama recently announced a massive initiative to empower those from diverse financial backgrounds to receive a “free” education. His plan includes funding community college educations for those working part-time and maintaining certain educational requirements. Over the coming months this will be hotly contested and debated. But this is the first step, in what needs to be many, for those in need of an education that’s truly accessible and affordable.

Students cannot continue to shoulder most of the burden. There are powerful inequalities in income and wealth — educational opportunities shouldn’t be one of them. If we can muster the courage and wherewithal to increase taxes towards education, we may see what America is truly made of.

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