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“We Are Rich Because They Are Poor.”

By Frugaling 13 Comments

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Norway could be heaven on Earth

Norwegians have an average life expectancy of 81 years, income of $58,810, and one of the best education systems in the world. With a highly social tax system, Norwegians benefit from incredible health care, free college opportunities, and more paid time off when compared to most of the world.

Other than brutal winters, Norway is a near-utopian country with a smaller divide between wealthy and impoverished. There’s incredible privilege in this economy.

A Norwegian newspaper, Aftenposten, decided to select three prominent fashion bloggers — Frida, Ludvig, and Anniken — to journey to Cambodia. These bloggers obsess and pour over the latest fashion trends. They write and photograph their latest finds for the world to see. Additionally, they make money from their features through advertisements and endorsement deals.

Welcome to Cambodia!

Aftenposten wanted to expose these bloggers to the garment workers on the other end of the manufacturing industry for their favorite clothes. As many of the worst worker conditions and best trade relations are in South Asian countries, they selected Cambodia.

With personal cameras, beaming smiles, and naive curiosity, these three traveled to Cambodia to “discover” what garment workers’ jobs are like — for a month. Almost instantly after they landed in the foreign land, they remarked about how they expected more “shops,” cleaner markets, and cheaper food prices.

They immediately experienced culture shock — from privilege to poverty in one flight.

Wages that keep people in poverty

Over the course of the next five episodes, the three explore their neighborhood and interview garment workers. The first, Sokty, tells about making around $3-4 per day. She usually works 7 days a week, and often works from 7 AM to 8 PM.

Sokty sleeps on her floor, covered in some blankets. Her shower is a bucket, where she pours water over herself. She has a clothes line that is about 5 feet long and has a few shirts.  She can’t afford to buy the clothes she sews.

There’s a TV, and some photos are pasted to her walls. To many Americans, this austerity and poverty is likely uncomfortable. Societally, we tend to rationalize away these discomforts, rather than face them.

Empathy through exposure

Anniken initially appears uncomfortable, but explains away this feeling by saying they don’t know any better/different. Further, she points out that these Cambodian garment workers are probably used to it, and that’s why they’re okay with this disparity.

Without even a sliver of remorse, sadness, or regret, her explanation weighs heavy for the remaining episodes. They’re a harbinger for a painful self-discovery of ignorance.

See, as the month-long journey flies by, the group becomes increasingly aware of their false assumptions and prejudices about garment workers in far away places. They realize that these people deserve better. And that they — as fashion bloggers — have a role in changing it.

Sometimes it’s as simple as exposure. By accepting the request to appear in a reality series, these three Norwegians grew immensely. One aspect that seemed to change their understanding was trying to buy a dinner on three garment paychecks for the day ($9 total). They cooked the most basic food, which was heavily watered down to feel like more.

“We are rich because they are poor.”

By the conclusion, their voices were unified in disgust and shame for their buying habits. They suddenly realized the consequences of their shopping habits. The Norwegians wrapped up filming with a new resolution: go back home and share their story with others. Ultimately, they wanted to pressure major clothing retailers to choose more worker-friendly locations, paychecks, and rights.

Repeatedly, Ludvig noted how their lives were great in Norway, because theirs (Cambodian garment workers’) “suck.” His words spoke to the fundamental horror of capitalism: where one succeeds, another falls.

We’ve set up a system of trading and exchange, where some people’s money goes further than others. There’s a reason most of our clothing is manufactured elsewhere, and it’s not because they have vastly more productive workers — they just have fewer restrictions and depressed incomes.

That’s not a solution for a fair, just society.

Here are three ways we can correct these inequalities:

1. Support retailers that pay laborers living wages
2. Petition/write companies and Congress to support living wages
3. Prefer local clothing companies, where possible

Filed Under: Social Justice Tagged With: Cambodia, Clothing, Income Inequality, Norway, poor, poverty, rich, Social Justice, trade, Wealth

How Income Inequality Created The Vilest Empathy Gap

By Frugaling 5 Comments

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Mansion The New Rich Middle Class War
Photo: jorge lascar/flickr

Trickle-down economics worked — for the wealthy

Over the last few decades, incomes have become disproportionately unequal. Large amounts of wealth are hoarded by the 1%, with trickle-down economics failing to provide shared gains we were promised. The average employee makes a small fraction of their executive counterparts.

We know America has terrible income and oligarchic-level wealth inequities. We know that Citizen’s United and other lobbying efforts make the wealthier voices louder.

As the rich get richer and poor get poorer (or stay poor), a rigidity formed. Lower income populations largely stay in lower income towns, jobs, and levels of education. Meanwhile, higher-income populations largely stay in gated neighborhoods, choose what education options are available via economic and geographic means, and enter higher-income vocational networks (i.e., “Hey, your dad helped me get this job!”).

But honestly, we already knew this information. What we fail to grasp is how income inequality shapes us psychologically — the wealthy and impoverished, alike. This level of economic stratification is decades in the making, but we are just beginning to see how this affects well-being and treatment of others. With huge differences in wealth and declining social-class mobility, an income-empathy gap has developed.

Income and wealthy inequality led to an empathy gap

Empathy is defined as the “ability to understand and share the feelings of another.” This feeling can occur with pets, family members, and even fictional characters from favorite novels. Empathy is built, maintained, and formed by our experiences in life. These feelings motivate us to volunteer at soup kitchens, donate to charities, and serve each other. The least empathic among us are traditionally called violent and/or antisocial, as they do not exhibit or understand the pain they cause to another (i.e., terrorists).

As incomes diverged and wealth generation stagnated for lower-income populations, this income-empathy gap widened. People in higher incomes now struggle to empathize and provide for lower-income groups. Propagated on every medium, statements by the fortunate few and privileged sound like this:

Poor people are poor because:

  • “…they buy iPhones and eat out too much.”
  • “…have too many children.”
  • “…make terrible life choices.”
  • “…they are lazy.”

Trust me, the list goes on, but it’s the same mythical vitriol — over and over again. I needn’t perpetuate and propagate these economic mad libs any further. While some may be lazy, frequent iPhone buyers, these messages typecast and discriminate — they’re only used to harm. The voices are judgmental and painful to those in lower-income populations. They’re pejorative and denigrating, and exemplify a true lack of empathy for someone suffering economically.

Poverty shaming doesn’t solve the problem

We know that negative voices can harm others, and yet we keep doing it. For instance, individuals with obesity and weight concerns frequently hear similar messages, which are fail to provide empathy:

  • “Lose the weight fatty!”
  • “Have you thought about putting down the Cokes?!”
  • “You’re so fat!”
  • “Thought about going on a diet any time soon?!”

The research suggests that when you fat shame, individuals don’t suddenly lose weight. In fact, they may gain more. Potentially, income and wealth shaming may do the same thing; thus, making it more difficult for an economically disenfranchised individual from making better choices.

Okay, so shaming doesn’t work, and yet privileged people are using these same tactics with lower-income populations. Why then must a well-off person denigrate, disable, hurt, harm, and verbally accost another? What motivates someone to yell flagrant economic “advice” to someone already struggling to make ends meet? How could they actually help another in need?

Unfortunately, these answers all trace back to the income-empathy gap. After decades of growing social-class stratification, income inequality, and wealth gaps, we are a country in need. But ironically we don’t need more wealth. Instead, America needs more empathy.

To steal and modify a line from Uncle Ben of Spiderman, “With great wealth comes great responsibility.” The economically well-off and privileged have a tremendous opportunity to help those disenfranchised — even beyond charitable giving. It starts with being able to reach out your hand to support another.

How to truly help impoverished and disenfranchised

If you’re wealthy, you may be upset that there are homeless people sitting outside your favorite restaurant. Just know that yelling at that individual to “get a job” won’t ever help as much as providing tax revenue for mental health services, job training and placement offices, and drug and alcohol treatment centers. Just know that typecasting a “ghetto” or “lower-income neighborhood” as a bunch of hoodlums will never help as much as serving that community’s churches, food banks, and schools.

Potentially (and hopefully), if our income-empathy gap closes, so to will the income and wealth gaps. We have a terrific opportunity to change the status quo and shed these antiquated ideals for something better.

We live in a great, prosperous nation that was created for us all — the present person and future immigrant. By closing these gaps, we will all benefit.

Filed Under: Social Justice Tagged With: Elite, empathy, gap, Income Inequality, Occupy Wall Street, poor, poverty, rich, unequal, wealth inequality, Wealthy

8 TED Talks That Will Inspire You To Become A Minimalist

By Frugaling 18 Comments

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Zero Inbox Emails Minimalism
Here’s a screenshot of my email account with zero emails! Happens twice a year. 🙂

I call myself a “frequently failing, but always aspiring minimalist.” There’s a powerful consumer drive inside of me, but I work effortfully to reduce its hold. Sometimes that means going to a store and picking up an item — temporarily — and then returning it to another shelf. I can be captivated by new things — quickly dreaming of what happiness they could bring.

When I’m really struggling to save money and stay minimalistic, I return to some favorite role models’ messages. The following are 8 of my favorite TED Talks on the subject of minimalism, living with less, and learning to love yourself in the process. Hope you enjoy!

1. Jon Jandai: Life is easy. Why do we make it so hard?

2. Mark Boyle: The Moneyless Man

3. Graham Hill: Less stuff, more happiness

4. Grant Blakeman: Minimalism — For a More Full Life

5. The Minimalists: A rich life with less stuff

6. Adam Baker: Sell your crap. Pay your debt. Do what you love.

7. Angela Horn: The Less You Own, the More You Have

8. Amy Henion: How can tiny houses offer the ultimate freedom to our generation?

Filed Under: Minimalism Tagged With: anti-consumption, Consumer, debt, less stuff, Life, Minimalism, minimalist, money, rich, tiny houses

Picture The Life, Not The Millions You Want

By Frugaling 3 Comments

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Rich Kids of Instagram photo
Photo: Rich Kids of Instagram

There’s a powerful allure to the “self-made millionaire.” Across vocations and incomes, some of the most viral and popular articles in the personal finance world provide how-tos to readers. And if they’re not step-by-step guides, articles tend to showcase people who’ve succeeded in their path to great financial success.

The lesson is simple: watch and learn. View a role model, and copy the steps to success. Seemingly, this is propagated as a convenient and regular method for monetary gain. Unfortunately, every individual is different — from intelligence to net worth to credit rating. Each of these factors can influence your ability to hustle and follow in these role models’ footsteps.

Too frequently, affording a lifestyle is purely linked to income and wealth. That goal of riches seems empty to me, what do you think? What if we reversed this strange paradigm and reviewed the life, rather than money, we want?

Today I wanted to introduce a new method for success that downplays the millionaire status for something more lasting and rewarding. The following are 5 key elements for a fulfilling and happy life, and may just provide the riches along the way!

Photo Rich Kids of Instagram
Photo: Rich Kids of Instagram

1. Freedom. This is continually at the top of the heap for financially savvy worker bees. Freedom allows for free time, family time, and fun time. Often, more work and income are seen as the pathways to this goal. This ironically can propel us further from freedom and enter into a vicious work-cycle that only perpetuates our desire for more down time. When we scrub away goals of financial riches, freedom and time become crystal clear. Reduce any discretionary spending (if possible), and you’ll suddenly see more money in your pocket — all while maintaining and/or reducing time spent working. Now, you can read that book with your newfound free time (just make sure to check it out of the public library)!

2. Autonomy. People love choice and independence. Heck, as children, our first words are usually “yes” and “no” (right after “mom” and “dad”). We are born, bred, and instructed in the world of autonomy. Imagine for a moment the toothpaste aisle. Can you picture all the options, rows, columns, and sale items? Every time I walk by the toothpaste I’m bombarded by the variations — uncertain where my money is best spent. With more money, we get more choice. With riches, we are able to choose grander items — upgrading from a Ford Pinto to a BMW 7-Series. But this is the unfortunate influence of massive advertising dollars. Will the BMW 7-Series make a fundamentally whole and self-actualized person? Unlikely. And that brings us to the original point of this list: fulfillment. Let’s make fulfilling decisions that last, not spontaneous purchases that fill wants and cravings.

3. Self-worth. The things we own tend to say a lot about us. There’s actually a professor, Sam Gosling, that wrote a book called Snoop: What Your Stuff Says About You. He points out some pretty self-explanatory conclusions about your living spaces. Your home represents you, and can often provide a sense of self-worth. Remove your items, and who are you? Really, I mean it… Without your iPhone, Macbook Air, furniture, photos, and material goods, tell me about yourself. Can you do it? I bet you can, because your self-worth and personhood is bigger than anything you own. After years of shopping sprees and poor financial planning, I realized that once I stopped spending wantonly, my self-worth soared. This is an intrinsic trait that requires inner worth and work — your bank account will never provide true self-worth.

Photo Rich Kids of Instagram
Photo: Rich Kids of Instagram

4. Health/Safety. There are countless examples of wealthy people having bodyguards and security teams. Their money is frequently seen as a path to safety. But this is comically out-of-whack, as the wealthier you become, the more threatened you may feel. Frankly, the stories of billionaires being kidnapped for ransoms should scare anyone. What this tells us is that there’s a middle-ground for wealth and safety. The safest and healthiest levels seem to center on getting your health needs met and living in a proper shelter. Again, this doesn’t require millions.

5. Companionship. I dream of hosting lavish parties in a loft apartment; preferably, encapsulated in the clouds with glass windows. Something modern to look out at the world. What my heart and head is really getting at is a desire for friends and companionship. It speaks in funny ways, when it desires these simple pieces of fulfillment. Companionship and connection with other people is fundamentally human — we are social creatures. But money isn’t necessarily required for that. Sure, you may not look like the Rich Kids of Instagram, floating on a yacht full of tanned 20-somethings, but there are people who care and will be around when the going gets tough; again, regardless of the digits in your bank account.

Filed Under: Save Money Tagged With: Autonomy, Billionaire, Choice, Companionship, freedom, health, Millionaire, rich, Rich Kids of Instagram, Riches, RKOI, Safety, Self-worth, Wealth

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