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Opinion Editorials

For the first time, U.S. kids won’t outearn parents – but does it really matter?

(EDITORIAL) Does it really matter that the American Dream is supposedly dying? Let’s discuss generational earning and dreams.

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millennial generations

Trouble for younger generations

The American Dream depends on future generations being better off than those that preceded them, but new data released by the Equality of Opportunity Project suggests that idea may have faded away years ago. While some are praising this new finding as eye-opening and revolutionary, it wasn’t hard to see the data coming.

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The study comes from a team of sociologists and economists at Stanford, the University of California, Berkeley, and Harvard. It suggests that only one half of American 30-year-olds will earn more money than their parents did at the same age. “It’s basically a coin flip as to whether you’ll do better than your parents,” said Stanford economics professor Raj Chetty in a news release.

A gradual decline

The study also found there has been a gradual decline in the likelihood that a child will outearn their parents by age 30. This dropped from around 90 percent of children born in the 1940s to just about 50 percent for children born in 1985. While this trend is national, Chetty explained the largest drops occurred in the eastern Midwest, especially in industrial states like Michigan and Illinois. All these statistics, while disappointing, should not come as a surprise.

A slowdown in GDP growth is a partially blamed for this trend, but the concentration of wealth increase among the rich is a more significant factor. While some pockets of America may be getting richer, the middle class is not benefiting from economic growth.

Today, the top 1 percent of America earns 81 times more than the bottom 50 percent, compared to 27 times more in the 1980s.

Traditional GDP growth simply does not have the same impact it once did.

The decline of the American Dream

David Leonhardt of the New York Times called the Equality of Opportunity Project’s findings “deeply alarming,” and others have echoed his sentiment. But for young Americans like me, this report simply serves as more evidence of something we grew up knowing. A coincidentally parallel statistic came about in 2015, when the Harvard University Institute of Politics found that 48 percent of 18 to 29-year-olds felt the American Dream was already dead. In the end, the Equality of Opportunity Project ended up reinforcing something we already knew about our country, our education system, and the future of younger generations.

Ultimately, working to curb the declining possibility of income mobility will come from focusing on policy actions that will lead to widespread economic growth. For many young Americans, it’s no surprise that the keys to financial success are access to good schools, from early childhood education to college. Equal investment from the government in the wealthy and poor alike is also a key factor.

As high-paying jobs move to the globalized, high-tech economy, a good first step is to help more young people acquire the skills that will help them qualify for these jobs.

President Obama passed incentives like the Computer Science for All initiative to address these issues. Introduced in his 2016 State of the Union Address, the initiative would lead to “offering every student the hands-on computer science and math classes that make them job-ready on day one.” This went along with other initiatives, pushing for the importance of improving all schools and working to reduce student debt following college. Now, following the election, it seems like there may be less incentive to make change.

The murky road forward

While President-elect Trump campaigned as a fighter for the people, I think his plans for economic growth that may work to help propel younger generations are few and dubious. Still, the study concludes that “cities with high levels of upward mobility tend to have five characteristics: lower levels of residential segregation, a larger middle class, stronger families, greater social capital, and higher quality public schools.” At least the study has laid out some sort of plan of what may help.

Ultimately though, the Equality of Opportunity Project research may be most helpful in helping young Americans realize that the notion that every generation should earn more than the previous is fundamentally flawed. The idea that we need to make more than those before us, or even those around us, is likely what got us in this mess in the first place, and what may at least temporarily keep us moving in the wrong direction.

#GenerationalSuccess

Brian is a staff writer at The American Genius who lives in Brooklyn, New York. He is a graduate of Washington University in St. Louis, and majored in American Culture Studies and Writing. Originally from California, Brian has a podcast, "Revolves Around Me," and enjoys public transportation, bicycles, the beach.

Opinion Editorials

Remote work is here to stay: The benefits are just too good to overlook

(EDITORIAL) Employees scream it from the rooftops and businesses don’t want to admit it: Remote work is just too beneficial to pass up- and here’s why.

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Work from home written with scrabble letters.

Remote work has been rising in popularity in the past several years. Especially following the COVID-19 global pandemic, more companies saw significant benefits for both their business and their staff that went beyond the realm of finances by allowing remote labor.

Less happily, many people lost their job during the pandemic, but they ended up having more time to put toward their passions or were compelled to get creative with their remote business ideas to ensure a consistent stream of income.

If you remain on the fence about allowing your employees to work remotely, or are considering a career shift yourself, take a look at the top four benefits of working remotely, which may sway your decision.

Better Overall Quality of Life

Allowing your employees to work remotely doesn’t necessarily mean they work from home full time. There are benefits to having your employees work in an office part of the time – say, two or three days – and working from home, in more familiar surroundings, the rest of the week.

In this way, your workers enjoy some freedom and independence while retaining the ability to interact face-to-face with their peers. That provides human interaction, which can play a substantial role in terms of improved mental health for your staff.

Happy employees means healthier employees, which can save your outfit money in the form of healthcare costs and lost productivity. But we will get further into the cost-saving benefits a little further on.

If you’re a remote worker, you should see yourself becoming significantly more productive. But why would this be the case if you don’t have a manager over your shoulder watching your every move?

It’s true that when employees have a greater sense of independence, they also experience a significant sense of trust on the part of their employers and managers. This is one of the huge benefits of working remotely because it has a trickle-down effect on the quality and overall production of people’s work.

Can Work Anywhere with Internet

Whether you are a small business owner or have crafted your work to tailor toward a life of remote labor, this is an opportunity for someone who has dreamed of being a digital nomad. You have the ability to work anywhere in the world as long as you have access to the Internet. If you love to travel, this is a chance to spend time in various places around the globe while continuing to meet your deadlines.

Multi-member Zoom call on a Apple Mac laptop with a blue mug of black coffee next to it.

Set Your Own Hours

In some cases with remote businesses, you have the freedom to set your own hours. Content writers, for instance, tend to enjoy more flexibility with regard to when they work because a lot of what they produce is project-based rather than tied to a nine-to-five schedule.

When you’re a business owner, this can be incredibly useful when you outsource tasks to save money. You can find a higher quality of performance by searching for contractors anywhere in the world and it doesn’t limit you to workers who live near to your office.

Saves Everyone Time and Money

 In the end, remote work typically saves money for every person and entity involved. Businesses save costs in terms of not having to pay for a physical space, utilities, Internet, and other expenses. This allows you, as the owner, to spend more of your income on providing quality software and benefits for your employees so your operation runs more smoothly and efficiently.

According to FlexJobs, employees or remote business owners may save around $4,000 on average every year for expenses such as car maintenance, transportation, professional clothing in the office, or even money spent dining out for lunch with coworkers. Eventually, the costs add up, which means extra money in your pocket to take that much-needed vacation or save up for a down payment on your first home.

These benefits of working remotely only skim the surface. There are also sustainability factors such as removing cars from the roads and streets, because people don’t have to travel to and from an office; or employees missing fewer workdays since they have the ability and freedom to clock in from home.

Weigh the pros and cons as to whether remote work is right for you as a business owner or online professional. You might be surprised to find that working from home for more than the duration of the pandemic is worthwhile and could have long-lasting benefits.

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Opinion Editorials

Learning in the workplace: An exploratory mindset can foster efficiency

(OPINION) A typical business model is to run a tight ship with fear of inefficiencies, but cultivating learning can bring the best out of organizations

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Left side of brain showing calculations and right side of brain with colorful paint, resembling creativity and learning.

Despite living in an ever-changing world, many people assume that learning, be it academic or vocational, more or less stops with the conclusion of formal education. Harvard Business Review’s John Hagel III posits that an exploratory mindset, rather than fear, is the most effective way to cultivate an ongoing interest in learning – something that, as Hagel reveals, is more beneficial to a modern world than business owners realize.

Inefficiency is perhaps the most common fear of any business owner, and for good reason- Efficiency is tied directly to profits. Because of this, the majority of industries focus on establishing protocols, training employees rigorously, and then holding them to their prescribed models of operation.

And while those models can be extremely restrictive, the fear of inefficiency prevents employers from fostering creativity and personal learning, prompting some to go so far as to penalize employees who color outside of the lines. Indeed, Hagel describes one such interaction affecting an acquaintance of his: “As someone who was excited about improving the company’s supply network, she created and began testing a new intake form to assess supplier reliability.”

“She was fired for not using the standard procurement forms,” he adds.

But Hagel’s acquaintance wasn’t acting maliciously, at least by his description; she had simply identified a bottleneck and attempted to fix it using her own expertise.

We’ve written before about the importance of trusting one’s employees, implementing flexible procedures, and even welcoming constructive criticism in the interest of maintaining efficiency in a growing market. This is exactly the point that Hagel drives home – that holding employees to standards that are optimized for maximum efficiency discourages flexibility, thus culminating in eventual inefficiency.

“In a rapidly changing world with growing uncertainty, front-line workers find themselves consuming much more time and effort because they have to deviate from the tightly specified processes, so scalable efficiency is becoming increasingly inefficient,” says Hagel.

The irony of rigidly efficient practices inspiring inefficiency is clear, but the process of moving away from those structures is fraught with missteps and a general lack of understanding regarding what truly motivates employees to seek education on their own.

Let’s be clear: No one is advocating for a Montessori approach to work, one in which employees spend more time licking the walls and asking questions about the sky than they do attending to the tasks at hand. But employees who have been encouraged to explore alternative solutions and procedures, especially if they are supported through both their successes and failures, tend to be more ready to “scale” to increasingly changing demands in the work environment.

Ultimately, those employees and their expertise will create a more efficient system than all of the best-thought-out procedures and guidelines one can muster.

“Cultivating the passion of the explorer enables innovative thinking in the organization at a whole new level,” Hagel summarizes. “But harnessing that opportunity requires us to move beyond fear and to find and cultivate the passion of the explorer that lies waiting to be discovered in all of us.”

It is both Hagel’s and our own hope that businesses will find ways to appeal to that same exploratory passion – if not because it is in the best interests of employees, then, at least, in the name of improved efficiency.

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Opinion Editorials

Art meets business: Entrepreneurship tips for creative people

(EDITORIAL) Making your creative hobby into a business is an uphill battle, but hey, many other people have done it. This is how they crested that hill.

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creative artist doodle

If the success of platforms like Etsy has proven anything, it’s that creative people can launch successful businesses, even with relatively few tools at their disposal – and for many hobbyists, this is the dream. That doesn’t mean it’s easy, though, and what pushes someone from creator to businessperson can be hard to pin down. In one study, the determining factor was encouragement by family and friends. Others make a slower transition from hobby to side hustle to full-time employment in the arts. Whatever the motivating factors, though, artists interested in becoming entrepreneurs need to hone an additional set of skills.

It’s All In The Plan

From one perspective, artists know how to follow a plan. Whether we’re talking about a knitter who can work through a pattern or a novelist outlining a chapter and building characters, creative thinkers also tend to be very methodical. Just because someone can create or follow a plan, that doesn’t mean they know how to develop a business plan. Luckily, there are plenty of guides to starting a business out there that contain all the basic information you’ll need to get started.

Business development guides are full of valuable technical information – what paperwork you’ll need to file, the cost of licenses, and other similar details – but they can also help you answer questions about your goals. Before you can even start writing a business plan, you’ll need to consider what service or product you want to offer, who your clients will be, and what differentiates your product from others out there. This last question is more important than ever before as more people try to break into creative fields.

Assess Your System

Once you know what your business goals are and what products you’ll be offering, you need to consider whether you have the ability to scale up that operation to fulfill market demand. There aren’t very many art forms that you can pay the bills with fulfilling commissions one at a time. The ability to scale up the artistic process is what made the famous painter Thomas Kinkade so successful during his lifetime when many others have failed. For the modern artist, this might mean asking whether you can mechanize or outsource any of your activities, or if you’ll be doing only exclusive work for high-paying clients.

Find The Right Supports

Every business needs support to thrive, whether in the form of a startup accelerator, a bank loan, a community of fellow professionals, or some other organization or resource. Artists are no different. If you’re going to develop a successful creative business, you need to research and connect with supports for working artists. They may be able to help you access tools or studio space, get loans, market your business, or connect you with a receptive audience. These groups are expert repositories of information and you don’t have to be in a major city to connect with them.

Find Professional Partners

You’re a talented artist. You have a vision and a plan. That doesn’t mean you have to go it alone – or even that you should. To build a successful creative business, you’ll want to partner with people who have different strengths. Not only will these people be able to lend their expertise to your operation, but they’ll make you a better artist and entrepreneur by lending a critical eye to your approach. Just like a major corporation won’t thrive if it’s composed of yes-men who are just along for the ride, your creative undertaking needs internal critics whose ultimate aim is to support you.

Stay Inspired

It’s easy to get bogged down in business logistics and lose your creative spark. In fact, that’s why many artists are reticent to monetize their work, but you shouldn’t let that fear hold you back. Instead, put in the effort to stay inspired. Read books about art and creativity, keep a journal, or go to museums. Experiment with new forms. Be willing to push your own limits and know that it’s okay to fail. Many businesses that aren’t tied to creative output flounder and struggle to find their way, and there’s no reason your business should be any different. Still, the surest path to failure is stagnation and losing your spark. That’s worse for any artist than a sloppy business plan.

Artists are often told that they aren’t meant to be entrepreneurs – but the most successful businesspeople are creative types, even if they aren’t typical artists. Use that outside-the-box thinking to your advantage and make a splash. If you want to do more with your art, you owe it to yourself to try.

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