The Economy: Searching for Answers

It’s July 4th and all’s well—I guess.   I don’t want to give a hearty amen to this statement because I have been reading Business Week.  So many questions, yet so many incomplete or less-than-hearty answers.

Have you noticed the lack of commitment by all the business experts?  Here’s an example, “All this austerity will pay off—eventually.”  Or Jack and Suzy Welch’s answer to the question “When will this *@&^ recession end?”  They answered, “How about sometime in 2010?  The problem with being more precise, you see, is the mixed picture out there.”

I would agree with that.  But just give me a straight answer.  I want to know whether the stimulus plan is working—plenty of hemmin’ and hawin’ when it comes to an answer to this question.  How many more banks will fail?  It depends on how you define “fail.”  Is there any hope for the automobile industry?  Maybe if they can come up with new and exciting products.  When will unemployment stop rising?  We may be near the bottom of readjustment, so we should see this trend slowing.

There is one question from this issue of Business Week that reveals where the American public seeks an answer.  They are seeking their answer from the White House, which may indicate that we are drifting toward increasing reliance on our federal government to solve everything.  The question:  “What one issue would matter most in your presidential vote?”  Over 50% of the respondents to the Pew Research Center poll answered, “Economy/Jobs.”  Moral values rated, but only at 10%.  Compare these figures to the same poll in 2004.  Terrorism/Iraq/Afghanistan garnered 36%, the economy 21%, and moral values 27%.

Of course the economy would rank higher in this year’s poll.  And it would seem reasonable for Terrorism/Iraq/Afghanistan shrinking to 8% as we move further away from 9/11/01.  My concern is the shrinking emphasis on moral values.  Just take a look at some of the moral issues we see around us, in particular among political leaders.  If we can’t have politicians who know how to act responsibly on a personal level, then we likely will not have politicians who can address major issues with the economy in a responsible manner.

We need men and women who will serve this country with dignity, that will set a proper example for the next generation.  Yes, the economy is perhaps the most significant issue of the day.  But let’s not throw out our morals.  This might just be the time when we consider that the really important things in life are the intangibles.  Our lives will be the richer for it.  Oh, and happy July 4th!

Stick With the Basics

Staying current makes for a tiring pursuit.  I mean, there are so many avenues of information out there and we need discernment to know which path to take.  Nevertheless, I continue down some path each day that leads me to thinking about topics with relevance to both our generation and the next generation.

One such topic is making a living.  Yes, that thing we do upon finishing some level of education and enter the real world.  Maybe this is a Westernized notion, but we do need shelter and food on the table and the means to getting this here in the U.S. is through a job.

From some of my reading, I sense there is a redefinition of “making a living” in the works.  Particularly among the next generation, there appears to be a type of entrepreneurship going on that espouses linking a new startup venture with some technological discovery that will make millions.  For example, the rush to create new applications for the I-Phone seems to be a particularly ripe area for making money these days.  The number of new applications does appear to have a limit though.

Some like to refer to these entrepreneurs as “heroic,” that is, someone who ventures away from the common path to seek a new path of riches perhaps driven by a vision to make the world a better place for all of us.  Now this might be a stretch.  Can an I-Phone app make for a better world?  These things have a life span, you know, and they ultimately end up being replaced by something newer, faster, slicker.  Last time I checked my world was just fine even before the I-Phone.

This brings me to the point for the next generation—stick with the basics.  Begin by asking questions like, “What are the basic things needed in my life, the lives of the typical person or family here in this country?”  Or, “What are the basics for a successful business?”  We have pushed to the edge so much in recent years that I fear we have gotten away from an understanding of the basics.

Perhaps this is further clarified through a Proverb I read this morning.  “He who works his land will have abundant food, but he who chases fantasies lacks judgement” Proverbs 12:11.  Fantasies refer to schemes for making easy money.  Is that where we are today with the scads of schemes for making a buck on the web or with these unending myriads of applications for electronic devices?  Again, you can only carry these things out so far before they end up consuming the consumed.

The notion of “working the land” is what I would refer to as a basic.  Working the land implies a steadiness, a knowledge that there is a God who provides me something to do with my hands and helps me in this daily act of “making a living.”  If you work the land, you are dependent on good weather and regular attention to caring for the things you planted.  It seems that some of the next generation want to bypass the planting and get on to the reaping.  That is a rather short-term view.

Let’s return to the basics.  It may be more satisfying than you can imagine.

Are Jobs the New Assets?

Time Magazine, along with other media giants, deserves credit when they get our attention.  After all, isn’t that what communications is all about?  In the March 23 edition, the headline read “10 Ideas Changing the World Right Now.”  I looked at the headline curiously, wondering if the ideas would solve all of our economic issues or if they were just speculative enough to prompt further analysis from experts and amateurs.  If you are curious, check out the article to see where it leads your thinking—here is a link.

At the top of the list, Number 1, was this:  Jobs are the New Assets.  Was this supposed to make us feel better about the dwindling property and investment values we see around us?  Or was this a step toward some economic theory about human capital?  Maybe it’s a little of both.  It’s probably time to get out your Econ 101 book and revisit the section dealing with human capital.

The idea deserves merit.  Jobs define us, they give us an identity.  No longer will I look at my balance sheet for purpose in my life, I will look at each day with a job as something precious.  Is this too much a short-term perspective?  No, I think this thought contributes to the long-term notion that jobs represent the best assets a company holds.  If you have jobs, you have production.  If you have jobs, you have billable hours.  The corporate world lacks this long-term perspective when it rewards risk-takers with large bonuses at the expense of a steady, perhaps slower view that rewards dedication, dependability, and long-term value building.

Part of the next generation’s challenge with jobs will be to protect their human capital.  Don’t overlook the fact that skills require development.  Education helps.  An apprenticeship makes sense.  You can’t sit around in coffee shops day after day and expect to develop your human capital.  Get up and get moving toward some vocational outlet that intrigues you and maintains your interest.

Another thought about protecting your human capital’s worth:  stay healthy.  Years of smoking and drinking age you quickly.  Look at someone who does this stuff for 20 years and you’ll see the wear and tear on their physical bodies.  The scary part is not what you see, but what you don’t see.  Statistics from the Urban Institute in early 2009 show that about a third of all Americans develop some health-related limitation in their fifties and sixties.  As a result, many workers do not retire on their own timetable.

Some of the next generation seem to think they can ignore healthy habits.  It is strange, but many of those who call themselves “green” and seem more concerned about global warming than they do their own bodies probably lead the way in unhealthy habits.  The “greenies” tend to ignore their need for rest and use drugs and alcohol like they are necessary parts of a balanced diet (please excuse this short rant).

So, if you are your best asset, take care of yourself.  The next generation awaits.

What Would You Accomplish With Billions of Dollars?

I am watching with great interest the hoopla surrounding the “stimulus package” being offered by the Democrats in our U.S. Congress.  According to Daniel Henninger’s excellent analysis in today’s Wall Street Journal, this American Recovery and Reinvestment Act (just 700 pages of reading) is more a “self” stimulus bill than it is an economic stimulus bill because of how much would be spent on rebuilding the government’s infrastructure.  For example, the boast within the bill that says 3 million jobs will be created fails to clarify that these jobs will all be on our government’s payroll with the federal government as their boss.  Is this economic stimulus?  Sounds sketchy and a bit scary to me.

Whatever happened to zero-based budgeting?  You know, where we figure out what is needed first and then assign a cost.  It seems we have reversed this process to something like, “How much money can we spend or print?” and then let’s start putting everything into categories of spending.  We can’t operate our own homes this way.

I looked over some of the numbers in the stimulus package and have never seen so many zeros in all my life.   There is $6,000,000,000 for the construction, repair, and alteration of Federal buildings.  How about $375,000,000 to rebuild trails on our Federal lands?  Or we have the Weatherization Assistance Program chiming in at $6,200,000,000.  By the way, what is that $500,000,000 of expenses included within this?  No detail, just half-a-billion dollars of expenses.

Perhaps in contrast, I became aware that Wycliffe Bible Translators launched the Last Languages Campaign.  This campaign focuses on translating the Bible into 2300 languages that remain on their list of people groups without a Bible in their native language.  Bob Creson, President of Wycliffe, gathered their staff together to pray and plan this campaign.  It was fueled by a donor who asked the question, “If I gave you $100,000,000 for your work, what would you accomplish?”  This is cold, hard cash.  The Last Languages Campaign will enable all of these remaining languages to have a translation started by the year 2025.  The price tag is $1,000,000,000 (give or take a few dollars).

This represents billions of dollars that will accomplish something far-reaching on a scope that influences many people groups on the face of the earth.  It is not an “invest in ourselves” mentality like the Democrats are proposing, but rather an “invest in others” plan that will influence untold cultures and societies for the better.  The lesson for us, and for the next generation, is to look at how we invest in others and how we learn to be a conduit for good while we inhabit a short time on the face of this earth.  The present fades away, the eternal endures.  This must become our focus.

Madoff, Merckle, Wealth, and Suicide

Grim news hits hard. It appears that the unraveling of another business empire claimed a life this week in Germany. Adolf Merckle, a 74-year-old multibillionaire, apparently took his life after a failed attempt to restructure the finances of his family’s conglomerate.  Officials found his body on a train track.

I thought back just a month or so earlier to news about a French financier’s suicide in relation to the Bernard Madoff scandal. He oversaw a fund largely invested with Madoff that lost close to $1.5 billion.

There are others. On the same day as the Merckle news, The Wall Street Journal listed 4 apparent suicides of high-profile business officials occurring recently. WSJ probably figures obituaries sells newspapers these days.

How can we take this news and use it as a teaching point for the next generation?

First, let’s stress the importance of keeping your identity free from notions of personal wealth. This is nothing new, for it seems that men continue to yearn for the type of power and recognition that wealth has to offer.  A person’s identity needs something much greater than this earth has to offer.

Next, focus on developing quality relationships with balanced people. I wondered many times about the relationships these reported deaths have left behind. Are there family members with broken hearts? Any other friends who might come forward to share something positive about these men? Strange, such reports elude our attention.

Also, develop personal interests other than the ones money can buy. I can think of a few that require relatively little investment of money: reading (check out local libraries), gardening, cooking (you’ve got to eat), walking, listening to music, developing a skill, outdoor recreation, etc. Creativity helps. Don’t give in to notions that you are not creative.

Finally, cultivate your spiritual life. My personal relationship with Christ takes on new meaning when the media shouts the word “uncertainty.” I know what certainty is, and that is having a hope and a future because of the saving grace of God expressed through Jesus Christ. This makes life worth living, this gives life worth. This is the type of wealth you want to share with others.

Next generation, please realize that change rests with you. Notions of wealth reside within each generation, so ask God to help you change your heart and influence the hearts of others with true notions of worth.

Thinking About Fertility Rates, the Economy, and the Next Generation

A factor that gets little attention in the press today is the relationship of fertility rates to the economy.  This point struck a chord yesterday when I had the opportunity to hear economist Stuart Varney address a gathering of near 1000 accountants and financial professionals in Atlanta. With a bit of humor and unsettling reality, Varney explained why he thinks the fertility rates of the world should be of top concern.

A little background here—for a country to merely remain even in terms of population, it requires a fertility rate of at least 2.1.  There are 45 countries in the world that are well below this rate.  These countries include much of Europe, Russia, China, and Japan among others.  Translated, this means that population growth is negative for these countries.  The U.S. maintains close to a fertility rate of 2.1 only because of the number of immigrants here.  Of all the countries, the lowest fertility rate according to one report I read was in Spain, which was near 1.15.

Think this through with me for a moment in relationship to the economy.  An older, graying population that is living longer these days will need healthcare, housing, pensions, and other retirement benefits.  The model for providing these needs includes economic input from the younger generations.  If the populations are declining, who will help fund these needs for the older generation?

The governments think they can help. But again, with declining populations the tax rates must be much higher to even make a dent in these needs. Today, the governments sit in the unenviable position of trying to figure out the current economic crisis and it appears they struggle each day to fix on a strategy that is elusive.  The quest for a solution lingers no matter what is done.

When I observe the next generation, I see a generation less concerned with wealth creation and more concerned with solving the world’s issues.  I might suggest to them that the economy is one of the single-most important issues.  This is not to say that we want to preserve certain negative aspects of wealth creation, but that we want to consider how wealth creation enables us to address some of the other issues we face. I would ask, “What are the positive aspects of wealth creation?” This might help us adopt a better way to solve economic issues while at the same time addressing other complex issues.  The world is changing, and the next generation needs to be in a position to wisely lead when the baton is passed.  Let’s make sure we help them understand the times and extend ourselves as counselors and mentors.

Does God Want Me to be Rich?

I have wanted to comment on this for some time now, so now that we are mired deeper in this economic dilemma I have returned to an article on the ministry of Joel Osteen, “God Wants Me to Be Rich,” from the August issue of Conde Nast Portfolio.  Can everyone say, “prosperity gospel revisited?”

They are really packing them in at Lakewood Church in Houston.  Over 40,000 regular attendees swoon over the words of their “Reverend Feelgood” and why not?  Most of those regular congregants face high gas prices, swollen credit card balances, possible mortgage issues, and job insecurity.  We deserve to hear a great message of hope, to hear what we deserve, to hear an encouraging word on our situation.

But a closer look may reveal that Americans still look to Scripture for answers, especially to those large questions about their finances.  This is good—God wants us to look to Him for answers, for help, for trust, for mercy.  These represent those attributes of our Heavenly Father that make us run to Him over and over again through life.

Can one man soothe the suffering?  Does Osteen bring anything new to the plate that helps us understand the care of our Lord in these troubled times?  We might want to examine closely the words of all of our spiritual leaders as we move through this part of history together.  Do they invoke Scripture as support for their position?  Do they defer to the masses over tricky doctrinal issues that deserve closer attention?  Are they avoiding the issues in order to remain popular?

One thing for sure—many of our spiritual leaders today have perfected their “branding.”  Osteen made his brand the “inspiration brand.”   I am waiting to hear from someone who says he has been “branded by God.”

The next generation deserves better and we must encourage them to embrace a biblical perspective on the economy and their personal financial situation.  It seems easy to talk about what we deserve; it is harder to talk about what we should give up for the sake of the Kingdom.

Stewardship and the Ultra Rich

Conde’ Nast Portfolio published a feature article called “The Generosity Index” in their November issue.  This profiles the upper tier of philanthropy in the U.S., complete with a ranking of the wealth and generosity of billionaires whose giving is known to the public.  They are quick to point out that the list may not include billionaires who choose to do their giving in private (apparently a sizable number of the wealthiest choose to remain anonymous).  As Scripture says, do not announce your charitable deeds with trumpets (Matthew 6:2); I wondered if that was what they were thinking.

During this time of great economic uncertainty, the ultra rich could seize an opportunity to set an example of generosity.  But do they?  As I looked over the short profiles of these billionaires, I saw that their gifts were directed largely toward three areas:  education, the arts, and health care.  Poverty and the environment come in there in lower numbers.  Curiously absent from these profiles was any major giving to religious causes.  It almost seems that the ultra rich want to play God instead of lending their largess to those ministries doing the Lord’s work here on earth.

A theme that emerges from this article is that the rich give to try to outdo one another.  One fundraising consultant summed it up, “Successful men and women want to outdo other successful men and women.”  One possible result of this one-upmanship is philanthropic dollar inflation.  In other words, an eight-figure gift can’t get you any respect these days.  The consultants are saying you have to have a $100 million gift in order for your charity to upgrade.  The billionaires are coughing up more, but doing it over a multi-year period in order to get into the category of nine figures.

I have wondered many times whether philanthropy on these levels really accomplishes much.  It seems that billions have been spent in the name of finding cures, increasing scholarship, and defining quality in the arts.  What has been the lasting effect?  One has to wonder.  I remember reading something by economist and educator Howard Bowen written back in the 1970s that dealt with “the revenue theory of cost” in higher education.  Essentially, this theory stated that in higher education the costs will always rise in accordance with how much money can be gotten or raised. Bowen argued in his works that the economics of higher education centered not on profit motives, but rather on prestige and increasing the quality of students’ educational experience.  I would argue that prestige might be the number one factor in organizations seeking larger and larger gifts.  It seems the one-upmanship of the givers has been transferred to the charitable organizations they lavishly support.

Should the next generation look to these billionaires as embodiments of stewardship?  My thinking is that we might learn from these folks, but the true lessons learned are by being faithful with the amounts we have—whether large or small.  The Lord looks on the heart.  I wonder what the hearts of some of these rich look like and I hope that they one day might experience the heart change that Christ has to offer.  Let’s learn to give from the heart, and not from our desire to attract the admiration of men.

Ministry Development–Revisit the Fundamentals During Difficult Times

Bear Stearns.  Lehman Brothers.  Merrill Lynch.  WAMU.  AIG.  Just the mention of these stalwarts of American business and finance send thoughts of uncertainty into our minds.  The present climate of instability in our economy can make each day seem longer than it really is, at times gnawing away at our security if we place undue focus on the things of the world.

If you serve as a development person for a ministry, or even a board member or leader, surely this adverse economic environment influences your days and perhaps your moods.  I am not an alarmist, but I do believe that just like with our faith we need to return to the fundamentals to settle things a bit.  When you are responsible for raising support and for running a development program for a ministry or nonprofit, it helps to revisit the fundamentals during difficult times.

Here are some suggestions for revisiting the fundamentals of stewardship and development for ministry leaders:

1.  Is our case for support compelling?  Strong?  In need of revision?  Elements of our case for support include our mission, communication of needs (broken into annual needs, expansion needs, designated needs, future needs), and communicating how to give.  Take a close look at each of these components of your case for support to insure your message is clear during tough economic times.

2.  How can we energize our lapsed donor base?  Along these lines, are we properly stewarding our donors?  What can we do to improve retention?  The answers to these questions help rejuvenate a stodgy donor base.

3.  Thinking in terms of moves management, what are effective ways to get people close to your ministry and to keep them there?  This may include a review of your cultivation techniques, as assessment of effectiveness of special events, and an evaluation of all manners of communications.

4.  How can we better leverage our base/contacts?  How can we best get new prospects/contacts?  It helps to revisit the important task of prospecting to determine is everything is being done that is prudent.

Here are some other thoughts that may clarify your thinking during challenging times:
•    A typical challenge for ministries and nonprofits is trying to build your organization without the guarantee of multi-year funding.  Review your planned giving strategy.
•    Spend less time worrying about competition for the donors’ dollars, spend more time figuring how to communicate your ministry’s unique case for support.
•    No need to resort to gimmicks, sales techniques, etc.
•    It is what it is—we don’t have to make our ministry something it is not, so avoid puffed-up notions of ministry potential and impact.
•    Raising funds is more an art than a science.  Raising funds is spiritual work where the Spirit is involved.

My prayer is that you will go to the Lord first for wisdom about your situation.  Ask Him to help you with the fundamentals of ministry and development.  Review, clarify, communicate, and never give up.