The covid 19 pandemic has put a spotlight on the troubling trend of income disparity. The very rich(no one reading this blog) are benefitting from financial systems and everyone else feels they are standing still or moving back. Their perception is somewhat correct. Zero wage gains and uncertain employment are 2 symptoms of a lack of progress.
Investment professionals have taken note. The most courageous of them have spoken out and said this needs to change.
Studies done by the Organization for Economic Co-operation and Development(OECD) have shown that societies having the best social mobility for all economic classes and races are more stable and have a higher standard of living. The 1% getting richer doesn’t benefit the 99% in any way despite claims to the opposite. Trickle down economics is a myth. This is a motivating force for me on the days when career stress is overwhelming. Almost all of you count on me to partner with you on your journey to financial security, and to give you hope that your efforts are worthwhile. I know the financial system can be stacked against us and I am the insider in your corner.
The pandemic has also shown that companies who expand their focus beyond shareholder return and stock prices to consider employees, customers, and the general community are benefiting more and will not only survive but thrive after this period of self imposed pause of economic activity. This approach is known as an all stakeholder approach, and can mitigate downside risk both at the company level and investor level.
Although you may think I just made an awkward segue from the first topic there is a correlation. You and I have some economic power to effect positive change. When enough of us vote with our wallets progress is possible!
Over the past couple of months I have participated in many conference calls and it has been interesting. Previously my profession has been notable for its adherence to political correctness and maintaining the status quo.(which btw I am not very good at). I have been greatly encouraged by those investment professionals that speak honestly and bluntly that the financial system needs change and that social and racial justice are more than a ‘thing’. Topics like these should be addressed in order for financial systems to move forward in a sustainable and equitable manner. The investment professionals that want to make the future better are using their clout to bring positive change.
Therefore good has come out of us sheltering in place and enduring uncertainty.
http://www.oecd.org/social/broken-elevator-how-to-promote-social-mobility-9789264301085-en.htm