Why Mentoring Matters

by Kristin Barker | Aug 3, 2021

Why Mentoring Matters

As I write this, I can think of a handful of people who have impacted my life over the years. I consider these individuals to be mentors whether or not the relationship was a formal mentoring one, and I know I wouldn’t be the person I am without their influence. They have helped me by simply listening and cheering me on when I wanted to give up. They became a lasting network of trusted support I can reach out to when I need it.

In return, I value the opportunity to serve as this kind of support for others. It isn’t so much about sharing knowledge in my opinion as it is about walking alongside someone and sharing in their story, and I find that I learn as much from the people I get to mentor as they learn from me. This is particularly satisfying when I get the chance to connect with someone from an unfamiliar culture or background. It is in these situations that the relationship generates more personal growth and satisfaction. I have become a better leader because of these experiences.

Mentees can also benefit from working with mentors in several ways. Having someone who will listen and gently guide without judgement is invaluable for personalities from any background. This is particularly true for individuals who have not experienced strong role models in their past. It can also be a plus for those with a weaker support network to engage with a mentor who is prepared to model good communication skills and can result in the capacity to build their network in a way that impacts work success.

Mentoring can create a framework for individuals to explore options outside of their lived experience and will generally foster a network of career and social support. Having someone who will check in with you on a regular basis and allow you to share your ideas can help reduce anxiety. By connecting on a personal level and finding security and trust there, a person is more likely to become open to new ideas and experiences.

These relationships can also benefit someone with very little professional experience to see their true value. When a person is encouraged and able to see how they can add value to a relationship, they are more likely to stay in the game longer and have a greater level of commitment to whatever they put their hand to.

Ultimately mentoring is about relationships, and this is the key to a good mentor/mentee experience. Each partner benefits because a mentoring partnership flows both ways. Everyone has the opportunity to contribute to the relationship in a meaningful way. There are many programs that incorporate mentoring into their platform of support. BETTER WORK is one of those.

A BETTER life begins with BETTER WORK.

Giving Hope to Others

As a work mentor, you can help someone with more than just creating a resume or practicing for an interview. You can help them:

Find resources
Develop contacts
Explore careers
Set goals
See their value

If you would like to explore the world of mentoring, I encourage you to find a good program that provides training and will support you throughout your experience. BETTER WORK Columbus is one program that can provide you with the structure needed to make a mentoring impact.

To find out more and mentor with BETTER WORK Columbus, go to BetterWorkColumbus.org and select the “Become a Mentor” link in the menu bar.

Improve Your Life with a Growth Mindset

by Kristin Barker | Jul 20, 2021

Improve Your Life with a Growth Mindset

Learning keeps you growing

Most people agree that learning is important. I’m just not sure we understand how important it really is. I can still remember as a child believing that I needed to know everything or people wouldn’t think I was smart and capable. I hear kids today (and even adults) saying, “You don’t have to tell me. I know that.” Saying this often enough can make it an automatic response to receiving new information.

There seems to be an inherent desire–starting at a very young age–to already have the knowledge we need to understand the world. It can be even more difficult for children to see the value of learning when our educational system (and usually our parents) place the focus on grades as the most important thing they have to achieve. And learning isn’t only important for kids. While it may start when we’re young, it surely doesn’t end there. If we are wise, we will be learning until the end of our lives.

Learning new information will help us grow personally in a way that allows us to better handle life’s challenges we face every day. As we continue learning into adulthood, it can actually improve our memory and help us relate to new information positively. It may even reduce our chances of developing Alzheimer’s or dementia.

Learning can also help us adapt to new situations with less stress and anxiety. If you struggle to see change as good and prefer that things stay the same, this is a skill that will make your daily life more pleasant. It can also increase your value in the workplace because you’ll be able to easily “roll with the punches”. Learning even changes the way you think about the hard stuff. In short, it helps you embrace a growth mindset.

What is a growth mindset? This simply means you believe your abilities can be improved through dedication and hard work, and that your talents can be developed. It’s about more than just taking in feedback, learning from your experience, and coming up with strategies for improving. It’s also about knowing deep down in your gut that even when you fail at something, you will eventually succeed. In fact, it’s the knowledge that failing will only make you more likely to succeed the next time or the time after that! Every time you fail, your success muscle gets stronger.

Embracing this growth mindset will allow you to bounce back quickly from disappointment because you understand that every failure is an opportunity to learn something new and therefore a stepping stone toward your success. This helps us to be more resilient, and resiliency allows us to cope better with the hard things in life.

A BETTER life begins with BETTER WORK.

Learning equals confidence

In short, learning will make you more confident in yourself and in your future. Your perspective will change so you begin to see the journey of life differently. I encourage you to take the first step if you haven’t already. Find something new you want to learn today, and do it!

BETTER WORK communities have mentors who are available to walk alongside you during your journey. Visit betteropportunity.org to find out more.

Inflation is running wild — poor and low-income Americans will be hurt the most | QUAD CITY TIMES

by Corey Burres | Jul 16, 2021

Inflation is running wild — poor and low-income Americans will be hurt the most | QUAD CITY TIMES

How can we help working families the most? Raising the minimum wage to $15 an hour is a popular solution, but it’s a short-sighted one given the reality that inflation — the silent assassin of Americans’ livelihoods, particularly for the poor — is now running the hottest it has in decades.

The Consumer Price Index has increased 5.4% since last year, as announced on July 13 by the U.S. Bureau of Labor Statistics. The monthly rate was 0.6% in May but 0.9% in June. If this rate persists, our nation will experience double-digit inflation. A 0.9% monthly rate translates to an 11.4% annual rate, a level not seen since the 1970s….

Read the full oped here

GCO Testifies Before U.S. House On Benefits Cliffs

by Corey Burres | Jul 13, 2021

GCO Testifies Before U.S. House On Benefits Cliffs

Examining the SNAP Benefit Cliff

On July 12, 2021, Eric Randolph, GCO’s Director of Research, testified before the U.S. House Agriculture Subcommittee on Nutrition, Oversight, and Department Operations about how welfare programs often hurt the very people they are supposed to help.

In this video, you will see how benefits cliffs are complicated and often have unintended consequences that harm families, inhibit upward mobility, and dehumanize people trapped in generational poverty. And you will learn more about GCO’s Benefits Cliff Model helps hard-working individuals improve their circumstances with better opportunities to thrive and become productive members of their communities.

On July 12, 2021, GCO’s Director of Research, Erik Randolph, joined 3 others in providing testimony and answering questions on Benefit Cliffs.

Promote Purchasing Power—Not the Minimum Wage

by Erik Randolph | Jul 13, 2021

Promote Purchasing Power—Not the Minimum Wage

How to help working families the most

During a focus group session on working class families we recently conducted at the Georgia Center for Opportunity, Jazmine* made an observation more perceptive than most experts.

Our focus group consisted of working-class African-Americans who did not have a college degree and who were not employed in a managerial position nor on track to become a manager.

Knowing financial stress up close, Jazmine essentially said that either the minimum wage should be increased or the cost of living should be lowered.

Her observation is a perfect segue from my prior blogs on:

the empirical economic evidence against the minimum wage,
why the minimum wage is bad news for small business and the overall economy, and
alternative strategies to the minimum wage that help everyone, instead of just some workers at the expense of others.

The Success Sequence provides an outline of how to reverse the cycle of poverty in our communities. GCO uses this as a framework for much of our work.

Promoting Purchasing Power

The Employment Act of 1946 declared it is the policy and responsibility of the federal government to:

“promote maximum employment, production, and purchasing power.”

Promoting purchasing power means lowering the cost of living, as Jazmine suggested.

Solidified in the 1951 Accord with the Treasury Department, the responsibility ultimately fell to the Federal Reserve to conduct monetary policy as we know it today.

How well has the Fed done with promoting purchasing power? Horribly, quite frankly.

Since 1951, prices have increased 3.4% annually on average, as measured by the geometric mean. In other words, the price level was tenfold higher in 2020 than in 1951. Prices doubled each generation.

It is widely accepted that the poor suffer most from inflation because they spend a higher portion of their income on necessities, and their income growth typically lags others.

For example, according to the most recent mid-year consumer expenditure report from the Bureau of Labor Statistics, consumers in the lowest income quintile spend 82.2 percent of their income on housing, transportation, food, and healthcare, compared to 64.4 percent for the highest quintile. A five percent inflation rate would cost those in the lowest quintile an additional $1,156 for these items on a budget that is already tight, averaging $28,141. A 10% inflation rate would double those costs to $2,312.

Worse, those in the lowest quintile are unable to save for their future, and inflation erodes away the value of the little savings they do have. Consider that on average, those in the lowest quintile purchased only $563 in personal insurance or toward their pensions, compared to $19,736 for those in the highest quintile. This disparity guarantees the poor will be inadequately prepared for retirement or unforeseen loss or tragedy.

Prior to the federal government taking on the responsibility of promoting purchasing power, prices not only remained fairly stable but actually decreased during times of relative peace. Typically, they only increased dramatically during times of war.

This pattern can be seen visually in the accompanying chart using the Consumer Price Index and related data from the Federal Reserve Bank of Minneapolis. For example, the price level increased 24% due to the War of 1812 but then deflated 57% over 47 years until the start of the Civil War, even after accounting for a slight bump up due to the Mexican War.

The pattern was similar for the remainder of the century. Prices increased 74% during the Civil War but then deflated 47% to its pre-Civil War level until the start of the 20th Century.* Although the price level rose somewhat during the progressive era, it was still 30% lower at the start of World War I than at the close of the Civil War.

America’s inflationary policy

Unfortunately, a 1978 law changed promoting purchasing power to become the lame “reasonable price stability,” which is not the same thing.

Over the years, the Fed has allowed inflation as a matter of policy. In 2012, Fed Chairman Ben Bernanke explicitly stated for the first time an inflation target of 2% per year. If the Fed can somehow hold to this target, which it has not been able to do historically, it equates to doubling the price level every 35 years. Last August, it backed away from this policy. Because of all the pandemic spending and monetary expansions, the Fed approved a policy to allow inflation to rise “modestly” above its 2% target.

It is not just the Fed that has shied away from promoting purchasing power. In 1978, and in the midst of the stagflation years, Congress legislated the modest goal that inflation should be 3% or less, but the target rate was supposed to come down to zero percent by 1988 unless it might have impeded employment.

The Fed is not alone to blame for the inability of the federal government to control inflation. Congress’s lack of fiscal discipline resulting in soaring budget deficits place the Fed in a tenuous position to keep interest rates low so federal debt service costs also remain low. Furthermore, recent Fed direct purchases of Treasury debt because of all that federal spending adds to the money supply, eroding—not promoting—purchasing power.

How Congress can better help the average working family

If economics has any immutable law, it must be that you can’t get something out of nothing. This explains why the Consumer Price Index increased 5.4% since last year, as announced today by the Bureau of Labor Statistics. And the rate of increase appears to be accelerating. The monthly rate was 0.6% in May but 0.9% in June. If this June inflation rate persists, and hopefully it does not, we will have double digit inflation. A 0.9% monthly rate equates to an 11.4 % annual rate.

Considering all the recent deficit spending by Congress and expansionary policies by the Fed, expect more of the same, or worse. In fact, according to a survey of economists in yesterday’s Wall Street Journal, “Americans should brace themselves” because economists are waking up to the prospect of higher inflation, expecting “brisk price increases for a while.”

Economic history indicates deflation should be the norm. In fact, innovation spawns increased productivity that allows prices to fall, which should show up as deflation. We have the opposite: productivity gains with inflation. This outcome places the blame squarely on monetary and fiscal policy.

In the meantime, Jazmine and other hard working Americans struggle to keep up with rising prices. Instead of pushing for increases in the minimum wage that help some at the expense of others, Congress needs to renew our nation’s purchasing power policy and get its fiscal house in order.

*Jazmine’s last name withheld for confidentiality.

*This is not intuitive. It takes a smaller percent decrease to offset a percent increase, such as a 43% reduction will offset a 74% increase. For example, suppose you receive a 20 percent pay raise this week, but next week you receive a 20 percent pay cut. Are you back where you started? The answer is no; you are worse off. If your weekly pay was $100, the increase took you to $120, but then your pay cut took you to $96, even lower than your starting point.

Erik Randolph is the Director of Research at the Georgia Center for Opportunity.

Gov’t. check can’t beat work’s dignity | AJC

by Corey Burres | Jul 9, 2021

Gov’t. check can’t beat work’s dignity | AJC

The latest unemployment statistics are in and show trends continuing with millions of jobs across the nation going unfilled as unacceptably high numbers of Americans draw on generous unemployment benefits. On June 23, the U.S. Bureau of Labor Statistics reported its unrevised May 2021 figures, showing a drop in the unemployment rate for Georgia from 4.3% in April to 4.1% in May.

The good news is that our state has fared much better than many others in the COVID-19 pandemic recovery. States with more draconian restrictions — such as California — have had a much slower economic recovery.

Georgia’s rate is 16th-lowest in the country, beating out 34 other states. And the U.S. as a whole has a 5.9% unemployment rate, significantly higher than Georgia’s...

Read the full article here