Where you start in life does not determine where you finish.
I had a lot of feedback from last week’s column about the poor among us. I thought I’d follow up with more details to prove my point.
I seem to prefer old movies to new ones. There are so many great old movies that I have watched many times. Occasionally, there is a new one that I am attracted to, but usually, I find myself watching something that I’ve already seen. Sometimes more than once. I suffer from a very short attention span. If a movie doesn’t grab me immediately, I move on to more entertaining subjects. I don’t waste time with a movie that I don’t enjoy. … And I mean I must enjoy it a lot.
Old books sometimes have the same attraction to me. I recently cleaned out my bookshelves and found an old book that caught my attention. It’s titled, “Myths of Rich and Poor. Why we’re better off than we think.” It was written in 1999. The authors demonstrate, with certainty, that the poor aren’t getting poorer. I believe it is even more relevant today.
They analyzed and tracked 50,000 individuals over a 30-year period. They found that only 5% of families in the lowest income bracket (lowest 20%) were still there 15 years later. More than three-fourths of these families had moved into the highest income brackets. The Census Bureau reports that while the poverty rate remains consistent, it is usually different people occupying those positions.
The U.S. Treasury confirmed many of these findings. They found that 85.8% of taxpayers in the bottom bracket had moved up to higher income brackets within 10 years. Fifteen percent had moved into the highest income bracket. Income mobility is a factor that is fluid and constantly moving.
In most countries today and when this book was written, there are many who will remain in the rich or poor category. That is not true in this country. In the good ol’ USA, the classes of people who remain permanently rich or poor measure in the single digits. Very few remain in the situation they are born into.
Our poor in this country also differ greatly from the poor in most countries. Our poor in this country usually have more than many in the upper classes in other countries. Regardless of your status in life, you are vastly better off than the vast majority of those around the world.
People become wealthier as they gain knowledge and experience in life. Income nearly doubles for those in age categories 25-34 as opposed to those under 25. It jumps again by 50% for those between 35-44. As we gain knowledge and experience, we are more valuable assets.
Another interesting statistic: Households in the top income bracket have 2.1 workers per household. Those in the bottom have 0.6 workers per household. The lowest income bracket found that 84% of workers only worked part time. The highest income bracket found 80% of workers were full-time employees. It doesn’t take a rocket scientist to figure out to avoid poverty by getting a full-time job.
Another interesting statistic is that only 7% of top-income earners reside in a “non-family” household. In the bottom income category, 37% of low-income earners live in the “non-family” category.
No real surprises here. We knew it all anyway. Traditional families usually have higher incomes, and income rises as we become more experienced.
We also must remember the internal data of some poverty statistics. For example, I read a report a few years ago that there were pockets of poverty in Cambridge, Massachusetts. This poverty was in and around Harvard University. Imagine that.
Poverty is determined by income levels. While one is a student at Harvard, income is probably very low. That might qualify one for the poverty ranks. However, I doubt that same person will remain in the low-income category after graduation.
You may remember that I’ve written on these pages before that one can avoid poverty by doing three simple things: finish high school, get a job (even minimum wage) and don’t have children until marriage. Over and over, that simple philosophy is proven true. It sounds so simplistic, and it makes one wonder why everyone wouldn’t try it.
I’ve said it before. Where you start in life does not determine where you finish. Many of us will go back and forth from one income bracket to another. I have certainly experienced that firsthand.
Joyce Krawiec represented Forsyth County and the 31st District in the North Carolina Senate from 2014 to 2024. She lives in Kernersville.
