A Marshall Plan in Europe. The Start-Up HOPE Plan for America.
John Hope Bryant
Founder, Chairman and CEO at Operation HOPE, Bryant Group Ventures. Founder, former Chairman, and Principal Shareholder, The Promise Homes Company.
Seventy-seven (67) years ago this week (June 5th to be exact), General George Marshall gave a historic speech at Harvard University where he outlined his vision for The Marshall Plan, or the rebuilding of Europe after World War II.
While the Marshall Plan encompassed much of the European continent and Japan, it was most notable for its far-reaching vision. It literally called for the rebuilding of the nations that had bombed us. That meant our two biggest enemies: Germany and Japan, too.
People questioned the logic (and sanity) back then of leaders who would put hard-earned taxpayer money, into the rebuilding of nations which had actively engaged in war against us. But thankfully we had leaders with a long view, and a practical mind too.
They knew that if Germany and Japan did not recover economically, their people would (once again) become desperate, and this would only cause even more social, political and economic instability.
They knew that a nation which could not feed and care for itself was a nation or nations that would lack the very basics of dignity, and they would look for another scapegoat.
They knew that a nation which could not produce for itself, would require others to produce for it.
They were smart enough to understand that it was in large part the shame, and the economic devastation of Germany following its defeat in World War I, that allowed a nutcase like Adolf Hitler to rise and to take on the honored title of 'leader' in the 1930's. In 1925, Hitler was actually jailed in Germany as something of a 'crack pot.' What changed between 1925 and 1935? It's simple, the German economy slid into very deep trouble.
In short, it was Germany's economic problems, it's economic and jobs insecurity -- which began to inform and pervert it's social and political views. Ultimately, it was Germany's fears that drove it headlong into war.
Germany and Japan are today two of the most prosperous and respected nations in the world. Two of the most dignified and fair. And democratic. Two of the most visionary and wealthy. Two of the most innovative and job producing. Two of the most generous, and fairness loving. But this didn't just happen.
It was a product of an investment in them by others (at that time, America), and role modeling.
It was treating the people of these nations with dignity, even though its leaders were demonic.
It resulted in a significant boost in the self-esteem and confidence of these nations, and its people.
It was the positive, healthy environment that this investment, self-confidence and role modeling both engendered --- and was in turn nurtured by.
It was the positive aspiration (the hope), and this combination of positive attributes, that seemed to grow up around future generations, seeking prosperity and a better (and more peaceful) life for themselves and their children.
And finally, it was the very real sense of 'opportunity' that all of this produced for both nations for decades to come. An opportunity zone which has now lasted more than half a century, and has positioned Germany and Japan as both two of the most stable democracies in the world, but two of the largest economies as well.
And let’s not leave this out -- two of America's greatest friends, political allies and trading partners.
But this was not all about Europe’s success, and Europe’s hope. It was about ours too.
You see, America only became a global superpower, with credibility and access around the world, after World War II. But it was not how we won the war, but how we pursued the peace thereafter. It was not the hard power of our military presence, but the soft power of our aspirational investment that in the end, mattered most.
In many ways, America is a $17 Trillion economy today, because we made sure Germany, Japan and the rest of the sane world had every possible opportunity to be prosperous too. It was doing well and doing good. Better still, doing well by doing good.
Seventy-seven years later, we have another devastated "country" to deal with, a country right inside our own borders, not thousands of miles away, on distant continents. It's our inner cities, it's our rural towns, our aging suburbs, in formerly middle class neighborhoods. In many ways, very similar to the disheartened European climate in the wake of murderous madness and massive destruction. As in post-war Europe, the hollowed out middle class has become desperate and depressed, in need of a lifeline, a line of credit, as it were, in recognition of its importance to our country's economy and future.
In my new bestselling book, How The Poor Can Save Capitalism: Rebuilding the Path to the Middle Class (Berrett-Koehler), I outline a HOPE Plan for revitalizing America, America’s working poor, her working class, her teetering middle class, or all those who make $50,000 or less (basically, half of the country).
I suggest, strongly, that we need much more than some begrudging, government sponsored increase of the minimum wage, but a robust, enthusiastic free market-inspired increase of a living wage.
The middle of America actually spends a good portion of what they make, which puts even more economic energy and responsible consumer spending back into a churning economy, which in turn creates more small business and other jobs.
We want working class and middle class people to make enough to purchase a refrigerator or other appliances when their old ones wear out. That helps GE and a bunch of other companies who want and need us to buy their goods and services.
We want working class and middle class people to make enough to trade in their clunker for a newly leased or purchased automobile every 5-7 years. That helps GM and all the other American automobile manufacturers that want and need us to buy their products, too.
We need to invest in the economic revitalization of inner-city, urban, rural and underserved communities — so we can convert these previously poor and lifeless neighborhoods into future emerging market communities. Communities and community residents, that work, start small businesses and become new entrepreneurs, and as a result, pay their fair share of taxes and vote (people don’t often vote without being a stakeholder first. One could argue, what’s the point).
To answer the central question of my book, that is how the 'poor' can save capitalism.
As we celebrate the 77th anniversary of the Marshall Plan in Europe, we need to consider adopting a bold and visionary HOPE Plan for the revitalization of America.
This we can do. Starting right now. Our future is at stake, no less than the future of Europe and the Western world was at stake 77 years ago, when Marshall saved Europe. Let's save America today, together, for all of our sakes.
Let's go.
John Hope Bryant is the Founder, Chairman and CEO of Operation HOPE and Bryant Group Companies, Inc. Magazine/CEO READ bestselling business author of LOVE LEADERSHIP: The New Way to Lead in a Fear-Based World (Jossey-Bass), and is the only 2010-2012 bestselling business author in America who is also African-American. His newest book is HOW THE POOR CAN SAVE CAPITALISM (Berrett Koehler Publishing). Bryant is a Member of the U.S. President's Advisory Council on Financial Capability for Young Americans,and co-chair for Project 5117, which is a plan for the rebirth of underserved America.
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Photo Credit: JD on Flickr Commons
Proficient Attorney | Licensed in Texas, Tennessee, and Georgia | Expertise in Healthcare, Civil, and Corporate Litigation
10 年This is an interesting read. It certainly began thoughts churning. The comments about the post are particularly good.
Climate Resilient Infrastructure Expert
10 年Does our Government spend public capital in the best way?. At least in transport infrastructure projects (long term biggest investments), I think whom currently decision-makers must ask themselves about the oportunity cost of these expenses and for its social impact.
Software Development Contractor
10 年It's pretty hard to count all the rent-seeking codes in this post. There are significant errors in comparing the two situations. First of all, the US is not 'bombed out'. Second, much of Europe (including in particular the southern extremities) and Japan are in worse shape now than they were at the end of WW II. (2) It’s also worth noting that this analogy has been used repeatedly since the 1960s by various groups trying to ‘revitalize the inner city’, etc. Some inner cities are being revitalized, basically over the prostrate bodies of the people that have lived there since rents were cheap. Cities are revitalized by economic forces that make housing prices obscenely expensive. This doesn’t do much for people that have lived in urban cores for decades.
Software Development Contractor
10 年(3) It is a habit in some jurisdictions to subsidize people in diminished economic circumstances. This includes the ‘working poor’, elderly, disabled, single moms, etc. Some of this is laudable and defensible. However, providing subsidized rent, utilities, health care, and food to the ‘working poor’ shifts the costs from employers to taxpayers. At that point another intractable constituency is created, those in the public sector that administer those programs. (4) If people working for big box retailers at minimum wage couldn’t afford to live within reach of their employer, their employer would have to raise their pay until people could afford to show up for work. If that money were paid directly from the employer to the employee, it would cut out various third parties - people in the Federal, state, and local governments that administer food stamps, Medicaid, CHIP, housing subsidies, etc. Since people move from being unemployed to minimum wage jobs, or from being a custodial parent to being unencumbered, there are some rather obvious controversies in all this. (5) It would make sense, for instance, if an employer has to pay a higher minimum wage (as has just been enacted in Seattle) they should have their taxes reduced dollar for dollar. However, for that to be ‘fair’, the people being paid that higher wage would have to forgo subsidies by corresponding amounts. This is probably not what voters are thinking when they pass these laws.
Software Development Contractor
10 年(6) What we’ve done, essentially, is created ‘middle class job’ government workers to second-guess wage scales in the private sector. Large retailers, custodial services, landscaping services, and other groups that pay minimum wage are therefore subsidized by tech firms, well-paid professionals, and private sector fuel extractors (coal and oil companies). (7) What is proposed here is to do ‘more of that’. In short, further redistribute income to create more government workers (government contractors, including non-profits, fit under this umbrella). (8) WW II dis-established a lot of entrenched interests in Europe and Japan. For a few decades after the war, industry and other commercial interests rushed to fill the vacuum. The Internet ‘changed all the rules’. However, this didn’t sink in to what were now calcified interests in Europe and various parts of Asia. Thus, even today, we find companies trying to make a go of it making steel, ships, TV sets, and memory chips, when these are mature and/or declining industries. The US is fighting similar battles, some of this in electronic media and some of it in taxis and hospitality. These don’t really take on the big problems - the 40% of the US economy that forms the public sector.