How do we reinvigorate the middle class?

I first met Jim in 2014 when he reached out to write a story on my move from Wall Street to becoming an entrepreneur and found Plum Alley. He was writing a series about executives exiting big firms seeking to make a more meaningful contribution to the lives of others. I remember Jim’s inquisitive mind and acute listening skills and his uncommon ability to connect the dots. I am an avid reader of Jim's work in the New York Times, Wall Street Journal, and other reputable publications. And after reading the story on me and Plum Alley and the other stories in his Washington Post series, I understood the overarching theme of his work: that the transformation happening in the US was one with limited opportunity and economic prosperity for many and especially for women.

Fast forward to August of 2020, when his book The Riches of the Land, was published and he included a chapter titled “Uncommon Capability” which to my surprise profiled me and Plum Alley and our focus on investing in hard tech with women founders in the science fields and engaging a broader base of investors especially women who have not had an open door when it comes to access or investment dollars because of the closed and clubby nature of those that have and allocate capital. His book is full of moving stories of the erosion of the middle class and he makes the case that now more than ever women need to ascend and bring balance, fresh perspectives and new talent for economic advancement for the country.

Jim released his book in the midst of several challenges: the COVID-19 pandemic, political dysfunction and social unrest that reached a boiling point after a slow simmer. I see how he must have felt the urgency to help readers expand their understanding of a pillar that has been broken in our system. His dominant thesis is that we have failed to uphold a middle class because we have not included underrepresented people, including women and people of color, their values, perspectives, and attributes in decisions that have fundamentally changed our country. This systemic silencing occurs not only in the gated communities of governments and business, but also in the world of investing, where my focus lies. If we don’t have more minds bringing forward new ideas and building new businesses we will not have a prosperous middle class or a strong economy. This inflection point offers an opportunity to bring more chairs to the table and to rearrange the seating to promote healthy growth and more jobs.

Jim includes the perfect balance of real-life stories and historical context that gives the reader a three-dimensional understanding of the problem. Through his writing, he uses his platform to uplift voices that have been overlooked in the past. His conclusion is clear: if we had more diverse inputs in the past, the present would look very different. 

Here is a chart that sheds some light on what 2,000 people said would constitute success or how they would define “making it” in America:  

Source: Quantifying what success means, according to 2,000 Americans

 When you look at what people aspire to, it should be within reach and certainly was historically. However, there have been profound changes over the last several decades. The ability of those in each generation to earn more than their parents has gone generation-by-generation. In 1940, 90% of the middle class were earning more than their parents. By the 70’s, most were earning the same as the previous generation and by the 80’s children were beginning to earn less than their parents. We can see that this downward trend has continued in the 2000s. 

Source: The decline of upward mobility in one chart

 Envision the many realms in which important choices have been made. If you can imagine a mix of people and perspectives at the decision-making table, and if you can agree that a different outcome for the world might exist, then you will enjoy Jim’s book as well. Even if you challenge some of his recommendations, you will gain a deeper and more enlightened framework to appreciate where we are today and where we can go.

 This book was one of my favorites reads of the year. Bolstering the middle class by encouraging diverse voices helps to ensure a robust and thriving economy. Economic progress and inclusive policies that enrich all Americans, are essential to the overall health of the economy.