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Monday, September 15, 2014

Investing in Bridgeton

                                         Investing in Bridgeton  
By Albert B. Kelly

When it comes to economic health; poverty, wealth, jobs and everything in between; the picture is not necessarily a bright one. According to the data, the poverty line comes in at just above $23,000 for a family of four; that means that everyone below that number is officially in poverty. But I think that number fails to capture what’s really going on.

We’ve always had “class” in society; the wealthy or upper class, the lower class or poor, and then everyone else; what we call the middle class. These categories defined us and for a generation or two they worked well enough. The poor aimed at joining the middle class and those in the middle aimed at moving to the upper classes. That’s what was always great about America; it was a place where you could aim high and with hard work and imagination, actually have a chance to make it.

For the most part, people didn’t ask for or even expect a guarantee, just a level playing field and fair shot at achieving it. But today, it feels like the game is rigged; the rules favor Wall Street bankers and large corporations. The talk about growth, quarterly earnings, and rising stock prices don’t amount to much production; it’s all about “paper wealth”, leverage, and debt.

In “How the poor can save Capitalism” entrepreneur John Hope Bryant describes what he calls the “teetering class”. It’s the 75% of us living from paycheck to paycheck. It’s everyone who is just one car repair or medical bill away from real trouble. The old formulas don’t work anymore, and the conventional wisdom on poverty and growth is useless.

Ours is $15 trillion-plus economy and it’s mostly consumer spending; people buying stuff. Consider that 80% of Americans, meaning those of us in the lower and middle classes spend fully 90% of our income. The wealthy only spend 50% of their income. The lower and middle classes have approximately 12% of the nation’s wealth; the rest, (88%) is controlled by the top tier.

The bottom line is that for our country, region, county and city to grow and prosper the lower and middle classes have to be about “consumer spending”…they have to keep buying stuff. But in order to do that, they need better incomes; the poor need to have the ability to move up to middle class status and “the middle” needs stability. Of course the wealthy only get to remain wealthy if those below them do well.

As a city, we can only prosper if we invest in our people. Bridgeton is considered a poor and “economically distressed” community and so we are. But that does not mean we are without resources. The poor and underserved that make up our demographic don’t need to remain so. Providing financial literacy, training in the STEAM subjects (science, technology, engineering, arts, and math) and competency in the technologies that will rule the next two decades is the place to start.

That’s why I am strongly encouraging every young person-and the not so young-to take advantage of Cumberland County College setting up a satellite campus here in Bridgeton. The focus on STEAM is exactly the right thing at the right time at the right price.

Courses will allow students to establish a foundation that they can grow into a career. What is significant about the “STEAM” structure the college is launching is that it serves as a starting place toward a degree through any number of County College degree programs. Education is the tool that will allow the poor to move into the middle and the middle to go further.

It’s the price of admission. The old formulas don’t work anymore; a high school diploma is not enough. The velocity of money is faster; everything is getting more complex, life is getting more automated and the way to wealth and stability is now more technical, entrepreneurial, and specialized then it’s ever been.


So investing in our young people through education and training is an investment in our own community because some will start new businesses, create new markets, expand existing business and the economic activity they generate will stay within our broader community. It won’t happen quickly, but that’s why we have to start now. The fruit of our investment will take time to harvest, but it starts with providing a reason for young minds to come and then to stay.