Author: Adam Gant

Poverty and the Pareto Distribution: Part 1

On June 8, 2018

In any given society, people tend to stack up at zero. What do I mean by this? Well, the Occupy Wall Street Movement was a good, recent example of the outrage that people had towards the 1%. The notion started to grow in the collective unconscious that those at the top (the 1%) held as much/more than all of the rest of the people in the United States (the remaining 99%). This outrage, as some claimed, was the result of greedy corporations and business bigwigs who preyed on the seemingly now defunct middle class of America. Was the anger warranted? Well, people do tend to stack up at the top and the bottom. But the answer, unfortunately, isn’t as simple as the “the rich get richer because they take from others.”

About 100 years ago, economist Vilfredo Pareto observed what many call the 80/20 rule. It’s also known as the Pareto distribution, Pareto’s rule, and the “long tail” distribution. What does this rule, one that is so common to business experts and economists, have to do with poverty and inequality in the world? Let’s take a look.

The Roots of Pareto’s Law

In 1897, a Paris-born Italian engineer named Vilfredo Pareto recorded that the power of wealth in Europe followed a similar power-law structure to that of his garden. Pareto observed that 20% of the pea pods in his garden contained 80% of the peas. Likewise, he found that 20% of the people in Europe were responsible for 80% of the wealth. Later, economists realized that this law might only pertain to the very rich, and not necessarily to the rest of the population. But the find is astounding, nonetheless. Now, while it appears that Pareto’s law certainly applies to the rich, it seems as though a different entity governs the less wealthy.

Physicist Victor Yakovenko and his research partners analyzed income data from 1983 to 2001.
The findings? While the income distribution among the extremely-wealth – about 3% of the population – indeed follows the Pareto Distribution, incomes for the remaining 97% follow a different curve—one that also accounts for the distribution of energies of atoms in a gas.

The research concluded that spending habits among the poor are more random than people generally think. While we tend to think of human decisions as preemptive and well-planned, the effects of outside forces tend to impede on rational decision-making, and thus randomize the process of spending. The analogy of money and energy holds because, like energy, money is not created or destroyed, only redistributed through transactions (other than the effects of inflation due a the central banking system).

It’s Not So Easy to Solve

Econo-physicists work off of something called the Matthew Principle, which they derive from a quote in the Bible’s New Testament where Jesus says, “To those who have everything; more will be given. From those who have nothing; everything will be taken. A vicious statement? Certainly. But it’s one that holds up. Pareto’s law is almost an intrinsic, universal law. Not only is it right regarding the transaction of wealth and currency, but it governs the distribution of plants in the jungle, the number of stars in a given star-cluster, and the number of employees that complete most of the work in a business. It’s true; inequality is an issue. In fact, it’s a more significant issue than we like to think.

Karl Marx laid the problem of inequality at the feet of capitalism, but this was wrong. Inequality is not a fault of hierarchical structures; it’s something much more pernicious than that; something seemingly intrinsic to humanity itself. The vast redistribution of wealth doesn’t work for a variety of reasons, the least of which not being the fact that wealth will continually stack up with a small minority. All you have to do is play one long game of Monopoly to discover that one person will end up with everything and everyone else will end up with nothing.

Check back for my next blog as I discuss some possible solutions to the problem of inequality.

A Move Towards True Help: Understanding Carnegie’s Gospel of Wealth

By Adam Gant

On May 23, 2018

In Adam Gant, Charity, Philanthropy

Philanthropy is a uniquely western invention. This act of service, which is practiced by many wealthy individuals in America, has manifested itself in a number of ways by a number of people. It has even produced a form of the original known as “philanthrocapitalism”, a term that is indicative of a process that has received intense criticism by some in the recent years.

But the conversation of how much the rich should give and what the motives behind their giving should be is not what’s in question with this article. Instead, it’s important we take a deeper look at the concept of philanthropy, what helping truly looks like, and how the 19th-century millionaire Andrew Carnegie can help point us in the right direction.

In 1889, Andrew Carnegie published an essay entitled, “The Gospel of Wealth.” Here, Carnegie gives the reader some great insight into not only the mind of a multi-millionaire but also into the psyche of a generous philanthropist. But perhaps the most controversial statement in this essay is Carnegie’s insistence that there are two types of poor people.

Carnegie saw and classified a difference between people who are poor due to circumstances largely outside of their control and people who are poor due to a lack of continued fiscal irresponsibility. While many have often misinterpreted his words and wrongly critiqued this argument as harsh, there is something of infinite value that is learned through this sentiment.

Carnegie, whether consciously or not in his essay, draws the philanthropic ventures of the rich into something much more profound than giving money. You see, Carnegie is not arguing that the rich give less, but that they actually give – of themselves – exponentially more. It’s easy for those with a lot of money to give a monetary gift. Not so easy though, is it to engage with a person and truly take into consideration their unique needs. Carnegie agues philanthropy is much more than giving money; it’s about truly helping someone and working to help instill a sense of self-dignity within them and to help instill the belief that they too are deserving of a fair shot in the marketplace of ideas.

In a world that often sees money as the currency of success, it can be difficult to parse through Carnegie’s thoughts. But diligence is the key to understanding, and it’s important we understand how to help our neighbor truly. It may not always be the most beneficial act to give money to everyone who asks. In fact, we may not always have the money to give. But we can always, one way or another, seek to help those in need. And at the heart of Carnegie’s argument is that we, as individuals, have to pay attention to the specific needs of those in distress. And that’s not always as simple as signing a check.

Beating Poverty with a Smartphone

By Adam Gant

On May 23, 2018

In Adam Gant, Charity, Philanthropy, Service

Philanthropy is an ancient Greek word that roughly translates “to love mankind”. It doesn’t – contrary to the opinions of some – merely refer to the act of wealthy people writing checks. In the digital age of connection where communication with people halfway around the world can happen in a matter of seconds, the development of technologies that help to fight poverty is genuinely extraordinary.

Nowhere is this more evident than in our ability to support organizations from the comfort of our smartphones. Often, making a difference is just a click away. And while there is no substitute or better way to transcend our circumstances than by actively giving of ourselves and engaging with people, the simple fact that we can help, even in the smallest of ways, in such a quick and accessible manner is truly worth spotlighting.

Below are three great (free) ways you can help not only alleviate poverty but fight to eliminate it from the comfort of your home and the ease of your smartphone.

Pictures Against Poverty

Donate A Photo, an app by Johnson & Johnson, allows people to help fight poverty by simply taking a photo. This app is free and easy, and for every photo “donated” Johnson & Johnson will make a charitable donation of $1 towards the organization of your choice. Each person is allowed to upload one photo per day, which is an easy $365 given to charity through the course of a year, with no charge on account of the person snapping the selfies.

Walk for Water

Charity Miles is a free app that tracks your steps and donates money to a charity of your choice for each mile. It’s another great free app that provides you the chance to give while you also get your daily dose of exercise. One of the charities you can donate to is charity:water, an excellent philanthropic effort that provides clean drinking water to people who lack it. Currently, there are 800 million people who still do not have access to clean drinking water, and Charity Miles allows you to give to charities that are actively addressing that problem.

Helping Corporations Care

Tinbox is a free app that donates participating corporation’s dollars on behalf of your donation. The app is free, so all you have to do is log in, tap ‘donate’, and you are spending corporate dollars to help fight poverty. The app lets you give one dollar a day to a specific project a charity is working on, and it’s another creative and exciting way to ban together and help people.

For all of the complications that modernity has ushered in when it comes to fighting poverty, there are more ways than ever to help, even if it is in seemingly small ways. We all have the responsibility and opportunity to help our neighbor, and the above-mentioned apps, as well as many more, are indeed beneficial and edifying ways to do so.

Philanthropy Spotlight: The Ocean Cleanup

By Adam Gant

On April 23, 2018

In Adam Gant, Environmentalism, Philanthropy

Some people march to make a change. Some people create colorful signs to promote equality. And some people, even in the midst of a staggering and seemingly impossible drama, create the solution and thus embody the change they desire so desperately to see.

These individuals stare Goliath in the face and don’t run.

Boyan Slat is one of these people.

Who They Are

Slat, who started the non-profit organization the Ocean Cleanup at just 18 years of age, is making waves in the environment by employing his unique and effective method of ocean cleanup. The Ocean Cleanup is a non-profit that seeks to rid the world’s oceans of plastic. And by utilizing the ocean currents to their advantage, the Ocean Cleanup’s passive drifting system is estimated to clean up half the Great Pacific Garbage Patch in 5 years.

The Ocean Cleanup is developing the first practical method to rid the world’s oceans of plastic. Every year, millions of tons of plastic enter the ocean every year. Once there, much of the trash drifts into large systems of circulating currents called gyres. Here, the plastic begins to break down and can easily be mistaken for food by marine life. The thing is, going after the plastic with vessels and nets would extremely costly, time-consuming, and labor-intensive. In fact, according to the United Nations, plastic pollution is estimated to have financial damage of 13 billion USD. Here’s where the genius of Slat comes in.

How They Do It

The Ocean Cleanup is developing a passive system that moves with the ocean currents to catch the plastic. According to the Ocean Cleanup, their passive system is comprised of a floater with a solid screen underneath, concentrating the debris and leading it to a collection system. The system is slowed down by a drift anchor suspended at an approximate depth of 600 meters, making the system move slower than the plastic and therefore catching it.

Boyan Slat, along with everyone at the Ocean Cleanup, is the prime example of someone developing the changes they want to see. The Ocean Cleanup is not only excellent and vital for environmental health, but it speaks of a new mindset. A mindset that includes the individual taking responsibility upon themselves and determining to transcend limitations and create a better self, and in turn a better world.

Why Charity Can Only Take Us So Far

By Adam Gant

On April 18, 2018

In Adam Gant, Charity, Philanthropy, Service

In an age that seems obsessed with social change, shouldn’t we be thrilled by the charity of others? It’s true, all the help that we give to those who are suffering is good and necessary. But I do fear that some of the push for change we see in the world is rooted out of a “knee-jerk” emotional desire for the world to change, as opposed to a solidified, strategic goal of embodying that change we so desperately wish to see.

This concept has recently led me to think about the difference between charity and philanthropy. To many, there doesn’t appear to be much of a difference. In fact, many view charity as the organizations that give money to those in need and philanthropy as something that famous people do to give back. But the truth is, you don’t have to be or know Bono or even be massively wealthy to be a philanthropist.

There are more to these concepts than we typically think, and I believe it’s vitally important we discuss the reasoning and outcomes of both.

What’s the Difference?

Charity is the change we leave in the jar in the hopes that change will come in the world. While giving to charities is an excellent cause (and there are many great charities), it’s often classified as something that is an emotional and momentary response to something we see or hear about in the world. In fact, Steve Gunderson, former president of the Council of Foundations, provides a helpful distinction between charity and philanthropy:

Charity tends to be a short-term, emotional, immediate response, focused primarily on rescue and relief, whereas philanthropy is much more long-term, more strategic, focused on rebuilding. There is charity, which is good, and then there is problem-solving charity, which is called philanthropy. – Steve Gunderson

Charity tends to focus on what we can do in response to something.

Philanthropy focuses on providing dignity and respect to the individual.

Buying a meal for someone who is without a home is a great thing to do, but seeking to help build them up as a contributing member of society is even better. For me, philanthropy aims to instill confidence, dignity, and a sense of purpose back into those that so many in society can often forget. Charity is to be encouraged and is still required. But we should also encourage people to continue past giving and enter into partnerships and relationships with organizations and with people.

All are worthy of love, equity and respect. And for me, that’s what philanthropy is.

Creating Communities with the Greater Victoria Housing Society

By Adam Gant

On December 19, 2016

In Adam Gant, Philanthropy

A young, single mother. A man who lost the use of his legs. A recovering drug addict. An old woman living on a fixed income. It may seem like these stories couldn’t be more different, but they actually all share a common thread: The characters are all real people from Victoria who faced serious challenges finding decent, affordable housing in the area. Fortunately, all of the stories also share a happy ending because each of the individuals were able to find a home thanks to the Greater Victoria Housing Society.

Founded in 1956, the Greater Victoria Housing Society is a nonprofit organization dedicated to helping the needy among us find high quality, safe, and affordable housing. Today, the society provides housing for over 1,000 people across the Victoria region in more than 700 units in 15 buildings. The Greater Victoria Housing Society offers two types of housing options: subsidized, which requires that applicants be on-file with the British Columbia Housing Registry, as well as non-subsidized housing. The organization also strives for best practices in energy efficiency and takes steps to ensure that their actions have the least possible negative effect on the environment.

Originally, in the 1950s, a group of concerned citizens saw a need for greater housing for the area’s seniors. They decided to address this problem by buying a house, and so, the Greater Victoria Housing Society was born. The society has evolved over the years to focus on more than just seniors and now provides housing services for low- to moderate-income families, the disabled, single parents, students, and others in need of a place to stay.

The Greater Victoria Housing Society does incredible work trying to provide housing for some of the neediest among us, and I’m proud to support the organization. I’ve made contributions to the society in the past, and in 2010, I also helped to facilitate the acquisition of a building for it–a 19-unit apartment building in Victoria on Quadra St.–that became the Greater Victoria Housing Society’s first “market to affordable” building, thus allowing the organization to expand its rental options.

For more information about the Greater Victoria Housing Society, visit its website!

Serving Hope with the Our Place Society

By Adam Gant

On November 17, 2016

In Adam Gant, Philanthropy

Winter is well on its way, and soon, everyone will spend their days inside with thermostats and fireplaces to keep them warm even when the snow starts falling. Anyone brave enough to stay outside will be clad in suits of armor consisting of scarves, hats, mittens, heavy coats, and layer after layer of clothes. However, not everyone is fortunate enough to have a safe place to go at night or good clothes to keep them warm in the dead of winter. Where do people who find themselves in this situation go during the cold winter months–or any other time of year, for that matter?

If they’re in Victoria, then they can go to Our Place. The Our Place Society is an inner-city community center that aims to provide relief and care for the working poor, impoverished, elderly, mentally and physically challenged, homeless, and anyone struggling with addiction. It was created in 2005 as the result of an alliance between two existing community organizations, the Upper Room Society and the Open Door, and construction on the purpose-built community center that Our Place now calls home was completed in 2007.

Today, Our Place offers a wide range of services to anyone in need. It serves over 1,500 meals a day, seven days a week; it has 45 private rooms available so people can have a safe place to sleep at night while they work toward independent living; it offers free showers and hygiene services; there are even mental, physical, and spiritual well-being options, veterinary services, educational resources, community activities like a choir, and so much more. These services offer more than just a warm meal or a bed–they offer hope to the people who need it most.

Volunteering with Our Place is a great way to help marginalized citizens of Victoria get back on their feet. It’s so rewarding to see firsthand how your work helps to elevate someone’s life, and Our Place gives you that opportunity. My own experience at Our Place involved helping to serve some of those 1500 meals a day at breakfast time. The experience showed how easy it was to help people who would normally go hungry. Working with Our Place illustrates that sometimes, the opportunity to make a big difference can be found very close to home.

For more information about Our Place, visit its website!

Changing the World with Live Different

By Adam Gant

On November 17, 2016

In Adam Gant, Philanthropy

So many people want to make the world a better place. It’s a noble goal: With billions of people around the globe living in poverty, over 780 million without clean water, and countless more that live in war zones, there’s a lot of room for improvement. But before we can change the world, first we need to change ourselves and we need to change how we live. In other words, we need to live different.

Thankfully, there’s already an incredible organization working hard to change how people live and change the world at the same time. Live Different is a Canadian charity that believes “the most important decision a person can make is to choose to live a life of compassion towards others.” While it offers a number of services, such as a cross-cultural academy and inspiring, motivational presentations, its main initiative is to take students and volunteers from across Canada on trips to places such as Mexico, the Dominican Republic, and Haiti to build homes, schools, and other types of buildings or infrastructure.

Live Different has built quite an impressive resume during its 16-year history. Throughout the organization’s lifetime, it’s given presentations to over 1.2 million students, mentored over 4,500 students, interns, and volunteers, and built over 400 homes, schools, and other projects.

I believe in the work that Live Different is doing to make the world a better place. I’ve been a longtime donor to the organization and I’ve gone on a number of building trips, and in 2006, I was fortunate enough to meet Vaden Earle, Live Different’s founder. Vaden is committed to building a brighter, more compassionate world, and he and I have worked closely over the years. In 2010, for example, after a devastating earthquake struck Haiti, he and I visited the country to help rebuild and provide critical aid. Today, we’re collaborating on a book about our experiences there.

Working with Live Different and bringing change to communities around the world is always extremely rewarding. But with that being said, no feeling can compare to watching the young people and students on each trip react to the experience. They realize they have the power to make the world a better place, and many students even change their career aspirations so that they can spend the rest of their lives helping others. That’s part of what makes Live Different so incredible: It changes the lives of both people in the communities it serves as well as the people who participate in its programs.

For more information about Live Different, including how you can get involved, visit its website!