Progress Through Business Newsletter
Improving social and economic conditions


Information for you in this issue of Progress Through Business
March 2015 Vol 56
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In This Issue

Companies providing financial education show results that include improvement in workplace productivity, employee morale, and company loyalty while reducing absenteeism, turnover, and workplace distractions. 

In January of 2015 The Personal Finance Employee Education Foundation, Inc. became part of Progress Through Business, Inc. a 501(c)(3) non-profit organization. Visit by clicking here.
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Wealth inequality is an issue that influences many societies. The top one percent of people own 40 percent of global wealth, whereas the bottom half has only one percent. But what, if anything, to do about this is unclear.

 

A first step may be to understand relative inequality. One measure is the Gini Index. The higher the index number (from 0 to 100), the higher inequality. Off-the-map inequality is not exclusively a poor-country trait. According to the CIA, the U.S. recently had a Gini index of 45, close to that of Mexico with 48.

 

Many have believed that a sign of a society's healthiness is the ability for a family to own a house. Many benefits come along with such ownership, among them is that eventually many have a family asset.

 

Through statistical methods, we tested the hypothesis that inequality might be reduced when people own their homes. For the U.S., we did a state by state analysis and found that the more home ownership, the lower inequality. Next we plotted our data and divided our graph into four quadrants. Of special interest to us are quadrants one and four.

 

 

Quadrant one has high inequality and low ownership. This combination is the least desired, yet, within this sector lie some of the wealthiest states. The question is why? One possibility is that, since states in quadrant one are the richest, many people want to live there; consequently the demand for housing is high. If the supply of houses doesn't increase; prices rise. If the housing prices are high, then people don�t buy houses and there is a lower percentage of home ownership.

 

With respect to inequality, population density seems to be an important variable. Many states in quadrant one have a higher density. Thus, more poor people are found in those states.

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Integrity Action - What Are We Going To Do About Corruption?

By Pankaj Upadhyay

The Global Corruption Barometer survey across 107 countries found that, in 2013, in 51 of these nations, people perceived political parties to be among the institutions most affected by corruption. Bribery, corruption, theft and tax evasion cost developing countries $1.26 trillion per year, sufficient to lift the 1.4 billion people living on less than $1.25 a day above this threshold for at least six years. By conservative estimates, nearly $1 trillion a year of aid and government funds in developing and war-torn countries is lost because of corruption, fraud, and mismanagement.

 

Though the pernicious effects of corruption are more pronounced in developing and conflict ridden countries on account of weak governance structures, even more developed countries are unable to rid themselves of this corrosion. For instance, an estimated $135 billion is lost to corruption each year throughout the 27 European Union member states. Fraud costs even a country like the UK nearly $110 billion a year.

 

Controlling corruption is an essential part of good governance and most attempts at eradicating corruption have floundered. However, Integrity Action, founded by Fredrik Galtung and Jeremy Pope, has delivered key development outcomes such as access to education, healthcare, water, roads, and social service, by embedding integrity on the social canvas.

 

In trying to understand how ordinary people can make a difference and get better services in tough governance environments and amidst less scrupulous contexts, Integrity Action realised that fostering social accountability can be the most potent tool in countering corruption. Building on local resources and skills to further more effective programs and inclusive polices, Integrity Action has pioneered Community Integrity Building across Africa, Asia, and the Middle East.

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Examining President Obama's Education Plan
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By John Hoffmire & Richard Payne

America has always been a land of opportunity. Part of the American dream has been the possibility of social mobility and the creation of wealth for every individual. Since education and skills-based training are key components in helping people achieve a higher standard of living, it is no surprise that these are important topics when considering ways to help the working poor. Providing opportunities to attend college is often seen as the way to accomplish this, but technical training through partnerships between business and higher education are gaining a more prominent role.

 

The White House's announcement of America's College Promise in January has re-energized the discussion regarding the role of higher education in helping the poor. Although it is still a long way from becoming a reality, it suggests funding two years of community college tuition to anyone who wants it. While numerous articles have been written for and against President Obama's promise, nearly everyone agrees on one thing: many people are in need of a good education. Controversy lies in regard of how to provide it.

 

What kind of education should be provided? As higher education costs continue to rise, students are amassing greater amounts of debt to obtain their degrees. This debt often inhibits the accumulation of wealth and delays the ability to purchase a home or save for retirement. For those who are not fortunate enough to acquire scholarships or family financial support for a four-year degree, community college is an attractive financial alternative. Unfortunately, an associate's degree does not usually significantly increase one's salary.

 

Although an associate's degree may not significantly increase one's wages, obtaining a technical or professional certification through a community college can translate into higher earnings. According to the Bureau of Labor Statistics, aircraft mechanics, health information techs, makeup artists and other professions all have higher median incomes than the national median and do not require a formal degree - just a professional certification. For instance, air traffic controllers typically obtain a specialized associate's degree and have an annual median salary over $120,000. Helping disadvantaged groups enroll in these programs may be an effective way to help more Americans live the American Dream.

 

An often overlooked piece of America's College Promise intends to provide support for these certificate programs.
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Solar Ear Helps Those with Hearing Losses at Minimal Cost
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By John Hoffmire & Ben Young

Globally, approximately 325 million people suffer from some degree of hearing loss. Experts estimate that helping these people comes to a lifetime cost of around $300,000 per person. The cost to society includes more than just dollar cost: it includes the potential isolating impact on entire lives. This isolation can limit professional and educational opportunities and performance.

 

Fortunately, in the developed world, this situation no longer applies to everyone with hearing loss. One reason is the hearing aid. While these devices do not restore all capabilities, they provide enough amplification to allow participation in day-to-day activities and interactions.

Governments have done very little to provide resources, training, job opportunities and support groups for people with hearing loss. Many nonprofit organizations have tried to fill this need for services, help, and counseling. These groups enable millions worldwide to achieve their desired quality of life.

 

Unfortunately, access to these benefits often does not exist in the developing world. While governments have their hands full with other issues, the poor are left behind, especially those with disabilities. For those suffering from hearing loss, hearing aids are prohibitively expensive.

 

Since 1991, the average cost of hearing aids has nearly quadrupled. Currently, even the cheapest models cost at least $500. These devices are also limited by batteries, which typically have to be changed weekly at the cost of $1 per replacement. For a family subsisting on $1 a day, this cost is prohibitive.

 

Enter Solar Ear, a sustainable social company, founded in Botswana (with additional projects in Brazil and China) by social entrepreneur Howard Weinstein and a group of workers who are deaf. Solar Ear attacked the challenge of hearing loss head on.

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Since 2004, Progress Through Business has helped in the creation and growth of companies located in distressed and underserved urban and rural communities and assisted residents of those communities to become entrepreneurs.  

 

We write articles for online periodicals with an interest in influencing the climate around economic development. We help educate people toward becoming more financially literate and we complete free tax forms for low and moderate income people at sites located within the institutions where they are working and/or going to college.

 

Help us create 20 times more value for low-income individuals than we spend on all other parts of our organization combined. Click to Donate to Progress. Progress is an approved 501(c)(3) organization and donations are tax deductible. 

 

Thank you for your time and we hope that you will continue to stay in touch with our organization and be involved in your community.

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