Gross domestic product is often cited as a measure of change in population and productivity. Naturally, if you want GDP to continue to grow, you would want population to grow and productivity to increase. Population is a mainstream topic. It is discussed in two forms: first, that Western and developed societies are not having children at the replacement rate. This plays into other conversations and policies around immigration, which is possibly the most heated topic in America at the moment. For sustained GDP growth, you would certainly like to see a clear path toward population growth; however, that's not the real topic of this article. I want to address the other variable in this equation: productivity.
Have you ever served on a board? Maybe a nonprofit, or a church, or something? Maybe even just a committee. How effective was the group of people in the pursuit of their stated objective? I ask because I have been on a number of nonprofit boards, corporate committees, and church groups. Even now, as a business owner, I find it a real challenge to align people behind a vision that drives real productivity. Perhaps there are several reasons for that, but I think the most obvious is a lack of real leadership. When I say leadership, I mean someone who earnestly believes that the product of a group could be greater than the sum of its parts and that if that product is realized, it will result in a rising tide that benefits each boat.
Let me ask you a question: Do you get the sense that any politician cares about you? Does any CEO care about you? What about their own employees? I worked in corporate America for a dozen years at two very large companies, and the general feeling was that we are all replaceable. Given the choice between keeping me as an employee and a 0.01% increase in profits, the company's management wouldn't think twice. It's a stark contrast to how the Greatest Generation might describe their time in corporate America. Guys spend 30 years bolting tires onto Ford trucks and would get angry at the idea of buying a foreign car! What’s changed?
The idea of working toward something bigger than ourselves gives our lives meaning and value. We want to be part of something where the product of our efforts is larger than the sum of our parts. That difference between the sum of our parts and our collective product could be called productivity. Lately, our productivity has come from technological advancements that have largely improved process efficiency. The cost of increasing productivity by choosing technology over people is now rearing its head. It manifests as distrust and disillusionment with institutions. We have experienced that the leaders in most institutions today are not there for us; they are there for themselves. Leaders no longer seem to serve us, but it is we who need to yield to them. This has caused real erosion to our national and community cultures. We must find a way to revert to good leadership.
Real leadership is a number of things, but chief among them is humble, clear, decisive, and, perhaps most importantly, sacrificial. Is your boss one of those things? Could you name a CEO who would sacrifice their money or time for you? Have you heard the name John Jacob Astor IV? He was a real estate developer who developed the Waldorf Astoria hotel. He was worth 80 million dollars at the time of his death in 1912. Have you heard of Isidor Straus? He was the co-owner of Macy’s and was worth nearly 3.5 million dollars when he died in 1912. Both of these leaders were aboard the maiden voyage of the ill-fated Titanic. Both first-class passengers opted to allow their seats on lifeboats to be given to others above themselves. Isidor's wife, Ida, decided to remain with her husband and spend her last earthly moments in the embrace of the man she had shared her life with. Her seat went to her maid, Ellen Bird, along with a fur coat to ensure Ellen's survival during the frigid disaster. Those people made clear, decisive, and sacrificial decisions about what they valued most in life and in legacy. Maybe I'm just cynical, but the idea of a leader in our society today sacrificing on such a scale because it's the right thing seems impossible.
We, as a group of people, signal the kind of leaders we follow based on how we interact, vote, and spend our money. For the last few generations, we have lost touch with what leadership looks like. Our expectations have become jaded, and we normalize the behavior of people, including and especially leaders, who look out for themselves first and us later. The path forward is a restoration of relational capital. Remembering that this isnt directly about profits. It is directly about people: if you serve them well, productivity will increase, and profits will follow.
As individual participants, the first step in this shift back is being decisive. Clarity of thought, intentionality of actions, all send clear messages of what you are willing to accept. Are you willing to continue accepting poor, selfish leadership? As an investor, I would encourage you to consider where and what you are invested in. For one, if your money is held at a large firm, I would ask: Do they care about you or just the fees you pay? Is their leadership reflective of long-term human investment and flourishing? Do their employees even feel valued? If there is constant employee turnover, it indicates that the company is prioritizing something above people, and if their own employees don't feel valued, how does that leadership view you, your investments, and your financial goals? Sure, maybe you have worked with your advisor for a long time, and they have done fine by you. Considering these things can be uncomfortable and hard, but when is fine not good enough?
Money is simply the tool we use to express our convictions in this world. You have no greater leverage than where you have money. Beyond money, our souls, our existence should display meaning and leave a legacy of expectation. An expectation of culture and values that transcend materialistic experiences. Firms don’t talk like this anymore. It’s easier to show you a pie chart and simplify the process so they can bring on more clients more quickly. But you’re not a number, you are you. You are worth sacrificing for. You are worth a seat on a lifeboat. There will never be another you or goals like yours. You are diminishing your potential by selling yourself short to corporate advisors who don't understand, or care, about these truths. Maybe Greenwing Wealth Management is a good fit, or maybe we are not, but you should take a decisive step today and schedule a conversation with us to ensure those leading your investments and financial planning are driving toward a legacy that is greater than the sum of its parts.