The Ethical Optimist

I think one of the things that is causing so many Americans to be angry right now is a lack of perspective on the part of Wall Street executives. In the last decade, we’ve seen a growing divide between those with extreme wealth and those of more moderate means. The former lives in an isolationist bubble with an unrealistic sense of entitlement.

This was illustrated in a recent ABC 20/20 episode titled “Living Life on the Edge in Today’s Economy.”

The show profiled a “struggling” family in which the father, who formerly earned $750,000 as a hedge fund manager was now delivering pizza. Apparently, he couldn’t find a job, and hasn’t made a mortgage payment in 2 years. Needless to say, their home is now in foreclosure.

My head was spinning by the end of the episode, which I think was produced to elicit my sympathy. It did not. First of all, the fact that the Jacuzzi in their snazzy house had algae didn’t make me cry. Why didn’t they sell the house? The wife, nipped and tucked to perfection, was lamenting his work as a pizza guy, but has yet to find a job herself.

The Mercedes in the driveway needs repairs too! Heavens! Ever think of selling it and getting a clunker? Oh yeah, and the garage is full of expensive toys like SkeeDoos and golf clubs…ever think of selling those? I’m sure there was a pricey digital camera in there somewhere to take some nice photos for EBay postings.

This is the killer…while she now has to shop with food stamps and coupons (while still living in the multi-million dollar home), the kids are still attending a private school that costs $30K each (two kids, you do the math). The tuition is being paid for by an anonymous donor. Why not just take the $60K and try living on it for a year like many other Americans?

I wonder if anyone else got the irony that this financial whiz, who apparently knew enough about the markets and financial world to earn $750,000 can’t manage his own family’s finances and has to deliver pizza. He’s not much smarter than the whiz kids who are now returning their bonus checks.

Here is the lesson. Just because these folks are earning big bucks does not mean they are competent, and that’s what many Americans are starting to realize and rebel at.

Many salaries (not just those on Wall Street) are examples of the Peter Principle at work. The PR industry is no different: for a 26 year old at a major agency to rake in over six figures is not fair to the industry or the clients. It takes time, education and experience to build the type of expertise that demands $400 an hour.

When we quickly promote young professionals without demanding they learn their craft, we hurt our industry’s credibility…much like the financial institutions we are railing at today.

Our economic crisis goes beyond dollars…and needs to focus on sense…common sense.