Spring Hope Eternal

The adage “Hope springs eternal” is an optimistic sentiment. Studies by economists at Massachusetts Institute of Technology indicate the optimism is misplaced when it comes to the psychology of poverty. There’s also evidence community development initiatives can help correct this exception to the rule. Retailing is how it happens.
     The general research finding is that families suffering prolonged, severe economic disadvantages become pessimistic and risk averse. Both these impede progress toward self-sufficiency throughout a community.
     Initiatives such as Bandhan’s “Targeting the Hard Core Poor” were both inspired by and analyzed by the MIT research. In one program, each participant was given a cow, goats, or chickens; training sessions in how to turn the output from the animals to profit; a small stipend to discourage the owners from simply eating the animals; and coaching in money management.
     The recipients earned 20% more each month than those in a comparison group. This might be expected. But as The Economist reported, the benefits were substantially more pervasive and persistent than this: The rate of depression dropped. Participants worked 28% more hours, and they became more likely to consider other earning opportunities.
     The research indicates that such optimism and energy move from one generation to the next. It is as if a magical force of nature has been mobilized. The pessimism and risk aversion are not a natural state. By and large, we’re an optimistic lot. If asked to compare ourselves to others, about 80% of us will say we perform better than the average person. That is, of course, a mathematical impossibility. You can’t have 80% better than the 50% benchmark.
     My very favorite of those research studies found that 80% of us even believe we are more likely than are our neighbors to go to Heaven.
     Hmm, I can’t locate the study right now. I’m sure I remember correctly that it said 80%. I’m also sure that since I mentioned the study to you, it will show up soon. Sort of like how when you buy a purple car, you start seeing loads of purple cars.
     It's like magic.
     Certainly, hope and activity among a community of merchants are not magical enough to ensure lasting community development. Consumers need marketable job skills, retailers need marketable offerings, and both need money-management abilities. Even when hope does spring eternal, its role is as the motivator for the rest.
     But the motivation is essential.

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