Bottom-Up Economics: America’s Surest Path to Growth

The United States is facing a critical decision. We can attempt to resolve a potential financial crisis by cutting services and reducing spending, which would negatively impact the American Dream.

Alternatively, we can choose a path of growth, inclusivity, and opportunity. This approach, called “Raising the Third,” focuses on economically empowering the bottom third of Americans, regardless of race, background, or location, by enabling them to become stakeholders, owners, and beneficiaries of the country’s promise.

For decades, America’s economic growth has been driven by building from the middle and top down. However, the middle class is shrinking, and the top is not broad enough to sustain our collective goals. Meanwhile, approximately 70% of Americans live paycheck to paycheck, including about 50% of those earning $100,000 a year and a third of those earning $250,000. The primary reason for those at the bottom is not laziness or lack of talent, but limited access to capital, opportunity, and confidence.

Consider the possibilities if we shifted our focus. If we empowered the 100 million Americans who are often overlooked to start businesses, own homes, increase their income, and participate in the market as producers, not just consumers. Instead of closing the U.S. Department of Education, we should give it a new objective: preparing the bottom third of Americans for the AI, technology, skills-based, and information-age jobs of the future. This new economic growth could increase GDP by 2% to 3% annually, alleviate the fiscal crisis, reduce the deficit, and strengthen America.

Following World War II, America expanded rather than retreated. The sent millions to college and into the middle class. Infrastructure projects like the interstate highway system connected communities and commerce. The moonshot also invested billions in high-tech research and development, creating entire industries. We grew our way into leadership by embracing investment rather than fearing it.

However, that prosperity was incomplete. Black and brown Americans were largely excluded from many of those opportunities, and white Americans in poor rural areas were left behind by globalization. Consequently, our economy was built on an incomplete foundation.

If the bottom third of Americans were included in the economic mainstream—with a credit score of 700 or higher, access to prime capital, and the chance to own assets—we could unlock trillions of dollars in untapped GDP. This is not a redistribution plan, but an inclusion plan.

At Operation HOPE, we have witnessed the positive impact of investing in people’s financial well-being. We have helped improve credit scores, start businesses, and launch careers. When people believe the system is working for them, they become more engaged. They buy homes, create jobs, and build wealth for future generations. They move beyond survival and begin to thrive. Gradually, struggling towns and cities across America begin to recover.

Some policymakers argue that America’s debt is too high to invest in ambitious economic strategies. However, debt is only harmful if it does not lead to growth. There is a significant difference between unproductive debt and smart investments that foster growth and appreciation. Investing in people’s education, small businesses, and financial literacy yields returns. The right kind of debt can pave the way to prosperity.

Furthermore, America’s demographics are shifting towards a younger and more diverse population. If we fail to invest in the bottom third, we risk a future where many feel excluded and disengaged. This is not only detrimental to the economy but also to our democracy. We can expand the pie instead of fighting over slices by making financial inclusion the civil rights issue of this generation. We can make capitalism work for everyone by expanding its reach, not changing its core principles.