HOWARD HEADLEE President and CEO Utah Bankers Association The Bottom Line I spend a lot of time thinking and speaking about Utah’s economic success. The more I think about Utah’s economic performance, resiliency, and recovery from economic crises and pandemics, the more compelled I am to determine what is driving it. Of course, my first thoughts focus on the diversity and strength of Utah’s banking ecosystem. You can’t have thriving communities and economic success without strong, successful banks. But this relationship is symbiotic; are Utah’s banks driving Utah’s economic success, benefiting from it, or both? The more I have thought about what is actually driving Utah’s economic preeminence, I have come to a conclusion that some might consider controversial: I believe Utah’s undisputed economic success is primarily driven by Utah’s cultural commitment to families. The relationship between the family structure and economic and educational success has been studied and established by Nobel Prize-winning economists and is supported by substantial research, so why is it sometimes viewed as controversial? Because at its heart is something called the “Success Sequence” — 1) Graduation, 2) Full-time employment, 3) Marriage and 4) Children. The emphasis on doing those things in order is something that many people in Utah might expect to hear at church, not in a professional or policy setting. But when you begin to study the relationship between families and financial resilience, or even families and reading proficiency or educational success, you quickly realize you can’t tackle our economic and social challenges without focusing on the health of families and our commitment to the “Success Sequence.” Ian Rowe is one of the most influential voices on this important topic. He attended public schools in New York City and ultimately graduated from Harvard Business School. He worked at MTV and the Bill and Melinda Gates Foundation before becoming the CEO of a public charter school in New York City. His observations and experiences have led him to write prolifically on the connection between families and financial and educational success. Highlighting studies that repeatedly show that family background — not schools, funding, religion, nor race — is the only characteristic with a consistent causal relationship to academic performance, Rowe concludes, “Schools bring little influence to bear on a child’s achievement that is independent of his background and general social context.” There is similar research about the relationship between families and financial stability, which has prompted leaders like Rowe to reignite debate about the introduction of the “Success Sequence” into public schools. But the last two steps of that sequence carry decades of social, political, and religious implications that must be honestly and soberly confronted. Ironically, it may be easier for communities outside of Utah to overcome the social and political hurdles associated with this debate than it is for our community to overcome the religious resistance. Nonetheless, it is a conversation that needs to take place. We can’t underestimate the burden placed on our schools and teachers or the economic burdens placed on taxpayers and communities in overcoming inequalities imposed on children by their home environment. Relegating this discussion to church suggests a public policy hubris driven by the belief that we can somehow engineer our institutions to replace the family. Banks are singularly focused on promoting the economic success of our communities. Each year, banks invest billions to serve the financial needs of individuals in low-income communities with the hopes of achieving economic stability and promoting upward mobility. Can we effectively accomplish these social and economic goals without focusing at least some of that effort on supporting and promoting families? It seems like this conversation should be an important part of the ongoing debate surrounding current efforts to modernize the Community Reinvestment Act, but it is not. If Utah is to sustain its current success, it will be important to acknowledge that Utah’s traditional focus on the family has become a significant comparative advantage. It may even be our greatest asset. And I believe that Utah’s continued success will be driven by our ability to acknowledge, discuss, and continue to promote the role of families in our public policies. n utah.bank 4
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