For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.
I've been reading the book The Jewish Phenomenon: Seven Keys to the Enduring Wealth of a People and am intrigued by it. Here's a summary of the book in a nutshell:
- Jews are disproportionately wealthy and accomplished.
- This financial success can be traced to seven keys to "Jewish success" (many of which relate to teachings of the Jewish faith).
Over the next few weeks (could be two, could be ten -- we'll see how it goes) I want to explore this book and what it has to offer. Today, I want to highlight the foundations of what the author calls "The Jewish Phenomenon". Let's start with the facts regarding Jews and their accomplishments:
- Jews make up only 2% of the total U.S. population, yet 45% of the top 40 of the Forbes 400 richest Americans are Jewish.
- One-third of all American multi-millionaires are Jewish.
- The percentage of Jewish households with income greater than $50,000 is double that of non-Jews.
- The percentage of Jewish households with income less than $20,000 is half that of non-Jews.
- 20% of professors at leading universities are Jewish.
- 40% of partners in leading New York and Washington D.C. law firms are Jewish.
- 25% of all American Nobel Prize winners are Jewish.
What explains the fact that Jews as a cultural/ethnic/religious group are so successful? Here is what the author calls "the seven keys to Jewish success":
1. Understand that real wealth is portable; it's knowledge.
2. Take care of your own and they will take care of you.
3. Successful people are professionals and entrepreneurs.
4. Develop your verbal confidence.
5. Be selectively extravagant but prudently frugal.
6. Take pride in individuality: encourage creativity.
7. Be psychologically driven to prove something.
We'll explore many of these issues along the way (I especially want to get into #1, #3, and #5) as we look at this book in weeks to come. Stay tuned.
I actually I bought this book a while ago... When I picked it up, I didn't mean to buy it, but it was so fascinating that I couldn't put it down in the bookstore.
While there is a bit of "I'll hire you if you are Jewish too", they are still a highly motivated people (they are not really a race) and such practices doesn't really explain their incredible success.
The book was well worth the costs.
Posted by: Money Reasons | September 12, 2010 at 10:22 AM
It's a bit weird to go with sterotypes on this...I guess I haven't read the book so I don't know how the author approached this.
I suppose the author would have gotten in a lot of trouble had he written about why a certain culture is NOT rich...it's much better to compliment a group than insult them.
I'd like to think that I share many of those "seven keys". I think a lot of it has to do with upbringing...and while my father is in fact Jewish, I'm pretty sure my Christian mother was equally an influence in promoting and encouraging those values.
Posted by: Stephanie | September 12, 2010 at 10:46 AM
I graduated from a class of nearly 500 people. Today the most well known graduate is a classmate who is of Jewish descent. Thirty eight years ago he was regarded as somewhat dorky, but was creative in his writing. He left the Kansas plains and is now writes from the Boston-New York-Washington D.C. area. There are probably classmates who have made more money, but he has used his creativity to become a well known columnist. I didn't know him well enough to know about his upbringing in the other six areas.
Posted by: Wayne | September 12, 2010 at 11:49 AM
>
Years ago, I moved to a New York suburb and had no idea until after living hear for some time how large a Jewish population existed in the town. I have seen point #2 in action many times now and it disgusts me because it is a form of discrimination. By favoring your own, you are disfavoring others.
Posted by: TruthTeller | September 12, 2010 at 11:52 AM
First, let me say that I am of the Jewish faith, so I have perspective on this subject. I haven't read the book but I think there is a fine line that you have to walk because you have to be careful of not stereotyping. There is this negative stereotype that Jews are money-loving, greedy, and pennypinching people. I have endured my share of Jewish jokes which I won't share. I hope this book doesn't perpetuate that stereotype.
That being said, Jews have definitely contributed beyond their numbers and that cannot be denied. Part of that is that Judaism puts a huge emphasis on study of laws and tradition. These laws and traditions are constantly debated to the point where study of Jewish law is on par with the study of the bar in secular life. Many of the revered Jewish scholars probably would have made exceptional lawyers! Great Jewish scholars are on par with great military leaders in other cultures. This emphasis on and reverence for studies probably contribute to the success of Jews in many areas that require careful and extended study, like law or science or medicine.
As far as Jews helping one another, for thousands of years, Jews have been social outcasts so the only people that they could rely on has been other Jews. Jews have been expelled from or persecuted in country after country. In US history, the year 1492 is famous for Columbus, but in Jewish history it is famous for when Jews were expelled from Spain after being there for hundreds of years. Therefore the Jewish sense of community is quite strong. Even in the US, it wasn't so long ago that Jews were excluded from many private schools, social country clubs, and other "old boys network" type of organizations. Therefore, they had to form their own networks. However, I would argue that this is no different than other religious and social groups. I will say, though, that the situation is changing for Jews over the past couple of decades since Jews are more likely to be accepted into mainstream life here in the US.
Posted by: MBTN | September 12, 2010 at 03:28 PM
"As far as Jews helping one another, for thousands of years, Jews have been social outcasts so the only people that they could rely on has been other Jews."
I've heard this before and forever saying so doesn't justify treating others with prejudice and continuing to treat others with prejudice will perpetuate being an outcast!
Posted by: TruthTeller | September 12, 2010 at 04:50 PM
@Truthteller:
Yes, of course you are right that it not just to discriminate against somebody just because of their religion, race, gender, etc. I think we can all agree on that. I will say, though, that the issue is not so clear cut as you make it out to be.
One of the things that successful people say made them successful is networking. Networking is leveraging your relationships with people to get business contacts, job leads, sales leads, etc. Most people have social networks that are based around commonalities, like having gone to the same school, or having kids on the same youth sports team, or all living in the same neighborhood, and so forth. For some people, their social network centers around religion: people we meet in Church, Synagogue, Mosque, Temple, etc. It is human nature to what to do favors for people that we know and with whom we are friends. For most people it isn't a matter of purposefully excluding people outside of these social networks. It is more of a matter of helping people within our social network. I can understand how this can be perceived as exclusion because of prejudice, but I think in most cases it isn't.
By definition, prejudice is a making a negative decision based upon a person's group membership (ex: I won't hire you because you are X). Networking is making a positive decision based upon being in one's social network (ex: I will hire you because you were referred to me through somebody I know from X). Now I understand your point of view that by relying so heavily on networking, this has the effect of excluding those outside of the social network. From the excluded person's point of view, there is essentially no difference between being excluded based on prejudice versus excluded based upon not being in the right social network, since the effect of exclusion is the same.
One thing that I will disagree with you on is that this "exclusion by networking" is not exclusive to any group. All groups are guilty of this, regardless of religion, race, ethnicity. It seems to be something inherent in human nature that we tend to congregate in groups of like-minded individuals for mutual support. You can probably consider it to be discrimination by the strict definition of the word, and yes in an ideal world we would treat everybody equally regardless of whether or not they are in our social circle.
Here is another example where we all exhibit this behavior. Every year, thousands of US jobs are "off shored" to other countries, and the reaction of most people (including myself) is to raise barriers and pass laws to protect the jobs are our fellow Americans. However, if you stop and think about it, aren't we discriminating against the people in India, China or whatever because they aren't Americans? After all, the people in China, India, and elsewhere are humans just like us and they deserve to earn a living too? In fact, they might need the job more than us here in the US. The truth is that we are putting Americans ahead of people in other countries is because the people affected by the offshoring of jobs are in our extended social network. Like it or not, that is the truth. So if we are going to call out one group for relying on networking, then we need to look in the mirror and examine our own beliefs and actions as well, if we are truly going to be fair.
Posted by: MBTN | September 12, 2010 at 08:41 PM
I don't think the notion of taking care of your own has anything to do with discrimination. I suspect the author is referring more to networking. I doubt you're going to meet many Gentiles at the synagogue. I've certainly never met any Jews while attending church.
That being said, even if the author was suggesting that Jews focus on helping their own people (which is NOT my experience at all with them), what's wrong with that? Why shouldn't citizens in a free country be able to choose with whom to associate?
Besides, we have a gigantic government that pisses our citizens' money away, mainly to non-Jews, so why should anyone worry about what Jews are doing? I think the Jews' success is extraordinary and something to be marveled at and emulated, not treated with contempt.
Posted by: Todd | September 12, 2010 at 08:45 PM
TruthTeller,
Why do you perpetuate the very prejudice and unfairness you decry by mischaracterizing historical fact? People of societies throughout history have distinguished and discriminated on the basis of "us" vs. "them". If equal/fair treatment for "them" is not reciprocated upon "us", why continue behaviors that will only lead "us" to self-destruction? Switching to in-group promotion is RATIONAL.
Posted by: b fartan | September 12, 2010 at 09:18 PM
I grew up in an entirely white, protestant/Catholic neighborhood. I had not met a Jewish person until I went to college.
As an adult, many of my friends are Jewish, as are my kid's friends. Every single Jewish adult I have met is very successful. I think success and education is just an expected part of life, and the people I know have worked hard for it. Just like where I grew up, it was expected that many would continue in a blue-collar lifestyle, the same seems to be true in the Jewish community - you will perpetuate the example you grew up with and were exposed to. (Not to mention that many Jewish people have connections within the Jewish community - connections never hurt!)
I will also say that the Jewish women I have met have been the first ones to offer help whenever I have needed it. Be it chicken soup when I was sick or help picking up my kids, it seemed second nature to want to jump in and help a friend. I am not Jewish either, so it isn't like they were 'helping their own'.
I look forward to your posts as you delve into this topic further.
Posted by: Everyday Tips | September 12, 2010 at 09:32 PM
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Posted by: Jonia | September 12, 2010 at 10:43 PM
MasterPo catagorically reject this idea that one group of people is "disproportionately wealthy and accomplished" compared to some other group.
It never dawns on the writers that perhaps some people just work harder at better paying careers and are more dedicated than others??
Posted by: MasterPo | September 13, 2010 at 12:11 AM
@MasterPo: I don't understand the connection between your first and second sentences. Specifically - what do you reject?
Maybe they are "disproportionately wealthy and accomplished" BECAUSE they "work harder at better paying careers and are more dedicated".
If the Jewish faith, in general, promotes entrepreneurship, education, discipline, networking skills or whatever it is that lead to success, then surely it is not at all surprising that they are "disproportionately wealthy and accomplished"
Not so different from the findings that children from two-parent families or with educated parents or whatever generally do better in school, etc.
Posted by: Mark | September 13, 2010 at 10:04 AM
@MasterPo,
You categorically reject a statistically verifiable and proven fact?
Your wisdom is rivaled only by your lack of basic reasoning skills.
Because you find something undesirable to accept has no impact on the reality of it.
Posted by: Apex | September 13, 2010 at 10:04 AM
@Mark,
The disconnect is the lack of basic reasoning skills.
This happens when people have cognitive dissonance over issues they find unpalatable.
Posted by: Apex | September 13, 2010 at 11:28 AM
Regarding "Networking with other Jews", let me suggest that when recent immigrants arrive to any new country, the security found by keeping in contact and trading with one of similar culture or background is almost paramount to their well being and self confidence. It is a brave soul who can just dive into waters that are unfamiliar and start swimming. Gradually entering the greater society has always been the way, and as there has been a wave of immigration post WWII, with many of these people still active in business, it is a practice that is comfortable. Having said that, I am sure most newly arrived trades people would welcome interaction with others.
Posted by: Norman Kabak | September 13, 2010 at 07:45 PM
MasterPo rejects the notion of "disproportionate".
By what standard? NOTHING in nature is every evenly distributed. Never happens. No where, no how.
By using words like "disproportionate" there is a STRONG implication that something is wrong with the situation. And it is not!
Many people (Jew and non-Jew alike) work VERY HARD to have what they have while others make decisions that don't involved hard work on tasks that lead to financial success. Or are just plan lazy. To deny that is to deny reality.
Saying that "Jews are disproportionately wealthy and accomplished" is yellow journalism at best, devisive at the worst.
Posted by: MasterPo | September 13, 2010 at 11:01 PM
"By what standard"
Math
2% population leading to 33% in a sample is far beyond statistical significance at the 95% confidence level or 99% confidence level for that matter.
That's the most basic definition of disproportionate.
Are we really going to have a math and vocabulary debate on this or are you just interested in making controversy for it's own sake?
Posted by: Apex | September 14, 2010 at 03:42 AM
one word: favor
two words: God's People
Love the Post FMF! I need to apply those principles more in my life!!
2. Take care of your own and they will take care of you.
#2 really hit home for me. It becomes easy for me to neglect acquiantances, friends and even family! But you must truly master how to help people out in their time of need, because you will need it later (seeding and reaping)
Posted by: PB Jung | September 14, 2010 at 05:34 PM
MBTN... 4TH POST DOWN. Can you please explain why Jews have been thrown out of every country they've settled in? That's the question that's never addressed. Is every race the problem? Are the Jew's perfect angels, is that why they were kicked out of everywhere? I know nothing about any of this nor do I have an opinion about it HOWEVER This question begs an answer and it's probably the 10th time I've heard this by a jew with zero explanation of WHY they have been persecuted. Generally but not always, it takes two to tango.
Posted by: ryan | April 11, 2011 at 02:59 PM
Two principal reasons for near universal Jewish persecution: the population views them as competent/high achieving, but not trustworthy or lovable. I imagine the responds for those two are, intertwined: they have a longstanding culture of scholarship, and very tight ingroup behaviors to perpetuate that culture. The ongoing culture of scholarship begets competence, the segregation from the rest of society begets resentment.
In a study published this year, it was found that people rarely like a group and respect their competence. Also interestingly, targeting for discrimination, ethnic cleansing, etc, was strongly correlated not just with likability of a group, but also that group's perceived competence. You had to be both hated and feared to be targeted. The Jews generally fall under this umbrella wherever they go. Their kind of the international nerds being picked on in high school.
Unfortunately, I could not find the study, as my google foo had failed me.
Posted by: James | December 16, 2012 at 03:59 AM
There is also the Talmud which, from excerpts I've read, says that it's fine to cheat any of the non-chosen sub-human Goyim.
Anybody notice the Wall Street crash and the lack of prosecutions for fraud?
Why did Thomas Edison think the Federal Reserve was just a giveaway of interest payments to private bankers? Was Edison stupid?
Oy!
Posted by: Jeremiah | March 14, 2013 at 03:45 AM