Kevin Falk, based in Montreal, Quebec, is passionate about combating the poor tax. In his words, “it’s expensive to be poor.” This may seem like a non sequitur, but it is in fact a heavy truth.
Almost 33 million individuals in the US, or roughly 10% of its population, are unbanked or underbanked. This means they either entirely lack access to traditional banking services, or if they do hold a bank account, they still must rely on alternative financial services (check-cashing services, payday loans, etc.) instead of things like traditional banking services to manage their finances.
The cost of depending on these services is high. For example, 2.8 million people can’t afford fares for the public transit they use to commute, resulting in absenteeism and therefore lower earnings. Overdraft fees can often come out to an equivalent 1,700% interest rate. It can cost 6% to cash a check. Families and individuals who miss utility payments due to lack of funds end up paying fees to restart those utilities, which compounds their financial struggle. Underprivileged neighborhoods suffer the lion’s share of underfunded education, reinforcing high crime rates and low paying jobs; this is an added burden to the reality that they already face poor public transportation, low quality grocery options, and higher crime rates.
The result is a poor tax of $200 billion annually. That breaks down as $3,174 per individual—not necessarily a big deal for someone earning $70,000+ per year, but a major problem for someone making $15,000.
There are numerous possible solutions to this problem. Raising wages to a living amount would honor individuals as images of God and support the common good. Investment into early childhood education would promote systemic change; for every $1 invested, $7.30 could be saved in the social system.
Or perhaps an even more radical solution: simply pay people every day.
It may sound like a shocking idea, but in ancient societies daily payment was actually common place. In the Old Testament, it was even law (Deuteronomy 24:25). While the concept is revolutionary in many cultures today, it poses a question of justice: Why should institutions and employers benefit from the interest gained by delaying wage payment? Shouldn’t people benefit from fair access to their earned money, especially since it would dramatically increase basic quality of life for so many?
In fact, Kevin Falk has been working on this exact solution. In 2015 he founded Instant Financial, which provides businesses with a free platform that offers employees earned wage access. Through that platform, workers have free real-time access to money they have earned but not been compensated for yet.
Kevin has seen the very real impact this creates in the lives of employees. In one instance, a man was able to pay for the bus ride home after his shift at McDonalds. In another, a mother was able to prove to social services that she could provide for her kids. A small change—access to earned wages—can make life a life-changing difference.
Upon graduating from the Leadership Circle, Kevin expressed the hope to expand on what Instant Financial already offers, possibly in a new venture. He sees tremendous potential in offering not only access to earnings, but full banking services, insurance, and a platform that is employee-driven rather than employer-driven.
This dedication to the unbanked and underbanked members of society is a poignant example of not only hesed love, but mishpat—justice. Many people today think of justice as a process that deals with punishment for wrongdoing, but, as we teach in the Leadership Circle, justice is much more. It’s “giving people what they are owed,” as Tim Keller puts it—and as every person bears the image of God, “what is owed” also translates to kindness, dignity, and compassion. That means lifting up the underprivileged and advocating for those in need.
Too few believers see work and faith as an integrated whole, unaware that God designed work as a partnership to redeem our communities. Kevin is just one inspiring example of the impact leaders can make when faith and work are seen as one, as God intended. At Cities Project Global, we aim to create a cultural transformation among believers everywhere, so that all can be empowered to live out their calling for the redemption of cities worldwide.
Applications for the 2022-2023 Global Leadership Circle are Open
The Leadership Circle is a 9-month deep dive into faith, culture, God’s story of redemption – and your place in it all. Join other leaders and change-makers on a journey of discovery and transformation, in which you will clarify your calling and gain tools to bring restoration to your city.
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