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America’s 'Great Wealth Transfer': How to pass on values and purpose
It's estimated that $68 trillion will pass down from Boomers to millennials. Here's how ultra-rich families can do the most amount of good with what they inherit.
- Approximately $68 trillion will pass from boomers to millennials over the next few decades in what's known as the Great Wealth Transfer.
- 90% of family wealth is gone by the time the third generation comes around, primarily due to familial conflict.
- Social capital advisor Richard Tafel suggests 4 steps families should follow so they transfer wealth in a way that does the most amount of social good.
The U.S. is going through the largest transfer of wealth in history. The question for many ultra-high net worth individuals (HNI) is how to make the passing on of wealth purposeful and impactful.
Many of us who weren't raised in wealth believe that if we just had "more," all would be well. But having worked with many wealthy families and foundations in my career, I've discovered that wealth brings its own set of challenges. Knowing how to pass wealth down properly is one of them.
The time to do this right has never been better. America's high net worth individuals are experiencing two dramatic trends. First, they are part of what is often referred to as the "Great Wealth Transfer," with approximately $68 trillion estimated to pass from boomers to millennials over the next few decades.
Second, the generational transfer of wealth often doesn't go well. In fact, one recent U.S. Trust survey showed that 90% of family wealth is gone by the time the third generation comes around. The primary reason is familial conflict.
Added to the stress of getting this right, as most wealthy parents are well aware, is the damage large sums of money can have on their children's ability to craft their own lives and break out of their parents' shadow. U.S. Trust Company, Insights on Wealth and Worth, reported that more than 50% of all wealthy parents are not confident their children will be prepared to handle a financial inheritance.
To further complicate this transfer moment, the generations have differing views on "doing good." Many in the older generation feel a responsibility to give back to society through philanthropy, often a family foundation, while most young inheritors I've worked with are much more interested in for-profit social ventures or a hybrid for-profit/non-profit model.
Passing on wealth appears simple, but doing it correctly requires quite a bit of work.
Common questions raised by HNIs about passing on their inheritance include:
- How do I preserve the family legacy for multiple generations?
- How do I accomplish this without damaging the next generation?
- How do I accomplish while providing the greatest social impact for good?
Based on my experience as an advisor to high net worth families, I suggest four steps toward accomplishing these goals.
1. Remove the secrecy, establish transparency
Addressing the secrecy around money in families is an important first step.
In my first job after graduating from divinity school, I served on the staff of Memorial Church at Harvard. Part of my job required me to meet some of the best-known wealthy families in America and ask their support for our annual appeal. What struck me the most at these meetings was the families' trepidation about giving money away because they were not sure how long their funds would last. They explained that there was secrecy within the family around their inherited money, which left them with a lack of clarity about their own philanthropy.
Secrecy breeds fear in these situations. HNIs often underestimate the effects of secrecy and the ability of their inheritors to see the big picture. One solution is to begin an open dialog facilitated by a dispassionate professional coach. As an outsider, a coach is in an ideal position to interview all of the stakeholders about their values, hopes, and fears, and to bring everyone together, in person, if possible.
The meeting should include a candid conversation about the extent and current status of the family's assets, as well as an honest discussion around the family's values. A trusted advisor such as a CPA, attorney or wealth manager can be helpful in providing factual information and historical background, if appropriate.
Having worked with hundreds of clients in these situations, I've discovered a pattern; we all share some pretty common values, including variations on family, love, creativity, honesty, faith, health, truth, knowledge, and economic security. Finding out individual values ahead of the family meeting can help move everyone toward an articulation of the family's values together. A question can set the stage for a productive outcome: What legacy do we as a family want to pass on? What are our family values that will guide those decisions? What tangible steps can we take to make sure our decisions reflect our values?
This is also a great time for a good facilitator to help uncover fears. Underlying wealth transfer are deep emotions. For example, the younger generation that inherits the wealth often experiences shame at not having created it. This can lead to impostor syndrome: Parents imposing their values on their children without necessarily listening to their children's thoughts and values. That, coupled with subtle threats of disinheritance, can lead to harmful results. Many inheritors fear that they'll be cut out of the family legacy if they don't go along. Inheritors sometimes share fears that they won't know how to manage the inheritance. Using an unbiased facilitator or coach can be helpful here.
2. Making the legacy real
Using the facilitated time to discuss the family's legacy goals can have a profound social impact. Considerations include understanding the difference between charitable giving and social-impact investing; tax consequences of giving; and the pluses and minuses of various charitable vehicles.
Discuss the structures you will put in place to achieve your goal. For example: How will you identify worthwhile social ventures to donate to or invest in? Do you want to be solicited directly by prospective non-profit beneficiaries? Do you have a family foundation, or will social-impact investing be accomplished in another way? In my experience, more inheritors want to roll up their sleeves and have more of a personal impact in ways their parents did not. Writing out a well-conceived plan helps bring clarity to the family's goals and objectives. That includes deciding how much of your investment will be used to build the infrastructure needed to help the organizations that you support succeed. What budget is necessary to make the legacy dream a reality?
Having an impact means more than giving away money. It means being very strategic about how, what, and where you give.
3. Selecting the Right Vehicle
With transparency achieved, values agreed upon, and strategy for the legacy impact determined, it is time to decide on the appropriate vehicle. It is important to consult with experienced advisors who are well-versed in philanthropy at this stage. Relying on poorly informed or strategically unprepared counsel can and most likely will cause more harm than good and can be very costly to the family legacy.
Your advisors should have deep expertise in the philanthropic arena, including social-impact investing, from both the wealth transfer and non-profit beneficiary perspectives. Far too often, well-intentioned plans are not properly executed. Errors can result in misdirected and/or depleted philanthropic resources, leaving the family legacy in disarray.
An experienced consultant should be able to quickly explain the difference between a private and a public foundation. They can help you develop and articulate your mission and align that mission with your strategy. They can assist with identifying organizations to get involved with and help determine the right ones where you should become part of the board and which ones you should volunteer at, as well as help you determine how much should be given to any one organization.
Hybrid organizations that combine charitable giving with social-impact investing often bridge the generational divide. This requires getting the proper structures built early. Families that seek to cut corners in the beginning stages are often frustrated by failed structures later. As someone who has done this work for many years, I'm often humbled working with accountants and lawyers in the field who continue to educate me on the possibilities and the power of getting it right in the beginning.
4. Join or create a network of peers
In addition to accountants, wealth advisors and attorneys, it is well worth the family's time and money to join networks of other high net worth individuals, where they can meet their peers and learn from them. Organizations such as Nexus (next-generation philanthropy) and the Family Office Association of America (which offers specific workshops in intergenerational wealth transfer) are two good examples, but there are many more, and some might be local to you.
I have found that dealing with families in helping shape their philanthropic and social-impact investing goals is greatly rewarding work. It allows me to get beyond the transactional relationships and build trust with my clients and their other advisors.
The most critical message for those passing down wealth is to remember that you are passing down more than just wealth. You are passing down your values.
The great wealth transfer taking place is a tremendous opportunity to make significant changes for good in our world. Following these guidelines can help move you and your family toward a true legacy with a real impact for good.
Richard Tafel is director of Marcum Social Capital Advisors, a division of Raffa-Marcum's Nonprofit & Social Impact Group. He can be reached at firstname.lastname@example.org.Marcum LLP is one of the largest independent accounting and advisory firms in the U.S., with offices in major business markets across the country and select international locations. For more information, visit marcumllp.com.
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Scientists are using bioelectronic medicine to treat inflammatory diseases, an approach that capitalizes on the ancient "hardwiring" of the nervous system.
- Bioelectronic medicine is an emerging field that focuses on manipulating the nervous system to treat diseases.
- Clinical studies show that using electronic devices to stimulate the vagus nerve is effective at treating inflammatory diseases like rheumatoid arthritis.
- Although it's not yet approved by the US Food and Drug Administration, vagus nerve stimulation may also prove effective at treating other diseases like cancer, diabetes and depression.
The nervous system’s ancient reflexes<p>You accidentally place your hand on a hot stove. Almost instantaneously, your hand withdraws.</p><p>What triggered your hand to move? The answer is <em>not</em> that you consciously decided the stove was hot and you should move your hand. Rather, it was a reflex: Skin receptors on your hand sent nerve impulses to the spinal cord, which ultimately sent back motor neurons that caused your hand to move away. This all occurred before your "conscious brain" realized what happened.</p><p>Similarly, the nervous system has reflexes that protect individual cells in the body.</p><p>"The nervous system evolved because we need to respond to stimuli in the environment," said Dr. Tracey. "Neural signals don't come from the brain down first. Instead, when something happens in the environment, our peripheral nervous system senses it and sends a signal to the central nervous system, which comprises the brain and spinal cord. And then the nervous system responds to correct the problem."</p><p>So, what if scientists could "hack" into the nervous system, manipulating the electrical activity in the nervous system to control molecular processes and produce desirable outcomes? That's the chief goal of bioelectronic medicine.</p><p>"There are billions of neurons in the body that interact with almost every cell in the body, and at each of those nerve endings, molecular signals control molecular mechanisms that can be defined and mapped, and potentially put under control," Dr. Tracey said in a <a href="https://www.youtube.com/watch?v=AJH9KsMKi5M" target="_blank">TED Talk</a>.</p><p>"Many of these mechanisms are also involved in important diseases, like cancer, Alzheimer's, diabetes, hypertension and shock. It's very plausible that finding neural signals to control those mechanisms will hold promises for devices replacing some of today's medication for those diseases."</p><p>How can scientists hack the nervous system? For years, researchers in the field of bioelectronic medicine have zeroed in on the longest cranial nerve in the body: the vagus nerve.</p>
The vagus nerve<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTYyOTM5OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NTIwNzk0NX0.UCy-3UNpomb3DQZMhyOw_SQG4ThwACXW_rMnc9mLAe8/img.jpg?width=1245&coordinates=0%2C0%2C0%2C0&height=700" id="09add" class="rm-shortcode" data-rm-shortcode-id="f38dbfbbfe470ad85a3b023dd5083557" data-rm-shortcode-name="rebelmouse-image" data-width="1245" data-height="700" />
Electrical signals, seen here in a synapse, travel along the vagus nerve to trigger an inflammatory response.
Credit: Adobe Stock via solvod<p>The vagus nerve ("vagus" meaning "wandering" in Latin) comprises two nerve branches that stretch from the brainstem down to the chest and abdomen, where nerve fibers connect to organs. Electrical signals constantly travel up and down the vagus nerve, facilitating communication between the brain and other parts of the body.</p><p>One aspect of this back-and-forth communication is inflammation. When the immune system detects injury or attack, it automatically triggers an inflammatory response, which helps heal injuries and fend off invaders. But when not deployed properly, inflammation can become excessive, exacerbating the original problem and potentially contributing to diseases.</p><p>In 2002, Dr. Tracey and his colleagues discovered that the nervous system plays a key role in monitoring and modifying inflammation. This occurs through a process called the <a href="https://www.nature.com/articles/nature01321" target="_blank" rel="noopener noreferrer">inflammatory reflex</a>. In simple terms, it works like this: When the nervous system detects inflammatory stimuli, it reflexively (and subconsciously) deploys electrical signals through the vagus nerve that trigger anti-inflammatory molecular processes.</p><p>In rodent experiments, Dr. Tracey and his colleagues observed that electrical signals traveling through the vagus nerve control TNF, a protein that, in excess, causes inflammation. These electrical signals travel through the vagus nerve to the spleen. There, electrical signals are converted to chemical signals, triggering a molecular process that ultimately makes TNF, which exacerbates conditions like rheumatoid arthritis.</p><p>The incredible chain reaction of the inflammatory reflex was observed by Dr. Tracey and his colleagues in greater detail through rodent experiments. When inflammatory stimuli are detected, the nervous system sends electrical signals that travel through the vagus nerve to the spleen. There, the electrical signals are converted to chemical signals, which trigger the spleen to create a white blood cell called a T cell, which then creates a neurotransmitter called acetylcholine. The acetylcholine interacts with macrophages, which are a specific type of white blood cell that creates TNF, a protein that, in excess, causes inflammation. At that point, the acetylcholine triggers the macrophages to stop overproducing TNF – or inflammation.</p><p>Experiments showed that when a specific part of the body is inflamed, specific fibers within the vagus nerve start firing. Dr. Tracey and his colleagues were able to map these relationships. More importantly, they were able to stimulate specific parts of the vagus nerve to "shut off" inflammation.</p><p>What's more, clinical trials show that vagus nerve stimulation not only "shuts off" inflammation, but also triggers the production of cells that promote healing.</p><p>"In animal experiments, we understand how this works," Dr. Tracey said. "And now we have clinical trials showing that the human response is what's predicted by the lab experiments. Many scientific thresholds have been crossed in the clinic and the lab. We're literally at the point of regulatory steps and stages, and then marketing and distribution before this idea takes off."<br></p>
The future of bioelectronic medicine<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTYxMDYxMy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzNjQwOTExNH0.uBY1TnEs_kv9Dal7zmA_i9L7T0wnIuf9gGtdRXcNNxo/img.jpg?width=980" id="8b5b2" class="rm-shortcode" data-rm-shortcode-id="c005e615e5f23c2817483862354d2cc4" data-rm-shortcode-name="rebelmouse-image" data-width="2000" data-height="1125" />
Vagus nerve stimulation can already treat Crohn's disease and other inflammatory diseases. In the future, it may also be used to treat cancer, diabetes, and depression.
Credit: Adobe Stock via Maridav<p>Vagus nerve stimulation is currently awaiting approval by the US Food and Drug Administration, but so far, it's proven safe and effective in clinical trials on humans. Dr. Tracey said vagus nerve stimulation could become a common treatment for a wide range of diseases, including cancer, Alzheimer's, diabetes, hypertension, shock, depression and diabetes.</p><p>"To the extent that inflammation is the problem in the disease, then stopping inflammation or suppressing the inflammation with vagus nerve stimulation or bioelectronic approaches will be beneficial and therapeutic," he said.</p><p>Receiving vagus nerve stimulation would require having an electronic device, about the size of lima bean, surgically implanted in your neck during a 30-minute procedure. A couple of weeks later, you'd visit, say, your rheumatologist, who would activate the device and determine the right dosage. The stimulation would take a few minutes each day, and it'd likely be unnoticeable.</p><p>But the most revolutionary aspect of bioelectronic medicine, according to Dr. Tracey, is that approaches like vagus nerve stimulation wouldn't come with harmful and potentially deadly side effects, as many pharmaceutical drugs currently do.</p><p>"A device on a nerve is not going to have systemic side effects on the body like taking a steroid does," Dr. Tracey said. "It's a powerful concept that, frankly, scientists are quite accepting of—it's actually quite amazing. But the idea of adopting this into practice is going to take another 10 or 20 years, because it's hard for physicians, who've spent their lives writing prescriptions for pills or injections, that a computer chip can replace the drug."</p><p>But patients could also play a role in advancing bioelectronic medicine.</p><p>"There's a huge demand in this patient cohort for something better than they're taking now," Dr. Tracey said. "Patients don't want to take a drug with a black-box warning, costs $100,000 a year and works half the time."</p><p>Michael Dowling, president and CEO of Northwell Health, elaborated:</p><p>"Why would patients pursue a drug regimen when they could opt for a few electronic pulses? Is it possible that treatments like this, pulses through electronic devices, could replace some drugs in the coming years as preferred treatments? Tracey believes it is, and that is perhaps why the pharmaceutical industry closely follows his work."</p><p>Over the long term, bioelectronic approaches are unlikely to completely replace pharmaceutical drugs, but they could replace many, or at least be used as supplemental treatments.</p><p>Dr. Tracey is optimistic about the future of the field.</p><p>"It's going to spawn a huge new industry that will rival the pharmaceutical industry in the next 50 years," he said. "This is no longer just a startup industry. [...] It's going to be very interesting to see the explosive growth that's going to occur."</p>
Japan looks to replace China as the primary source of critical metals
- Enough rare earth minerals have been found off Japan to last centuries
- Rare earths are important materials for green technology, as well as medicine and manufacturing
- Where would we be without all of our rare-earth magnets?
What are the rare earth elements?<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTA2MTM0Ni9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzODExMjMyMn0.owchAgxSBwji5IofgwKtueKSbHNyjPfT7hTJrHpTi98/img.jpg?width=980" id="fd315" class="rm-shortcode" data-rm-shortcode-id="d8ed70e3d0b67b9cbe78414ffd02c43e" data-rm-shortcode-name="rebelmouse-image" />
(julie deshaies/Shutterstock)<p>The rare earth metals can be mostly found in the second row from the bottom in the Table of Elements. According to the <a href="http://www.rareearthtechalliance.com/What-are-Rare-Earths" target="_blank"><u>Rare Earth Technology Alliance</u></a>, due to the "unique magnetic, luminescent, and electrochemical properties, these elements help make many technologies perform with reduced weight, reduced emissions, and energy consumption; or give them greater efficiency, performance, miniaturization, speed, durability, and thermal stability."</p><p>In order of atomic number, the rare earths are:</p> <ul> <li>Scandium or Sc (21) — This is used in TVs and energy-saving lamps.</li> <li>Yttrium or Y (39) — Yttrium is important in the medical world, used in cancer drugs, rheumatoid arthritis medications, and surgical supplies. It's also used in superconductors and lasers.</li> <li>Lanthanum or La (57) — Lanthanum finds use in camera/telescope lenses, special optical glasses, and infrared absorbing glass.</li> <li>Cerium or Ce (58) — Cerium is found in catalytic converters, and is used for precision glass-polishing. It's also found in alloys, magnets, electrodes, and carbon-arc lighting. </li> <li>Praseodymium or Pr (59) — This is used in magnets and high-strength metals.</li> <li>Neodymium or Nd (60) — Many of the magnets around you have neodymium in them: speakers and headphones, microphones, computer storage, and magnets in your car. It's also found in high-powered industrial and military lasers. The mineral is especially important for green tech. Each <a href="https://www.reuters.com/article/us-mining-toyota/as-hybrid-cars-gobble-rare-metals-shortage-looms-idUSTRE57U02B20090831" target="_blank"><u>Prius</u></a> motor, for example, requires 2.2 lbs of neodymium, and its battery another 22-33 lbs. <a href="https://pubs.usgs.gov/sir/2011/5036/sir2011-5036.pdf" target="_blank"><u>Wind turbine batteries</u></a> require 450 lbs of neodymium per watt. </li> <li>Promethium or Pm (61) — This is used in pacemakers, watches, and research.</li> <li>Samarium or Sm (62) — This mineral is used in magnets in addition to intravenous cancer radiation treatments and nuclear reactor control rods.</li> <li>Europium or Eu (63) — Europium is used in color displays and compact fluorescent light bulbs.</li> <li>Gadolinium or Gd (64) — It's important for nuclear reactor shielding, cancer radiation treatments, as well as x-ray and bone-density diagnostic equipment.</li> <li>Terbium or Tb (65) — Terbium has similar uses to Europium, though it's also soft and thus possesses unique shaping capabilities .</li> <li>Dysprosium or Dy (66) — This is added to other rare-earth magnets to help them work at high temperatures. It's used for computer storage, in nuclear reactors, and in energy-efficient vehicles.</li> <li>Holmium or Ho (67) — Holmium is used in nuclear control rods, microwaves, and magnetic flux concentrators.</li> <li>Erbium or Er (68) — This is used in fiber-optic communication networks and lasers.</li> <li>Thulium or Tm (69) — Thulium is another laser rare earth.</li> <li>Ytterbium or Yb (70) — This mineral is used in cancer treatments, in stainless steel, and in seismic detection devices.</li> <li>Lutetium or Lu (71) — Lutetium can target certain cancers, and is used in petroleum refining and positron emission tomography.</li></ul>
Where Japan found is rare earths<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTA2MTM0OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MTA0NzUxNn0.N3t_iKf6lnnoJ6yVUtl8-wNZICEG2ZxyPzm9ZdE99ks/img.jpg?width=980" id="021b7" class="rm-shortcode" data-rm-shortcode-id="d9dd843fde547a0b69f8798aca18a706" data-rm-shortcode-name="rebelmouse-image" />
Minimatori Torishima Island
(Chief Master Sergeant Don Sutherland, U.S. Air Force)<p>Japan located the rare earths about 1,850 kilometers off the shore of <a href="https://en.wikipedia.org/wiki/Minami-Tori-shima" target="_blank"><u>Minamitori Island</u></a>. Engineers located the minerals in 10-meter-deep cores taken from sea floor sediment. Mapping the cores revealed and area of approximately 2,500 square kilometers containing rare earths.</p><p>Japan's engineers estimate there's 16 million tons of rare earths down there. That's <a href="https://minerals.usgs.gov/minerals/pubs/historical-statistics/ds140-raree.xlsx" target="_blank"><u>five times</u></a> the amount of the rare earth elements ever mined since 1900. According to <a href="https://www.businessinsider.com.au/rare-earth-minerals-found-in-japan-2018-4?r=US&IR=T" target="_blank"><u>Business Insider</u></a>, there's "enough yttrium to meet the global demand for 780 years, dysprosium for 730 years, europium for 620 years, and terbium for 420 years."</p><p>The bad news, of course, is that Japan has to figure out how to extract the minerals from 6-12 feet under the seabed four miles beneath the ocean surface — that's the <a href="https://www.nature.com/articles/s41598-018-23948-5" target="_blank"><u>next step</u></a> for the country's engineers. The good news is that the location sits squarely within Japan's Exclusive Economic Zone, so their rights to the lucrative discovery will be undisputed.</p>
One bill hopes to repeal the crime of selling sex and expand social services; the other would legalize the entire sex trade.
The Equality Model asks, criminal or victim?<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTcwMzY3OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxOTUxNjE3M30.g5Ln46h9dqAFsymzKPhZ22-euuhjzAqLcreFKC2oOn0/img.jpg?width=1245&coordinates=0%2C896%2C0%2C-1&height=700" id="06827" class="rm-shortcode" data-rm-shortcode-id="ef934a819b529e8ec5ba6412bf332cfb" data-rm-shortcode-name="rebelmouse-image" data-width="1245" data-height="700" />
Advocates stand outside a courthouse to protest Ghislaine Maxwell, former girlfriend to Jeffrey Epstein, for her role in his sex-trafficking ring.
Credit: Timothy A. Clary/Getty Images<p>The most recent of the two is the Sex Trade Survivors Justice & Equality Act. Set to be introduced by Senator Liz Krueger of Manhattan, the law would repeal the crime of prostitution in the state but would maintain punitive measures against buyers and pimps. The penalty for buying sex, for example, would be a sliding-scale fine based on income.<strong> </strong>The bill also aims to strengthen laws against trafficking and eliminate the so-called <a href="http://ypdcrime.com/penal.law/article230.htm#p230.03" target="_blank">ignorance defense</a>, which affords buyers legal cover if they did not have "reasonable grounds" to assume their victim was underage.</p><p>The Sex Trade Survivors Justice & Equality Act is based on <a href="https://www.equalitymodelus.org/why-the-equality-model/" target="_blank">the Equality Model</a>, first introduced in Sweden in 1999. Under the Swedish Sex Purchase Act, the country decriminalized prostitution and began targeting buyers and suppliers with the goal of lowering demand. As demand decreased, the thinking went, Sweden would witness a subsequent reduction in violence, trafficking, and the trauma associated so strongly with the illicit sex trade. And <a href="https://www.government.se/4a4908/contentassets/8f0c2ccaa84e455f8bd2b7e9c557ff3e/english-summary-of-sou-2010-49.pdf" target="_blank" rel="noopener noreferrer">a 2008 report</a> did find that the strategy manifested some of those goals. </p><p>After the law's introduction, costs increased, fewer men sought to purchase sex, and the number of women in street prostitution halved—though the burgeoning internet scene likely influenced that metric as much as the law. </p><p>As for Sweden's prostituted population, the report was mixed. Fears of the law driving prostitution further underground weren't realized, nor did the risks of physical abuse or dangerous living conditions increase. However, while people who sought to leave the life favored the law, those who wished to stay in the trade denigrated it for hyping the social stigma. </p><p>After the report's release, countries such as Norway, Iceland, Canada, and Israel adopted the Equality Model, and today, many U.S. advocacy groups champion for states to institute similar laws.</p><p>"We who have been in the human-trafficking policy movement for a long time have been advocating for years that people in prostitution should not be criminalized for their exploitation," Alexi Meyers, director of anti-trafficking policy at <a href="https://sanctuaryforfamilies.org/" target="_blank" rel="noopener noreferrer">Sanctuary for Families</a>, told Big Think in an interview discussing the New York bill. "It's the only law where the victim is arrested. Instead of handcuffs, [people in prostitution] need services, need housing, need support."</p><p>Critically, the Sex Trade Survivors Justice & Equality Act does more than decriminalize prostitution. It also bolsters social services such as housing, job training, and mental health care. To help finance these services, money collected by the aforementioned buyer fine will go into a victim-compensation fund. The bill also expands protections for minors arrested under safe harbor and would vacate victims' prior convictions so they could more easily find jobs. </p><p>"When someone has had no family support, have been abused their entire lives, and they haven't gotten the services they need, at the age of 18, they haven't magically transformed from a victim of trafficking into a prostitute," Jayne Bigelsen, vice president of advocacy for Covenant House, New York, said in our interview.</p><p>Bigelsen grants that not everyone engaged in the commercial sex trade may view themselves as a victim, but she notes that a large portion of the population remains vulnerable nonetheless. To treat such people as criminals, as so many contemporary laws do, does no one any favors. The fear of arrest <a href="http://www.prostitutionresearch.com/pdf/Prostitutionin9Countries.pdf" target="_blank" rel="noopener noreferrer">actively discourages</a> victims from seeking an "off-ramp" to the life and strengthens the coercive hold their pimps and traffickers maintain on them.</p><p>"[The law helps] reframe the understanding that this is not a crime. It is a form of gender-based violence and exploitation. I think, over time, people will have a greater understanding of that," Bigelsen adds.</p>
Prostitution, an occupation like any other?<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTcwMzY1My9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2MTc3NjkzNX0.M_8OftwQ5yaGs4YyUPLIRNUAU7Ip-np2cNNdtEl8gLE/img.jpg?width=1245&coordinates=0%2C565%2C0%2C5&height=700" id="0b146" class="rm-shortcode" data-rm-shortcode-id="6027492cc1cb2a2168dc65154aed7845" data-rm-shortcode-name="rebelmouse-image" data-width="1245" data-height="700" />
Sex workers in Amsterdam's famous red-light district, where window prostitution is permitted.
Credit: Dean Mouhtaropoulos/Getty Images<p>But critics of the Equality Model believe it's disguised paternalism that robs women of the right to choose. Worse, they argue, it further stigmatizes sex workers within society and drives the sex trade further underground, where exploitation and violence can continue to fester from prying eyes.</p><p><a href="https://www.nysenate.gov/legislation/bills/2019/s6419#:~:text=S6419%20(ACTIVE)%20%2D%20Sponsor%20Memo&text=Part%20B%20repeals%20and%20amends,are%20repealed%20under%20this%20bill." target="_blank">A second New York Senate bill</a>, currently in committee, would decriminalize the entire sex trade within the state. Called the Stop Violence in the Sex Trades Act, the bill would keep penal laws related to minors and sex trafficking but would make sex work between consenting adults a legal, regulated trade.</p><p>"Sex work is work and should not be criminalized by the state," Senator Julia Salazar, who introduced the bill, stated in <a href="https://www.decrimny.org/post/for-immediate-release-decrim-ny-legislators-intro-first-statewide-bill-to-decriminalize-sex-work" target="_blank" rel="noopener noreferrer">a press release</a>. "Our current policies only empower traffickers and others who benefit from keeping sex work in the shadows. New York State needs to listen to sex workers and make these common-sense reforms to keep sex workers safe and empower sex workers in their workplaces."</p><p>Like the Sex Trade Survivors Justice & Equality Act, Salazar's bill draws inspiration from European laws, namely those from the Netherlands and Germany. Both countries legalized the sex trade a few years after Sweden introduced its Equality Model—though laws and regulations vary between the countries and even districts within them. For example, <a href="https://www.dw.com/en/germany-introduces-unpopular-prostitution-law/a-39511761" target="_blank" rel="noopener noreferrer">Germany has passed a law</a> that requires any business offering sex services to apply for a permit "that will only be granted if health, hygiene and room requirements are met," while <a href="https://www.amsterdam.nl/en/policy/policy-health-care/policy-prostitution/#:~:text=In%20Amsterdam%2C%20prostitution%20in%20private,supplying%20locations%20for%20illegal%20prostitution." target="_blank" rel="noopener noreferrer">Amsterdam limits</a> window prostitution to specific city zones.</p><p>Full-decriminalization advocates hope such laws will facilitate freedom of choice, access to social services, improved health and working conditions, and the decoupling of the occupation from criminal enterprises. They also argue that full decriminalization closes the unintended consequences created by the Equality Model.</p><p>An <a href="https://www.amnesty.org/en/latest/news/2016/05/amnesty-international-publishes-policy-and-research-on-protection-of-sex-workers-rights/" target="_blank" rel="noopener noreferrer">Amnesty International</a> report notes that in Norway, sex workers are routinely evicted from their homes because landlords fear rental agreements will expose them to prosecution for promoting sex. Similar liability concerns deter third parties, such as security, from working with sex workers, too. As a result, sex workers themselves may not be prosecuted but their lives are no less secure nor more firmly established within society.</p><p>"What we have isn't working. The current model of criminalizing sex work traps sex workers and trafficking survivors in cycles of violence. The new proposed legislation referred to as the 'Equality Model' conflates sex work with sex trafficking, using the logic of broken windows policing to address trafficking by targeting sex workers," <a href="https://www.decrimny.org/post/the-equality-model-is-criminalization-by-another-name-pass-the-stop-violence-in-the-sex-trades-act" target="_blank" rel="noopener noreferrer">writes the advocacy group Decrim NY</a>.</p>
New York State to lead decriminalization<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="28c828b962f38fcf2605aa8ed21553e4"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/jMji-YE1qVA?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Of course, Equality Model advocates have their arguments against full decriminalization. Even in countries that have legalized prostitution, the sex trade retains <a href="https://www.bbc.com/news/world-europe-46919294" target="_blank">strong ties to criminal activities</a>. Prostituted women continue to be viewed as pariah—or, in the case of Amsterdam, tourist attractions. And like the legal sex trades of the ancient world, contemporary examples have witnessed a surge in human trafficking to meet the demand. More often than not, poor women from poor countries.</p><p>"If you decriminalize people who buy sex, you're removing any legal barriers or social barriers, and the number of people who buy sex will exponentially increase, and you'll have to fill that new, legal demand with supply. And that supply is human bodies, and there aren't enough willing participants to fulfill that need. That's when trafficking occurs," Alexi Myers said.</p><p><a href="https://ec.europa.eu/anti-trafficking/sites/antitrafficking/files/federal_government_report_of_the_impact_of_the_act_regulating_the_legal_situation_of_prostitutes_2007_en_1.pdf" target="_blank">A report commissioned</a> by Germany's Federal Ministry for Family Affairs, Senior Citizens, Women and Youth looked into the effects of the country's 2001 law. It found the intended impacts to be lacking. According to the report, the Prostitution Act did not create measurable improvements on social protection, working conditions, reduced crime, or the means for leaving the business. The report did assuage some fears, however, by finding that legalization did not make it more difficult to prosecute sex traffickers or related violence when they occurred.</p><p>All told, data will never point to a perfect solution to this or any social concern. In the case of prostitution, emotions and moral instinct run at the redline. Often, the solution one proposes comes down to one's answer of this question: What is prostitution? Is it a violation of another human's rights and dignity? An occupation like any other? Or a moral offense old as the law itself? </p><p>Whatever your answer, you'll likely find current U.S. law lacking. It's for this reason that <a href="https://www.governing.com/archive/more-states-separate-prostitution-sex-trafficking.html" target="_blank" rel="noopener noreferrer">many states are reanalyzing and revamping their prostitution laws</a> to protect victims, usually with more robust safe harbor laws. Whichever law New York State chooses, its successes and failures will likely serve as a bellwether for the United States moving forward.</p>
A physicist creates an AI algorithm that predicts natural events and may prove the simulation hypothesis.
- Princeton physicist Hong Qin creates an AI algorithm that can predict planetary orbits.
- The scientist partially based his work on the hypothesis which believes reality is a simulation.
- The algorithm is being adapted to predict behavior of plasma and can be used on other natural phenomena.
Physicist Hong Qin with images of planetary orbits and computer code.
Credit: Elle Starkman