Category: Poverty

Trailer-parkBeing “missional” and showing a concern for justice for the poor have become issues of increasing concern among American evangelicals. Yet the focus tends to tend to be on urban minorities instead of the largest percentage of Americans living under the poverty line.

If you want to hear crickets in a room full of educated, missionally minded, culture-shaping evangelicals, says Anthony Bradley, ask this question: “What are you doing to serve the needs of poor white people?”

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Rosa’s Fresh Pizza in Philadelphia has now given away more than 10,000 slices of pizza, using a unique “pay-it-forward” system where “customers can pre-purchase $1 slices for those in need.”

The story is inspiring on a number of levels, illuminating the power of business to channel the best of humanity toward meeting complex needs in new and unexpected ways, often quite spontaneously.

The owner, Mason Wartman, left his job on Wall Street to start the restaurant, following his vocational aspirations and bringing a new product and service to this Philadelphia neighborhood. This is a great social benefit in and of itself, and yet the owner and his customers went further, responding to other signals in their community through generosity and innovation from the bottom up. As several homeless people in the video explain, the grace-filled approach of the business and its customers made a remarkable impact, giving them peace, encouragement, and empowerment. (more…)

Terezinha Silva and her water purifying system

Terezinha Silva and her water purifying system

It’s no secret that much of the world has a hard time accessing clean drinking water. In Latin America and the Caribbean, for example, it is estimated that 36 million people have no regular access to clean water. This doesn’t just mean people are thirsty; unclean water leads to a host of health problems. Water.org states that somewhere in the world, a child dies every minute because of a water-borne illness.

In São Paulo, Brazil, about 12 million people have a difficult time accessing clean water. Terezinha Silva wanted to do something about that. And she did it with four simple steps. (more…)

de Soto

de Soto

The work of Hernando de Soto has been followed closely for years at Acton and more recently at PovertyCure. See the 2001 interview “The Poor are the Solution, Not the Problem” in Religion & Liberty and a short film clip of de Soto talking about property rights and rule of law at PovertyCure. Search both sites and you’ll find much more. De Soto’s book The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else is essential reading for those interested in his work and is available in the Acton book shop.

David Freddoso profiled de Soto earlier this week at Investor’s Business Daily.

Informality is a central concept in de Soto’s work on poverty. It describes the realm to which the Third World’s poorest are relegated — banished from their nations’ official economies to what he has called “the grubby basement of the precapitalist world.”

He argues that their exclusion — the product of a lack of enforceable property rights — holds back them and the entire world economy. It’s why capitalism, despite its triumph over communism and its wealth generation in America and Western Europe, has failed elsewhere. (more…)

Blog author: ehilton
Thursday, February 26, 2015
By

Combat Flip Flops

Combat Flip Flops

Flip flops – those quick and easy sandals we slip on our feet to run a quick errand, go to the beach or walk the dog around the block. In many countries, flip flops are the most common form of footwear. Can these sandals fight ISIS?

Two former U.S. Army Rangers think so.

Matthew “Griff” Griffin and Donald Lee both served multiple tours in Afghanistan fighting Al Qaeda and the Taliban. These are the guys behind Combat Flip Flops. They still see it as their mission to defeat Islamic extremism in Afghanistan and they think they can do so more effectively with jobs than they ever could by dropping bombs.

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and112812blogNear the top of the list of things I despise is companies that take advantage of the plight of the poor and desperate. But just above that on my list is something I hate even more: being poor and desperate. That’s why I loathe payday lending companies that charge usurious interest rates—and why I’m not yet ready to see them abolished.

Here’s how payday lending works. If you have a job (and pay stub to prove it), a payday lending company will allow you to write and cash a post-dated check. For this service the company will charge an absurd interest rate. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. So if you need $100, you write the check for $115 and they’ll give you $100 in cash. Two weeks later they cash your check or you can renew or “rollover” the amount—for an exorbitant fee.

Why would anyone agree to such terms? Because they have no other choice. About twenty years ago I made some terrible choices and found myself in a serious financial bind. The amount I needed wasn’t much—about $200—but without it I wouldn’t have been able to pay my rent. I took out a payday loan that cost me $30 every two weeks. It took about eight weeks to get clear of the loan, resulting in a cost of $120 to borrow $200 for two months.

If you’re middle class and think of it in terms of interest rate, that repayment cost sounds appalling usurious. And it is. But as the poor will tell you, man does not live on APR alone. Having to pay an extra $120 was cheaper than having to find a new place to live. Yes, it was a bad deal. But it was better than all my other choices.

That is why I believe every serious critique of payday lending needs to be accompanied by a serious proposal to help those who are trapped by such “poverty problems.” An excellent example of an alternative approach is the one offered by Wesley Memorial United Methodist Church in Richmond, Virginia. One of their church members, Nina McCarthy, was initially trapped in the vicious payday lending circle:
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In the following clip from the PovertyCure series, Doug Seebeck explains how U.S. agricultural subsidies have significant negative consequences both at home and abroad — misaligning human action, distorting market signals, and diminishing opportunities for the least of these.

Haiti used to be self-sufficient in rice. Now they get all their rice from the U.S. This is what we do to Africa. We subsidize our agriculture. We overproduce. Then we ship it as aid with a handshake, and we put them out of business. We disempower them. But you’re also putting the U.S. small farmer out of business. And it gets bigger and bigger and you’re squeezing out free enterprise….

How do I best love my neighbor in this rapidly integrating world…so that everybody has the ability to have what I have? It doesn’t mean we give it away. It means allowing them to succeed.

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unbalanced“The bottom half of the world’s population owns the same as the richest 85 people in the world.”

The stat was quoted last month in a report by the development organization Oxfam, but similar claims have become common. You’ve probably seen this statistic—or one like it—before in articles about economic inequality and assumed they must be somewhat true.

But they aren’t. In reality, they are completely meaningless.

One of the problems is that the comparisons are based on net worth (assets minus liabilities). If you aggregate all the people who have a negative net worth into one category and call them the “bottom half” then you come up with some peculiar conclusions. As Felix Salmon says, “My niece, who just got her first 50 cents in pocket money, has more money than the poorest 2 billion people in the world combined.”
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As Christians continue to turn their attention to the intersection of faith and work, it can be easy to dwell on such matters only insofar as they apply to our individual lives. What is our purpose, our vocation, and our value? How does God view our work, and how ought we to render it back to him? What is the source of our economic action?

These questions are important, but the answers will inevitably point us to a more public (and for some, controversial) context filled with profound questions of its own. Stewardship is step one: calling, work, service, generosity, and so on. But what about the ripple effects of all that? How does the personal aspect connect with the public?

As Greg Forster explains in his talk at the recent Faith@Work Summit“You can’t separate stewardship from economics.”

Whether we recognize it or not, our work has profound implications for the broader social and economic order beyond gross domestic product. As we glorify God through our work, we are also creating and cultivating social and spiritual capital with our neighbors, yielding service and fostering trust as we bless strangers and receive similar blessings in return. Lester DeKoster calls it the “fabric of civilization,” weaved together by the Holy Spirit to restore “the broken family of humankind.” (more…)

global-poverty-2-15One of the primary assumptions of the modern age is that all choices are multiple choice. Whether we are choosing the color of the car we drive, the occupation that we will work, or the lifestyle we will live, choice is the dominate paradigm.

While the expansion of choices has, in many ways, expanded human flourishing, it has also led, in some areas, to a false belief that merely wanting something to be multiple choice will make it so.

But what if some large-scale problems only have one solution? What if instead of being an open-ended “Choose Your Own Adventure” novel, these problems are like mathematics, with one right answer?

Global poverty is a primary example, argues Wayne Grudem and Barry Asmus, of a problem with only one type of solution:
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