Category: Poverty

Fish-safety-netWhen Americans are asked what percentage of the federal budget is spent on foreign aid, the average answer is 28 percent. The real answer is around 1 percent.

Before we start mocking the estimation skills of our fellow citizens, I have a similar question for my fellow conservatives: What percent of federal budget goes to programs that provide aid (other than health insurance or Social Security benefits) to individuals and families facing hardship?

Would you say 40 percent? 30 percent? 20 percent?

The actual answer is 12 percent, or $398 billion.

Could the amount of money donated to private charities cover the substitution cost for the social safety net? The short answer is: it’s not even close. As AEI president Arthur Brooks explains,


basic-income-guaranteed-and-minimum-wage_thumb1For decades conservatives and libertarians have pondered ways to replace the defective American welfare state. One of the boldest and most controversial ideas is to simply give everyone a basic guaranteed income. Instead a variety of ad hoc welfare programs, people would simply be given cash.

Matt Zwolinski outlines an example proposal that includes an unconditional cash grant — no strings attached. Just give people cash and leave them “free to spend it, or save it, in whatever way they choose.” Zwolinski outlines a number of benefits we could gain by replacing welfare programs with a guaranteed income.

81396fYesterday, Acton research associate Dylan Pahman made the connection between inequality and poverty alleviation. Today, he continues that argument and explains how the connection affirms the moral merits of economic liberty:

Hayek argued for a stronger connection between inequality and economic progress in his 1960 work The Constitution of Liberty. “New knowledge and its benefits,” writes Hayek, “can spread only gradually, and the ambitions of the many will always be determined by what is as yet accessible only to the few . . . This means that there will always be people who already benefit from new achievements that have not yet reached others.”

Hayek’s basic point is simple: Before many social advancements become common, they first exists as luxuries. “The new things,” writes Hayek, “will often become available to the greater part of the people only because for some time they have been the luxuries of the few.” This applies to much of what the average person in a developed society today takes for granted: automobiles, air-conditioning, refrigeration, tablet computers, smart phones, and so on. Go back far enough, and we might even add clean water and basic sanitation to the list.

Read more . . .

Francis (1)“If there is one thing that religious leaders around the world seem to agree on today,” says Acton research associate Dylan Pahman, “it is the evils of income inequality stemming from a globalized economy.” But as Pahman points out, there is a connection between inequality and poverty alleviation that affirms the moral merits of economic liberty:

It would seem the consensus is that economic inequalities have increased worldwide, and this is a clear moral evil. But when we examine the numbers, a somewhat different picture emerges. Even as inequality has increased, extreme poverty has simultaneously decreased—a clear moral good. Considered in this light, and with the help of Nassim Taleb and (in Part Two of this post) Friedrich Hayek, I will examine the connection between inequality and poverty alleviation and argue that the data affirm, rather than refute, the moral merits of economic liberty.

It stands to reason that if religious leaders are so willing to condemn global capitalism for its apparent evils, they ought to be even more eager to praise its actual goods. I will recommend a different moral metric, drawn from St. John Cassian and St. John Chrysostom, that would support people of faith in being attentive to the plight of the poor while prudently engaging the economic realities at hand.

Read more . . .

Participant in the Doe Fund, New York City

Participant in the Doe Fund, New York City

No one wants to be poor. No one enjoys figuring out how to stretch meals to last just three more days. No parent wants to tell their child they can’t play a sport or get a new backpack because there is simply no money. No one wants to be evicted. Poverty in America is a reality; so what are we going to do about it?

The American Enterprise Institute has a few ideas. They’ve taken a look at where we are 50 years after the War on Poverty was declared. The conclusion is that we’ve not been successful in that war. Poverty in America—and What to Do About It is a compilation of essays on the topic.

Aparna Mathur says the talk of late about “income inequality” is misleading. We must address poverty, not differences in individual income.

We are now in the fifth year of an economic recovery that does not seem like a recovery to most people in the labor market. There are more than 10 million unemployed workers, of which nearly 4 million have been jobless for longer than 27 weeks. In addition, there are another 10 million who are either in involuntary part-time jobs, or are too discouraged to look for work. Therefore, I would argue that the focus on income inequality is somewhat misplaced. This is essentially a problem of poverty.


Cocoa-farmersThere’s a famous essay by Leonard Read titled “I, Pencil” in which an eloquent pencil (yes, pencil) writes in the first person about the complexity and collaboration involved in its own production.

“Here is an astounding fact,” the pencil proclaims. “Neither the worker in the oil field nor the chemist nor the digger of graphite or clay nor any who mans or makes the ships or trains or trucks nor the one who runs the machine that does the knurling on my bit of metal nor the president of the company performs his singular task because he wants me…Indeed, there are some among this vast multitude who never saw a pencil nor would they know how to use one. Their motivation is other than me.”

Trade makes unlikely friends — friends who, by creating, contributing, and trading, participate in powerful acts of service and gift-gifting, whether they know it or not. “Millions of human beings have had a hand in my creation,” the pencil writes, “no one of whom even knows more than a very few of the others.”

Written in 1958, Read’s essay has proven to be a helpful illustration of this reality. And now, in a new pair of videos from VPRO Metropolis, we find yet another.

In the first video, we witness cocoa growers and harvesters in the Ivory Coast, who, up until now, had never before seen, tasted, nor heard of chocolate, a primary output of their toil. They simply harvested the cocoa fruit and sold the beans to brokers. The rest was mystery. (more…)

Crucible of Poverty

Stuart Ray, Donn Weinberg, and Anielka Munkel discuss solutions to poverty – July 17, 2014

On July 17th, the Acton Institute hosted a panel discussion titled “The Crucible of Poverty: Perspectives from the Trenches.” The discussion examined the issue of poverty, with a focus on what strategies for poverty alleviation have worked, what strategies have failed, and how we can better help the most vulnerable among us.

The panelists for the discussion were Mr. Stuart Ray, Executive Director of Guiding light Mission in Grand Rapids, Michigan; Mr. Donn Weinberg, Executive Vice President of The Harry and Jeanette Wienberg Foundation; and Ms. Anielka Munkel, Project Manager here at the Acton Institute, and a co-producer of the PovertyCure DVD series.

The discussion ranged from analysis of the roots of poverty in west Michigan to questions of federal policy relating to poverty, and how foundations can ensure that grant recipients are actually pursuing the goals supported by foundations.

The full discussion is available via the audio player below.