Category: Poverty

800px-Hartmann_Maschinenhalle_1868_(01)In a marvelous speech on the origins of economic freedom (and its subsequent fruits), Deirdre McCloskey aptly crystallizes the deeper implications of her work on bourgeois virtues and bourgeois dignity.

For example, though many doubted that those in once-socialistic India would come to see markets favorably, eventually those attitudes changed, and with it came prosperity. As McCloskey explains:

The leading Bollywood films changed their heroes from the 1950s to the 1980s from bureaucrats to businesspeople, and their villains from factory owners to policemen, in parallel with a similar shift in the ratio of praise for market-tested improvement and supply in the editorial pages of The Times of India… Did the change from hatred to admiration of market-tested improvement and supply make possible the Singh Reforms after 1991? Without some change in ideology Singh would not in a democracy have been able to liberalize the Indian economy…

…After 1991 and Singh much of the culture didn’t change, and probably won’t change much in future. Economic growth does not need to make people European. Unlike the British, Indians in 2030 will probably still give offerings to Lakshmi and the  son of Gauri, as they did in 1947 and 1991. Unlike the Germans, they will still play cricket, rather well. So it’s not deep “culture.” It’s sociology, rhetoric, ethics, how people talk about each other. (more…)

Children-in-PovertyFrom the fiscal to the familial, conservatives have the right answers, says Kevin D. Williamson:

The conservative hesitancy to put the issue of poverty at the center of our domestic economic agenda, rather than tax rates or middle-class jobs, is misguided — politically as well as substantively. Any analysis of the so-called War on Poverty, officially at the half-century mark this year, will find that the numbers are very strongly on the side of the conservative critique of the welfare state: We spend a great deal of money, achieve very little in the way of measurable positive good, and inflict a great deal of destruction on families and communities in the process. Addressing poverty in a meaningful and robust way calls for a response from every part of the conservative coalition, because we have a generation’s worth of social-science research documenting that poverty is only partially an economic phenomenon. Poverty is complexly intertwined with marriage and family, with childbearing habits, and with the prevailing norms in local communities. The cause-and-effect relationships here can be complicated, and they operate at the community level as well as the individual level: For example, poor children with married parents experience better long-term economic outcomes than do those with single parents, but the more significant variable, according to a fascinating Harvard study on the subject, is the prevalence of marriage in their communities. It matters whether a poor child has married parents, that is, but it matters even more how many of his friends and classmates have married parents. The free market is part of the solution here, but it is only a part of the solution. But whether the question is the organization of our families, the organization of our tax code, or the organization of our schools, conservatives are well-positioned to step in and do something about the mess the Left has made of things, if only conservative leaders — and, especially, Republican elected officials — were more inclined to do so.

Read more . . .

On Saturday morning, Acton Institute President Rev. Robert A. Sirico joined host Larry Kudlow on the nationally syndicated Larry Kudlow Show for a wide-ranging Easter weekend discussion. Sirico and Kudlow talked about everything from the so-called “Gospel of Jesus’ Wife” to the collapse of poverty rates worldwide over the past few decades, and ended with a conversation about the upcoming canonizations of Pope John XXIII and Pope John Paul II, and a reflection on whether the march of secularism can be turned back in western society.

You can listen to the interview via the audio player below.

Ignatius Press is now carrying Acton’s PovertyCure DVD Series here:

This widely acclaimed series focuses on the key question, How do people create prosperity for their families and their communities? The purpose of this series is to encounter our brothers and sisters in the developing world not merely as people in need, not as aid recipients, not as charity projects, but as human beings created in the image of God and endowed with His divine creative spark.

To learn more about this small group curriculum and the initiative behind it, visit the PovertyCure website.

Blog author: johnteevan
posted by on Thursday, April 17, 2014

There are several ways to understand that poverty is expensive.

First poor people pay more for the things they buy or they find that cheap stuff is not good. The poor find it hard to pay for housing which leads to having a harder time saving money even by cooking. The poor have a hard time using a bank or even cashing a check without high fees.

Then there are the lower wage part-time jobs that some bosses make worse by urging people to work a few minutes or more or even over lunch for free.

A second way to look at the expense of poverty was highlighted by the 50th anniversary of the War on Poverty. The amount spent on poverty reduction, $1t annually, is terrifically expensive. Most of that comes from 80 means-tested federal programs according to Heritage’s Steven Moore.

A trillion dollars is equal to each of 45m people having $22,222. Of course, money is not given to people, there is a vast government and private web of helpers who work hard to improve conditions for those in poverty.  And they are paid well.

The third way, a way I think is better than the first two, is to count the cost of poverty in terms of wasted lives, wasted opportunity, and loss to our society.

If even 15m people went to work and earned $22,222 our GDP would thrive, tax revenues would rise and programs to help the poor would require dramatically less money.

There is dignity to work, satisfaction in working with others to meet a goal, and the pleasure of doing your job well and being paid for it. Millions are missing that opportunity and are living lives that tend toward mere passivity.

The high cost of poverty is essentially a human cost that is not limited to economic deprivation. The upside is that many who have little tend to be more spiritually rich than others though this idea is treated as a phony sop to keep people down.

uncle-samIt’s tax day, and though I’m sure you’ve already begun your revelry, I suggest we all take a moment of silence to close our eyes and relish that warm, fuzzy feeling we get when pressured by the IRS to pay up or head to the Big House.

Indeed, with all of the euphemistic Circle-of-Protection talk bouncing around evangelicalism — reminding us of our “moral obligation” to treat political planners as economic masters and the “least of these” as political pawns — we should be jumping for joy at the opportunity. Nuclear warhead funding aside, progressive Christianity has elevated Caesar’s role to a degree that surely warrants some streamers.

Yet, if you’re anything like me, you did the exact opposite, writing off purchases, deducting charitable giving, and — gasp! — trying to get some of your money back. (more…)

bitcoin-wallBitcoin is dead, long live Bitcoin.

A few weeks ago the IRS killed off any chance that Bitcoin could become a mainstream currency. That’s probably for the best since it clears the way for it to become something much more important: the world’s first completely open financial network.

Timothy B. Lee has a superb article explaining why this could be transformative. Lee highlights one particularly helpful innovation:

One obvious application is international money transfers. Companies like Western Union and Moneygram can charge as much as 8 percent to transfer cash from one country to another, and transfers can take as long as 3 days to complete. In contrast, Bitcoin transactions only take about 30 minutes to clear, and Bitcoin transaction fees could be a lot less than 8 percent.

An “alternative to Western Union” doesn’t sound revolutionary, does it? Now look at this graphic produced by The Daily Mail which shows how much money is being sent by migrants to their families back home.
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Woman-child-cookingA United Nations panel recently released a report on the single most important environmental problem in the world today — and yet you’ve probably read nothing about it in the news.

Instead, you’ve likely heard about another U.N. report by the Intergovernmental Panel on Climate Change. That report claims that global warming could have a “widespread impact” by the year 2100. Yet in 2012 millions of people died — one in eight of total global deaths — as a result of environmental problem occurring today: indoor air pollution.

According to the World Health Organization’s latest report air pollution is now the world’s largest single environmental health risk, and the main cause is entirely preventable:
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In USA Today comes this story from the Associated Press:

VATICAN CITY (AP) — Pope Francis on Wednesday permanently removed a German bishop from his Limburg diocese after his 31 million-euro ($43-million) new residence complex caused an uproar among the faithful.

Francis had temporarily expelled Monsignor Franz-Peter Tebartz-van Elst from Limburg in October pending a church inquiry.

At the center of the controversy was the price tag for the construction of a new bishop’s residence complex and related renovations. Tebartz-van Elst defended the expenditures, saying the bill was actually for 10 projects and there were additional costs because the buildings were under historical protection.

But in a country where Martin Luther launched the Reformation five centuries ago in response to what he said were excesses and abuses within the church, the outcry was enormous. The perceived lack of financial transparency also struck a chord since a church tax in Germany brings in billions a year to the German church.

The Vatican said Wednesday that the inquiry into the renovation found that Tebartz-van Elst could no longer exercise his ministry in Limburg and that Francis had accepted his resignation, which was originally offered Oct. 20.

Back in October, I was part of a panel of guests on the BBC program World Have Your Say, discussing the question, “Should Religious Leaders Live a Modest Life?” The springboard for the conversation was the scandal surrounding Monsignor Franz-Peter Tebartz-van Elst.

At the Boston Globe yesterday, John Allen sees this as a potential sign of a social gospel alliance between Pope Francis and President Obama, whose first meeting is today: (more…)

wallet-lockWhen bank robber Willie Sutton was asked why he robbed banks, he is (mis)quoted as having said, “Because that’s where the money is.” Turns out that is also why there is more street crime in poorer neighborhoods: because that’s where the cash is. Or at least it’s where the case was.

It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional anonymity. In poor neighborhoods — where street offenses are concentrated — a significant source of circulating cash stemmed from public assistance or welfare payments. But starting in the 1990s that changed, as the Federal government gradually phased out paper welfare checks in favor of electronic debit cards (the Electronic Benefit Transfer [EBT] program).

A team of researchers studied the effects of this change in Missouri and found that it was directly responsible for a hefty 10 percent drop in the overall crime rate:
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